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RiversideCA.gov
INTERFUND LOAN TO SOLID WASTE FUND AND PURCHASE OF SEVEN CNG AUTOMATED SIDE-LOADING TRASH TRUCKSCITY COUNCILSeptember 17, 2024Public Works Department RiversideCA.gov2
SOLID WASTE FLEET•Solid Waste operates a fleet of 43 automated side-loading refuse trucks to pickup residential trash,recycling, and organics waste•Replacement of trucks has been inconsistent•Recommended service life is 8-10 years•23 trucks have been in service for 10+ years•9 trucks are currently awaiting surplus due to age ordamage–10 new ASLs were ordered in July 2023 and will be arriving incoming months 1 2
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OPPORTUNITY FOR 5 ADDITIONAL TRUCKS•Solid Waste staff learned in August that Peterbilt canmanufacture and deliver 5 additional new CNG trucks aroundthe end of 2024 if the City expedites an order, plus 2 additionaltrucks later in the fiscal year•Solid Waste Fund will operate in a deficit through FY2025/26 anddoes not have sufficient fund balance available today–FY2024/25 budget provides $1.1 million to purchase new trashtrucks RiversideCA.gov4
PROPOSED TRANSACTION•Interfund Loan from the General Fund to the Solid Waste Fund toprocure 5 trucks•Principal not to exceed $2,870,000•3-year maturity, with annual payments•Annual principal payments will be $700,000 – $1,100,000•Without early paydown, total interest will equal $251,884.17, witha total fiscal impact of $3,121,884.17•Solid Waste budget will provide funding to procure 2 trucks•Should an 8th truck become available, the remaining fundsfrom these two sources will be used to procure the truck 3 4
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CITY HISTORY OF USING INTERFUND LOANS•City uses interfund loans to assist with projects whereother means to pay for or finance was not available orcost effective•Interfund loans require City Council approval•Typical repayment terms are 3-5 years•Most recent interfund loan is the Airport Fund loan for$2M with a final maturity date of 2037•City has approved over 82 interfund loans over a37-year period, totaling more than $164M RiversideCA.gov6
Strategic Priority 5 – High Performing GovernmentGoal 5.4: Achieve and maintain financial health by addressing gaps between revenues and expenditures and aligning resources with strategic priorities to yield the greatest impact.Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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That the City Council:1. Authorize a loan of $2,870,000 from General Fund Infrastructure Reserves to the Solid Waste Fund for purchase of new solid waste collection vehicles;2. With at least five affirmative votes, authorize the Chief Financial Officer, or designee, to record a supplemental appropriation and interfund transfer from the General Fund to the Solid Waste Fund in the amount of $2,870,000;3. With at least five affirmative votes, authorize the Chief Financial Officer, or designee, to record a supplemental appropriation in the amount of $2,870,000 in the Solid Waste Fund, Capital Purchases account; 4. Authorize the City Manager, or designee, to execute the necessary interfund loan documents; and5. Approve the purchase of five compressed natural gas automated side-loading refuse trucks from Peterbilt Motors Company of Pico Rivera, California in the amount of $3,355,924.67.RECOMMENDATIONS7