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10 - Appendixarty of goldeni!,I�-rvaley Capital Improvement Program 2022-2031 Appendix Section Exhibit A Special Assessment Policy for The City of Golden Valley January 17, 1995 Amended February 21, 1995 Amended June 7, 2005 Amended July 18, 2006 Amended January 20, 2009 General Minnesota State Law, Chapters 429.010 to 429.11, provides municipalities the ability to make public improvements such as installation of sanitary sewer, water, storm sewer, sidewalks, and street improvements (including grading, curb and gutter, surfacing, and lighting). The procedures that Cities must follow, including reports, notices, and public hearings, are well defined within the laws. The Statute allows municipalities to assess all or portions of the costs of any improvements to property owners based on the benefits received from the project. The Statute is not specific regarding the determination of benefits to a property, or how to apportion the costs to the benefiting properties. Rather, the law makes the municipality responsible for developing an equitable method of cost sharing among the benefiting property owners. The purpose of this special assessment policy is to provide a guide, to be used by City Staff, for preparing assessment rolls for approval by the City Council. This policy is meant to assure uniform and consistent treatment to all properties within the City as improvements occur. The special assessment policy will not cover all possible assessment situations. Special cases and variations of standard cases that are not specifically discussed under this policy will be evaluated during preliminary project studies, and assessments will be determined that do not violate the benefit principles as required by Statute. No special assessments will be levied against designated floodplains, municipal storm water ponds or wetland areas on private property as determined by criteria in the Wetland Conservation Act of 1991 and the Minnesota Department of Natural Resources. The limits of wetlands will be determined by the City on a case -by -case basis at the time of preliminary project design and feasibility report preparation. No special assessments will be levied against railroad, county highway or state highway rights -of -way. Properties fronting County Roads and County Highways will be subject to special assessments for reconstruction projects based upon this policy. Special assessments levied by the City will include an administrative fee, to be established annually by ordinance, to finance indirect costs associated with the assessment that are incurred by the City. Sanitary Sewer and Water Main Assessments Reconstruction and Repairs No special assessments will be levied for repair and reconstruction of existing sanitary sewer and water main systems, except for properties that have not been previously assessed for these utilities. For properties not previously assessed that are adjacent to sanitary sewer or water main reconstruction projects, the amount of special assessments will be calculated on a case -by -case basis at the time of preliminary design and feasibility report preparation. Property owners are responsible for maintenance, repair and replacement of sanitary sewer services from, and including the connection to the main, and the building being served. Pavement Management street reconstruction projects will include an opportunity for property owners to reconstruct or repair their sanitary sewer services. All costs, including construction, administration and other indirect costs, will be specially assessed to the property being served by the sanitary sewer service. The City is responsible for maintenance, repair and replacement of water services from the connection to the water main up to and including the curb stop or valve on the service line. The property owner is responsible for maintenance, repair and replacement of the water service from the connection of the service pipe to the valve or curb stop, to the building being served. New Construction In instances where property is developing or redeveloping, public sanitary sewer and water main may need to be installed. The construction of City sanitary sewer, water mains and storm sewer to serve these properties will be constructed as public improvement projects, unless the City opts to have the developer design and construct the improvements. The developer of such properties will be responsible for the entire cost of public utilities, including construction, administration and other indirect costs, whether construction is performed as a City Improvement Project or by the developer. At the time such a development project is proposed, the Public Works Department will determine if the project is to be constructed publicly or privately. If the utility installation is to be constructed privately, the developer will be responsible for preparing construction plans and specifications consistent with City standards. These construction plans and specifications must be reviewed and approved by the Public Works Department. The utility installation must also be inspected by the Public Works Department during construction. The developer will be responsible for 100% of the costs of City construction observation and plan review, which will be billed directly to the developer. Any unpaid costs incurred for these services will be assessed against the developing properties. An irrevocable letter of credit must be posted by the developer in an amount equal to 150% of the estimated construction costs to ensure timely completion of the project. If a public sanitary sewer or water main project is to be installed as a City Improvement Project, the developer will be responsible for 100% of the direct and indirect costs incurred by the City. These