HomeMy WebLinkAbout145-05 RESOLUTION• •
•
RESOLUTION NO. 145-05
A RESOLUTION AUTHORIZING THE HIRING OF ONE (1)
FULL-TIME EMPLOYEE (DRIVER) IN THE SOLID WASTE &
RECYCLING DIVISION; APPROVING THE PURCHASE OF ONE
(1) COMMERCIAL DROP -BOX VEHICLE IN THE AMOUNT OF
$141,800.00; AND APPROVING A BUDGET ADJUSTMENT IN
THE AMOUNT OF $196,550.00.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
FAYETTEVILLE, ARKANSAS:
OF
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby authorizes the hiring of One (1) full-time employee (Driver) in the Solid
Waste & Recycling Division.
Section 2. That the City Council of the City of Fayetteville, Arkansas
hereby approves the purchase of one (1) Commercial Drop -Box Vehicle in the
amount of $141,800.00.
Section 3. That the City Council of the City of Fayetteville, Arkansas
hereby approves a budget adjustment in the amount of $196,550.00.
PASSED and APPROVED this 19th day of July 2005.
ATTEST:
By
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SONDRA SMITH, City Clerk
APPROVED:
By
Account Name
Salaries & wages
Overtime
FICA taxes
Life Insurance
Health insurance
LTD Insurance
ADD insurance
Retirement savings plan
Salaries & wages
Overtime
FICA taxes
Life insurance
Health Insurance
LTD Insurance
ADD insurance
Retirement savings plan
Workers' comp insurance
Uniforms/personal equip
Motor pool charges
Replacement charges
Shop overhead charges
Vehicle & machine maint
Vehicles and equipment
Account Name
Use of fund balance
•
Increase Expense (Decrease Revenue)
Account Number Amount Project Number
5500 5030 5100 00 6,323
5500 5030 5103 00 456
5500 5030 5105 00 519
5500 5030 5107 00 24
5500 5030 5108 00 1,226
5500 5030 5108 01 23
5500 5030 5108 02 5
5500 5030 5109 06 759
5500 5060 5100 00 6,323
5500 5060 5103 00 456
5500 5060 5105 00 519
5500 5080 5107 00 24
5500 5060 5108 00 1,226
5500 5060 5108 01 23
5500 5060 5108 02 5
5500 5060 5109 06 759
5500 5000 5111 00 1,252
5500 5000 5302 00 300
5500 5030 5331 00 22 488
5500 5030 5331 01 4,800
5500 5030 5331 02 1,740
5500 5030 5403 00 5,500
5500 5030 5802 00 141,800
Decrease Expense (Increase Revenue)
Account Number Amount Project Number
5500 0950 4999 99 196,550
City of Fayetteville, Arkansas
Request for Expansion/Replacement Equipment
Division: Solid Waste & Recycling Program: Comm.Drop Box Collections Date of Request: 05/31/05
Expansion x or Replacement _ Acct. # to be Charged: 5500.5030
Unit # for Current Vehicle: Unit # for Expansion/Replacement: 480
Purchase Price: $141,800 CIP Budget Amt: CIP Year Budgeted: Project #
Total Annual Budgeted Motor Pool Charges for Unit:
Replacement: 22,000 Maintenance: 4,800 Overhead: 1,740
Monthly Motor Pool Charges for Current Unit
Replacement: Maintenance: Overhead:
Monthly Motor Pool Charges for New Unit:
Replacement: Maintenance: Overhead:
of Months New Unit to be in Service for Current Year
Is a Budgeted Adjustment Needed?
No x Yes, BA is attached
Budgeted Amount:
Annual Cost:
Difference (Over)/Under Budget:
28,540.00
0.00
28,540.00
Description of equipment to be purchased/transferred. (Attach Additional Sheets if Necessary)
Drop Box vehicle to service drop boxes and compactor customers with the Commercial Drop Box Program.
Justification for expansbn/replacement: (Attach Additional Sheets if Necessary)
Program expansion is needed for continued service of Drop Box program customers and future customers.
Approval Signatures
•
•
6A AS --
Date D partment Director
Fleet Operations Superintendent Date
Budget Manager Date
I
ce & In
ISery
s Dir.
Mayor
1
6-1-o$
Date
Date
Date
• •
City of Fayetteville, Arkansas
Budget Adjustment Form
Budget Year
2005
Department: Operations
Division: Solid Waste & Recycling
Program: Commercial Drop Box Collections
Date Requested
7/19/2005
Adjustment Number
Project or Item Added/Increased:
$196,550 is requested to increase staffing levels and
purchase an expansion vehicle within the Solid Waste &
Recycling Division to meet increased demands of drop
box and recycling services.
