Loading...
HomeMy WebLinkAbout11-05-18 City Commission Packet Materials - C6. Adopt the Tree Maintenance Fund CIP 2020-2024 Commission 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 2020 - 2024. AGENDA ITEM TYPE: Consent MEETING DATE: November 5, 2018 RECOMMENDATION: Adopt the Tree Maintenance Fund 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 various parts of the plan forward as items on the consent. 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 $25,000 threshold. This will align us with best practices and be able to make better capital decisions by focusing on true capital items and less maintenance and operational expenses. 75 The Forestry Department, City Manager, and other city staff met in October to develop the attached Capital Plan for the equipment and capital needs of the Tree Maintenance Fund. Strategic Plan Efforts- This year we worked towards 7.1 b Create a culture of Innovation by changing our Capital planning system, from an Access database for project tracking and plan development to using our ERP system’s project module making it easier to merge them into the budget, setup efficiency for projects when started and giving increased project reporting. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. If the Commission does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY20. Report compiled on: October 25, 2018 Attached: Forestry-Tree Maintenance Fund CIP Section 76   FORESTRY FUND (TREE MAINTENANCE) FINANCIAL SUMMARY  Financial SummaryCurrent YearFY19 FY20 FY21 FY22 FY23 FY24UNSCHEDULEDProjected Beginning Reserve Balance Dedicated to CIP 166,000$         40,233$              6,078$             73,761$       8,515$          35,574$       ‐$                  Plus:  Tree Mtc Revenues Dedicated to CIP 44,233$           55,844$              67,684$           79,754$       92,059$        92,979$       ‐$                  Less: Carry Forward FY18 (24,000)$           Less:  Scheduled CIP Project Costs (146,000)$        (90,000)$             ‐$                 (145,000)$    (65,000)$       (75,000)$      ‐$                Projected Year‐End Cash Dedicated to CIP 40,233$           6,078$                73,761$           8,515$         35,574$        53,553$       Assumptions Made for Revenue Estimates Current YearFY19 FY20 FY21 FY22 FY23 FY24Estimated Annual Tree Mtc Revenues 737,221$             737,221$                 744,593$            752,039$        759,560$         767,155$          Estimated Annual Increase ‐ Attributed to Annexations 0% 1% 1% 1%1% 1%Total Estimated Revenues 737,221$             744,593$                 752,039$            759,560$        767,155$         774,827$        Current Revenues Dedicated to CIP % 4.5% 6.0% 7.5% 9.0% 10.5% 12.0%  Plus:  Increase Dedicated to CIP 1.5% 1.5% 1.5% 1.5% 1.5% 0.0%  Total % Dedicated to CIP 6.0% 7.5% 9.0% 10.5% 12.0% 12.0%Total Estimated Revenues Dedicated to CIP 44,233$               55,844$                   67,684$               79,754$          92,059$            92,979$          ProjectedProjectedCURRENT$(90,000)$‐$(145,000)$(65,000)$(75,000)$‐FY19 FY20 FY21 FY22 FY23 FY24 UNSCHEDULEDTREE MAINTENANCE PROJECTS & EQUIPMENT 77   FORESTRY FUND (TREE MAINTENANCE) PROJECT SUMMARY   Project #Project Name FY2020FY2021FY2022FY2023FY2024FOR13Aerial Lift/ Bucket Truck ‐                           ‐                           145,000                   ‐                           ‐                          FOR14Forestry Chip Truck 90,000                     ‐                           ‐                           ‐                           ‐                          FOR16ToolCat Utility Machine ‐                           ‐                           ‐                           65,000                     ‐                          FOR17Forestry Brush Chipper ‐                           ‐                           ‐                           ‐                           75,000                    Fiscal Year totals  90,000                     ‐                           145,000                   65,000                     75,000                    78 FORESTRY FUND (TREE MAINTENANCE) DETAIL BACKGROUND The special revenue fund accounts for special assessment revenues levied, received, and expended for tree maintenance provided to specific property owners. This fund benefits from increases in the Tree Maintenance Assessment, which is 100% dedicated to funding the Forestry operation. In FY2018, we raised the assessment for the third larger installment of a three‐year rate plan to aid working towards the Urban Forestry Management Plan. FY2019 we raised the assessment by 5% to grow the capital reserve to aid in replacements of equipment. 