SR-202-003 (42)
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SEP 2 3 1880
Santa Monica, Californla, September 9, 1980
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TO:
Mayor and City Council
OCT 1 4 1980
FROM: City Staff
SUBJECT: Proposal to Improve the Condition of
the Clty'S Refuse Collection Fleet
Introduct1on
ThlS lS a request for Clty Counc1l approval of an i~~edlate and long-term
plan to
alleviate the problem of an aging refuse vehicle fleet and to
lmprove ma1ntenance of the refuse fleet. ThlS plan lnvolves the following:
Transfer of one vacant budgeted positlon from the Street Maintenance
Division to the ~echanlcal Ma1ntenance D1V1Slon.
The implementation of a Refuse Equipment Replacement Fund.
The adopt1on of a systematic refuse vehicle replacement schedule
lncluding a request to purchase two 20-cub1c-yard refuse packers
immedlately. Funds are avallable from the Refuse Truck and Bln Servlce
Fund for the purchase of these vehlcles.
Background
As part of a comprehensive analysis of the personnel, equipment, and activlties
of the Maintenance Divlsions (Street Ma1ntenance, PubllC Facllltles Maintenance,
Mechan1cal Malntenance, and Refuse Collection and Dlsposal) def1c1encies and
areas for improvement have been identif1ed 1n several areas. Due to the vltal
nature of the serVlce, Refuse Divlsion has a hlgh priority for the 1mplemen-
tation of lmprovements. The remalnder of th1S report describes high-prior1ty ~c:?
problems in the Refuse function that can be solved with some lmmediate as
OCT 1 4 1980
well as long-term alternatives.
lie
SEP 2 3 1980
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To: Mayor and Council
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September 9~ 1980
In the past few years there has been no deflned replacement schedule for refuse
trucks. An analysis was made at the tlme of budget preparation of how many
trucks should be replaced based on the current conditlon of the fleet. This
type of analysis 19nores potentlal for future wear and subsequent breakdowns.
The realitles of munlclpal operat1ons are that for large capital items 1t can
be twelve months or more from the tlme the need for replacement is determlned
untll the ltem is purchased and delivered. For this reason, 1f a regular
vehlcle replacement schedule is not adopted and adhered to, the purchases of
replacement veh1cles can be delayed, causlng greater burdens on future capital
budgets Th1S 1S exactly what has happened to our refuse fleet. Exhibit I
lndlcates the year of acquis1tion of our current fleet.
The current fleet of refuse collect1on trucks has aged. Many vehicles belng
used are worn and need repa1r almost dally. Major body and frame repalrs
are requlred to keep vehicles on assigned routes.
A survey of several nearby clties with refuse fleets (Exhlbit III) 1ndlcates
that refuse trucks are retained an average of seven years. All of these c1ties
have one-time-per-week collection and a five-day-week operation. Santa Monica~
however, provldes a mlnlmum of twice-per-week collect1on wlth a full-scale~
slx-day-per-week operation. This mode of operation adds at least a 20 percent
wear factor to Santa Monlca refuse trucks when compared to other fleets oper-
ating flve days per week. Using seven years as a standard for five-day-week
operations, Santa Monica should be on a five- or slx-year replacement schedule
for refuse trucks.
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To Mayor and Counc1l
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September 9, 1980
Of course, there are many other var1ables that affect the rate of wear of
refuse trucks:
- Type of refuse
- Experience of drivers
- D1stance to dump slte
- Quallty and frequency of maintenance
- Number of back-up vehicles
Exhiblt II shows the aging schedule of our current refuse fleet. Assumlng
a one to three spare to llne vehlcle ratio (the industry average) and a SlX-
year replacement criteria, the CltylS current fleet is crippled with old age.
There are fourteen dally collectlon routes. Using the parameters descrlbed
above, the City should have eighteen refuse trucks six years old or less.
The C1ty currently has only fourteen trucks in th1S category, and wlthin SlX
months, only eleven trucks wll1 be age six years or less. Also, of the four-
teen trucks, only three are tnree years old or less.
The current situation of the overaged fleet is putting a severe strain on our
refuse collectors as well as the mechanlcs. Due to the breakdown frequency,
overt1me costs for both collectors and mechanics lS unusually high. Repair
costs for the refuse collector fleet exceeded the 1979/80 budgeted amount by
$116,735 ($119,900 budgeted, 5316,725 actual cost)
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Vehicle Replacement Fund
In order to keep the refuse fleet on an adequate aging schedule, 1t 1S pro-
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posed the City 1mplement a replacement schedule that w1ll meet the six year
maximum age limit and a one to three spare to line ratio. It is also proposed
that a depreciat10n schedule be established for each refuse fleet vehlcle.
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To: Mayor and Council
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September 9. 1980
ThlS schedule wlll be the basls of a replacement fee establlshed In order to
accrue monies for the tlmely replacement of the item. ThlS replacement fee
or rate shall be based on the followlng formula:
RR =
C-s
p
RR = Monthly Replacement Rate
P Estimated useful llfe in months
C = Estimated cost of a like item at the time of replacement
(including make ready costs)
S = Estimated salvage value of the eXlstlng ltem at the time of
replacement
Example:
c = $50.000
(cost new)
$80.000
x 1.6
(l07~ lnflatlOn
factor)
p = 72 months (SlX years)
S = $5.000 estlmated salvage value
RR = S80.00072 $5.000 = $1,042 monthly replacement rate
ThlS rate will be charged to the Refuse Divlslon each month. The monles accrued
from these charges shall be credlted to a separate Refuse Vehlcle/Equlpment
Replacement Fund.