Project or Item Deleted/Reduced:
No project is deleted. Reserve funds will fund this service
expansion.
Justification of this Increase:
This increase is needed to meet increased demands of
drop box and recycling services.
Justification of this Decrease:
Use of reserve funds is required to address immediate
needs of the Solid Waste & Recycling Division.
Account Name
Increase Expense Budget (Decrease Revenue Budget)
Account Number Amount
SEE ATTACHED 196,550
Account Name
Decrease Expense Budget (Increase Revenue Budget)
Account Number Amount
Use of fund balance
5500 0950 4999 99 196,550
Project Number
Project Number
A royal Signatures
3/312005
By
Date
Budget Manager Date
Department Director Date
Finance & Inte ` rviccs Di or
Mayor
Budget Office Use Only
Type: A B C D E
Date of Approval
Posted to General Ledger
Posted to Project Accounting
Entered in Category Log
Initial Date
Initial Date
Initial Date
Initial Date
•
City Council Agenda Item
•
To:
From:
Thru:
Date:
Subject:
Mayor and City Council
Gary Dumas®
Brian Pugh
May 31st, 2005
The purchase of (1) additional Drop box vehicle and (1) new personnel
request for a driver with Solid Waste's Drop box and Recycling programs.
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lyos
imp/orae/
61mnntrcla 1
pop -box Vtti
Recommendation: Staff recommends purchasing (1) additional Drop box vehicle and
requests (1) new personnel of a driver to handle the growth and expected growth in the
Solid Waste Drop box business line and help with existing duties at the Materials
Recovery Facility.
Background: The Dropbox service line serves both residential and commercial
customcrs by currently providing approximately 27 pulls per week to construction sites,
renovation projects, and subscription compactor customers. The service presently
operates with one five year old roll off truck (Unit 459) and has limited use of another
roll off truck (Unit 454) on an as -needed basis. Unit 454 is limited in the services it can
perform due to an inferior turning radius and additional length due to the boom crane
mounted on the truck. These limitations would render some accounts unserviceable if
Unit 454 were the only truck available for compactor and dropbox collections. Unit 454
is mostly used to move recycling boxes at the Public Drop off and recycling pad for the
curbside program and service the igloo program. Conversely, if Unit 454 needs repairs,
the recycling program suffers from the inability to move recycling boxes at the MRF and
to keep up with the daily baling operations. If this occurs, Unit 459 must be used at the
MRF to keep operations flowing and prevent a backlog of materials needing to be baled
causing a delay in servicing the dropbox customers on the street. The Drop Box business
line is operating with one truck currently servicing on average 100 loads per month
without an effective spare vehicle. The Drop box service line made a profit in 2004 of
S60,857 before departmental overhead charges of $59,357 and expects to build on that
momentum in 2005 with a projected net profit of $10,000 after $74,864 of departmental
overhead is expensed.
Discussion:
The profit earned in 2004 included $59,357 of departmental fixed overhead. This
overhead would have had to be absorbed by other programs operated by Solid Waste if
not covered by this dropbox program. The Dropbox business line has consistently
improved in every benchmark measurement including a 40% increase in pulls serviced
and an 89% increase in revenues in 2004 over the 2003's benchmarks. See Table B.
When considering Planning's records of 1,900 new building permits slated for 2005, the
Dropbox program's very competitive pricing structure should ensure that the program
would remain profitable for the future provided it has the equipment and labor to service
its present and future customers. Staff currently solicits new business by sending letters
to the new permit holders and then following up with phone calls and personal visits.
The 1,900 new building permits would receive these direct mailings and follow ups and
1 of 4 5/31/2005 3: I I :13 PM
• •
City Council Agenda Item
would be a great revenue source as long as equipment and personnel were available to
scrvicc this market.
In order to address raising fuel costs, the Division implemented a new delivery charge
that will add 10K in gross profits annually that became effective May 1s', 2005.
In 2004, Fleet incurred a cost of $21,474 (Labor $7,878.00, Contract Services $4,901.00,
Parts S8,688.00) in repair costs for Unit 459, the usual dropbox service unit. Currently
the average miles placed on Unit 459 is 1,900 per month. At present, if this 5 year old
truck (Unit 459) breaks down, the result would be lost revenue, lost goodwill from new
and existing customers and additional rental expense. The additional rental expense
would be incurred because Unit 459 is the only truck in the Fleet able to service all the
compactor customers. Unit 454 is outfitted with a boom lift to service the igloo
customers and therefore is unable to service all the compactor customers. 13y not being
able to service all these compactor customers, if a breakdown of Unit 459 occurs the
Division would be Jeopardizing the possible loss of 585,000 in annual revenue from
compactor and or temporary drop box customers.
