HomeMy WebLinkAboutAdopt the Solid Waste Fund within the Capital Improvements Program
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Chris Kukulski, City Manager
Anna Rosenberry, Finance Director
SUBJECT: Adoption of the Capital Improvements Plan (CIP) for 2012-2016 –
SOLID WASTE FUND
Item Type: Consent
MEETING DATE: November 29, 2010
RECOMMENDATION: Adopt the attached Solid Waste Fund Capital Improvements Plan
for 2012-2016.
BACKGROUND: On November 15, 2010, we presented the attached Solid Waste Fund capital
improvement plan. At that time, public comment and commissioner input was sought. As a
result of that meeting, we are offering the attached schedule for adoption, which contains no
changes from the original presentation.
FISCAL EFFECTS: Once adopted, the Capital Improvements Plan becomes the basis of
the City Manager’s Recommended Budget for FY12.
ALTERNATIVES: As suggested by the City Commission.
Report compiled on: November 16, 2010
98
Solid Waste CollectionCapital Improvement PlanFinancial Summary Current YearFY11 FY12 FY13 FY14 FY15 FY16Projected Beginning Reserve Balance Dedicated to CIP 370,000$ 238,000$ 486,500$ 590,016$ 316,001$ 431,453$ Plus: Collection Revenues Dedicated to CIP 248,500$ 248,500$ 250,985$ 253,495$ 256,030$ Less: Scheduled CIP Project Costs (132,000)$ ‐$ (144,984)$ (525,000)$ (138,043)$ (560,000)$ Projected Year‐End Cash Dedicated to CIP 238,000$ 486,500$ 590,016$ 316,001$ 431,453$ 127,483$ Assumptions Made for Revenue Estimates: Current YearFY11 FY12 FY13 FY14 FY15 FY16Estimated Annual Collection 2,485,000$ 2,485,000$ 2,485,000$ 2,485,000$ 2,509,850$ 2,534,949$ Estimated Annual Increase‐ 0% 0% 1% 1% 1%Total Estimated Revenues 2,485,000$ 2,485,000$ 2,485,000$ 2,509,850$ 2,534,949$ 2,560,298$ Current Revenues Dedicated to CIP % 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% Plus: Increase Dedicated to CIP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total % Dedicated to CIP 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%ProjectedProjectedTotal Estimated Revenues Dedicated to CIP248,500$ 248,500$ 248,500$ 250,985$ 253,495$ 256,030$ 600,000500,000400,000300,000200,000100,0000Solid Waste Collection Projects & Equipment 99
CIP PROJECT FUNDPROJ.DEPARTMENTPROJECT NAMEFY12FY13FY14FY16UnscheduledFY15Solid Waste CollectionSW26COLLECTIONSIDE LOAD PACKER ‐ REPLACEMENT$134,984PW01COLLECTIONSHOPS FACILITY EXPANSION PLAN$10,000SW28COLLECTIONSIDE LOAD TRUCK ‐ REPLACEMENT TRUCK$275,000SW27COLLECTIONFRONT LOAD TRUCK ‐ REPLACEMENT TRUCK$250,000SW30COLLECTIONSIDE LOAD PACKER ‐ REPLACEMENT$138,043SW31COLLECTIONSIDE LOAD REPLACEMENT TRUCK$290,000SW32COLLECTIONFRONTLOAD REPLACEMENT TRUCK$270,000Summary for Solid Waste Collection (7 items)Totals by year:$144,984 $525,000 $138,043$560,000FY12FY13FY14FY15FY16Unscheduled100
CIP Project Fund
Solid Waste Collection
PROJECT NUMBER
PW01
DEPARTMENT
COLLECTION
PROJECT NAME
SHOPS FACILITY EXPANSION PLAN
FY12 FY13
$10,000
FY14 FY15 FY16 Unscheduled
DESCRIPTION OF PROJECT
The construction of the new Vehicle Maintenance Shop at the Lower Yards on Rouse Avenue in FY10/FY11 was Phase I in
expanding and improving our ability to service equipment, store vehicles, and provide work space for Public Works, Parks, and
Facilitiy services. Questions remain about the long-term plan for construction, location, and expansion for: Streets, Sign & Signal,
Forestry, Water/Sewer Operations, Solid Waste Collection & Recycling, Facilities, and Parks & Cemetery departments. This
project would develop a master plan. In scheduling this project, we are recommending waiting until after the Vehicle Maintenance
Division is relocated to its new shop and the interior improvements are made to the Shop at Rouse and Tamarack Street for the
remaining divisions.
