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Home My WebLink About11-28-16 CC Mtg - C2. Solid Waste CIP Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Administrative Services Director SUBJECT: Adopt the Solid Waste Fund (Collection & Recycling) Capital Improvement Plan (CIP) for Fiscal Years 2018-2022. AGENDA ITEM TYPE: Consent MEETING DATE: November 28, 2016 RECOMMENDATION: Adopt the Solid Waste Fund (Collection & Recycling) Capital Improvement Plan (CIP) for Fiscal Years 2018-2022. BACKGROUND: Each year, the City Manager is required to prepare a 5 Year Capital Improvements Plan and submit it to the Commission by December 15th. Similar to recent years past, we are bringing the various parts of the plan forward as items on the Consent agenda. We will be prepared to address questions, if they arise, at the public meeting. The Public Works, City Manager, and other city staff met in October and November to develop the attached Capital Plan for the equipment and capital needs of the Solid Waste Fund. The attached capital replacement schedule is needed to continue operations for garbage collection and the recycling program. This plan works in concert with the existing Solid Waste Rate study that was completed in FY13, funding annual capital replacement at an amount similar to annual depreciation expense noted in the rate study. Items of Note: 6 • SW42 Storage Building – Solid Waste is requesting a storage building to store its nearly 2000 containers indoors and out of the elements as well as house repair items, lids, wheels, etc. • This schedule no-longer includes the replacement of the packer-portion of garbage trucks. We are recommending going back to the full replacement of the truck and packer units. We tried for numerous years to extend the truck chassis life by replacing the packer unit, however, the process resulted in significant of down-time for the vehicles and left us with aging vehicles that require more maintenance. Our operation will be improved by full vehicle replacements. • Solid Waste Fund revenues have averaged growth of 4.8% per year over the past 5 years, and averaged over 8% in the past 3 years. The capital plan estimates future revenues at 5% for the next 5 years. 640 - Solid Waste Revenue history Amount Change 2012 $ 2,571,722.00 0.1% 2013 $ 2,519,436.00 -2.0% 2014 $ 2,721,913.00 8.0% 2015 $ 2,956,655.00 8.6% 2016 $ 3,238,853.00 9.5% Linear Trend – 2017 $ 3,350,000.00 Average FY12-FY16 $ 2,801,715.80 4.8% 7 UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. If the Commission does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY18. Report compiled on: November 17h, 2016 Attached: Solid Waste CIP $- $500,000.00 $1,000,000.00 $1,500,000.00 $2,000,000.00 $2,500,000.00 $3,000,000.00 $3,500,000.00 $4,000,000.00 2012 2013 2014 2015 2016 Linear Trend - 2017 Solid Waste Fund Revenues 8 Solid Waste Collection & RecyclingCapital Improvement PlanFinancial Summary Current YearFY17 FY18 FY19 FY20 FY21 FY22UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 145,000$ 31,710$ 51,522$ 214,827$ 132,032$ 385,554$ ‐$ Plus: Revenues Dedicated to CIP 436,710$ 449,811$ 463,306$ 477,205$ 491,521$ 506,267$ ‐$ Less: Carryover Capital from FY16 (440,000)$ Less: Scheduled CIP Project Costs (110,000)$ (430,000)$ (300,000)$ (560,000)$ (238,000)$ (250,000)$ Projected Year‐End Cash Dedicated to CIP 31,710$ 51,522$ 214,827$ 132,032$ 385,554$ 641,820$ ‐$ Assumptions Made for Revenue Estimates: Current YearFY17 FY18 FY19 FY20 FY21 FY22Estimated Annual Revenues 3,359,309$ 3,359,309$ 3,460,088$ 3,563,891$ 3,670,808$ 3,780,932$ Estimated Annual Increase in Revenues ‐ 3.0% 3.0% 3.0% 3.0% 3.0%Total Estimated Revenues 3,359,309$ 3,460,088$ 3,563,891$ 3,670,808$ 3,780,932$ 3,894,360$ Current Revenues Dedicated to CIP % 13.0% 13.0% 13.0% 13.0% 13.0% 13.0% Plus: Increase Dedicated to CIP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total % Dedicated to CIP 13.0% 13.0% 13.0% 13.0% 13.0% 13.0%Total Estimated Revenues Dedicated to CIP 436,710$ 449,811$ 463,306$ 477,205$ 491,521$ 506,267$ Note: 2012 Rate Study identifies $367,000 in total annual depreciation expense.ProjectedProjectedCURRENT600,000500,000400,000300,000200,000100,0000Solid Waste Projects & Equipment 9 CIP PROJECT FUPROJ.DEPARTMENTPROJECT NAMEUnscheduledFY21FY18FY19FY20FY22Solid WasteSW32COLLECTIONFRONT LOAD TRUCK REPLACEMENT$270,000SW36COLLECTIONSIDE LOAD TRUCK ‐ NEW (ADDITIONAL ROUTE)$290,000SW38COLLECTIONSIDE LOAD TRUCK REPLACEMENT OF ASSET #3367$300,000SW42COLLECTIONSTORAGE BUILDING$130,000SW45COLLECTIONTOTE DELIVERY TRUCK$38,000SW46COLLECTIONGRAPPLE TRUCK$200,000SW49COLLECTIONSIDE LOAD TRUCK ‐ REPLACEMENT OF ASSET #3452$300,000$238,000$430,000$300,000$560,000Solid WasteSW47SOLID WASTESOLID WASTE RATE STUDY$50,000SW48SOLID WASTETROMMEL SCREEN$200,000$250,000Summary for Solid Waste (9 items)Totals by year:$238,000 $250,000$430,000FY21FY22FY18UnscheduledFY20$560,000$300,000FY1910 CIP Project Fund Solid Waste PROJECT NUMBER SW32 DEPARTMENT COLLECTION PROJECT NAME Front Load Truck Replacement FY18 FY19 Unscheduled DESCRIPTION OF PROJECT This truck is a replacement for an existing front-load truck currently collecting residential and commercial refuse. Describe the criticality (i.e., importance) of this project to the operation: This equipment is critical