costs may include, but are not limited to: feasibility report preparation, preliminary survey, preliminary design, final design, construction staking, construction observation, as -built surveying and drafting, and administrative and legal costs. The developer may elect to have these costs assessed against the property being developed or pay the costs directly to the City. Storm Water Drainage Street Storm Sewer No special assessments will be levied for construction or reconstruction of storm sewer systems within the City right-of-way as part of the Pavement Management Program. However, in instances where storm sewer construction is incorporated into Pavement Management Projects to resolve rear yard drainage issues, as discussed in this policy, the costs associated with these improvements will be specially assessed to the benefiting property owners. In instances where storm sewer installation is required for development and redevelopment projects, it shall be specially assessed to the property being developed according to the Sanitary Sewer and Water Main Assessments section of this policy. Rear Yard Storm Sewer In certain instances, storm sewer is necessary in rear yard areas to correct existing drainage problems. City staff will visit such problem areas at the request of a homeowner to evaluate the situation and provide engineering assistance to encourage property owners to remedy the drainage problems without City involvement. If a property owner or owners cannot remedy the rear yard drainage problems, they may petition the City for installation of storm sewer. Upon receiving a request for petition for rear yard storm sewer, engineering staff will determine the properties that contribute storm water runoff to the problem area. The petitioner must then circulate the petition to the contributing property owners for signatures. Each contributing property owner must be made aware that special assessments will be levied against their property for the corrective storm sewer work. A minimum of 35% of the contributing property owners must sign the petition for the City Council to consider the project. Upon receipt of the petition and after a public hearing, the City Council may either deny the request or order the storm sewer improvements. If the improvements are ordered, the contributing property owners will be assessed for 100% of the construction and indirect costs for the storm sewer installation. The method of assessment and the pro -ration of costs will be determined on a project -specific basis. Affected property owners in rear yard drainage projects will also be required to dedicate all drainage and utility easements for the installation of the storm sewer at no cost to the City. If the City must purchase or condemn in order to obtain the easements, the entire acquisition costs will be included in the project costs for assessment or the City may decline to undertake the project. Street Improvements Development/Redevelopment Pro ects When property is developed or redeveloped that has street frontage on roadways that are scheduled for construction or reconstruction, the development will be required to pay an escrow for the future street rehabilitation. The escrow shall be based upon the assessment methods and land uses contained in this policy, and shall be based on the assessment rates in effect at the time the development is approved. The property or properties within the development will not be specially assessed at the time street rehabilitation occurs. Sidewalks No special assessments will be levied for sidewalk construction that is in accordance with the goals and recommendations of the City of Golden Valley Sidewalk Committee. Requests for sidewalks that are not on the current Sidewalk and Trail Plan will be forwarded to the Sidewalk Committee for consideration. The Sidewalk Committee will forward its recommendations for the requested sidewalks to the City Council, which will determine if the proposal should be included in the Sidewalk Plan. Street Lighting Street lighting is available to the residents of Golden Valley on a petition basis according to the Street Lighting Policy. New Street Construction As property within the City develops or redevelops, it may be necessary to install public streets. The Public Works Department will determine if the project is to be installed publicly or privately. The procedures, policies, and requirements for street construction will be the same as discussed for new sanitary sewer installations. Sealcoatin No special assessments will be levied for street sealcoating. Bituminous Milling and Overlays No special assessments will be levied for bituminous milling and overlays. Street Reconstruction Special assessments for street reconstruction projects will be in accordance with this policy and Minnesota Statutes, Chapter 429. The total amount of the special assessments will be a minimum of 20% of the street reconstruction costs not to exceed the benefit received by each property. Special assessment rates for all land uses and street classifications will be determined annually by ordinance. Local Streets 1. Properties with residential and duplex residential land use, parks and other City - owned properties subject to reconstruction will be assessed on a per -unit basis, with one unit assessed to each property unless the property has the potential to be further subdivided into two or more lots that each meets City subdivision ordinance requirements. Such lots that may be so subdivided shall be assessed for the number of units that equals the number of such lots that the property may be subdivided into. However, residential properties that are subject to multiple unit assessments will have all but one of such unit assessments deferred at the time of the initial assessment. Such deferral will be made each year until such time as the property is subdivided. At that time, the deferred unit assessments shall be due. 2. Special assessments against properties with Multiple Dwelling land use will be on a front -foot basis, with 100% of the frontage being improved subject to assessment. 