HomeMy WebLinkAboutPublic Hearing & Adoption of the Solid Waste Fund Capital Improvements Plan for Fiscal Years 2011-2015.pdf
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Public Hearing & Adoption of the Solid Waste Fund Capital
Improvements Plan for Fiscal Years 2011-2015
MEETING DATE: June 7, 2010
AGENDA ITEM TYPE: Action Item
RECOMMENDATION: Adopt the Solid Waste Fund part of the Capital Improvements
Program (CIP) for Fiscal Years 2011 – 2015, with any modifications, after public comment and
Commission discussion.
BACKGROUND: On December 14, 2009, the Commission received the City Manager’s
proposed Capital Improvements Program (CIP) for Fiscal Years 2011-2015. At that time, the
document was made available to staff and the public online at
http://www.bozeman.net/finance/capital_improvements_plan.aspx.
The Solid Waste Fund’s Capital Plan was NOT included in the document. While that is not ideal
– and not our plan for future years, we were grappling with a number of questions regarding the
possible purchase of route optimization and new customer billing software, and issues
surrounding the replacement of the curbside recycling truck. Neither of these items are included
in this CIP. We will be relying on the rate study recommendations for funding the recycling
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program before scheduling the replacement of the recycling truck. We anticipate we will have
those recommendations for inclusion in next year’s CIP.
We have presented the CIP for adoption in its individual parts, over a number of public hearings
this spring. Our Capital Improvements Program serves as an important guide for city staff,
Commissioners, and citizens, and plans for over $98 Million to be invested in our City’s
equipment and infrastructure in the next 5 years. It establishes a systematic, five-year view of
resource allocation in hopes of preventing a reactive, unpredictable, or informal approach to
funding capital needs. The CIP bases much of its project work on the City’s adopted facility
plans for water, wastewater, transportation, parks & recreation, fire, and police services.
Developing a Capital Improvements Plan is, first and foremost, a planning process - adopting a
CIP does not provide budget appropriation authority. Items must be included in the final
budget resolution before they are funded. Once the Commission adopts CIP schedules, the items
listed in the FY2011 column will be included in the City Manager’s Recommended Budget to be
presented in June. If, for a number of reasons, the City Manager’s Recommended Budget does
not contain an approved FY2011 CIP item, the circumstances will be explained during the
Recommended Budget presentation. Through our regular budget process, the Commission will
then have the opportunity to take additional public comments, have further discussion, and make
final appropriation for these capital items in the Final Budget adoption in late August. It is not
until the final budget adoption that any CIP item is authorized for spending.
Solid Waste Funding Sources: Dollars to replace or add equipment for the Solid Waste Division
come from the user fees paid by the businesses and households that sign up for City garbage and
collection services.
Changes to Plan Items this Year: The Frontload Packer Replacement, item SW-24, was moved
back one year. We believe that we can get one more year out of the current packer. We have
also added an additional Side Load Packer Replacement (SW-30) in FY15, as our estimation of
continued packer replacements. Our method to replace packers instead of entire trucks (chassis
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and packer) gets underway in FY11. We believe that this will be successful, requiring fewer
“New” or “Complete” replacements of trucks and saving money over the years.
Unscheduled Items: The Shops Complex (PW-01) remains on the Solid Waste Fund CIP list as
“Unknown” cost and “Unscheduled” time-frame. It has not been determined to what extent the
Solid Waste Fund would participate in the future phases of Shops Complex expansion.
Cost Estimates: All project and equipment costs are estimates that will not be finalized until the
City accepts a qualified bid for that specific project or equipment. We have used the best
information available to estimate these amounts, including knowledge of similar, recent projects
or purchases.
FISCAL EFFECTS: Approving this plan does not provide appropriation authority. The
FY11 projects and equipment will be incorporated into the FY11 City Manager’s Recommended
Budget, which requires final approval before these projects will be funded. The remaining CIP
years (FY12-FY15) serve as a work plan to guide staff, and will be reviewed and revised in the
coming fall for our annual update of the CIP at this time next year.
ALTERNATIVES: Changes can be made to the inclusion or timing of scheduled projects
and the underlying revenue estimates; however, we do not customarily adopt CIP schedules that
result in negative balances in the last (5th) year of the plan.
Report compiled on: June 2, 2010
Attachment: Collection – Solid Waste Fund CIP Plan and Details
On File in the City Clerk’s Office: Capital Improvements Program for Fiscal Years 2011-2015
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