to the operation of the Solid Waste Division. Customer depend on refuse removal on their collection day How is efficiency improved with this equipment: Efficiency is improved with this equipment on the chassis side with increased fuel efficiency and emission reductions What is the impact (i.e., scope-of-use) for this equipment: This equipment will be used in the collection of refuse for Bozeman customers. ALTERNATIVES CONSIDERED Leasing a front-load truck. ADVANTAGES OF APPROVAL What are the implications of deferring the purchase of this equipment: We will be forced to use existing equipment longer leading to higher repair costs and longer downtime of trucks not on route. Can lead to declining customer confidence resulting in loosing customer accounts. Reliable equipment to ensure routes completed in an efficient manner. Maintenance costs of new equipment will be lower. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Average maintenance costs: $10,000/year FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY20 $270,000 FY21 FY22 11 CIP Project Fund Solid Waste PROJECT NUMBER SW36 DEPARTMENT COLLECTION PROJECT NAME Side Load Truck - New (Additional Route) FY18 FY19 Unscheduled DESCRIPTION OF PROJECT Side Load Truck - New (Additional Route) Describe the criticality (i.e., importance) of this project to the operation: This equipment is critical to the operation of the Solid Waste Division. Customers depend on refuse removal on their collection day How is efficiency improved with this equipment: Efficiency is improved with this equipment on the chassis side with increased fuel efficiency and emission reductions. The packer mounted on the chassis also see improvements thru better operator agronomics with joystick controls and better packer function options. What is the impact (i.e., scope-of-use) for this equipment: This equipment will be used in the collection of refuse for Bozeman customers ALTERNATIVES CONSIDERED Leasing a side-load truck ADVANTAGES OF APPROVAL What are the implications of deferring the purchase of this equipment: We will be forced to use existing equipment longer leading to higher repair costs and longer downtime of trucks not on route. Can lead to declining customer confidence resulting in loosing customer accounts. Reliable equipment to ensure routes completed in an efficient manner. Maintenance costs of new equipment will be lower. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual operating and maintenance costs = $30,000 FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY20 $290,000 FY21 FY22 12 CIP Project Fund Solid Waste PROJECT NUMBER SW38 DEPARTMENT COLLECTION PROJECT NAME Side Load Truck Replacement of Asset #3367 FY18 FY19 $300,000 Unscheduled DESCRIPTION OF PROJECT This truck is a replacement for an existing side-load truck currently collecting residential refuse. Describe the criticality (i.e., importance) of this project to the operation: This equipment is critical to the operation of the Solid Waste Division. Customer depend on refuse removal on their collection day. How is efficiency improved with this equipment: Efficiency is improved with this equipment on the chassis side with increased fuel efficiency and emission reductions. The packer mounted on the chassis also see improvements thru better operator ergonomics with joystick controls and better packer function options. What is the impact (i.e., scope-of-use) for this equipment: This equipment will be used in the collection of refuse for Bozeman customers ALTERNATIVES CONSIDERED Leasing a side-load truck ADVANTAGES OF APPROVAL What are the implications of deferring the purchase of this equipment: We will be forced to use existing equipment longer leading to higher repair costs and longer downtime of trucks not on route. Can lead to declining customer confidence resulting in loosing customer accounts. Reliable equipment to ensure routes completed in an efficient manner. Maintenance costs of new equipment will be lower. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual operating and maintenance costs = $30,000 FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY20 FY21 FY22 13 CIP Project Fund Solid Waste PROJECT NUMBER SW42 DEPARTMENT COLLECTION PROJECT NAME Storage Building FY18 $130,000 FY19 Unscheduled DESCRIPTION OF PROJECT Solid Waste Storage Building Describe the criticality (i.e., importance) of this project to the operation: Allows us to store containers indoors out of Sunlight, container can be left in stack form and be assembled as needed. We have about 2,000 containers in stock. Also house all the repair items such as lids, wheels for each size for totes and dumpsters. ALTERNATIVES CONSIDERED Continue to store items outside ADVANTAGES OF APPROVAL What are the implications of deferring the purchase of this equipment: We continue to work outdoors in poor weather conditions to assemble 600 totes as they are off loaded. If totes are not assembled quickly, it becomes impossible to pull them apart, as the totes are stacked together. Protect equipment from the elements of weather; All of our containers can be stored inside, not collecting water, exposure to sun and be less visible to adjacent properties. