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Home My WebLink About11-20-17 City Commission Packet Materials - C4. Solid Waste Fund CIP FY2019-2023 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director SUBJECT: Adopt the Solid Waste Fund (Collection & Recycling) Capital Improvement Plan (CIP) for Fiscal Years 2019-2023. AGENDA ITEM TYPE: Consent MEETING DATE: November 20, 2017 RECOMMENDATION: Adopt the Solid Waste Fund (Collection & Recycling) 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 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: 23  SW52 Side Load Truck Replacement – Solid Waste is requesting this side load truck replacement for FY21, which is critical to complete residential garbage collection service. As per the approved 6-year replacement schedule, garbage truck, asset #3746, will be placed as a backup truck for the division.  SW50-51 Side Load Truck Replacements- These side load trucks have been scheduled on the plan as part of the 6-year replacement schedule for FY23.  Solid Waste Fund revenues have averaged growth of 4.8% per year over the past 5 years, and averaged over 9% in the past 3 years. The capital plan estimates future revenues at 5% for the next 5 years. FY Amount Change 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% 2017 3,613,721.00$ 11.6% Linear Trend‐2018 3,713,721.00$ Average FY13‐FY17 3,010,115.60$ 7.2% 640 ‐ Solid Waste Revenue history 24 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 7, 2017 Attached: Solid Waste CIP 25 Solid Waste Collection & RecyclingCapital Improvement PlanFinancial Summary Current YearFY18 FY19 FY20 FY21 FY22 FY23UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 468,495$ 135,862$ 452,848$ 435,683$ 667,660$ 1,016,135$ ‐$ Plus: Revenues Dedicated to CIP 492,367$ 516,986$ 542,835$ 569,977$ 598,476$ 628,399$ ‐$ Less: FY17 Carryover Capital (95,000)$ Less: Scheduled CIP Project Costs (730,000)$ (200,000)$ (560,000)$ (338,000)$ (250,000)$ (600,000)$ Projected Year‐End Cash Dedicated to CIP 135,862$ 452,848$ 435,683$ 667,660$ 1,016,135$ 1,044,535$ ‐$ Assumptions are made for Revenue Estimates Current YearFY18 FY19 FY20 FY21 FY22 FY23Estimated Annual Revenues 3,787,441$ 3,787,441$ 3,976,813$ 4,175,654$ 4,384,436$ 4,603,658$ Estimated Annual Increase in Revenues 0.0% 5.0% 5.0% 5.0% 5.0% 5.0%Total Estimated Revenues 3,787,441$ 3,976,813$ 4,175,654$ 4,384,436$ 4,603,658$ 4,833,841$ Current Revenues Dedicated to CIP % 13.0% 13.0% 13.0% 13.0% 13.0% 13.0% Plus: Increase Dedicated to CIP0.0% 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 CIP492,367$ 516,986$ 542,835$ 569,977$ 598,476$ 628,399$ ProjectedProjectedCURRENT$(200,000)$(560,000)$(338,000)$(250,000)$(600,000)FY18 FY19 FY20 FY21 FY22 FY23 UNSCHEDULEDSOLID WASTE PROJECTS & EQUIPMENT 26 CIP PROJECT FUPROJ.DEPARTMENTPROJECT NAMEFY19UnscheduledFY23FY20FY21FY22Solid Waste FundSW32CollectionFRONT LOAD TRUCK REPLACEMENT$270,000SW36CollectionSIDE LOAD TRUCK - NEW (ADDITIONAL ROUTE)$290,000SW45CollectionTOTE DELIVERY TRUCK$38,000SW46CollectionGRAPPLE TRUCK$200,000$200,000$560,000$38,000Totals by DEPARTMENTSolid Waste FundSW47Solid WasteSOLID WASTE RATE STUDY$50,000SW48Solid WasteTROMMEL SCREEN$200,000SW50Solid WasteSIDE LOAD TRUCK$300,000SW51Solid WasteSIDE LOAD TRUCK - RECYCLING$300,000SW52Solid WasteSIDE LOAD TRUCK REPLACEMENT$300,000$600,000$300,000$250,000Totals by DEPARTMENTSummary for Solid Waste Fund (9 items)Totals by year:$600,000$200,000$560,000FY23FY19FY20UnscheduledFY22$250,000$338,000FY2127 CIP Project Fund Solid Waste Fund PROJECT NUMBER SW32 DEPARTMENT Collection PROJECT NAME Front Load Truck Replacement FY19 FY20 $270,000 Unscheduled DESCRIPTION OF PROJECT This truck is a replacement for an existing front-load truck currently collecting residential and commercial refuse. This equipment is critical to the operation of the Solid Waste Division. Customer depend on refuse removal on their collection day. Efficiency is improved with this equipment on the chassis side with increased fuel efficiency and emission reductions. ALTERNATIVES CONSIDERED Leasing a front-load truck. ADVANTAGES OF APPROVAL 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 FY21 FY22 FY23 28 CIP Project Fund Solid Waste Fund PROJECT NUMBER SW36 DEPARTMENT Collection PROJECT NAME Side Load Truck - New (Additional Route) FY19 FY20 $290,000 Unscheduled DESCRIPTION OF PROJECT This is a new side load truck to be used for additional routes. This equipment is critical to the operation of the Solid Waste Division. Customers depend on refuse removal on their collection day. 