3. Properties with church, school and other tax exempt land uses will be assessed on a front -foot basis, with 100% of the frontage being improved subject to assessment. 4. All other land uses, including commercial, industrial, business and offices will be assessed on a front -foot basis, with 100% of the frontage being improved subject to assessment. 5. Residential properties adjacent to local streets being reconstructed may participate in voluntary programs to have their driveways reconstructed and sanitary sewer service repaired or reconstructed at contract unit prices. Residents will be notified of these programs at informational meetings for each street project. If a resident participates in these programs, staff will coordinate construction with the contractor and will measure the quantities installed. The construction costs, along with an administrative fee, established annually by ordinance, will be assessed to the property owner. 6. When a corner residential lot has frontage on two local streets, it will be assessed for one-half unit assessment for each street subject to reconstruction. No more than one total unit assessment will be charged against a parcel for street reconstruction. Corner properties adjacent to State Aid and local streets will be charged one-half of the appropriate unit assessment at the time of reconstruction of each street. 7. Corner residential properties adjacent to a local street and a state or county roadway will not be subject to special assessments by the City for state highway or county road reconstruction. However, these properties will be assessed the appropriate number of unit assessments for the entire frontage along the local streets when reconstruction occurs on the local street. 8. Residential properties adjacent to frontage roads of state highways will be considered to be on local or Municipal State Aid streets and will be assessed consistent with this policy. 9. Special Assessments for properties not specifically covered in any of the above cases will be addressed on a parcel -specific basis at the time of the feasibility report. State Aid Streets 1. Properties with residential and duplex residential land uses that have frontage on a Municipal State Aid Street will be assessed on a per -unit basis. The per -unit assessment rate will be approximately 25% of the standard residential rate for properties on local streets. Assessments for oversized parcels with the potential for subdivision are to be consistent with the previously discussed policy for local streets. 2. Properties with Multiple Dwelling land use that front on a Municipal State Aid Street will be assessed on a front -foot basis for the frontage being improved. Properties with church, school, and other tax-exempt land uses that front on a Municipal State Aid Street will be assessed on a front -foot basis for the frontage being improved. All other land uses, including commercial, industrial, business and offices that front on a Municipal State Aid Street will be assessed on a front -foot basis for the frontage being improved. 3. Special assessments for properties not specifically covered in any of the above cases will be addressed on a parcel -specific basis at the time of the feasibility report. 4. Residential properties adjacent to State Aid streets being reconstructed will be given the option of having their driveways and sanitary sewer services repaired or reconstructed under the same terms discussed in the local street reconstruction portion of this policy. County Roads 1. Properties with residential and duplex residential land uses adjacent to county roads will be assessed according to the previously discussed methods for local streets, except for corner lots with local streets, which will be assessed in full at the time the intersecting local street is reconstructed. Special assessments to residential properties will be at State Aid street rates. 2. All other land uses, including commercial, industrial, business, and tax-exempt uses will be assessed on a front -foot basis, with 100% of the frontage being improved subject to assessment. The assessment rate shall be the rates used for State Aid streets as established by ordinance. Low Income Senior Citizen and Disability Deferments As required by Minnesota Statute, the City has a special assessment deferral policy for low income senior citizens and disabled persons meeting all of the following criteria: 1. The property upon which the assessment is deferred must be homesteaded; 2. The property is owned by a person at least 65 years of age on January 1 st of the year in which payment of the first installment of the subject assessment is due; or is owned by a person who is retired due to permanent and total disability. 