The additional driver will cost approximately 534,840 per year in salary and benefits and
will be split 50/50 between the Drop box and Recycling programs. When not helping
with the Drop box program this driver will help perforin functions in the MRF; such as,
operating the baler and processing recyclablcs, loading recycled commodities onto
trailers with a fork lift and shipping the commodities to mills, spotting recycling trucks
coming in to offload recyclablcs, servicing commercial recycling igloos, and performing
other general duties as needed. This position will help eliminate future overtime with the
Drop box and Recycling programs. The savings from reduced overtime even at the rate
of 50% reduction will provide an advantage when calculating the return on investment
for the fleet and personnel expansion.
Below is a table of all of 2004 and January through March 2005 overtime in hours for the
Drop box and MRF Recycling programs:
Table A Overtime hours
2 of
5/31/2005 3 : 1 1:13 PM
2004 Overtime
Ilours
2004 Overtime
Expense
2005 Overtime
hours
Jan. -March
2005 Overtime
Expense
Jan. -March
Supervisors
239.5
55,858.08
23.5
$579.61
MRF
Employees
625.75
512,137.84
93.23
$2,152
Relief Drivers
399.35
57,512.19
77.65
$1,141.16
Drop Box
Drivers
156
$3,280
26.25
$557.26
Totals
1,420.6
$28,788.11
220.63
$4,430.03
2 of
5/31/2005 3 : 1 1:13 PM
City Council Agenda Item
•
Below is a view of the Drop box programs growth:
Table B
Pulls
increase in
Delivenes Dulls onl
Dropbox
program
Revenue
% increase
in Revenue
Estimated rate
charged per
customer for a
40 vd box
Average
Revenue per
pull including
leases,
rentals, pull
charges and
disposal
revenue
2002
657
282
n/a
$125,702
n/a
$105
$191.33
2003
917
260
40%
$191,546
52%
$150
$208.88
2004
1285
285
40%
$362,107
89%
$195
$281.80
2005'
1463
292
14%
$440,456
22%
$255
$301.06
*Annualized with .25 increase during five peak summer months and revenue includes 7
months of new $35 delivery charge.
Table C
Budget Impact: Additional Revenue and Expense with Expansion
New Revenue
Estimated new
Dropbox and
Compactor
Customers revenue
New Expenses
Labor'
Truck/Fuel'
Disposal
New Compactors"
CIP Investment
Total New Expenses
Annual difference in
new expenses minus
revenue
Potential Savings
from reduced
Overtime
Annual Return on
Investment
Cumulative Return
FY2006 FY2007 FY2008 FY2009 FY2010
FY2011
FY2012
3128,998 3265,736 3393.456 3510.979 1617.052 $654.256 3693,138
534.640 335.711
340.828 341,849
336,442 372,883
322.000 322.550
336,604
342,895
$104,770
123 114
337.519
543,967
$132,101
523,692
3141,800 - -
3275,910 3172,993 3207,382 3237,279
(3146,911) 592.743 3186,074 3273,701
314.500 314.863 315.234 315.615
-3132,411 3107,606 $201,308 3289,316
338,457
$45.066
1154.877
324,284
$262,684
3354 368
316,005
3370,373
-1132,411 -524,806 3176,502 3465.818 5836,191
339,418
346.193
5159.432
3245,043
3409.213
316,405
3425,618
$1.261.809
$40,404
347.348
5163.987
$251,739
3441,399
316.816
3458,214
31,720.023
*Adjusted for inflation at rate of 2.5%
** Cost of installing one compactor including cost of equipment, electric, concrete pad,
and labor for installation. Increase of inflation each year at 2.5%.
3 of 4
5/31/2005 3:11:13 PM
• •
City Council Agenda Item
Funds for the first year start up transferred from Solid Waste's Fund Balances
5500.0950.4999.99.
Supporting Information:
Potential savings from overtime is calculated at '/2 of 2004 expense and is raised annually
at 2.5%.
On average one compactor serves approximately 10 customers.
The average revenue per pull is $301.06. Revenue assumptions through 2012 are made
with a 3% annual rate increase.
Disposal rate is calculated with no rate increase or decrease.
Staff estimates one new compactor purchase per year for the years 2006 through 2010.
Division currently services 27 pulls per week. With business solicitation, phone calls and
personal follow up plus the growth of construction business in the arca, the assumptions
in Table D are made.