ALTERNATIVES CONSIDERED
ADVANTAGES OF APPROVAL
ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED
FUNDING SOURCES
From related divisions: General Fund 20% ($10,000), Water Fund 20% ($10,000), Wastewater Fund 20% ($10,000), Street
Maintenance Fund 20% ($10,000), Solid Waste Fund 20% ($10,000).
New
Replacement
Equipment
Project
101
CIP Project Fund
Solid Waste Collection
PROJECT NUMBER
SW26
DEPARTMENT
COLLECTION
PROJECT NAME
SIDE LOAD PACKER - REPLACEMENT
FY12 FY13
$134,984
FY14 FY15 FY16 Unscheduled
DESCRIPTION OF PROJECT
The division is averaging 2,000 hours per year on the side load trucks. The chassis should be good for 12,000 hours with proper
maintenance. Therefore replacing the packer bodies every four years will save about $140,000 and maximize the value of the
chassis. The packers are what generally wear out first. The grabber arm functions around 400 repetitions per day times 4 days
per week is 1,600 reps per week times 4.33 equals 7,000 reps per month or 93,528 per year. With a life expectancy of four years
that is 336,000 reps.
Old packer will be traded in or saved for parts.
ALTERNATIVES CONSIDERED
Buy new trucks with new chassis and body. Continue to operate with increasing repair costs, down time lowering resale value.
Lease new truck and packer for $75,000 annually if one is available.
ADVANTAGES OF APPROVAL
Saves $140,000 every 4 years per side load truck. With four side load trucks and 2 back up trucks, this adds up quickly.
ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED
Annual Operating and Maintenance Costs: $10,000
FUNDING SOURCES
100% Solid Waste Division Enterprise Funds.
New
Replacement
Equipment
Project
102
CIP Project Fund
Solid Waste Collection
PROJECT NUMBER
SW27
DEPARTMENT
COLLECTION
PROJECT NAME
FRONT LOAD TRUCK - REPLACEMENT TRUCK
FY12 FY13 FY14
$250,000
FY15 FY16 Unscheduled
DESCRIPTION OF PROJECT
This truck is a replacement on the CIP for the collection of residential and commercial refuse. The new truck will ensure
continued efficient, cost-effective refuse collection that will allow the Division to meet the demands of a growing city while
maintaining the standards the Bozeman residents expect.
(replacing Asset #3319, 2005 Autocar)
ALTERNATIVES CONSIDERED
To use existing truck that will have more than 10,000 hours of hard use. Repair costs will continue to increase and the resale
value will continue to decrease. The truck will also take an inordinate amount of shop time to maintain.
ADVANTAGES OF APPROVAL
Maximize resale value, Minimize repairs, parts, (if available), and down time, Improve safety and collection efficiency, Keeps the
Division up with growth rates.
ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED
Annual Operating and Maintenance Costs: $12,000
FUNDING SOURCES
100% Solid Waste Division Enterprise Funds.
New
Replacement
Equipment
Project
103
CIP Project Fund
Solid Waste Collection
PROJECT NUMBER
SW28
DEPARTMENT
COLLECTION
PROJECT NAME
SIDE LOAD TRUCK - REPLACEMENT TRUCK
FY12 FY13 FY14
$275,000
FY15 FY16 Unscheduled
DESCRIPTION OF PROJECT
Replacement of a side load chassis. Asset #3314. The current truck will have 12,000 - 14,000 hours on the chassis and 5,000
hours on the packer body.