3. The applicant must have a "financial hardship" defined as: a) An annual income at or below a level established annually by ordinance and; b) The aggregate total of all special assessments levies will exceed one and one- half percent (1-1/2%) of the applicant's annual income. More information is available at General Services Office (763.593.8020). Street Reconstruction Special Assessment Rates Special assessment rates as discussed in this policy will be established yearly with the Annual Fee Resolution. The rates will be based on the percentages of construction and indirect costs as discussed above. Indirect costs are estimated to be 30% of the construction costs and include administration, engineering, construction observation, and legal fees. These rates will be subject to revision each year based on the actual construction costs in the City from the previous year and for inflation based upon the ENR Index for construction costs. gold alley Fleet Operation, Maintenance, and Replacement Policy P:Sessage from the Manager Motor vehicles and equipment are vital to day-to-day operations and service delivery activities of the City of Golden Valley. The Public Works Department Vehicle Maintenance Division is responsible for the stewardship of the City's fleet and equipment assets and for meeting the fleet and equipment service requirements of City departments. The division also develops fleet and equipment utilization and replacement policies and schedules. The Vehicle Maintenance Division is an internal service division of the Public Works Department of which the costs are allocated to the other City departments for services provided. The main goal of the Public Works Department Vehicle Maintenance Division is to provide vehicles that are dependable, flexible, efficient, and responsive so that City departments and divisions can operate in a cost-effective manner, minimizing the City's vehicle equipment budget. The division is also committed to maintaining the City's fleet and equipment so that the equipment is readily available for performing City operations and keeping downtime to a minimum. The Public Works staff works with all departments to embrace a philosophy which emphasizes the value of the importance of vehicle and equipment availability, safety, reliability, and efficiency as well as preserving the City of Golden Valley's major capital investment in fleet and equipment. The City has established a capital replacement schedule to replace aging vehicle and equipment. The vehicle and equipment replacement schedule, in conjunction with the 5-year Capital Improvement Program (CIP) and operating budgets, is used to plan any major capital investment (the CIP reflects only those investments that exceed $10,000). New equipment or other items, which are not part of a replacement schedule, are funded annually out of the originating or requesting department's operating budget. Approved February 2010 Purpose The purpose of this policy is to assign responsibility to the City of Golden Valley's Public Works Department Vehicle Maintenance Division for the operation, maintenance, acquisition, and replacement of vehicles and equipment owned and operated by the City, with the exception of vehicles and equipment used by Brookview Golf Course, which are acquired, operated, maintained, and replaced by Golf Maintenance. Policy This policy is intended to ensure the availability of funds for the operation, maintenance, acquisition, and replacement of fleet and equipment. Adherence to this policy will provide effective and efficient fleet and equipment services for operating departments/divisions to provide the best services for the residents and businesses of Golden Valley. This policy establishes a sound business approach associated with the evaluation of vehicle and equipment cost and capabilities, purchasing and funding methodology, and making decisions on acquisition and replacement considering the level of usage and demonstrated needs. Departments are asked to review vehicle and equipment needs with a goal of increasing fuel efficiency, consideration of alternative and/or flexible fuels, reducing the number of vehicles, conversion of the diesel vehicle and equipment to bio-diesel, and promoting the anti -idling policy. 1. Vehicle and Equipment Replacement A vehicle and equipment replacement schedule is maintained by the Public Works Department Vehicle Maintenance Division and Finance Department. Replacement of vehicle and equipment will generally follow the attached Equipment and Vehicle Replacement Guidelines and are summarized as follows and listed as Attachment A: a. Description b. Unit number c. Classification d. Year purchased e. Purchase price f. Expected service life g. Projected replacement cost h. Annual fuel, maintenance, and overhead costs by vehicle classification 2. Vehicle and Equipment Maintenance Vehicle and equipment preventative maintenance schedules are maintained by the Public Works Department Vehicle Maintenance Division with the goal of keeping vehicles and equipment available 95% of the demand time. a. Generally, maintenance standards and procedures are as recommended by the vehicle/equipment manufacturer or other recognized authority, or utilizing the Public Works Department Vehicle Maintenance Division Preventative Maintenance Schedules. i. Daily maintenance inspections are performed by operators and maintenance personnel using the Pre -operation Inspection Form. ii. Scheduled maintenance is performed by the maintenance mechanics considering the above -referenced Preventative Maintenance Schedules. iii. Demand maintenance is generated by user activities and may require outside services. The Service Request Form is used to request demand maintenance. iv. All maintenance done by the operator shall be coordinated with the Vehicle Maintenance Division. b. The Public Works Department Vehicle Maintenance Division may remove equipment or vehicles from service based on the Commercial Vehicle Safety Alliance (CVSA) Out -of —Service Criteria (OSC) or other recognized criteria. 