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Home My WebLink About12-9-13 Consent Solid Waste Fund.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Kukulski, City Manager Anna Rosenberry, Administrative Services Director SUBJECT: Adoption of the Solid Waste Fund (Collection & Recycling) Capital Improvement Plan (CIP) for FY15-19. AGENDA ITEM TYPE: Consent MEETING DATE: December 9, 2013 RECOMMENDATION: Adopt the Solid Waste Fund (Collection & Recycling) Capital Improvement Plan (CIP) for FY15-19. 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 in October 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. This plan works in concert with the existing Solid Waste Rate study that was adopted this past year; funding annual capital replacement at an amount similar to annual depreciation expense noted in the rate study. There are three new items for this year, with details found on the items sheets attached: 35 SW39 – Update Solid Waste Rate Study SW40 – Overlay Landfill Road SW41 – Convenience Site Relocation NOTE: Items related to soil gas mitigation at the landfill are NOT included in this CIP (They are currently drafted into the General Fund CIP). This plan only contains items that are supported by the collection and recycling customer revenues. UNRESOLVED ISSUES: SW41 – Convenience Site Relocation anticipates some funding support coming from the Solid Waste District, who manages the site. This will need to be developed and negotiated with the District. 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 FY15. Report compiled on: November 27, 2013 Attached: Draft - Solid Waste Fund CIP 36 Solid Waste Collection & RecyclingCapital Improvement PlanFinancial Summary Current YearFY14 FY15 FY16 FY17 FY18 FY19Projected Beginning Reserve Balance Dedicated to CIP 650,209$ 296,342$ 413,243$ 117,559$ 106,800$ 74,984$ Plus: Revenues Dedicated to CIP 306,117$ 334,944$ 364,316$ 394,241$ 398,184$ 402,166$ Less: Scheduled CIP Project Costs (659,984)$ (218,043)$ (660,000)$ (405,000)$ (430,000)$ (290,000)$ Projected Year‐End Cash Dedicated to CIP 296,342$ 413,243$ 117,559$ 106,800$ 74,984$ 187,150$ Assumptions Made for Revenue Estimates: Current YearFY14 FY15 FY16 FY17FY18 FY19Estimated Annual Revenues 2,550,979$ 2,550,979$ 2,576,489$ 2,602,254$ 2,628,276$ 2,654,559$ Estimated Annual Increase in Revenues ‐ 1% 1% 1% 1% 1%Total Estimated Revenues 2,550,979$ 2,576,489$ 2,602,254$ 2,628,276$ 2,654,559$ 2,681,105$ Current Revenues Dedicated to CIP % 10.0% 12.0% 13.0% 14.0% 15.0% 15.0% Plus: Increase Dedicated to CIP 2.0% 1.0% 1.0% 1.0% 0.0% 0.0% Total % Dedicated to CIP 12.0% 13.0% 14.0% 15.0% 15.0% 15.0%ProjectedProjectedTotal Estimated Revenues Dedicated to CIP306,117$ 334,944$ 364,316$ 394,241$ 398,184$ 402,166$ Note: 2012 Rate Study identifies $367,000 in total annual depreciation expense.700,000600,000500,000400,000300,000200,000100,0000FY15 FY16 FY17 FY18 FY19 UnscheduledSolid Waste Projects & Equipment 37 CIP PROJECT FUPROJ.DEPARTMENTPROJECT NAMEFY16UnscheduledFY15FY17FY18FY19Solid Waste CollectionPW01COLLECTIONSHOPS FACILITY EXPANSION PLAN$10,000SW30COLLECTIONSIDE 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$140,000SW38COLLECTIONSIDE LOAD TRUCK REPLACEMENT$290,000SW35CURBSIDECURBSIDE RECYCLING TRUCK REPLACEMENT$220,000SW39SOLID WASTEUPDATE SOLID WASTE RATE STUDY$35,000SW40SOLID WASTEOVERLAY LANDFILL ROAD$70,000SW41SOLID WASTECONVENIENCE SITE RELOCATION$10,000$100,000Summary for Solid Waste Collection (12 items)Totals by year:$218,043 $660,000 $405,000FY15FY16FY17UnscheduledFY19$290,000$430,000FY1838 CIP Project Fund Solid Waste Collection PROJECT NUMBER PW01 DEPARTMENT COLLECTION PROJECT NAME SHOPS FACILITY EXPANSION PLAN 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 FY17 $10,000 FY18 FY19 39 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW30 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD PACKER - REPLACEMENT 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 Fund New Replacement Equipment Project FY17 FY18 FY19 40 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW31 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD REPLACEMENT TRUCK 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 FY19 41 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW32 DEPARTMENT