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Operating costs, electricity for lights = < $1,000/ year FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY20 FY21 FY22 14 CIP Project Fund Solid Waste PROJECT NUMBER SW45 DEPARTMENT COLLECTION PROJECT NAME Tote Delivery Truck FY18 FY19 Unscheduled DESCRIPTION OF PROJECT This truck is a replacement for an existing tote delivery truck Describe the criticality (i.e., importance) of this project to the operation: This truck is critical in the execution of container management. Totes need to be delivered to new customers, exchange of totes for customers and removal of totes. What is the impact (i.e., scope-of-use) for this equipment: Used for the tote management of Solid Waste customers ALTERNATIVES CONSIDERED Leasing a truck ADVANTAGES OF APPROVAL What are the implications of deferring the purchase of this equipment: Will have an significant impact on the daily operation of the Solid Waste Division. The Solid Waste Division can continue to deliver, exchange and remove customer tote requests. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Maintenance costs $1,000/year FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY20 FY21 $38,000 FY22 15 CIP Project Fund Solid Waste PROJECT NUMBER SW46 DEPARTMENT COLLECTION PROJECT NAME Grapple Truck FY18 FY19 Unscheduled DESCRIPTION OF PROJECT Truck with articulating arm with clam shells that will pick up large items and place into dump box Describe the criticality (i.e., importance) of this project to the operation: Work can still be done by hand, increasing risk of back injury . How is efficiency improved with this equipment: Efficiency is accomplished thru our work comp rates. What is the impact (i.e., scope-of-use) for this equipment: This equipment will be used in the collection of bulky item and brush removal. ALTERNATIVES CONSIDERED Leasing a grapple truck ADVANTAGES OF APPROVAL What are the implications of deferring the purchase of this equipment: We continue to collect these large items by hand. Equipment would be used to pick up large bulky items and brush. Currently we manually load these items by hand. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Maintenance cost: $6,000 per year FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY20 FY21 $200,000 FY22 16 CIP Project Fund Solid Waste PROJECT NUMBER SW47 DEPARTMENT SOLID WASTE PROJECT NAME Solid Waste Rate Study FY18 FY19 Unscheduled DESCRIPTION OF PROJECT Solid Waste Rate Study - including an analysis of revenue requirements, funding depreciation, and cost recovery by customer class. The most recent rate study was completed in 2013 and should be updated. ALTERNATIVES CONSIDERED Continue with current rates. ADVANTAGES OF APPROVAL Customers will be appropriately charged for their garbage and recycling services. Full cost accounting, rates based on cost of services. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED NA FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY20 FY21 FY22 $50,000 17 CIP Project Fund Solid Waste PROJECT NUMBER SW48 DEPARTMENT SOLID WASTE PROJECT NAME Trommel Screen FY18 FY19 Unscheduled DESCRIPTION OF PROJECT A screen that can separate out garbage from finished compost and separate the size of compost. Describe the criticality (i.e., importance) of this project to the operation: This is the final stage of the composting process. How is efficiency improved with this equipment: Currently we do not have the ability to accomplish this task. ALTERNATIVES CONSIDERED Rental of this equipment is not available ADVANTAGES OF APPROVAL What are the implications of deferring the purchase of this equipment: We continue to stockpile. The Solid Waste Division can market the finished compost product. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED NA FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY20 FY21 FY22 $200,000 18 CIP Project Fund Solid Waste PROJECT NUMBER SW49 DEPARTMENT COLLECTION PROJECT NAME Side Load Truck - Replacement of Asset #3452 FY18 $300,000 FY19 Unscheduled DESCRIPTION OF PROJECT Side Load Truck - Replacement of Asset #3452 Describe the criticality (i.e., importance) of this project to the operation: This equipment is critical to the operation of the Solid Waste Division. Customers depend on refuse removal on their collection day. How is efficiency improved with this equipment: Efficiency is improved with this equipment on the chassis side with increased fuel efficiency and emission reductions. The packer mounted on the chassis also see improvements thru better operator ergonomics with joystick controls and better packer function options. What is the impact (i.e., scope-of-use) for this equipment: This equipment will be used in the collection of refuse for Bozeman customers ALTERNATIVES CONSIDERED Leasing a side-load truck ADVANTAGES OF APPROVAL What are the implications of deferring the purchase of this equipment: We will be forced to use existing equipment longer leading to higher repair costs and longer downtime of trucks not on route. Can lead to declining customer confidence resulting in loosing customer accounts. Reliable equipment to ensure routes completed in an efficient manner. Maintenance costs of new equipment will be lower. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual operating and maintenance costs = $30,000 FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY20 FY21 FY22 19