The URL can be used to link to this page

Home My WebLink AboutC9. Solid Waste Fund Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Administrative Services Director SUBJECT: Adopt the Solid Waste Fund (Collection & Recycling) Capital Improvement Plan (CIP) for Fiscal Years 2017-2021. AGENDA ITEM TYPE: Consent MEETING DATE: December 7, 2015 RECOMMENDATION: Adopt the Solid Waste Fund (Collection & Recycling) Capital Improvement Plan (CIP) for Fiscal Years 2017-2021. 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. Similar to recent years past, we are bringing the various parts of the plan forward as items on the Consent agenda. We will be prepared to address questions, if they arise, at the public meeting. The Public Works, City Manager, 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 completed in FY13, funding annual capital replacement at an amount similar to annual depreciation expense noted in the rate study. Once an additional route vehicle is added, the annual depreciation expense will be adjusted to include the added truck. Item of Note: 151 • During FY16, many vehicles and/or truck packer units were replaced, according to plan. This resulted in the Solid Waste Fund’s cash reserve being spent below customary levels for capital. We will be recovering this balance over FY17 and FY18, which see relatively low levels of capital spending. • We anticipate needing to add a new service route truck in FY19. This will mark a significant point in our operations – as positive customer growth is driving the need for this equipment. • Solid Waste Fund revenues have averaged growth of 3.2% per year over the past 5 years. 640 - Solid Waste Revenue history Amount Change 2011 $ 2,570,358.00 - 2012 $ 2,571,722.00 0.1% 2013 $ 2,519,436.00 -2.0% 2014 $ 2,721,913.00 8.0% 2015 $ 2,956,655.00 8.6% Linear Trend - 2016 $ 3,000,000.00 1.5% Average FY11-FY15 $ 2,668,016.80 3.2% UNRESOLVED ISSUES: None. $- $500,000.00 $1,000,000.00 $1,500,000.00 $2,000,000.00 $2,500,000.00 $3,000,000.00 $3,500,000.00 2011 2012 2013 2014 2015 Linear Trend - 2016 Solid Waste Fund Revenues 152 ALTERNATIVES: As suggested by the City Commission. If the Commission does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY16. Report compiled on: November 25th, 2015 Attached: Solid Waste CIP 153 Solid Waste Collection & RecyclingCapital Improvement PlanFinancial SummaryCurrent YearFY16FY17FY18 FY19 FY20 FY21UnscheduledProjected Beginning Reserve Balance Dedicated to CIP331,881$ (376,162)$ (129,462)$ 209,289$ 55,453$ (205,599)$ ‐$ Plus: Revenues Dedicated to CIP390,000$ 401,700$ 413,751$ 426,164$ 438,948$ 452,117$ ‐$ Less: Scheduled CIP Project Costs(1,098,043)$ (155,000)$ (75,000)$ (580,000)$ (700,000)$ (165,000)$ ‐$ Projected Year‐End Cash Dedicated to CIP(376,162)$ (129,462)$ 209,289$ 55,453$ (205,599)$ 81,518$ ‐$ Assumptions Made for Revenue Estimates:Current YearFY16FY17FY18 FY19 FY20 FY21Estimated Annual Revenues3,000,000$ 3,000,000$ 3,090,000$ 3,182,700$ 3,278,181$ 3,376,526$ Estimated Annual Increase in Revenues ‐ 3%3%3%3%3%Total Estimated Revenues3,000,000$ 3,090,000$ 3,182,700$ 3,278,181$ 3,376,526$ 3,477,822$ Current Revenues Dedicated to CIP %12.0%13.0% 13.0% 13.0% 13.0% 13.0% Plus: Increase Dedicated to CIP1.0%0.0%0.0% 0.0% 0.0% 0.0% Total % Dedicated to CIP13.0%13.0% 13.0% 13.0% 13.0% 13.0%Total Estimated Revenues Dedicated to CIP390,000$ 401,700$ 413,751$ 426,164$ 438,948$ 452,117$ Note: 2012 Rate Study identifies $367,000 in total annual depreciation expense.ProjectedProjectedCURRENT1,200,0001,000,000800,000600,000400,000200,0000Solid Waste Projects & Equipment 154 CIP PROJECT FUPROJ.DEPARTMENTPROJECT NAMEFY17UnscheduledFY21FY18FY19FY20Solid WastePW01 ‐ SHCOLLECTIONSHOPS FACILITY EXPANSION PLAN$10,000SW32COLLECTIONFRONTLOAD REPLACEMENT TRUCK$270,000SW36COLLECTIONSIDE LOAD NEW ‐ (ADDITIONAL ROUTE)$290,000SW37COLLECTIONSIDE LOAD PACKER REPLACEMENT$165,000$140,000SW38COLLECTIONSIDE LOAD TRUCK REPLACEMENT$290,000$290,000SW39COLLECTIONRATE STUDY ‐ UPDATE SOLID WASTE$35,000SW42COLLECTIONSTORAGE BUILDING$75,000SW43COLLECTIONFRONT‐LOAD CONTAINER TRANSPORT TRUCK$60,000SW44COLLECTIONCOMPOST MIXER$50,000$165,000$155,000$75,000$580,000$700,000Summary for Solid Waste (9 items)Totals by year:$165,000$155,000 $75,000FY21FY17FY18UnscheduledFY20$700,000$580,000FY19155 CIP Project Fund Solid Waste PROJECT NUMBER PW01 - SH DEPARTMENT COLLECTION PROJECT NAME SHOPS FACILITY EXPANSION PLAN FY17 $10,000 FY18 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. ALTERNATIVES CONSIDERED Most of the reconfiguration for the existing buildings is now complete. Also the improvements for the Laurel Glen building are complete and that building is being used for Water/Sewer operations. This work would assess future needs for the departments at the current Shop location at 814 N. Bozeman. We could also determine whether there is space for additions at both the 814 N. Bozeman location and the new Vehicle Maintenance building site at 1812 N. Rouse. 