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HomeMy WebLinkAbout11-18-19 City Commission Packet Materials - C5. Solid Waste Fund (Collection and Recycling) CIP for FY21-25 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 2021-2025. AGENDA ITEM TYPE: Consent MEETING DATE: November 18, 2019 RECOMMENDATION: Adopt the Solid Waste Fund (Collection & Recycling) Capital Improvement Plan (CIP) for Fiscal Years 2021-2025. 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. Public Works Master Plan in Progress The Public Works Department is currently having a master plan drafted that will address the Department’s space needs. This will include space for workers based on the staffing plan and projected growth, equipment storage based on the CIP and other master plans, and shop space. The completion of this plan will most likely change all Public Works’ funds CIPs next year. Stiff Building Remodel FY20 Project Changes The FY20 Approved Budget contains a total of $656,116 for the Stiff Building Remodel, funded from the General, Community Development, and Building Inspection Funds. This estimate was 21 made from initial information developed more than 5 years ago, prior to Phase 1 of the project (basement conference room, etc.). After we completed the final programming on this next phase, the project has expanded to include other departments within the building with a focus on centralizing customer service, accommodating future staffing needs, and improved safety. The project is in final design stages and will be bid in mid-November. Our most recent estimates show the project could total between $1.2- $1.5 Million. These increased costs have not been added to the CIP or reflected in the FY20 amounts shown. Once bids are received, we will likely recommend making adjustments to the FY20 Budget by delaying or canceling current projects, using budget or vacancy savings, and/or possibly budget amendments. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. If the Commission does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY21. Report compiled on: October 31, 2019 22 Attached: Solid Waste Fund CIP Section 23   SOLID WASTE FUND FINANCIAL SUMMARY  Financial Summary Current YearFY20 FY21 FY22 FY23 FY24 FY25UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 740,456$                145,308$            427,154$         682,994$     485,868$      896,857$     ‐$                 Plus:  Revenues Dedicated to CIP 624,852$                649,846$            675,840$         702,874$     730,989$      760,228$     ‐$                 Less:  FY19 Carryover Capital (330,000)$                Less:  Scheduled CIP Project Costs (890,000)$               (368,000)$           (420,000)$        (900,000)$    (320,000)$     (303,075)$    ‐$               Projected Year‐End Cash Dedicated to CIP 145,308$                427,154$            682,994$         485,868$     896,857$      1,354,010$  ‐$               Assumptions are made for Revenue Estimates Current YearFY20 FY21 FY22 FY23 FY24 FY25Estimated Annual Revenues 4,165,681$                  4,165,681$              4,332,308$         4,505,601$     4,685,825$      4,873,258$       Estimated Annual Increase in Revenues  0.0% 4.0% 4.0% 4.0% 4.0% 4.0%Total Estimated Revenues 4,165,681$                  4,332,308$              4,505,601$         4,685,825$     4,873,258$      5,068,188$     Current Revenues Dedicated to CIP % 13.0% 15.0% 15.0% 15.0% 15.0% 15.0%  Plus:  Increase Dedicated to CIP 2.0% 0.0% 0.0% 0.0% 0.0% 0.0%  Total % Dedicated to CIP 15.0% 15.0% 15.0% 15.0% 15.0% 15.0%Total Estimated Revenues Dedicated to CIP 624,852$                     649,846$                 675,840$            702,874$        730,989$         760,228$        ProjectedProjectedCURRENT$(368,000)$(420,000)$(900,000)$(320,000)$(303,075)$‐FY20 FY21 FY22 FY23 FY24 FY25 UNSCHEDULEDSOLID WASTE PROJECTS & EQUIPMENT 24   SOLID WASTE FUND PROJECT SUMMARY       Project # Project Name FY2021 FY2022 FY2023 FY2024 FY2025 UnscheduledSW45TOTE 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         ‐                 ‐                 ‐                 ‐                 ‐                SW54PICKUP TRUCK 30,000           ‐                 ‐                 ‐                 ‐                 ‐                SW56FRONT LOAD TRUCK ‐                 ‐                300,000         ‐                 ‐                 ‐                SW57ROLL‐OFF TRUCK ‐                220,000         ‐                 ‐                 ‐                 ‐                SW58ROLL‐OFF TRUCK ‐                 ‐                 ‐                250,000         ‐                 ‐                SW59RATE STUDY ‐                 ‐                 ‐                 70,000           ‐                 ‐                SW60SIDE LOAD TRUCK‐ GARBAGE ‐                 ‐                 ‐                 ‐                300,000         ‐                GF346FACILITY CONDITION INVENTORY ‐                 ‐                 ‐                 ‐                 3,075             ‐                Fiscal Year totals  368,000        420,000        900,000        320,000        303,075         ‐                25   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 9.2% per year over the past 5 years.  