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Home My WebLink AboutAdoption of the Solid Waste Fund (Collection & Rec_9.pdf 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 (Collection & Recycling) Capital Improvement Plan (CIP) for FY14-18. AGENDA ITEM TYPE: Action MEETING DATE: November 26, 2012 RECOMMENDATION: Adoption of the Solid Waste Fund (Collection & Recycling) Capital Improvement Plan (CIP) for FY14-18. 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. Public Works and other city staff met on November 1st to develop the attached Capital Plan for the equipment and capital needs of the Solid Waste Fund. The attached capital replacement schedule is needed to continue operations for garbage collection and the recycling program as they currently stand. The Public Works Director and the Solid Waste Superintendent continue to develop operating plans as a result of the findings and recommendations of the SAIC Rate Study that was presented in July of this year. If capital replacements or purchases are effected by future operational changes, that can be reflected in a revised schedule at that time. 277 UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. If the Commission is 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 FY14. Report compiled on: November 19, 2012 Attached: Solid Waste Fund CIP 278 Solid Waste Collection & RecyclingCapital Improvement PlanFinancial SummaryCurrent YearFY13FY14FY15 FY16 FY17 FY18Projected Beginning Reserve Balance Dedicated to CIP487,681$ 672,779$ 318,912$ 518,695$ 336,022$ 357,122$ Plus: Revenues Dedicated to CIP255,098$ 306,117$ 347,826$ 377,327$ 381,100$ 384,911$ Less: Scheduled CIP Project Costs(70,000)$ (659,984)$ (148,043)$ (560,000)$ (360,000)$ (430,000)$ Projected Year‐End Cash Dedicated to CIP672,779$ 318,912$ 518,695$ 336,022$ 357,122$ 312,033$ Assumptions Made for Revenue Estimates:Current YearFY13FY14FY15 FY16 FY17FY18Estimated Annual Revenues2,550,979$ 2,550,979$ 2,550,979$ 2,576,489$ 2,602,254$ 2,628,276$ Estimated Annual Increase in Revenues ‐ 0%1%1%1%1%Total Estimated Revenues2,550,979$ 2,550,979$ 2,576,489$ 2,602,254$ 2,628,276$ 2,654,559$ Current Revenues Dedicated to CIP %10.0%10.0% 12.0% 13.5% 14.5% 14.5% Plus: Increase Dedicated to CIP0.0%2.0%1.5% 1.0% 0.0% 0.0% Total % Dedicated to CIP10.0%12.0% 13.5% 14.5% 14.5% 14.5%ProjectedProjectedTotal Estimated Revenues Dedicated to CIP255,098$ 306,117$ 347,826$ 377,327$ 381,100$ 384,911$ Note: 2012 Rate Study identifies $367,000 in total annual depreciation expense.700,000600,000500,000400,000300,000200,000100,0000FY14 FY15 FY16 FY17 FY18 UnscheduledSolid Waste Projects & Equipment 1279 CIP PROJECT FUNDPROJ.DEPARTMENPROJECT NAMEFY14FY16UnscheduledFY15FY17FY18Solid 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`$140,000SW36CollectionSIDE LOAD REPLACEMENT TRUCK$290,000SW37CollectionSIDE LOAD PACKER REPLACEMENT$140,000SW35CURBSIDECURBSIDE RECYCLING TRUCK ‐ REPLACEMENT$220,000Summary for Solid Waste Collection (11 items)Totals by year:$659,984 $148,043$560,000FY14FY15FY16UnscheduledFY18$430,000$360,000FY172280 CIP Project Fund Solid Waste Collection PROJECT NUMBER PW01 DEPARTMENT COLLECTION PROJECT NAME SHOPS FACILITY EXPANSION PLAN 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 FY18 3 281 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW26 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD PACKER - REPLACEMENT FY14 $134,984 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 FY18 4 282 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW27 DEPARTMENT COLLECTION PROJECT NAME FRONT LOAD TRUCK - REPLACEMENT TRUCK 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 FY18 5 283 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW28 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD TRUCK - REPLACEMENT TRUCK 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 FY18 6 284 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW30 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD PACKER - REPLACEMENT 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 FY18 7 285 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW31 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD REPLACEMENT TRUCK 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 FY18 8 286 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW32 DEPARTMENT COLLECTION PROJECT NAME FRONTLOAD REPLACEMENT TRUCK 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 FY18 9 287 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW33 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD PACKER - REPLACEMENT` 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 FY18 10 288 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW35 DEPARTMENT CURBSIDE PROJECT NAME Curbside Recycling Truck - Replacement 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 FY18 11 289 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW36 DEPARTMENT Collection PROJECT NAME Side Load Replacement Truck FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT Side Load Replacement Truck ALTERNATIVES CONSIDERED To keep existing truck in service that will have over 10,000 hours of hard use. Repair costs & down time will continue to increase, making truck unreliable for garbage collection. ADVANTAGES OF APPROVAL Minimize repairs & down time. To improve safety and provide reliable customer service. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual operating and maintenance costs = $27,000 FUNDING SOURCES Solid Waste Enterprise Fund New Replacement Equipment Project FY17 FY18 $290,000 12 290 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW37 DEPARTMENT Collection PROJECT NAME Side Load Packer Replacement FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT This replacement packer will be placed on an existing chassis, thus extending the life of the overall unit. The old packer will be traded in. New packers advancement in materials used have led to extend the life of the packer. Given the high amount of mechanical parts in motion, new packers wear out within 5 years (8,000 hours) of use. ALTERNATIVES CONSIDERED To continue to operate existing packer with increased repair costs and down time. ADVANTAGES OF APPROVAL To minimize repair costs and having reliable equipment to provide high customer service expectations. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual operating and maintenance costs = $10,000 FUNDING SOURCES Solid Waste Enterprise Fund New Replacement Equipment Project FY17 FY18 $140,000 13 291