ALTERNATIVES CONSIDERED
Continue to use asset beyond its useful service life, resulting in significantly increased maintenance costs and down time.
ADVANTAGES OF APPROVAL
Providing excellence in public service to 7,050 residential customers
ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED
Annual Operating and Maintenance Costs: $30,000
FUNDING SOURCES
100% Solid Waste Enterprise Funds.
New
Replacement
Equipment
Project
104
CIP Project Fund
Solid Waste Collection
PROJECT NUMBER
SW30
DEPARTMENT
COLLECTION
PROJECT NAME
SIDE LOAD PACKER - REPLACEMENT
FY12 FY13 FY14 FY15
$138,043
FY16 Unscheduled
DESCRIPTION OF PROJECT
This item is to replace the garbage packer on Asset #3452. The division is averaging 2,000 hours per year on the side load
trucks. The chassis should be good for 12,000-14,000 hours with proper maintenance. Therefore replacing the packer bodies
every four years will save about $140,000 and maximize the value of the chassis. The packers are what generally wear out first.
The grabber arm functions around 400 repetitions per day times 4 days per week is 1,600 reps per week times 4.33 equals 7,000
reps per month or 93,528 per year. With a life expectancy of four years that is 336,000 reps.
ALTERNATIVES CONSIDERED
Buy new trucks with new chassis and body. Continue to operate with increasing repair costs, down time lowering resale value.
Lease new truck and packer for $75,000 annually if one is available.
ADVANTAGES OF APPROVAL
Saves $140,000 every 4 years per side load truck. With four side load trucks and 2 backup trucks, this adds up quickly.
ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED
Annual Operating and Maintenance Costs: $10,000
FUNDING SOURCES
100% Solid Waste Division Enterprise Funds.
New
Replacement
Equipment
Project
105
CIP Project Fund
Solid Waste Collection
PROJECT NUMBER
SW31
DEPARTMENT
COLLECTION
PROJECT NAME
SIDE LOAD REPLACEMENT TRUCK
FY12 FY13 FY14 FY15 FY16
$290,000
Unscheduled
DESCRIPTION OF PROJECT
Replacement of a current front-line residential collection truck, Asset #3367. This truck will will have over 12,000 hours at time
of replacement.
ALTERNATIVES CONSIDERED
Continue to operate the existing truck with increasing operating and maintenance costs.
Lease a new, (or used), truck.
ADVANTAGES OF APPROVAL
Allow the division to continue to provide excellent service to over 7000 customers. Increased fuel economy; Reduced exhaust
emissions; Less down time; Increased productivity
ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED
Operating and maintenance costs should be reduced by replacing an aging unit with a new more fuel efficient, cleaner running
truck
FUNDING SOURCES
100% Solid Waste Fund
New
Replacement
Equipment
Project
106
CIP Project Fund
Solid Waste Collection
PROJECT NUMBER
SW32
DEPARTMENT
COLLECTION
PROJECT NAME
FRONTLOAD REPLACEMENT TRUCK
FY12 FY13 FY14 FY15 FY16
$270,000
Unscheduled
DESCRIPTION OF PROJECT
This truck is a replacement for Asset #3421; the collection of residential and commercial refuse. The new truck will ensure
continued efficient, cost-effective refuse collection that will allow the Division to meet the demands of a growing city while
maintaining the standards the Bozeman residents expect.
ALTERNATIVES CONSIDERED
To use existing truck that will have more than 10,000 hours of hard use. Repair costs will continue to increase and the resale
value will continue to decrease. The truck will also take an inordinate amount of shop time to maintain.
ADVANTAGES OF APPROVAL
ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED
Maintenance costs: $12,000/year
FUNDING SOURCES
100% Solid Waste Fund
New
Replacement
Equipment
Project
107