3. Vehicle and Equipment Operation The use of City vehicles or equipment is approved only for matters related to City job responsibilities or for City business. Operation of City vehicles and equipment shall be in accordance with the Employee Handbook, Section 5.0, Subd. 5.25, Vehicle Use, January 1, 2006. Care and cleaning of vehicle and equipment is the responsibility of the user. The Public Works Department Vehicle Maintenance Division will manage and maintain the central fuel system. This includes fuel system access assignments and records management. a. Dedicated department vehicles shall be assigned to departments whose job duties require the immediate availability of a vehicle. I. Dedicated vehicle use shall be subject to the same limitations and conditions as identified in the Vehicle Use Policy. b. Shared vehicles should be considered for employees with similar job duties and should be considered in lieu of a dedicated vehicle. Funding Vehicle and equipment replacement will be funded through the CIP. The Public Works Department Vehicle Maintenance Division will maintain a current and complete inventory of all vehicles and equipment in coordination with all users and the Finance Department. These inventories will establish all divisions/department vehicle and equipment replacement schedule. All vehicles and equipment maintained by the Vehicle Maintenance Division will be reviewed on an annual basis for replacement. If a department/division has requested replacement or an addition to the fleet, Vehicle Maintenance will make a recommendation on the purchase for the CIP to the City Manager. The CIP will be presented to the City Council for consideration and approval during the budget process. 1. Funding New and Replacement Vehicles and Equipment Fleet and equipment projected for replacement, or additional vehicles and equipment, will be funded through the CIP process. Upon acquisition, all fleet and equipment purchased shall be included in the vehicle and equipment inventory database. Requests for fleet and equipment replacement will be addressed through the normal budget process. a. Fleet and equipment with a value in excess of $10,000 purchased for the first time must be included in the CIP. b. Fleet and equipment with a valueless than $10,000 purchased for the first time does not have to be included in the CIP, but must be included in the operating budget. 2. Funding of Operational Expenses a. Fuel Allocation Fuel is allocated based on usage by each piece of equipment or vehicle and billed monthly to the responsible department. Pricing for fuel is based on average total cost of inventory and an overhead charge, as set by the Finance Department. 3. Reassigned Equipment a. Reassigned equipment may be used in lieu of new vehicles/equipment with written approval by the City Manager. Reassignment duration will be as determined annually by the Public Works Department Vehicle Maintenance Division. Reassignments moved within or across departments/divisions will be charged for conversion costs to the receiving department/division by internal service charges. Reassignments with no conversion costs will not be charged. The Finance Department will be notified of all reassignments for fixed assets and insurance reports. 4. Equivalent Replacement/Upgrades a. The CIP fund is structured to replace each vehicle or piece of equipment with an equivalent unit, unless specified/justified, during the budget process. b. Cost increases due to upgrades, changes in type of fleet or equipment, addition of options, or other upgrades associated with vehicles scheduled for replacement, shall be highlighted and clearly summarized as an element of the CIP by the department requesting the upgrade or addition in options. Responsibilities 1. Department Directors shall be responsible for: a. Ensuring that all vehicles and equipment for replacement requests are of the appropriate type and have only those items/options that are operationally required. b. Submitting requests for replacement with cost estimates to the Finance Department and the Public Works Maintenance Manager prior to the CIP and budget process. 2. The Public Works Department Vehicle Maintenance Division shall be responsible for: a. Submitting a 5-year Capital Improvement Program to the Finance Department and City Manager during the budget process. b. Reviewing replacement schedule annually with departments during the budget process to ensure all vehicles and equipment are replaced as appropriate. c. Establishing the Vehicle and Equipment Replacement Schedule. d. Tracking fuel, labor and repair parts annually, and provide this information to Finance and responsible departments. e. Identifying the actual historical cost and variations in cost performance based on lifetime -accumulated age and usage of the various vehicle and equipment types (classifications). 3. The Finance Department shall be responsible for: a. Completing an analysis and reconciliation of the vehicle replacement CIP on an annual basis. Purchasing and Disposal 1. Purchasing Procedures a. New vehicles and equipment will be purchased by the Public Works Maintenance Manager, as assigned by the Director of Public Works and in accordance with Minnesota Statute 471.345. Acquisitions require the cooperation and assistance of many departments. b. When possible, purchases will be made from the State of Minnesota, Hennepin County, or other Joint Purchasing Agreement contracts, as permitted by State Statute. These purchases will also follow the City's purchasing policy. c. Details for budgeting will be provided by the Finance Director when providing the overall budget guidelines. 2. Equipment Disposal a. Disposal of equipment shall be in accordance with the City's business standard of disposing all vehicles and equipment by auction, trade-in, or other approved methods. b. When vehicles and equipment are replaced, there may be reassignment of vehicles or equipment, but there will be no fleet or equipment hold over on the fleet after a replacement is purchased. Adding fleet or equipment to the inventory without City Manager authorization is not permitted. c. In order to address the seasonal or short-term needs, fleet or equipment may be retained temporarily for a period not to exceed nine months from the date the replacement fleet or equipment is placed into service. Request for Vehicles, Equipment, and Service 1. Requesting Vehicles or Equipment a. New vehicles or equipment in excess of $10,000 must be made and approved through the CIP budget process, and have a life of more than three (3) years. The request shall be discussed with the Public Works Maintenance Manager and Vehicle Maintenance Division to avoid duplication of equipment and to discuss the appropriate type and size of vehicle or equipment requested. b. Request for new vehicle or equipment less than $10,000 must be made and approved through the normal budget process. 