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. ALTERNATIVES CONSIDERED Leasing a side-load truck ADVANTAGES OF APPROVAL 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 FY21 FY22 FY23 29 CIP Project Fund Solid Waste Fund PROJECT NUMBER SW45 DEPARTMENT Collection PROJECT NAME Tote Delivery Truck FY19 FY20 Unscheduled DESCRIPTION OF PROJECT This truck is a replacement for an existing tote delivery truck. 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. ALTERNATIVES CONSIDERED Leasing a truck ADVANTAGES OF APPROVAL The Solid Waste Divison 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 FY21 $38,000 FY22 FY23 30 CIP Project Fund Solid Waste Fund PROJECT NUMBER SW46 DEPARTMENT Collection PROJECT NAME Grapple Truck FY19 $200,000 FY20 Unscheduled DESCRIPTION OF PROJECT Truck with articulating arm with clam shells that will pick up large, bulky items (including brush removal) and place into dump box. While work can still be done by hand, manual work increases risk of back injury. Efficiency is accomplished thru our work comp rates. ALTERNATIVES CONSIDERED Leasing a grapple truck ADVANTAGES OF APPROVAL 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 FY21 FY22 FY23 31 CIP Project Fund Solid Waste Fund PROJECT NUMBER SW47 DEPARTMENT Solid Waste PROJECT NAME Solid Waste Rate Study FY19 FY20 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 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 FY21 FY22 $50,000 FY23 32 CIP Project Fund Solid Waste Fund PROJECT NUMBER SW48 DEPARTMENT Solid Waste PROJECT NAME Trommel Screen FY19 FY20 Unscheduled DESCRIPTION OF PROJECT A screen that can separate out garbage from finished compost and separate the size of compost. This is the final stage of the composting process that we are currently unable to accomplish using existing equipment. ALTERNATIVES CONSIDERED Rental of this equipment is not avaiable ADVANTAGES OF APPROVAL The Solid Waste Divison 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 FY21 FY22 $200,000 FY23 33 CIP Project Fund Solid Waste Fund PROJECT NUMBER SW50 DEPARTMENT Solid Waste PROJECT NAME Side Load Truck FY19 FY20 Unscheduled DESCRIPTION OF PROJECT This side load truck is critical to complete residential garbage collection service. As per the approved 6 year replacement schedule, garbage truck, asset # 3839, will be placed as backup truck for the division. ALTERNATIVES CONSIDERED Leasing a side load truck ADVANTAGES OF APPROVAL 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 Enterprise Fund New Replacement Equipment Project FY21 FY22 FY23 $300,000 34 CIP Project Fund Solid Waste Fund PROJECT NUMBER SW51 DEPARTMENT Solid Waste PROJECT NAME Side Load Truck - Recycling FY19 FY20 Unscheduled DESCRIPTION OF PROJECT This side load truck is critical to complete residential and commercial recycling collection service. As per the approved 6 year replacement schedule, recycling truck, asset #3838, will be placed as a backup truck for the division. ALTERNATIVES CONSIDERED Leasing a side load truck ADVANTAGES OF APPROVAL 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 Enterprise Fund New Replacement Equipment Project FY21 FY22 FY23 $300,000 35 CIP Project Fund Solid Waste Fund PROJECT NUMBER SW52 DEPARTMENT Solid Waste PROJECT NAME Side Load Truck Replacement FY19 FY20 Unscheduled DESCRIPTION OF PROJECT This side load truck is critical to complete residential garbage collection service. As per the approved 6 year replacement schedule, garbage truck, asset #3746, will be placed as a backup truck for the division. ALTERNATIVES CONSIDERED Leasing a side load truck ADVANTAGES OF APPROVAL Reliable equipment to ensure routes completed in an efficient manner. Maintenance costs of newer equipment will be lower. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual operating and maintenance costs $30,000 FUNDING SOURCES 100% Solid Waste Enterprise Fund New Replacement Equipment Project FY21 $300,000 FY22 FY23 36