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. We have estimated an annual increase of 1% that will be attributed to annexation. Over time, there will be more of an increase towards capital as we increase the reserve.  CAPITAL PLAN SUMMARY The capital plan includes four items and two that have been added to the last two of the five years.  FOR14‐ Forestry Chip Truck and FOR13‐ Aerial Lift Truck have remained in the plan in FY20 and FY22 respectively. FOR16‐ ToolCat Utility Machine has been added for $65,000 in FY23, which will aid in winter snow removal and project throughout the year. FOR17‐ Forestry Brush Chipper has been added to FY24 for $75,000 and will replace the current 2005 equipment.  79 Year Project Name: DESCRIPTION:                                       Amount Total Project #AERIAL LIFT / BUCKET TRUCK                         145,000         DESRIPTION:                                       ‐                  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  EMISSION ‐                  AND GIVES US THE OVERALL WORKING HEIGHT WE NEED    ‐                  FOR THE CITY'S LARGEST TREES. SELL BY PUBLIC       ‐                  AUCTION THE EXISTING BUCKET TRUCK.                 ‐                  ADD OPERATING COSTS:                              ‐                  MAINTENANCE COSTS                                  ‐                  FOR13 2022 Aerial Lift / Bucket Truck145,000         80 Year Project Name: DESCRIPTION:                                       Amount Total Project #FORESTRY CHIP TRUCK                                90,000            DESCRIPTION:                                      ‐                  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                                      ‐                  ADD OPERATING COSTS:                              ‐                  ROUTINE MAINTENANCE AND DIESEL EXHAUST FLUID       ‐                  TOOLCAT UTILITY MACHINE                            65,000            DESCRIPTION:                                      ‐                  SMALL 4X4 UTILITY VEHICLE FOR FORESTRY OPERATIONS. ‐                  CABBED VEHICLE OFFERS INCREASED SAFETY AND         ‐                  PRODUCTION FOR SNOW REMOVAL OPERATIONS. MULTIPLE   ‐                  ATTACHMENT OPTIONS ALLOW FOR YEAR‐ROUND            ‐                  VERSATILITY, INCLUDING AUGER AND BRUSH CUTTER.     ‐                  ALTERNATIVES:                                     ‐                  CONTINUE USING EXISTING ATV'S; PURCHASE NEW ATV'S  ‐                  AT LOWER COST THAN TOOLCAT                         ‐                  ADVANTAGES OF APPROVAL:                           ‐                  SAFETY FOR CREW MEMBERS DURING SNOW REMOVAL.       ‐                  INCREASED PRODUCTIVITY DURING INCLEMENT WEATHER.   ‐                  ADD OPERATING COST:                               ‐                  FUEL AND ROUTINE MAINTENANCE                       ‐                  FOR14 FOR16 65,000           2020 Forestry Chip Truck      90,000           ToolCat Utility Machine  202381 Year Project Name: DESCRIPTION:                                       Amount Total Project #FORESTRY BRUSH CHIPPER                             75,000            DESCRIPTION:                                      ‐                  NEW BRUSH CHIPPER FOR FORESTRY CHIPPER TRUCKS.     ‐                  TO REPLACE 2005 CHIPPER. NEW MODEL OFFERS GREATER  ‐                  CHIPPING CAPACITY, REDUCED EMISSIONS AND IMPROVED  ‐                  SAFETY FEATURES. WINCH LINE REDUCES WORKER FATIGUE ‐                  ALTERNATIVES CONSIDERED:                          ‐                  CONTINUE USING EXISTING EQUIPMENT; PURCHASE        ‐                  SMALLER NEW CHIPPER AT LOWER COST                  ‐                  ADVANTAGES OF APPROVAL:                           ‐                  INCREASED PRODUCTION DURING PRUNING/REMOVAL        ‐                  OPERATIONS. IMPROVED WORKER CONDITIONS THROUGH     ‐                  SAFETY FEATURES AND WINCH LINE.                    ‐                  ADD OPERATING COST:                               ‐                  FUEL AND ROUTINE MAINTENANCE; INITIAL WORKER       ‐                  ORIENTATION/TRAINING.                              ‐                  2024FOR17 75,000           FORESTRY BRUSH CHIPPER   82