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Home My WebLink About11-20-17 City Commission Packet Materials - C3. Tree Maintenance Fund CIP FY2019-2023Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director SUBJECT:Adopt the Tree Maintenance Fund Capital Improvement Plan (CIP) for Fiscal Years 2019-2023. AGENDA ITEM TYPE: Consent MEETING DATE: November 20, 2017 RECOMMENDATION: Adopt the Tree Maintenance Fund Capital Improvement Plan (CIP) for Fiscal Years 2019-2023. 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 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 Forestry Department, City Manager, and other city staff met in October to develop the attached Capital Plan for the equipment and capital needs of the Tree Maintenance Fund. Item of Note: FOR11 – Log Loader & Truck, this a request to replace a 2001 Ford F650. Forestry is moving up an unscheduled request to FY19. This piece of Forestry equipment is considered to be unsafe and impractical. 13  FOR13 – Aerial Bucket Truck Replacement, this is a new item on the schedule this year. For funding reasons, we have placed the item in the “unscheduled” column. It is likely that enough funding will be available in FY22 for the replacement, if cash is accumulated.  Revenues for the Fund: This fund benefits from increases in the Tree Maintenance Assessment, which is 100% dedicated to funding the Forestry operation. This CIP contains more, on average, in capital costs than we have seen in the past. Without a significant increase in annexed property, we will need to increase the Tree Maintenance Assessment 1.5% each year for the next 5 years to fund this capital plan, and then pending replacement of the Aerial Bucket Truck. 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 FY19. Report compiled on: November 7, 2017 Attached: Tree Maintenance Fund CIP 14 Tree Maintenance Fund Capital Improvement PlanFinancial Summary Current YearFY18 FY19 FY20 FY21 FY22 FY23UNSCHEDULEDProjected Beginning Reserve Balance Dedicated to CIP 140,026$ 118,932$ 20,872$ (44,180)$ 19,994$ (49,387)$ ‐$ Plus: Tree Mtc Revenues Dedicated to CIP 35,906$ 41,940$ 52,949$ 64,174$ 75,618$ 87,285$ ‐$ Less: Scheduled CIP Project Costs (57,000)$ (140,000)$ (118,000)$ ‐$ (145,000)$ ‐$ (65,000)$ Projected Year‐End Cash Dedicated to CIP 118,932$ 20,872$ (44,180)$ 19,994$ (49,387)$ 37,898$ Assumptions Made for Revenue Estimates Current YearFY18 FY19 FY20 FY21 FY22 FY23Estimated Annual Tree Mtc Revenues 692,073$ 692,073$ 698,994$ 705,984$ 713,044$ 720,174$ Estimated Annual Increase ‐ Attributed to Annexations 0% 1% 1% 1%1% 1%Total Estimated Revenues 692,073$ 698,994$ 705,984$ 713,044$ 720,174$ 727,376$ Current Revenues Dedicated to CIP % 3.2% 4.5% 6.0% 7.5% 9.0% 10.5% Plus: Increase Dedicated to CIP 1.3% 1.5% 1.5% 1.5% 1.5% 1.5% Total % Dedicated to CIP 4.5% 6.0% 7.5% 9.0% 10.5% 12.0%Total Estimated Revenues Dedicated to CIP 31,143$ 41,940$ 52,949$ 64,174$ 75,618$ 87,285$ ProjectedProjectedCURRENT$(140,000)$(118,000)$‐$(145,000)$‐$(65,000)FY18 FY19 FY20 FY21 FY22 FY23 UNSCHEDULEDTREE MAINTENANCE PROJECTS & EQUIPMENT 15 CIP PROJECT FUPROJ.DEPARTMENTPROJECT NAMEFY19UnscheduledFY23FY20FY21FY22Tree Maintenance DistrictFOR07FORESTRYFORESTRY VEHICLE REPLACEMENTS$28,000FOR10FORESTRYSTUMP GRINDERFOR11FORESTRYLOG LOADER & TRUCK$140,000FOR13FORESTRYAERIAL LIFT / BUCKET TRUCK$145,000FOR14FORESTRYFORESTRY CHIP TRUCK$90,000FOR15FORESTRYTOOLCAT UTILITY MACHINE$65,000$140,000$118,000$145,000$65,000Totals by DEPARTMENTSummary for Tree Maintenance District (6 items)Totals by year:$140,000$118,000$65,000FY23FY19FY20UnscheduledFY22$145,000FY2116 CIP Project Fund Tree Maintenance District PROJECT NUMBER FOR07 DEPARTMENT FORESTRY PROJECT NAME Forestry Vehicle Replacements FY19 FY20 $28,000 Unscheduled DESCRIPTION OF PROJECT This is a request to replace a 1999 Ford 1/2 ton pickup truck. #2728 has 95,000 miles and the clutch needs replacement. ALTERNATIVES CONSIDERED Continue to use and repair existing vehicle. As directed by Commission. ADVANTAGES OF APPROVAL Replacing this pickup will provide the Forestry division with more reliable truck, improve safety, lower exhaust emissions, tow trailers with its tow package, and work as needed. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Operating costs (maintenance and fuel/oil) of a newer vehicle are expected to be lower. FUNDING SOURCES 100% Tree Maintenance District Fund New Replacement Equipment Project FY21 FY22 FY23 17 CIP Project Fund Tree Maintenance District PROJECT NUMBER FOR10 DEPARTMENT FORESTRY PROJECT NAME STUMP GRINDER FY19 FY20 Unscheduled DESCRIPTION OF PROJECT This is a request to replace a 1996 Vermeer stump grinder. This would be a scheduled replacement of an department forestry equipment that is nearing 20 years of age. Forestry needs a larger, and more modern stump grinder. Additional info: #2671 – 1996 Vermeer 630B Stump Grinder 350 Hours Replace All Wiring Replace Cutter Belts ALTERNATIVES CONSIDERED Continue to use existing equipment. As directed by Commission. ADVANTAGES OF APPROVAL Replacing this equipment will provide the Forestry division with an larger and more reliable piece of equipment. Also it will improve productivity and will be safer for the operator. Trade in on new purchase or put in public auction. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Normal maintenance and upkeep. FUNDING SOURCES 100% Tree Maintenance District Fund New Replacement Equipment Project FY21 FY22 FY23 18 CIP Project Fund Tree Maintenance District PROJECT NUMBER FOR11 DEPARTMENT FORESTRY PROJECT NAME LOG LOADER & TRUCK FY19 $140,000 FY20 Unscheduled DESCRIPTION OF PROJECT This a request to replace a 2001 Ford F650. Forestry is moving up an unscheduled request to FY19. This piece of Forestry equipment is both unsafe and impractical. Additional info: #3125 – 2001 Ford F650, National Crane N50, Palift Hydraulic Dump, 10,000 miles/1100 hours. Hydroboost Brake System Repairs, Leaky Rear Seals, transmission slip, GVWR 26000 Max – 24500 lbs. empty. Not True Forestry style Equipment. ALTERNATIVES CONSIDERED Continue to use existing vehicle. As directed by Commission. ADVANTAGES OF APPROVAL Replacing this Forestry equipment will provide better production and improved safety to the operator. This truck and crane was pieced together and is over its safe gvwr nearly empty. Replace for a true urban Forestry log and brush loader. Trade in or public auction the whole thing. No other City department can use it or any part of it. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES 100% Tree Maintenance District Fund New Replacement Equipment Project FY21 FY22 FY23 19 CIP Project Fund Tree Maintenance District PROJECT NUMBER FOR13 DEPARTMENT FORESTRY PROJECT NAME Aerial Lift / Bucket Truck FY19 FY20 Unscheduled DESCRIPTION OF PROJECT Replace 2001 #3069 C7500 HI-Ranger bucket truck. This Forestry equipment is nearing its 20 year anniversary. 11,000 miles/4,000 hours. This truck has been the main workhorse for the division and is showing its wear. Replacement would give us a modern truck with a higher working height and new safety items. ALTERNATIVES CONSIDERED Continue to use existing vehicle. As directed by the commission. ADVANTAGES OF APPROVAL Replacement of this equipment provides the division with a more reliable bucket truck. Improves operator safety, lowers exhaust emissions, and gives us the overall working height we need for the City's largest trees. Sell by public auction the existing bucket truck. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES 100% Tree Maintenance District Fund New Replacement Equipment Project FY21 FY22 $145,000 FY23 20 CIP Project Fund Tree Maintenance District PROJECT NUMBER FOR14 DEPARTMENT Forestry PROJECT NAME FORESTRY CHIP TRUCK FY19 FY20 $90,000 Unscheduled DESCRIPTION OF PROJECT This is a request to replace a 1991 International Forestry chip truck. This Forestry equipment is nearly 30 years old and has reliability issues with the engine. Replacement with a modern truck would bring cleaner emission through Tier 4 Diesel standards. A larger dump body of 20 cubic yards (25% increase) reduces trips to the landfill, saving both vehicle wear and time. ALTERNATIVES CONSIDERED Replace 1991 International Forestry with a new 15 cubic yard chip truck (Reduced cost). ADVANTAGES OF APPROVAL Improved efficiency and reduced man-hours spent dumping waste ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Routine maintenance and Diesel Exhaust Fluid FUNDING SOURCES 100% Tree Maintenance District Fund New Replacement Equipment Project FY21 FY22 FY23 21 CIP Project Fund Tree Maintenance District PROJECT NUMBER FOR15 DEPARTMENT FORESTRY PROJECT NAME TOOLCAT UTILITY MACHINE FY19 FY20 Unscheduled $65,000 DESCRIPTION OF PROJECT This is a request for a multi-function, cabbed vehicle. This equipment would improve efficiency and capability related to snow removal. Compared to hand-shoveling and ATV use, staff could maintain more plowing routes in less time. ALTERNATIVES CONSIDERED Rely on current hand-shoveling and ATV use. ADVANTAGES OF APPROVAL Increased staff efficiency related to snow removal ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Routine maintenance FUNDING SOURCES 100% Tree Maintenance Fund New Replacement Equipment Project FY21 FY22 FY23 22