The capital plan estimates future revenues at 5% for the next 5 years.      $2,956,655.00 $3,238,853.00 $3,613,721.00 $3,926,123.00 $4,228,101.00 $3,592,690.60  $‐ $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 $4,500,000.002015 2016 2017 2018 2019 Average FY15‐FY19Solid Waste Revenue History26   CAPITAL PLAN SUMMARY This Capital Plan is for the equipment and capital needs of the Solid Waste Fund. The plan has very few changes from last year, one adjust was made based on our most recent rate study SW56 Front Load Truck two years to FY23 from FY21.  This vehicle is a commercial vehicle and the rate study pointed  out  the  need  for  commercial  services  to  fund  itself.  As we implement the two years of recommended commercial rate increase we should be able to better fund this equipment with commercial revenue rather than residential. In addition, the fifth year is adding a side load garbage truck which is a replacement truck following the 6‐year rotation.      27 Project NameYear Description  Amount Total Project #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                      ‐                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                          ‐                TOTE DELIVERY TRUCK       202138,000         SW45  TROMMEL SCREEN            2022SW48  200,000      28 Project NameYear Description  Amount Total Project #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     ‐                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        2023300,000      SW50  SIDE LOAD TRUCK‐ RECYCLING 2023SW51  300,000      29 Project NameYear Description  Amount Total Project #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     ‐                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 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‐ REPLACEMENT2021300,000      SW52  SW54  PICKUP TRUCK           202130,000         300,000      SW56  FRONT LOAD TRUCK       202130 Project NameYear 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  31 Project NameYear Description  Amount Total Project #SIDE LOAD TRUCK                                    300,000       DESCRIPTION:                                      ‐                THIS SIDE LOAD TRUCK IS CRITICAL TO COMPLETE       ‐                RESIDENTIAL GARBAGE COLLECTION SERVICE. AS PER THEAPPROVED 6 YEAR REPLACEMENT SCHEDULE, GARBAGE     TRUCK ASSET #4250 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 COST OF NEW       ‐                EQUIPMENT WILL BE LOWER.                           ‐                ADDITIONAL OPERATING COST $30,000                 ‐                FACILITY CONDITION INVENTORY                       3,075              DESCRIPTION:                                      ‐                  CONDITION ASSESSMENT FOR ALL CITY‐OWNED FACILITIES ‐                  THIS PROJECTS BUILDS ON PREVIOUS EFFORTS WHILE     ‐                  ESTABLISHING  A RECURRING FIVE YEAR CYCLE BASED ON‐                  INDUSTRY BEST PRACTICE (STRATEGIC PLAN 7.3).       ‐                  FUNDING WILL BE ALLOCATED ACROSS MULTIPLE DIVISION‐                  BASED ON BUILDING SQUARE FOOTAGE.                  ‐                  ALTERNATIVES:                                     ‐                  CONTINUE TO RESPOND TO UNPLANNED MAINTENANCE NEEDS ‐                  ADVANTAGES:                                        ‐                  A COMPREHENSIVE INVENTORY OF ALL BUILDING         ‐                  DEFERRED MAINTENANCE WILL ALLOW FOR A MORE         ‐                  PROACTIVE APPROACH TO PRIORITIZING NEEDED REPAIRS  ‐                  RESULTING IN BETTER RISK MANAGEMENT AND REDUCED   ‐                  LIFECYCLE COSTS.                                   ‐                  ADD OPERATING COSTS:  NONE.                       ‐                  SIDE LOAD TRUCK‐ GARBAGE 2025300,000      SW60  FACILITY CONDITION INVENTORY 20253,075             GF346 32