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 FY19 FY20 FY21 156 CIP Project Fund SOLID WASTE PROJECT NUMBER SW32 DEPARTMENT COLLECTION PROJECT NAME FRONTLOAD REPLACEMENT TRUCK FY17 FY18 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 FY19 FY20 $270,000 FY21 157 CIP Project Fund Solid Waste PROJECT NUMBER SW36 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD NEW - (ADDITIONAL ROUTE) FY17 FY18 Unscheduled DESCRIPTION OF PROJECT The Solid Waste Division continues to see substantial new growth in residential accounts. 2015 marks the third consecutive year for residential growth exceeding 450 new accounts. To keep pace with this growth pattern we will need to add an additional route, which will require the purchase of an additional side-load truck. 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 FY19 $290,000 FY20 FY21 158 CIP Project Fund Solid Waste PROJECT NUMBER SW37 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD PACKER REPLACEMENT FY17 FY18 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. Because of all the moving parts, 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 FY19 FY20 $140,000 FY21 $165,000 159 CIP Project Fund Solid Waste PROJECT NUMBER SW38 DEPARTMENT COLLECTION PROJECT NAME SIDE LOAD TRUCK REPLACEMENT FY17 FY18 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 FY19 $290,000 FY20 $290,000 FY21 160 CIP Project Fund Solid Waste PROJECT NUMBER SW39 DEPARTMENT COLLECTION PROJECT NAME RATE STUDY - UPDATE SOLID WASTE FY17 $35,000 FY18 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 FY19 FY20 FY21 161 CIP Project Fund Solid Waste PROJECT NUMBER SW42 DEPARTMENT COLLECTION PROJECT NAME STORAGE BUILDING FY17 FY18 $75,000 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 FY19 FY20 FY21 162 CIP Project Fund SOLID WASTE PROJECT NUMBER SW43 DEPARTMENT COLLECTION PROJECT NAME FRONT-LOAD CONTAINER TRANSPORT TRUCK FY17 $60,000 FY18 Unscheduled DESCRIPTION OF PROJECT This equipment is for the delivery, exchange and/or removal of front-load metal dumpsters. The area of temporary dumpster service is increasing in popularity. Temporary dumpster service requests range from general move-out, compost/brush removal to small construction projects. We have maximized the current capacity of the truck we have now. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL Continue to meet the needs of the customers ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Maintenance costs estimated < $1,000.00 FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY19 FY20 FY21 163 CIP Project Fund SOLID WASTE PROJECT NUMBER SW44 DEPARTMENT COLLECTION PROJECT NAME COMPOST MIXER FY17 $50,000 FY18 Unscheduled DESCRIPTION OF PROJECT The compost mixer will blend the various feedstocks to optimize the composting process. Currently we mix using the loader bucket, which is one of the least efficient ways of blending compost feedstocks. One of the more difficult tasks is maintaining moisture content in the compost process. The best place to add moisture to compost is at the mixing stage. Introducing a compost mixer to our system will allow us to handle more volume, as the composting process will require less time (6-8 weeks). Introduction of the mixer will allow us to expand into food scrap composting. ALTERNATIVES CONSIDERED Continue with our current operations. Compost currently takes 3 years to complete. ADVANTAGES OF APPROVAL Composting benefits include; Soil conditioner, good for the environment and reduces landfill waste. Finished compost can be used in City parks as a soil amendment. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES 100% Solid Waste Fund New Replacement Equipment Project FY19 FY20 FY21 164