(ThlS replacement strategy should eventually be implemented for all City vehi-
cles malntalned by the Mechanical Malntenance Dlvislon.)
In order to achieve the six year age maXlmum 11mlt for the fleet, the following
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To. Mayor and Council
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September 9, 1980
refuse truck replacement schedule 1S proposed'
T1me of Approximate No. of Vehlcles 6
Purchase Quantlty Cost Years Old or less
Immedlately 2 $120,000 16
81/82 4 $245,000 17
82/83 5 $332,000 18
83/84 3 and each $220,000
subsequent year
The purchase of three refuse vehicles per year in subsequent years should
keep the refuse fleet within an acceptable aglng schedule.
Transfer of One Budgeted Position from Street
Maintenance Division to Mechanical Maintenance Dlvlslon
An evaluation of the personnel and actlvity in the Mechanical Malntenance
shop 1nd1cates that not enough mechanic time is available to provlde the
necessary amount of preventat1ve maintenance inspections and serVlce for our
Refuse Fleet and other City vehicles.
To help allev1ate th1S situat1on, it 1S proposed that a vacant laborer I
posltlon ln the Street Maintenance Dlvislon be transferred to the Mechanlcal
Maintenance D1V1S1on as a Mechanic Assistant. This shift would requ1re an
add1tlonal 51,650 (E Step) 1n annual salary. This posltlon would be used
primarlly to perform preventative maintenance and periodic servicing of our
refuse fleet and other C1ty vehlcles.
The Laborer I pos1tlon, which is currently vacant, was ass1gned to assist the
driver of the bucket truck that plcks up street sweeper dumpings and City-
owned trash receptacles. It has been determined that this activity does not
requlre two full-t1me employees.
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To: Mayor and Council
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September 9, 1980
Recommendatlon
In order to meet the long-term objective of providing an efficient and well
maintained refuse vehlcle fleet, it is recommended the Council approve the
fo 11 owing:
1. Transfer of vacant Laborer I posltlon from the Street Maintenance Olvlslon
to the Mechanical Maintenance Olvlslon as a Mechanlc Assistant; $1,650
additlonal annual salary.
2. Approve the concept of prefundlng the purchase of replacement refuse
vehlcles by establlshing a Refuse Vehicle Replacement Fund.
3. Approve the purchase of two 20-cubic-yard refuse packers for approxlmately
5120,000 uSlng funds from the Refuse Truck and Bln SerVlce Fund as flrst
step toward lmplementlng a ratlonal refuse vehlcle replacement program.
Prepared by: Stan Scholl
Nell Mlll er
Attachments: Exhibit I
Exhiblt II
Exhiblt III
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EXHIBIT I
SCHEDULE OF CURRENT REFUSE COLLECTION FLEET
VEHICLE ! YEAR I PURCHASE TYPE OF TRUCK
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NO. I PURCHASED PRICE
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j 496 (1) 1979 S 57t156 30 yd. front-loader
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I 497 (2 ) i 1979 54t836 20 yd. rear-loader
i 536 (3) 1978 36t794 29 yd. one-man slde-loader
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I 491 (4) 1977 24t750 20 yd. rear-loader
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I 492 (5 ) 1977 41t280 20 yd. rear-loader
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I 493 (6) 1977 41t280 20 yd rear-loader
494 (7) , 1977 40,347 20 yd. rea r- loader
! 537 (8) 1976 34 t 715 20 yd. rear-loader
i 538 (9) 1976 34 ,715 20 yd. rear-loader
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539 (10) 1976 36,920 20 yd. rear-loader
540 (11 ) 1976 34 t 715 20 yd. rear-loader I
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533 (12) I 1975 41t959 29 yd. side-loader I
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534 (13) 1975 41t959 29 yd. side-loader
535 (14) I 1975 41t959 29 yd. side-loader
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529 (15) 1974 27t518 20 yd. rear-loader
527 (16) 1971 26t639 20 yd. rear-loader
524 (17) 1970 25 tOll 20 yd. rear-loader
525 (18) 1970 25,011 20 yd. rear-loader I
(19) I
516 1968 20,623 20 yd. rear-loader I
503 (20) 1960 12,119 20 yd. rear-loader I
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EXHIBIT I I
REFUSE COLLECTION FLEET AGING SCHEDULE
Year of Number of
Purchase Vehicles
1980 )
1979 2 )
1978 1 ) -- 14
1977 4 )
1976 4 )
1975 3 )
1974 1 )
1973 )
1972 )
1971 1 )
1970 2 )
1969 )
1968 1 ) -- 6
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)
)
)
)
1960 Small packer used 1 )
for Pier refuse only
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EXHIBIT I I I
SURVEY OF OTHER MUNICIPAL REFUSE FLEETS
CITY REPLACEMENT TOTAL BACK-UP SPARE TO
SCHEDULE TRUCKS TRUCKS LINE RATIO
Manhattan Beach 5 years 18 3 1 :6
Jim McGovern
545-5621
Torrance 7 years 24 6 1:3
Mr. Gibson
328-4216
Long Beach 7 yea rs 71 16 1:3
Mr. Rambo
427-0917
Glendale 7 years 31 6 1 :4
Mr. Torres
956-3916
Inglewood 8 yea rs 16 4 1 :3
Bob Smith
649-7111
Burbank 6 years 25 5 1 :4
Mr. Pi erson
847-9622
* Santa Monlca 8-10 years 20 5 1:3
* Entlre fleet including back-up vehlcles should fall wlthin acceptable age range.
At present only 14 vehicles in the fleet of 20 are age 6 years or less.