TRENT LAKES PUBLIC WORKS DEPOT LOCATION ANALYSIS APRIL 7, 2018
PROJECT OBJECTIVE From an operating cost point of view, what is the best combination of new depot and remaining facilities to service the entire municipality? 2
PROJECT SCOPE Options For Review* A. Status Quo 49 Yard, Buckhorn, Galway** B. New single depot Intersection of Hwys. 507/36 C. New single depot across the road from municipal office D. New depot at 49 Yard + Buckhorn depot used as cold storage and winter operations E. New depot at 507/36 + Buckhorn and 49 Yard used as cold storage only * All options include sand/salt domes at Galway, Cavendish, Buckhorn ** Galway new building or shelter 3
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METHODOLOGY Confirmed Options Collected & Reviewed Operating Costs Confirmed Public Works Processes Estimated Location Dependent Costs Estimated Location Independent Costs Categorized Operational Costs Estimated Depot Costs Combined & Analyzed All Estimated Costs Ranked Options 5
KEY ASSUMPTIONS 75 winter events per year on average All sand/salt domes remain Snow plow routes do not change from current - only the cost of getting to plow route starting point is relevant Inflation rate = 1.7% (used to estimate 2019 costs) Diesel price = $0.749/litre (averaged Jan, 2017 Mar. 2018) Fuel consumption = 0.395 L/km (tandem truck) Current km s driven = 370,000/year Cold storage = reduction in operating costs Operating costs for a new depot would be lower 6
PUBLIC WORKS OPERATING COSTS Summer Activities 2016 Actuals ($) 2017 Actuals ($) Labour / Wages 325,010 359,562 Material 218,187 203,119 General Maintenance 25,205 26,352 Summer Vehicle Maintenance 73,315 62,237 Fuel 73,942 90,252 Hired Equipment 349,537 448,406 Total Summer Activities 1,065,198 1,189,927 Winter Activities Labour / Wages 266,232 228,888 Winter Vehicle Maintenance 183,809 282,978 Fuel 103,519 126,352 Material 408,736 315,109 Total Winter Activities 962,297 953,327 Administration Costs (Labour, Benefits, Insurance, etc.) Total Administration Costs 1,100,106 1,289,301 Total Public Works $ 3,127,601 $ 3,432,555 7
PUBLIC WORKS COST BREAKDOWN 2017 (Actual) 2019 (estimate) Winter Activities $953,327 $986,015 Summer Activities $1,189,927 $1,230,729 Administration $1,289,301 $1,333,510 Total $3,432,555 $3,550,254 Yearly Cost Proportions 2019 Estimates 37% 28% 35% Summer Winter Admin 8
FIXED VS. LOCATION DEPENDENT Location Independent Costs Location Dependent Costs Administration Materials (i.e. sand/salt) Summer Maintenance Hired Equipment Labour* Fuel* Vehicle Maintenance* Utilities & Phone** Building Maintenance** * winter getting to the start of snow plow route * summer getting to the job site ** number of depots 9
RANKED BY ESTIMATED IMPACT Option Change In Operating Costs Winter Summer Admin Total D - 49 Yard & Buckhorn Depot B - 507/36 Depot $19,393 $15,823 ($46,210) ($10,993) $31,375 $14,319 ($56,022) ($10,328) C - Across from Office $33,280 $15,034 ($56,022) ($7,708) A - Status Quo $ 0 $0 ($5,000) ($5,000) E - 507/36 + 49 Yard + Buckhorn $31,375 $14,319 ($16,499) $29,195 10
SUMMARY OF FINDINGS D B C Options Estimated Annual Operating Cost Total Cost Increase from Option D New depot 49 Yard + Buckhorn depot used as cold storage $3,539,260 $0 New single depot Intersection of Hwys. 507/36 $3,539,927 $667 New single depot across the road from municipal office $3,542,547 $3,287 A Status Quo $3,545,254 $5,994 E New depot at 507/36 + Buckhorn and 49 depots as cold storage $3,579,449 $40,189 11
CONCLUSION Too close to call Options B, C, D Capital costs will be more material to decision Construction costs Servicing Site assessment Acquisition 12