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HomeMy WebLinkAbout11-05-18 City Commission Packet Materials - C5. Adopt the Solid Waste Fund (Collection and Recycling) CIP 2020-2024 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 2020-2024. AGENDA ITEM TYPE: Consent MEETING DATE: November 5, 2018 RECOMMENDATION: Adopt the Solid Waste Fund (Collection & Recycling) Capital Improvement Plan (CIP) for Fiscal Years 2020-2024. 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. As we grow as a City, so will our projects and infrastructure. To move towards a plan that only includes true capital items which, we need to plan for based on risk and strategic initiatives, we will move to a higher threshold. Currently, threshold for inclusion in the plan is $10,000 this causes many maintenance and other operational budget items to be included in the capital plan. For the FY21 to FY25 Capital Improvement Plan we will use a $25,000 threshold. This will align us with best practices and be able to make better capital decisions by focusing on true capital items and less maintenance and operational expenses. 63 The Public Works Director, City Manager, and other city staff met in October and November to develop the attached Capital Plan for the equipment and capital needs of the Solid Waste Fund. Strategic Plan Efforts- This year we worked towards 7.1 b Create a Culture of Innovation by changing our Capital planning system, from an Access database for project tracking and plan development to using our ERP system’s project module making it easier to merge them into the budget, setup efficiency for projects when started and giving increased project reporting. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. If the Commission does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY20. Report compiled on: October 25, 2018 Attached: Solid Waste Fund CIP Section 64 SOLID WASTE FUND FINANCIAL SUMMARY Financial SummaryCurrent YearFY19FY20 FY21 FY22 FY23 FY24UnscheduledProjected Beginning Reserve Balance Dedicated to CIP468,495$               135,862$           (157,616)$       (199,268)$   38,398$       128,947$     ‐$       Plus:  Revenues Dedicated to CIP492,367$               596,522$           626,348$        657,665$    690,549$   725,076$     ‐$       Less:  FY17 Carryover Capital(95,000)$                 Less:  Scheduled CIP Project Costs(730,000)$              (890,000)$          (668,000)$       (420,000)$   (600,000)$    (320,000)$    Projected Year‐End Cash Dedicated to CIP135,862$               (157,616)$          (199,268)$       38,398$      128,947$   534,023$     ‐$      Assumptions are made for Revenue EstimatesCurrent YearFY19FY20FY21 FY22 FY23 FY24Estimated Annual Revenues3,787,441$       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 Revenues3,787,441$       3,976,813$      4,175,654$      4,384,436$    4,603,658$     4,833,841$     Current Revenues Dedicated to CIP %13.0%13.0% 15.0% 15.0% 15.0% 15.0%  Plus:  Increase Dedicated to CIP0.0%2.0%0.0% 0.0% 0.0% 0.0%  Total % Dedicated to CIP13.0%15.0% 15.0% 15.0% 15.0% 15.0%Total Estimated Revenues Dedicated to CIP492,367$      596,522$      626,348$     657,665$       690,549$      725,076$      ProjectedProjectedCURRENT$(890,000)$(668,000)$(420,000)$(600,000)$(320,000)FY19 FY20 FY21 FY22 FY23 FY24 UNSCHEDULEDSOLID WASTE PROJECTS & EQUIPMENT 65 SOLID WASTE FUND PROJECT SUMMARY Project # Project NameFY2020FY2021FY2022FY2023FY2024SW32Front Load Truck Replacement270,000                  ‐ ‐ ‐ ‐ SW36Side Load Truck ‐ New    290,000                  ‐ ‐ ‐ ‐ SW45Tote Delivery Truck      ‐ 38,000 ‐ ‐ SW48Trommel Screen           ‐ ‐ 200,000                  ‐ ‐ SW50Side Load Truck          ‐ ‐ ‐ 300,000                  ‐ SW51Side Load Truck ‐ Recycling‐ ‐ ‐ 300,000                  ‐ SW52Side Load Truck Replacement‐ 300,000                  ‐ ‐ ‐ SW53Pickup Truck             30,000 ‐ ‐ ‐ SW54Pickup Truck             ‐ 30,000 ‐ ‐ ‐ SW55Side Load Truck          300,000                  ‐ ‐ ‐ SW56Front Load Truck         ‐ 300,000                  ‐ ‐ SW57Roll ‐ Off Truck         ‐ ‐ 220,000                  ‐ ‐ SW58Roll ‐ Off Truck         ‐ ‐ ‐ ‐ 250,000                  SW59Rate Study               ‐ ‐ ‐ ‐ 70,000 Fiscal Year totals 890,000                  668,000                  420,000                  600,000                  320,000                  66 SOLID WASTE FUND DETAIL BACKGROUND The City’s Solid Waste Fund is an enterprise fund that accounts for the garbage and recycling services. Revenues are comprised of solid waste and recycling fees. Solid Waste Fund revenues have averaged growth of 9.3% 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.   $2,721,913.00 $2,956,655.00 $3,238,853.00 $3,613,721.00 $3,926,123.00 $3,291,453.00  $‐ $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 $4,500,000.002014 2015 2016 2017 2018 Average FY14‐FY18Solid Waste Revenue History67 CAPITAL PLAN SUMMARY This Capital Plan is for the equipment and capital needs of the Solid Waste Fund. The plan has new collection trucks for expanding services and adds replacements.  SW36 and SW55 are new trucks to accommodate additional residential routes while SW52 replaces a truck based on the replacement schedule of six years.  The operations have found a need to increase its smaller vehicles and added pickup trucks, SW53 and SW54, to aid in efficiency with smaller tasks.  A rate study is coming late FY19 and this should be done every five years and SW59 has been added to FY24 to keep that schedule. 68 Project Name Year Description  Amount Total Project #FRONT LOAD TRUCK REPLACEMENT                      270,000       DESCRIPTION:                                      ‐                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.                           ‐                ADD OPERATING COSTS:                              ‐                AVERAGE MAINTENANCE COSTS: $10,000/YEAR            ‐                Front Load Truck Replacement 2020270,000      SW32  69 Project Name Year Description  Amount Total Project #SIDE LOAD TRUCK ‐ NEW (ADDITIONAL ROUTE)           290,000       DESCRIPTION:                                      ‐                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 TO APPROVAL:                           ‐                RELIABLE EQUIPMENT TO ENSURE ROUTES COMPLETED IN   ‐                AN EFFICIENT MANNER. MAINTENANCE COSTS OF NEW      ‐                EQUIPMENT WILL BE LOWER.                           ‐                ADD OPERATING COSTS:                              ‐                ANNUAL OPERATING AND MAINTENANCE COSTS = $30,000   ‐                TOTE DELIVERY TRUCK                                38,000         DESCRIPTION:                                      ‐                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.        ‐                ADD OPERATING COSTS:                              ‐                MAINTENANCE COSTS $1,000/YEAR                      ‐                Side Load Truck ‐ New     2020290,000      SW36  Tote Delivery Truck       202138,000         SW45  70 Project Name Year Description  Amount Total Project #TROMMEL SCREEN                                    200,000       DESCRIPTION:                                      ‐                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                                    ‐                ADD OPERATING COSTS: N/A                          ‐                SIDE LOAD TRUCK                                   300,000       DESCRIPTION:                                      ‐                THIS SIDE LOAD TRUCK IS CRITICAL TO COMPLETE       ‐                ESIDENTIAL 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.                           ‐                ADD OPERATING COSTS:                              ‐                ANNUAL OPERATING AND MAINTENANCE COSTS $30,000     ‐                Trommel Screen            2022SW48  200,000      Side Load Truck           2023300,000      SW50  71 Project Name Year Description  Amount Total Project #SIDE LOAD TRUCK ‐ RECYCLING                       300,000       DESCRIPTION:                                      ‐                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.                           ‐                ADD OPERATING COSTS:                              ‐                ANNUAL OPERATING AND MAINTENANCE COSTS $30,000     ‐                SIDE LOAD TRUCK REPLACEMENT                       300,000       DESCRIPTION:                                      ‐                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:                          ‐                LEASE A SIDE LOAD TRUCK                            ‐                ADVANTAGES TO APPROVAL:                           ‐                RELIABLE EQUIPMENT TO ENSURE ROUTES COMPLETED IN   ‐                N EFFICIENT MANNER. MAINTENANCE COSTS OF NEWER     ‐                EQUIPMENT WILL BE LOWER.                           ‐                ADD OPERATING COSTS:                              ‐                ANNUAL OPERATING AND MAINTENANCE COSTS $30,000     ‐                Side Load Truck ‐ Recycling 2023SW51  300,000      Side Load Truck Replacement 2021300,000      SW52  72 Project Name Year Description  Amount Total Project #PROJECT: PICKUP TRUCK                              30,000         DESCRIPTION: PICKUP TRUCK TO PERFORM VARIOUS SOLID‐                WASTE FUNCTIONS.                                   ‐                ALTERNATIVES CONSIDERED: LEASING PICKUP           ‐                ADVANTAGES OF APPROVAL: ALLOW STAFF TO PERFORM JOB‐                FUNCTIONS.                                         ‐                OPERATING COST: $2,000.00 ANNUALLY                ‐                PROJECT: PICKUP TRUCK.                             30,000         DESCRIPTION: PICKUP TRUCK TO PERFORM VARIOUS      ‐                SOLID WASTE FUNCTIONS.                             ‐                ALTERNATIVES CONSIDERED: LEASING PICKUP.          ‐                ADVANTAGES OF APPROVAL: ALLOW STAFF TO PERFORM JOB‐                FUNCTIONS.                                         ‐                OPERATING COST:$2,000.00 ANNUALLY.                ‐                PROJECT: ADD SIDE LOAD TRUCK (ADDITIONAL ROUTE)    300,000       DESCRIPTION: SIDE LOAD GARBAGE TRUCK USED IN THE  ‐                COLLECTION OF RESIDENTIAL TRASH                    ‐                ALTERNATIVES CONSIDERED: LEASING SIDE LOAD TRUCK  ‐                ADVANTAGES OF APPROVAL: RELIABLE EQUIPMENT TO     ‐                ENSURE ROUTES COMPLETED IN AN EFFICIENT MANNER     ‐                MAINTENANCE COST OF NEW EQUIPMENT WILL BE LOWER    ‐                OPERATING COST: $30,000 ANNUALLY                  ‐                PROJECT:ADD FRONT LOAD TRUCK (ADDITIONAL ROUTE)    300,000       DESCRIPTION: FRONT LOAD GARBAGE TRUCK USED IN     ‐                THE COLLECTION OF COMMERCIAL TRASH                 ‐                ALTERATIVE CONSIDERED: LEASING OF FRONT LOAD TRUCK‐                ADVANTAGES OF APPROVAL: THIS EQUIPMENT IS CRITICAL‐                TO THE OPERATION OF THE SOLID WASTE DIVISION       ‐                CUSTOMERS DEPEND ON REFUSE REMOVAL ON THEIR        ‐                COLLECTION DAY RELIABLE EQUIPMENT TO ENSURE ROUTES ‐                COMPLETED IN AN EFFICIENT MANNER. MAINTENANCE      ‐                COST OF NEW EQUIPMENT WILL BE LOWER.               ‐                OPERATING COST:$10,000 ANNUALLY                   ‐                Side Load Truck          SW53  SW54  SW55  30,000         Pickup Truck             Pickup Truck             20202021202030,000         300,000      300,000      SW56  Front Load Truck          202173 Project Name Year Description  Amount Total Project #PROJECT: NEW ROLL ‐ OFF HOOK TRUCK                220,000       DESCRIPTION: ROLL ‐ OFF TRUCK IN CONJUNCTION      ‐                WITH ROLL OFF CONTAINERS ARE USED TO HAUL LARGE    ‐                QUANTITIES OF REFUSE FROM CONSTRUCTION SITES, OR   ‐                HOME REMODELS/CLEANOUTS.                           ‐                ALTERNATIVES CONSIDERED: LEASING TRUCK            ‐                ADVANTAGES OF APPROVAL: ALLOW THE SWD TO KEEP UP  ‐                WITH THE DEMAND FOR ROLL OFFS AND TO BE ABLE TO    ‐                SERVICE OUR CUSTOMERS IN A TIMLEY MANOR.           ‐                ADDITIONAL OPERATING COST: $6000.00 ANNUALLY      ‐                PROJECT: ROLL OFF HOOK TRUCK.                     250,000       DESCRIPTION: ROLL OFF TRUCK IN CONJUNCTION WITH   ‐                ROLL OFF CONTAINERS ARE USED TO HAUL LARGE         ‐                QUANTITIES OF REFUSE FROM CONSTRUCTION SITES, OR   ‐                HOME REMODELS/CLEANOUTS.                           ‐                ALTERNATIVES CONSIDERED: LEASING TRUCK.           ‐                ADVANTAGES OF APPROVAL: ALLOW THE SWD TO KEEP UP  ‐                WITH THE DEMAND FOR ROLL OFFS, AND TO BE ABLE TOO  ‐                SERVICE OUR CUSTOMERS IN A TIMLEY MANOR.           ‐                ADDITIONAL OPERATING COST: $6000.00 ANNUALLY.     ‐                PROJECT: RATE STUDY.                               70,000         DESCRIPTION:SOLID WASTE RATE STUDY INCLUDING AN   ‐                ANALYSIS OF REVENUE REQUIREMENTS, FUNDING          ‐                DEPRECIATION, AND COST RECOVERY BY CUSTOMER CLASS  ‐                ALTERATIVES 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 COST: N/A                    ‐                Roll ‐ Off Truck         SW57  SW59  Rate Study               20222024202470,000         250,000      220,000      Roll Off Truck           SW58  74