2. Repair and Maintenance of Vehicle or Equipment Requests a. All repair and maintenance of vehicles and equipment will be made by completing the Vehicle Maintenance Repair Slip, as provided by the Vehicle Maintenance Division. Acquisition Request(s) The 5-year CIP will be reviewed and evaluated annually as part of the budget process. In any given year, vehicle or equipment originally planned for replacement may be adjusted as necessary to account for current needs. golden valley VEHICLE AND EQUIPMENT REPLACEMENT GUIDELINES Public Works Department Vehicle Maintenance Division Management Methodology To manage the City's fleet in a manner that theoretically all of the City's motorized equipment and vehicles are maintained and disposed of by the Public Works Department Vehicle Maintenance Division. The Vehicle Maintenance Division has full responsibility for vehicle and equipment maintenance and the equipment users are charged an hourly repair rate for all service and repairs. 1. Expected Life When new vehicles or equipment are purchased, it is given an expected life (years in service) based on a variety of factors. Below are the estimated life expectancies for some of the significant pieces of equipment: a. Engine Pumpers b. Tandem Dump Trucks c. Single Axle Dump Trucks d. Wheel Loaders e. Backhoe/Excavators f. Jet Truck g. One -Ton Trucks h. 3/ and Y2 Ton Pickups 1. Skid Steers j. Street Sweeper k. Tractors 1. Vactor Truck m. Mowers n. Sport Utility Vehicle o. Passenger Cars/Vans p. Squad Cars q. Trailers r. Sidewalk Machines 20+ years (refurbish half way through life cycle) 12 years 12-14 years -some longer 15-18 years 10-12 years 10 years 9-10 years 10 years -some longer 8-10 years 8 years Varies (15 years average) 10 years Varies (6-10 years) 10 years 10 years 100,000 miles/4 years 15 years 10-12 years 2. Replacement Factors When a particular piece of vehicle or equipment achieves its expected life and reaches its anticipated replacement year, it is analyzed to determine if it should be replaced based on the following factors: a. Critical nature of the equipment or vehicle and the availability of a backup or alternative equipment or vehicle. For example, the Sewer Jet is a critical piece of equipment for which there is no backup except to contract for those services. It is important to have this equipment operational with minimal downtime. b. Use of the equipment or vehicle (hours and/or miles). The duration and intensity of use are also important factors. For example, squad cars typically achieve their expected life of 100,000 miles and are retired in approximately 4 years while other vehicles (cars and light trucks) may never achieve 100,000 miles and can last for many years. c. Appropriateness of the equipment or vehicle for the assigned tasks. Public Works and the user examines whether the equipment or vehicle is still capable of doing its intended work, whether it is the right equipment, and determine if the work changed causing the equipment or vehicle to be obsolete. d. Repair history, costs, and downtime. Mechanics provide critical input and assessments of the overall condition of the equipment. Near the end of the expected life of the equipment or vehicle, repair costs can exceed the value of the equipment or vehicle and replacement is appropriate. e. Suitability of the equipment or vehicle for other tasks. Other departments provide input regarding the ability to reassign equipment and vehicles to other less frequent or intense duties. For example, Public Works have re -assigned used marked squad cars and light pickup trucks to other departments. 3. Life Cycle Costing This accounting method is used as much as possible in managing the City's fleet management. Life cycle costing includes the purchase cost of the equipment or vehicle, lifetime maintenance and operation costs, and the residual value at the time of disposal. This is the true cost of equipment or vehicle ownership. The goal is to replace the equipment during its economic life. This is the period when the maintenance costs are the lowest. 4. Fire Department Vehicle Replacement Practice Fire apparatus is historically refurbished half way through its life cycle (approximately 10-12 years) and replaced after 20 to 24 years of service, or a couple of years longer depending on condition. This general rule applies to "major" apparatus, engine, and ladder trucks. The replacement of a particular piece of apparatus is based upon several factors including the general mechanical and structural condition, required vehicle and safety upgrades, technological changes, current and anticipated use, anticipation of future mission changes, and the current mechanical history (including mileage). The apparatus replacement schedule is revised to reflect a philosophy of validating the replacement of a vehicle, as opposed to replacement based solely upon the age of the vehicle. To this end, vehicles have been moved back in the replacement schedule and not replaced at the time mark historically associated with replacement schedules. Refurbishing pumpers and ladders to extend the "life" of fire apparatus is a common practice. Refurbishing pumper and ladder fire vehicles extends vehicle life.