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Home My WebLink AboutAdopt the Solid Waste Fund Capital Improvement Plan Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Kukulski, City Manager Anna Rosenberry, Finance Director SUBJECT: Adoption of the Solid Waste Fund Capital Improvement Plan (CIP) for FY13-17 AGENDA ITEM TYPE: Consent MEETING DATE: December 12, 2011 RECOMMENDATION: Adoption of the Solid Waste Fund Capital Improvement Plan (CIP) for FY13-17. 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. On November 21st, the Commission held a policy discussion to review the proposed Solid Waste Fund Capital Improvement Plan (CIP) for FY13-17. As a result of that review, the attached CIP is recommended for approval. UNRESOLVED ISSUES: The city is currently underway with a Solid Waste Rate Study. The results of that study may recommend changes to capital replacement policies and funding related to capital. If the study makes recommendations for substantial changes to capital policies, we will prepare a revised CIP scheduled to the Commission for adoption this spring. ALTERNATIVES: As suggested by the City Commission. 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 FY13. Report compiled on: November December 2, 2011 Attached: Solid Waste Fund CIP 151 Solid Waste Collection & RecyclingCapital Improvement PlanFinancial SummaryCurrent YearFY12FY13FY14 FY15 FY16 FY17Projected Beginning Reserve Balance Dedicated to CIP238,000$ 487,681$ 532,378$ 282,027$ 436,598$ 207,708$ Plus: Revenues Dedicated to CIP249,681$ 249,681$ 274,649$ 302,613$ 331,110$ 360,145$ Less: Scheduled CIP Project Costs‐$ (204,984)$ (525,000)$ (148,043)$ (560,000)$ (360,000)$ Projected Year‐End Cash Dedicated to CIP487,681$ 532,378$ 282,027$ 436,598$ 207,708$ 207,853$ Assumptions Made for Revenue Estimates:Current YearFY12FY13FY14 FY15 FY16 FY17Estimated Annual Revenues2,496,811$ 2,496,811$ 2,496,811$ 2,496,811$ 2,521,779$ 2,546,997$ Estimated Annual Increase in Revenues ‐ 0%0%1%1%1%Total Estimated Revenues2,496,811$ 2,496,811$ 2,496,811$ 2,521,779$ 2,546,997$ 2,572,467$ Current Revenues Dedicated to CIP %10.0%10.0% 10.0% 11.0% 12.0% 13.0% Plus: Increase Dedicated to CIP0.0%0.0%1.0% 1.0% 1.0% 1.0% Total % Dedicated to CIP10.0%10.0% 11.0% 12.0% 13.0% 14.0%ProjectedProjectedTotal Estimated Revenues Dedicated to CIP249,681$ 249,681$ 274,649$ 302,613$ 331,110$ 360,145$ 600,000500,000400,000300,000200,000100,0000FY13 FY14 FY15 FY16 FY17 UnscheduledSolid Waste Projects & Equipment Page 1152 CIP PROJECT FUNDPROJ.DEPARTMENPROJECT NAMEFY13FY14FY16UnscheduledFY15FY17Solid Waste CollectionPW01COLLECTIONSHOPS FACILITY EXPANSION PLAN$10,000SW26COLLECTIONSIDE LOAD PACKER ‐ REPLACEMENT$134,984SW27COLLECTIONFRONT LOAD TRUCK ‐ REPLACEMENT TRUCK$250,000SW28COLLECTIONSIDE LOAD TRUCK ‐ REPLACEMENT TRUCK$275,000SW30COLLECTIONSIDE LOAD PACKER ‐ REPLACEMENT$138,043SW31COLLECTIONSIDE LOAD REPLACEMENT TRUCK$290,000SW32COLLECTIONFRONTLOAD REPLACEMENT TRUCK$270,000SW33COLLECTIONSIDE LOAD PACKER ‐ REPLACEMENT`$140,000SW34CURBSIDEBack‐Up Recycling Truck$70,000SW35CURBSIDECurbside Recycling Truck ‐ Replacement$220,000Summary for Solid Waste Collection (10 items)Totals by year:$204,984 $525,000 $148,043$560,000FY13FY14FY15FY16UnscheduledFY17$360,000Page 2153 CIP Project Fund Solid Waste Collection PROJECT NUMBER PW01 DEPARTMENT COLLECTION PROJECT NAME SHOPS FACILITY EXPANSION PLAN FY13 FY14 FY15 $10,000 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 FY17 Page 3 154 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW26 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD PACKER - REPLACEMENT 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 FY17 Page 4 155 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW27 DEPARTMENT COLLECTION PROJECT NAME FRONT LOAD TRUCK - REPLACEMENT TRUCK 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 FY17 Page 5 156 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW28 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD TRUCK - REPLACEMENT TRUCK 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 FY17 Page 6 157 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW30 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD PACKER - REPLACEMENT 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 FY17 Page 7 158 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW31 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD REPLACEMENT TRUCK 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 FY17 Page 8 159 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW32 DEPARTMENT COLLECTION PROJECT NAME FRONTLOAD REPLACEMENT TRUCK 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 FY17 Page 9 160 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW33 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD PACKER - REPLACEMENT` FY13 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT This item is the replacement of equipment on one of our side-loading garbage trucks. It will replace the 2008 Curbtenter Packer on Asset #3455 - 2008 Craine Carrier Chassis. 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 FY17 $140,000 Page 10 161 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW34 DEPARTMENT CURBSIDE PROJECT NAME Back-Up Recycling Truck FY13 $70,000 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT Purchase of a used recycling truck for back-up duties. Currently, we have one Curbside Recycling Truck. When it breaks down, it is extremely difficult to serve customers. This equipment would help ensure that curbside recyling collection can still happen when the truck is out-of-service. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL Continuity of operations when the primary equipment fails. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES 100% Solid Waste Enterprise Fund New Replacement Equipment Project FY17 Page 11 162 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW35 DEPARTMENT CURBSIDE PROJECT NAME Curbside Recycling Truck - Replacement FY13 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT This would be a new chassis and new sideload recycling body, to replace the exising Curbside Recycling Truck, which is expected to be at the end of its useful life in 2017. ALTERNATIVES CONSIDERED Lease ADVANTAGES OF APPROVAL To maintain a level of service to the curbside recycling customers ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Maintenance costs are $15,000/year & Operating costs are $15,000/year FUNDING SOURCES Solid Waste Enterprise Fund New Replacement Equipment Project FY17 $220,000 Page 12 163