COLLECTION PROJECT NAME FRONTLOAD REPLACEMENT TRUCK 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 FY19 42 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW33 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD PACKER - REPLACEMENT` 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 Fund New Replacement Equipment Project FY17 $140,000 FY18 FY19 43 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW35 DEPARTMENT CURBSIDE PROJECT NAME CURBSIDE RECYCLING TRUCK REPLACEMENT 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 100% Solid Waste Fund New Replacement Equipment Project FY17 $220,000 FY18 FY19 44 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW36 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD REPLACEMENT TRUCK 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 100% Solid Waste Fund New Replacement Equipment Project FY17 FY18 $290,000 FY19 45 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW37 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD PACKER REPLACEMENT 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 100% Solid Waste Fund New Replacement Equipment Project FY17 FY18 $140,000 FY19 46 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW38 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD TRUCK REPLACEMENT FY15 FY16 Unscheduled DESCRIPTION OF PROJECT Replacement of a current front-line residential collection truck, asset #3452. ALTERNATIVES CONSIDERED Continue to operate the existing truck with increasing operating & maintenance costs. Lease a new (or used) truck. ADVANTAGES OF APPROVAL Allows the division to continue to provide excellent service to customers. Increased fuel economy; reduced exhaust emissions; less down time; increased productivity ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Operating & 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 FY19 $290,000 47 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW39 DEPARTMENT SOLID WASTE PROJECT NAME UPDATE SOLID WASTE RATE STUDY FY15 FY16 Unscheduled DESCRIPTION OF PROJECT Update to 2012 Rate Study. ALTERNATIVES CONSIDERED Continue basing rates on 2012 Study ADVANTAGES OF APPROVAL Updating the rate study every 5 years will allow the division to ensure that they can continue operating and providing services at a fair rate ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED None FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY17 $35,000 FY18 FY19 48 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW40 DEPARTMENT SOLID WASTE PROJECT NAME OVERLAY LANDFILL ROAD FY15 $70,000 FY16 Unscheduled DESCRIPTION OF PROJECT Overlay Landfill Road, as it extends through the property from Story Mill Road to the Solid Waste Shop. ALTERNATIVES CONSIDERED Let the road continue to deteriorate and patching; eventually have to reconstruct ADVANTAGES OF APPROVAL An overlay will extend the life of the road ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Reduce maintenance costs for many years FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY17 FY18 FY19 49 CIP Project Fund Solid Waste Collection PROJECT NUMBER SW41 DEPARTMENT SOLID WASTE PROJECT NAME Convenience Site Relocation FY15 $10,000 FY16 $100,000 Unscheduled DESCRIPTION OF PROJECT This project would identify a more suitable location for the existing Logan Landfill Convenience Station, located at the City Landfill property on Story Mill Road. The first year would fund the engineering work to determine a more suitable site on the Landfill property; likely to include features such as below grade roll-off containers for more convenient disposal. The second year would fund the actual construction costs related to the relocation of the existing equipment. ALTERNATIVES CONSIDERED Continue to operate at its existing site. ADVANTAGES OF APPROVAL The Site would have easier-to-use disposal options, like grade-level disposal containers. The Convenience Station would become less-obtrusive use on the property; less of the activities would be visible to ajacent properties. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Make the site less visible and make use of the site more convenient. FUNDING SOURCES Solid Waste Fund, with potential reimbursement from the Solid Waste District. New Replacement Equipment Project FY17 FY18 FY19 50