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Home My WebLink About14. C12 Solid Waste CIP Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Administrative Services Director SUBJECT: Adoption of the Solid Waste Fund (Collection & Recycling) Capital Improvement Plan (CIP) for FY16-20. AGENDA ITEM TYPE: Consent MEETING DATE: December 15, 2014 RECOMMENDATION: Adopt the Solid Waste Fund (Collection & Recycling) Capital Improvement Plan (CIP) for FY16-20. 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 in FY13; 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: • SW42 – Storage Building for $75,000 in FY18 78 • SW43 – Convenience Site Relocation Construction - $100,000 unscheduled • SW44 – Compost Turner - $80,000 in FY16 There are two changes to items previously listed in the Solid Waste CIP: • SW37 – Side Load Packer Replacement has been moved from FY18, to FY16, FY17 & FY20 • SW38 – Side Load Truck Replacement has been added to FY16 (in addition to FY19 as in the previous CIP) UNRESOLVED ISSUES: SW41 – Convenience Site Relocation anticipates some funding support coming from the Solid Waste District, who manages the site. This will need to be developed and negotiated with the District. ALTERNATIVES: As suggested by the City Commission. If the Commission is does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY16. Report compiled on: December 3, 2014 Attached: Draft - Solid Waste Fund CIP 79 Solid Waste Collection & RecyclingCapital Improvement PlanFinancial SummaryCurrent YearFY15FY16FY17 FY18 FY19 FY20Projected Beginning Reserve Balance Dedicated to CIP496,500$ 685,695$ (32,412)$ 195,842$ 538,228$ 669,788$ Plus: Revenues Dedicated to CIP347,238$ 379,936$ 413,254$ 417,386$ 421,560$ 425,776$ Less: Scheduled CIP Project Costs(158,043)$ (1,098,043)$ (185,000)$ (75,000)$ (290,000)$ (700,000)$ Projected Year‐End Cash Dedicated to CIP685,695$ (32,412)$ 195,842$ 538,228$ 669,788$ 395,564$ Assumptions Made for Revenue Estimates:Current YearFY15FY16FY17FY18 FY19 FY20Estimated Annual Revenues2,893,650$ 2,893,650$ 2,922,587$ 2,951,812$ 2,981,330$ 3,011,144$ Estimated Annual Increase in Revenues ‐ 1%1%1%1%1%Total Estimated Revenues2,893,650$ 2,922,587$ 2,951,812$ 2,981,330$ 3,011,144$ 3,041,255$ Current Revenues Dedicated to CIP %10.0%12.0% 13.0% 14.0% 14.0% 14.0% Plus: Increase Dedicated to CIP2.0%1.0%1.0% 0.0% 0.0% 0.0% Total % Dedicated to CIP12.0%13.0% 14.0% 14.0% 14.0% 14.0%ProjectedProjectedTotal Estimated Revenues Dedicated to CIP347,238$ 379,936$ 413,254$ 417,386$ 421,560$ 425,776$ Note: 2012 Rate Study identifies $367,000 in total annual depreciation expense.CURRENT1,200,0001,000,000800,000600,000400,000200,0000Solid Waste Projects & Equipment 80 CIP PROJECT FUPROJ.DEPARTMENTPROJECT NAMEFY16UnscheduledFY20FY17FY18FY19Solid WastePW01COLLECTIONSHOPS FACILITY EXPANSION PLAN$10,000SW32COLLECTIONFRONTLOAD REPLACEMENT TRUCK$270,000$270,000SW36COLLECTIONSIDE LOAD NEW ‐ (ADDITIONAL ROUTE)$290,000SW37COLLECTIONSIDE LOAD PACKER REPLACEMENT$140,000$138,043$140,000SW38COLLECTIONSIDE LOAD TRUCK REPLACEMENT$290,000$290,000SW39COLLECTIONUPDATE SOLID WASTE RATE STUDY$35,000SW40COLLECTIONOVERLAY LANDFILL ROAD$20,000SW41COLLECTIONCONVENIENCE SITE RELOCATION DESIGN$10,000SW42COLLECTIONSTORAGE BUILDING$75,000SW43COLLECTIONCONVENIENCE SITE RELOCATION CONSTRUCTION$100,000SW44COLLECTIONCOMPOST TURNER$80,000$700,000$808,043$185,000$75,000$290,000$100,000Totals by DEPARTMENTSolid WasteSW35CURBSIDECURBSIDE RECYCLING TRUCK REPLACEMENT$290,000$290,000Totals by DEPARTMENTSummary for Solid Waste (12 items)Totals by year:$700,000$1,098,043 $185,000$100,000FY20FY16FY17UnscheduledFY19$290,000$75,000FY1881 CIP Project Fund Solid Waste PROJECT NUMBER PW01 DEPARTMENT COLLECTION PROJECT NAME SHOPS FACILITY EXPANSION PLAN FY16 FY17 $10,000 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 FY18 FY19 FY20 82 CIP Project Fund Solid Waste PROJECT NUMBER SW32 DEPARTMENT COLLECTION PROJECT NAME FRONTLOAD REPLACEMENT TRUCK FY16 $270,000 FY17 Unscheduled DESCRIPTION OF PROJECT This truck is a replacement for existing front-load truck currently collecting 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 Leasing a front-load truck. ADVANTAGES OF APPROVAL Reliable equipment to ensure routes completed in an efficient manner. Maintenance costs of new equipment will be lower. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Average maintenance costs: $10,000/year FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY18 FY19 FY20 $270,000 83 CIP Project Fund Solid Waste PROJECT NUMBER SW35 DEPARTMENT CURBSIDE PROJECT NAME CURBSIDE RECYCLING TRUCK REPLACEMENT FY16 $290,000 FY17 Unscheduled DESCRIPTION OF PROJECT This truck and side-load packer is used in the collection of residential/commercial single stream recycling. This single stream program started in October 2013 and has experienced tremendous growth. ALTERNATIVES CONSIDERED Leasing a side-load truck ADVANTAGES OF APPROVAL Reliable equipment to ensure routes completed in an efficient manner. Maintenance costs of new equipment will be lower. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual operating and maintenance costs = $30,000 FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY18 FY19 FY20 84 CIP Project Fund Solid Waste PROJECT NUMBER SW36 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD NEW - (ADDITIONAL ROUTE) FY16 FY17 Unscheduled DESCRIPTION OF PROJECT Additional Side Load truck for new route ALTERNATIVES CONSIDERED Leasing a side-load truck ADVANTAGES OF APPROVAL Reliable equipment to ensure routes completed in an efficient manner. Maintenance costs of new equipment will be lower. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual operating and maintenance costs = $30,000 FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY18 FY19 FY20 $290,000 85 CIP Project Fund Solid Waste PROJECT NUMBER SW37 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD PACKER REPLACEMENT FY16 $138,043 FY17 $140,000 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 or kept for replacement parts. New packers advancement in materials used have led to extend the life of the packer. New packers wear out within 4 years (7,000 hours) of use. ALTERNATIVES CONSIDERED To continue to operate existing packer with increased repair costs and down time. Leasing side-load equipment. 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 = $6,000 FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY18 FY19 FY20 $140,000 86 CIP Project Fund Solid Waste PROJECT NUMBER SW38 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD TRUCK REPLACEMENT FY16 $290,000 FY17 Unscheduled DESCRIPTION OF PROJECT This truck is a replacement for existing side-load truck currently collecting residential 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 continue to operate existing truck with increased repair costs and down time. Leasing side-load truck. ADVANTAGES OF APPROVAL Reliable equipment to ensure routes completed in an efficient manner. Maintenance costs of new equipment will be lower. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual operating and maintenance costs = $30,000 FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY18 FY19 $290,000 FY20 87 CIP Project Fund Solid Waste PROJECT NUMBER SW39 DEPARTMENT COLLECTION PROJECT NAME UPDATE SOLID WASTE RATE STUDY FY16 FY17 $35,000 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 FY18 FY19 FY20 88 CIP Project Fund Solid Waste PROJECT NUMBER SW40 DEPARTMENT COLLECTION PROJECT NAME OVERLAY LANDFILL ROAD FY16 $20,000 FY17 Unscheduled DESCRIPTION OF PROJECT Overlay Landfill Road, as it extends through the property from Story Mill Road to the Solid Waste Division Shop. ALTERNATIVES CONSIDERED Let the road continue to deteriorate which will require constant 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 FY18 FY19 FY20 89 CIP Project Fund Solid Waste PROJECT NUMBER SW41 DEPARTMENT COLLECTION PROJECT NAME CONVENIENCE SITE RELOCATION DESIGN FY16 $10,000 FY17 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 FY18 FY19 FY20 90 CIP Project Fund Solid Waste PROJECT NUMBER SW42 DEPARTMENT COLLECTION PROJECT NAME STORAGE BUILDING FY16 FY17 Unscheduled DESCRIPTION OF PROJECT This pole construction cold storage building would shelter some equipment and many of the containers currently stored outside. ALTERNATIVES CONSIDERED Continue to store items outside ADVANTAGES OF APPROVAL Protect equipment from the elements of weather; All of our containers can be stored inside, not collecting water, exposure to sun and be less visible to adjacent properties. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Operating costs, electricity for lights = < $1,000/ year FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY18 $75,000 FY19 FY20 91 CIP Project Fund Solid Waste PROJECT NUMBER SW43 DEPARTMENT COLLECTION PROJECT NAME CONVENIENCE SITE RELOCATION CONSTRUCTION FY16 FY17 Unscheduled $100,000 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 adjacent properties. Allow City of Bozeman residents access to discard of refuse, compost, brush, household hazardous waste, white goods and recycling commodities. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Operations financed by the Gallatin Solid Waste Management District FUNDING SOURCES Solid Waste Fund, with potential reimbursement from the Solid Waste District. New Replacement Equipment Project FY18 FY19 FY20 92 CIP Project Fund Solid Waste PROJECT NUMBER SW44 DEPARTMENT COLLECTION PROJECT NAME COMPOST TURNER FY16 $80,000 FY17 Unscheduled DESCRIPTION OF PROJECT Purchase of a used 100 horsepower tractor and windrow turner. Currently compost operations takes about 3 years to fully develop compost. The current equipment used is a front-end loader, which is not very efficient to mix the compost thoroughly. The tractor/windrow turner will accelerate the composting process allowing the windrows to compost more quickly(estimated time 6 months). Compost piles will be turned three times per week. The fall leaf cleanup brings in over 1,000 tons per year of leaves, Various City departments bring in about 400 tons per year, residential compost collection during summer months brings in about 250 tons per year and the general public self-haul compost to the Bozeman Convenience Site, off Story Mill Road, 150 tons per year. Total compost processed is about 1,800 tons per year. ALTERNATIVES CONSIDERED Continue with current operations; Use a smaller tractor/windrow turner (will need more flat land area to compost upon) ADVANTAGES OF APPROVAL Compost would be produced more quickly and efficiently utilizing the current composting area; Finished compost would be tested and potentially used in City parks to improve soil structure; ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual operating and maintenance costs = $2,000 FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY18 FY19 FY20 93