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HomeMy WebLinkAbout11-18-19 City Commission Packet Materials - C9. Vehicle Maintenance Fund CIP for FY21-25 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director SUBJECT: Adopt the Vehicle Maintenance Fund Capital Improvement Plan (CIP) for Fiscal Years 2021-2025 AGENDA ITEM TYPE: Consent MEETING DATE: November 18, 2019 RECOMMENDATION: Adopt the Vehicle Maintenance Fund 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. The Public Works Department, 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 Vehicle Maintenance Fund. 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. 128 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 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- $1.5 Million. These increased costs have not been added to the CIP or reflected in the FY20 amounts shown. Once bids are received, we will likely recommend making adjustments to the FY20 Budget by delaying or canceling current projects, using budget or vacancy savings, and/or possibly budget amendments. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. If the Commission does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. 129 FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY21. Report compiled on: October 31, 2019 Attached: Vehicle Maintenance CIP Section 130   VEHICLE MAINTENANCE FUND FINANCIAL SUMMARY  Financial Summary Current YearFY20 FY21 FY22 FY23 FY24 FY25UnscheduledProjected Beginning Reserve Balance Dedicated to CIP ‐$                 ‐$                    ‐$                 ‐$             87$               87$                Plus:  Internal Allocation/Billing Dedicated to CIP ‐$                    ‐$                 45,087$       ‐$              4,312$         ‐$                 Less:  Scheduled CIP Costs ‐$                 ‐$                    ‐$                 (45,000)$      ‐$              (4,350)$        ‐$               Projected Year‐End Cash Dedicated to CIP ‐$                 ‐$                    ‐$                 87$              87$               49$              Assumptions are made for Revenue Estimates Current YearFY20 FY21 FY22 FY23 FY24 FY25Estimated Annual Vehicle Mtc Billings 1,354,000$         1,367,540$              1,381,215$         1,395,028$     1,408,978$      1,423,068$     Estimated Annual increase 0% 1% 1% 1% 1% 1%Total Estimated Revenues 1,354,000$         1,381,215$              1,395,028$         1,408,978$     1,423,068$      1,437,298$     Current Revenues Dedicated to CIP % 0.0% 0.0% 0.0% 3.2% 0.0% 0.3%  Plus:  Increase (Decrease) Dedicated to CIP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%  Total % Dedicated to CIP 0.0% 0.0% 0.0% 3.2% 0.0% 0.3%Total Estimated Revenues Dedicated to CIP ‐$                     ‐$                         ‐$                     45,087$          ‐$                  4,312$            Note:  The Vehicle Maintenance Fund is an internal service fundthat operates entirely from cost recovery paid by City Departments.Capital items are funded as needed, without the accumulationof any reserve for capital. ProjectedProjectedCURRENT$‐$‐$(45,000)$‐$(4,350)$‐FY20 FY21 FY22 FY23 FY24 FY25 UNSCHEDULEDVEHICLE MAINTENANCE PROJECTS & EQUIPMENT 131   VEHICLE MAINTENANCE FUND PROJECT SUMMARY   Project # Project Name FY21 FY22 FY23 FY24 FY25 UnscheduledVM04FORKLIFT REPLACE ‐                    ‐                    45,000              ‐                    ‐                       ‐                           GF346FACILTIY CONDITION INVENTORY ‐                    ‐                    ‐                    ‐                    4,350                   ‐                           Department Subtotal‐                    ‐                    45,000              ‐                    4,350                   ‐                           132   VEHICLE MAINTENANCE FUND DETAIL BACKGROUND The Vehicle Maintenance Fund supports the capital purchases and operations of our Vehicle Maintenance Shop.  The division operates in our new facility on North Rouse and has a small number of building and equipment needs.   Because it is an Internal Service Fund, paid for through cost‐recovery from other divisions, capital reserve balances aren’t being accumulated.    When capital is needed, the annual cost‐recovery allocations increase to cover the costs.  CAPITAL PLAN SUMMARY A replacement of a forklift is scheduled for FY23.   133 Project NameYearDescription  AmountTotal Project #REPLACE FORKLIFT                                   45,000            DESCRIPTION:                                      ‐                   THIS IS A REQUEST TO REPLACE OUR 1997 FORKLIFT AT  ‐                   VEHICLE MAINTENANCE. IT IS USED DAILY TO UNLOAD    ‐                   PARTS, MOVE WASTE OIL CONTAINERS AND REMOVE        ‐                   CYLINDERS FROM THE TOP OF GARBAGE TRUCKS. IT IS 25 ‐                   YEARS OLD.                                         ‐                   ALTERNATIVES CONSIDERED:                          ‐                   KEEP USING IT IF IT STARTS AND RUNS.               ‐                   ADVANTAGES OF APPROVAL:                            ‐                   A SAFER AND MORE RELIABLE PIECE OF EQUIPMENT.      ‐                   ADDITIONAL OPERATING COSTS:                       ‐                   NORMAL MAINTENANCE AND REPAIRS. LESS THAN THE      ‐                   CURRENT FORKLIFT.                                  ‐                   FACILITY CONDITION INVENTORY                       4,350               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.                       ‐                   FACILITY CONDITION INVENTORY 20254,350                 GF346 FORKLIFT REPLACE 202345,000              VM04134