Table D: Staff estimates a growth in business according to the following schedule:
2006
2007
2008
2009
2010
2011
2012
8 new pulls
per week
8 new pulls
per week
7 new pulls
per week
6 new pulls
per week
5 new pulls
per week
1 new pull
per week
1 new pull
per week
35 pulls per
wcck
43 pulls per
weck
50 pulls per
week
56 pulls per
week
61 pulls per
week
62 pulls per
week
63 pulls per
week
Budget Impact Summary:
There are adequate funds available for this unbudgeted expansion of first year expenses
in Solid Waste's Fund Balances 5500.0950.4999.99. The $196,550 for first year
expenses to be transferred is coming from reserves and sufficient funds remain to meet
objectives and city policy. Solid Waste expects to see a return on investment in year
three after the purchase of the vehicle.
4 of 4 5/31/2005 4:04:29 PM
• •
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE HIRING OF ONE (1)
FULL-TIME EMPLOYEE (DRIVER) IN THE SOLID WASTE &
RECYCLING DIVISION; APPROVING THE PURCHASE OF ONE
(1) COMMERCIAL DROP -BOX VEHICLE IN THE AMOUNT OF
$141,800.00; AND APPROVING A BUDGET ADJUSTMENT IN
THE AMOUNT OF $196,550.00.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby authorizes the hiring of One (1) full-time employee (Driver) in the Solid
Waste & Recycling Division.
Section 2. That the City Council of the City of Fayetteville, Arkansas
hereby approves the purchase of one (1) Commercial Drop -Box Vehicle in the
amount of $141,800.00.
Section 3. That the City Council of the City of Fayetteville, r _ nsat
hereby approves a budget adjustment in the amount of $196,550:
PASSED and APPROVED this 19th day of July 2i005�
City of Fayetteville, Arkansas
Budget Adjustment Form
Budget Year
2005
D c p an m e n t: Operations
Division: Solid Waste & Recycling
Program: Commercial Drop Box Collections
Date Requested
6/1/2005
Adjustment Number
Project or Item Added/Increased:
$196,550 is requested to increase staffing levels and
purchase an expansion vehicle within the Solid Waste &
Recycling Division to meet increased demands of drop
box and recycling services.
Project or Item Deleted/Reduced:
No project is deleted. Reserve funds will fund this service
expansion.
Justification of this Increase:
This increase is needed to meet increased demands of
drop box and recycling services.
Justification of this Decrease:
Use of reserve funds is required to address immediate
needs of the Solid Waste & Recycling Division.
Increase Expense Budget (Decrease Revenue Budget)
Account Name Account Number Amount Project Number
SEE ATTACHED
Account Name
Use of fund balance
196,550
Decrease Expense Budget (Increase Revenue Budget)
Account Number Amount
5500 0950 4999 99 196,550
Project Number
A royalSignatures
..Ctern 5/31/2005
es)ed 13y Date
Budget Manager Date
meds tree or
‘-/-05
Date
Finance & Internal Services Director Date
Mayor Date
Budget Office Use Only
Type: A B C D
Date of Approval
Posted to General Ledger
Posted to Project Accounting
Entered in Category Log
Initial Date
Initial Date
Initial Date
Initial Date
• •
New Personnel Request - (2005 Budget)
Program Number
Department
Division/Program
5030
Operations
Solid Waste & Recycling / Commercial Drop I3ox Collections
New Personnel Title..: Driver
Pay Plan Grade ND8
Priority
Personnel Information
Employee Status FT (FT or PT)
FTE Amount 25% (100=100% d 75-75%)
Personnel Services Cost
Annual Salary $ 25,291
Salaries & Wages $ 6,323
Overtime Amount 456 100 (0 of Hours)
FICA 519
Life Insurance 24
Health Insurance 1,226 F (F or 1)
LTD Insurance 23
AD&D Insurance 5
Retirement 759 Y (Y, N, LP, LF)
Worker's Comp 626 L (Workers Comp Code)
Total $ 9,961
Capital Outlay 6 Initial (One -Time) Purchases
Amount
Account Number Description Requested
5500 5030 5802 00 Autocar Cahover
5500 5030
5500 5030
5500 5030
5500 5030
Operation and Maintenance Expense
Account Number Description
141,800
Amount
Requested
5500 5030 5330 00 Motor pool charges 22,488
5500 5030 5331 01 Replacement charges 4,800
5500 5030 5331 02 Shop overhead charges 1,740
5500 5030 5403 00 Vehicle & machine maint 5,500
5500 5000 5217 00 Uniforms/personal equipment 300
• •
New Personnel Request - (2005 Budget)
Program Number 5030
Department Operations
Division/Program Solid Waste & Recycling / Commercial Drop Box Collections
New Personnel Title..: Dnver
Pay Plan Grade ND8
Priority
Personnel Information
Employee Status Fl (FT or PT)
FTE Amount 25% (100=1008 & 75=751)
Description of New Personnel Request
Driver - Solid Waste
Justification of New Personnel Request
With the current volume and projected future growth associated with drop box service, an additional driver is requested to reduce overtime and
meet the growing demand of this service. This program currently services all compactors and drop boxes. The driver will also be utilized in the
Recycling Program at the Materials Recovery Facility.
