#4 Authorize expenditures for conversion to automated collection of trash and recyclables (File Res. #2012-878)
DEPARTMENT OF PUBLIC WORKS MEMORANDUM
December 29, 2011
TO: City Council
FROM: John Whitcomb, Operations Director
SUBJECT: Action on a Proposed Resolution Authorizing Expenditures for the
Conversion to Automated Collection of Trash and Recyclables (File
Resolution No. 2012-878)
Summary
File Resolution No. 2012-878 authorizes the City Administration to expend up to
$3,150,000 to facilitate the conversion from manual collection of trash and
recyclables to fully automated collection. The funds will be utilized for collection
equipment upgrades and the purchase of wheeled carts necessary for
automation. The Resolution also commits the City Council to borrowing up to
this same amount in the 2012 General Obligation Note Issue.
Staff Recommendation
Following Council discussion, staff recommends the City Council adopt the
proposed File Resolution.
Recommended Motion
I move to adopt File Resolution No. 2012-878
City Manager Recommendation
This item was approved during the 2012 budget. In order to facilitate the
conversion the City staff needs authorization from the Council to fully automate
collection.
Background
The 2012 Sanitation Fund budget adopted by the City Council provides for the
conversion of the City’s waste collection programs from manual collection to fully
automated collection. The anticipated date of conversion is October 1, 2012.
The conversion requires capital expenditures to upgrade waste collection
equipment and for the purchase of wheeled carts which will be distributed to
each unit receiving collection service from the City. These capital expenditures
are estimated to total $3,150,000 and funds will need to be expended prior to the
City Council’s action on the 2012 General Obligation Note Issue. The proposed
Resolution authorized the Administration to proceed to expend the capital funds
at this time, and commits the City Council to include an amount not to exceed
$3,150,000 in the 2012 General Obligation Note Issue.
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Specifically, the expenditure estimates are as follows:
$2,780,000
48,000 wheeled carts; 2 carts for each collection stop - . This
includes costs for the vendor to distribute carts to each household.
$100,000
Retrofit of four existing collection vehicles - . These vehicles
were ordered and constructed so they could be retrofitted for automated
collection.
Upgrade costs for five existing collection vehicles scheduled for
$170,000
replacement in 2012 - . This represents the difference between
available funding in the Vehicle Operation and Maintenance (VOM)
replacement fund for manual trash collection vehicles and the higher cost
of the automated collection equipment.
Two existing collection vehicles not scheduled for replacement in 2012 will
be sold or traded and replaced with one automated collection vehicle – net
$100,000
cost .
Recommendation
Staff recommends the Council adopt File Resolution No. 2012-878.
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RESOLUTION NO. 2012- 878
A Resolution authorizing the City Administration to expend funds to provide for the
conversion to automated collection of residential trash and recyclables.
WHEREAS, the City of Janesville currently utilizes municipal employees to manually
collect residential trash and recyclables; and
WHEREAS, the Common Council have expressed a desire to convert from the manual
collection of residential trash and recyclables to fully automated collected of residential
trash and recyclables; and
WHEREAS, the conversion from manual collection to fully automated collection is in the
best interests and benefit of the City in that it is anticipated to significantly reduce
worker injuries and improve service to the citizens of Janesville; and
WHEREAS, the Common Council anticipate the conversion to automated collection of
residential trash and recyclables through their adoption of the 2012 Sanitation Fund
budget; and
WHEREAS, certain capital costs will be incurred to provide for the conversion to
automated collection of residential trash and recyclables; such cost currently is
estimated at $3,150,000 for collection equipment upgrades and the provision of
collection carts to residential and other specific customers; and
WHEREAS, the Common Council intend to include capital funding through the 2012 tax
exempt promissory note issue to facilitate the conversion from manual collection of
residential trash and recyclables to fully automated collection of residential trash and
recyclables.
NOW, THEREFORE BE IT RESOLVED, by the Common Council of the City of
Janesville that they hereby approve and authorize the City Administration to expend
funds not to exceed $3,150,000 to support the conversion from manual collection of
residential trash and recyclables to fully automated collection of residential trash and
recyclables; said funds to be utilized to upgrade collection equipment and to provide
collection carts to residential and other specific customers. No funds from sources
other than 2012 tax exempt obligation promissory note issue are, or are expected to be,
reserved, allocated on a long-term basis, or otherwise set aside by the City for the
conversion, except as permitted by the Internal Revenue Code of 1986. This
declaration of official intent is consistent with the budgetary and financial circumstances
of the City. The purpose of this Resolution is to satisfy the “official intent” requirement
of the Treasury Regulation Section 1.150-2.
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Dongarra-Adams
Eric J. Levitt, City Manager
Liebert
McDonald
ATTEST:
Rashkin
Steeber
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by: Operations Division
Prepared by: Operations Division
Option Cost Summary - Combined Trash Collection, Disposal and Recycling Programs
Full Automation Automation
Full
Maintain
Automation of Recycling of Recycling
Automation
Current With Bi-Only with Bi-Only with
With Monthly
SystemWeekly Weekly Monthly
Recycling
RecyclingCollectionCollection
Total Cost of Programs
$ 2,226,228$ 2,300,144$ 2,117,144$ 2,350,419$ 2,165,332
Revenue From Sale of Materials and Grants
$ (428,000)$ (455,832)$ (441,564)$ (455,832)$ (441,564)
Net Cost of Programs$ 1,798,228$ 1,844,312$ 1,675,580$ 1,894,587$ 1,723,769
Full Year Net Monthly Cost Per Unit (2012 Dollars)$ 6.38$ 6.55$ 5.95$ 6.73$ 6.12
2012 Budget With 10/1/12 Implementation$ 6.18$ 6.04$ 6.35$ 6.20
n/a
Total Capital Required$ 3,154,000$ 3,054,000$ 1,512,000$ 1,482,000
n/a
Major Assumptions & Notes
Cost/HH for automated options includes capital borrowing + interest
Figures include all recycling program expenditures and revenues
All options result in a reduction in the number of collection employees required
Holiday collection under full automation options would need to change
Collection of Christmas trees may not be possible with automation;
20% increase in recyclables collected under automated bi-weekly collection; 10% increase with automated monthly collection
Revenue reflects new contract with Rock Disposal and includes cost to transfer materials to their processing facility
Monthly recycling costs assume only one recycling cart per household; additional carts will likely be required under this option
All carts assumed to be approximately 95 gallons in capacity