New Personnel Request - Total Cost
Personnel Services Cost •5 9,961
Capital Outlay & Initial Purchases •S 141,800
Operation and Maintenance Expense •$ 34,828
186,589
• •
New Personnel Request - (2005 Budget)
Program Number
Department
5060
Operations
Division/Program Solid Waste & Recycling / Recycling
New Personnel Title..: Driver
Pay Plan Grade ND8
Priority
Personnel Information
Employee Status FT (ET or PT)
FTE Amount 25% (100=1001 6 75-751)
Description of New Personnel Request
Driver - Solid Waste
Justification of New Personnel Request
With the current volume and projected future growth associated with solid waste services, an additional driver is requested to reduce overtime and
meet growing demands. The driver will also be utilized for drop box services.
New Personnel Request - Total Cost
Personnel Services Cost $ 9,961
Capital Outlay & Initial Purchases $ 0
Operation and Maintenance Expense •$ 0
Personnel ervi -ea ost
9,961
• •
New Personnel Request - (2005 Budget)
Program Number
Department
5060
Operations
Division/Program Solid Waste & Recycling /Recycling
New Personnel Title..: Driver
Pay Plan Grade ND8
Priority
Personnel Infnrmati n
Employee Status
FTE Amount
FF (FT or PT)
25% (100-100% d 75-75$)
Annual Salary $ 25,291
Salaries & Wages • $ 6,323
Overtime Amount 456 100 (0 of Hours)
FICA 519
Life Insurance 24
Health Insurance 1,226 F (F or I)
LTD Insurance 23
AD&D Insurance 5
Retirement 759 Y (Y, N, LP, LF)
Worker's Comp 626 1. (Workers Comp Code)
Total S 9,961
Capital Outlay & Initial (One -Time) Purchases
Account Number Description
5500 5060
5500 5060
5500 5060
5500 5060
5500 5060
Operation and Maintenance Expense
Amount
Requested
Amount
Account Number Description Requested
5500 5060
5500 5060
5500 5060
5500 5060
5500 5000
Brian Pugh
Submitted By
City of Fayetteville
Staff Review Form
City Council Agenda Items
or
Contracts
▪ /42,5
- 642114005 bf21.14005
City Council Meeting Date
Solid Waste & Recycling
Division
Action Required:
Operations
Department
Approval to hire one (1) full-time employee and purchase of one (1) expansion vehicle for the Solid Waste &
Recycling Division and approval of a budget adjustment in the amount of $196,550.
S
196, 550.00
Cost of this request
5500.0950.4999.99
Account Number
Project Number
Budgeted Item
$
1,016,808.00
Category/Project Budget
S
Funds Used to Date
b
1,016,808.00
Remaining Balance
Budget Adjustment Attached
X
Solid Waste Fund Revenue
Program Category / Project Name
Miscellaneous
Program / Project Category Name
Solid Waste
Fund Name
Department Di for
City Attorney
6 -I -os
Date
Finance and Internal Service Director
Mayor
Comments:
L-22 -o5
Date
Date
Previous Ordinance or Resolution tt
Original Contract Date:
Original Contract Number:
Clarice Pearman - original budget adjustm • Page 11
From: Clarice Pearman
To: Pugh, Brian
Subject: original budget adjustment
Brian,
The City Council passed a resolution for your agenda on July 19, 2005. Please get me a blue original of
the budget adjustment to continue processing your item. Whenever have a budget adjustment the blue
budget adjustment should always be included with your packet.
For future reference, and I don't know how this got by the city attorneys office but your items should have
been two different items and resolutions. One for the hiring of new personnel and the other for your drop
box.
Clarice Pearman - Fwd: Res. 145-05
Page 1
From: Clarice Pearman
To: Fell, Barbara
Subject: Fwd: Res. 145-05
»> Clarice Pearman 08/04/05 10:56AM »>
Brian,
Sorry for the delay. The mayor was out of town and I finally got these signed on Monday. Attached is a
copy of the resolution passed by City Council July 19, 2005 regarding a full-time employee and purchase
of a drop box. I will be forwarding the budget adjustment to Budget & Research via interoffice mail.
Thanks.
Clarice