Item L4
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: 16 June 2004
Division:
Growth Management
Bulk Item: Yes No ~
Department:
Marine Resources
AGENDA ITEM WORDING:
Discussion of the capital and annualized costs associated with the acquisition of a wastewater pump-out vessel
for use in the Key Largo area.
ITEM BACKGROUND:
At the 19 May meeting, the Sheriffs Zone Advisory Committee for the Key Largo area suggested the
acquisition of a waste pump-out vessel for the area. The Commission provided conceptual approval to the
proposal but requested the staff provide estimated capital and annual costs for the project.
PREVIOUS RELEVANT BOCC ACTION:
May 2004 - Conceptual approval to acquire a pump-out vessel for the Key Largo area through grant sources
CONTRACT/AGREEMENT CHANGES:
NA
STAFF RECOMMENDATIONS;
Discussion item
TOTAL COST:
Being Developed
BUDGETED: Yes
No
COST TO COUNTY:
Being Developed
SOURCE OF FUNDS:
REVENUE PRODUCING: Yes ~ No
AMOUNT Per Month
Unk. Year Unk
DIVISION DIRECTOR APPROVAL:
APPROVED BY: County Arty NA
DOCUMENTATION: Included X
To Follow _ _ Not Required
DISPOSITION:
AGENDA ITEM NO.:
LL/
BC040630.doc
5/27/2004 10:03 AM
Memorandum
Department of Marine Resources
2798 Overseas Highway, Suite 420
Marathon, Florida 33050
Voice: (305) 289 2507
FAX: (305) 289 2536
Ernail: garrett-george@monroecounty-Il,gOV
Board of County Commissioners
Mayor Murray Nelson, Dist. 5
Mayor Pro Tern David Rice, Dist. 4
Commissionerr Dixie Spehar, Dist. 1
Commissioner George Neugent, Dist. 2
Commissioner Charles "Sonny" McCoy, Dist. 3
DATE:
7 June, 2004
SUBJECT:
Board of County Commissioners
George Garrett, Director of Marine Resources h ~
Estimated Costs of Pump-out Boat, staffing, and
Operation and Maintenance
TO:
FROM:
At the May Board of Commissioners meeting, the upper Keys Sheriff s Advisory
Committee made a presentation to the Commission suggesting that a waste pump-
out boat should be purchased and staffed to serve the Key Largo area anchored out
boaters. The Commission conceptually approved the proposal and requested that
cost estimates be developed by staff.
A budget is attached (Attachment 1) for your review which reflects needs in two
areas:
. One-time costs - purchase of a pump-out boat and trailer
. Annual costs - including salaries with benefits, required liability and other
insurance, operation and maintenance costs, boat equipment, and other
necessary expenses.
The cost of the program can be borne in several ways. A Clean Vessel Act grant
can and should be utilized to acquire the pump-out vessel. This grant will require a
twenty-five percent (25%) County match. The Boating Improvement Fund (BIF)
may be use to provide the required match.
Annual costs may be borne using ad valorem funds or the County's discretionary
portion of the Boating Improvement Fund. The discretionary portion of the BIF is
BC040631.doc
6/2/2004 10:58 AM
that portion adopted in Ordinance 034-2002 (December 2002) which increased
boat registration fees in accordance with Florida Statutes 328.66. The entire
revenue stream generated as part the BIF program is approximately $580,000 per
year. Approximately half of that amount is available as the County's discretionary
BIF dollars ($290,000). In the long run, dedicating ad valorem revenues may be
the better approach as the BIF dollars are currently being stretched, even with the
increased amount approved by the Board in Ordinance 034-2002. In particular,
once again the legislature did not approve funds specific to Derelict Vessel
removal (FY 05), requiring that staff will continue to use BIF dollars to fund this
effort (approximately $150K / year). In addition, staff has a number of boat ramp
rehabilitation projects in the works which will require significant capital to fund.
Figures provided in Attachment 1 are solid projections of the cost of running the
pump-out vessel in the first three years. Staff has provided a three year projection
as defined costs for the project will change during that time frame. For instance, in
the first year the County will be required to provide grant match money for the
purchase of the waste pump-out vessel. In the third year, grants that the County
currently has to offset the costs of waste haul-out to the County's waste transfer
stations will be depleted. Thus, the full burden of cost of waste haul-out to the
transfer stations will impact net program costs.
Revenues from the program are estimated to be approximately $13,000 per year.
This figure is derived based on the estimated waste pump-outs per year (2,600) at a
cost to the user of $5.00 per pump-out.
In general, the projected cost of the program is approximately $72,000 per year.
The average net cost of the program is approximately $58,000. A cost projection
and break-down are provided below.
2
Attachment 1
Program Cost Projections
Purchase, Maintenance, & Staffing of Waste Pump-out Boat
Estimated First Year One-time Costs
CV A Grant
County BIF Fund
Total
Total to County
$60,000 - 80,000
$45,000 - 60,000
$15.000 - 20.000
$60,000 - 80,000
$15,000 - 20,000
Boat / Trailer
Estimated Annual Costs
Salary and Related Benefits
Salary (1 person - Level 7)
Medical Benefits
FICA
Workman's Compo
Retirement
Sub-total
$29,361
$ 9,480
$ 2,246
$ 2,980
$ 2.558
$46,895
Insurance
Hull Coverage
P&I
Pollution
Jones Act
Sub-total
$ 1,500
$ 1,000
$ 500
$ 1.500 per employee
$ 4,500
o & M - Boat, pumps, holding tanks
Fuel (520 Hoursi
Regular Main.2
Warranty Main.3
Additional Main.
Sub-total
$ 2,500
$ 1,200
$ 1,500
$ 1.000
$ 6,200
3
Waste Haul-out Costs ($0.22 / ga1)4
Sub- total
$1 1.440
$11 ,440
Other
Basic boat equipment5
Pollution prevention materials
Bio-bugs for boat holding tanks6
Sub-total
$ 1,500
$ 500
$ 1.500
$ 3,500
Total (1 st year)
$61,095
Total (2nd year)
$60,095
Total (Subsequent years)
$71,535
Estimated Revenues
Revenues 7
$13,000
Net Costs
Year one
Total Estimated Costs
Total Estimated Revenues
Net Estimated Cost
$81,095
$13.000
$68,095
Year two
Total Costs
Total Revenues
Net Estimated Cost
$60,095
$13.000
$47,095
Year three
Total Costs
Total Revenues
Net Estimated Costs
$71,535
$13.000
$58,535
4
Foot notes:
I. Assumes 2 gallons per hour and a cost of $2.25 per gallon (average of
County and private cost per gallon. Also includes the cost of oil.
2. Regular oil change each 100 hours of use and change of lower unit fluids
at each 200 hours of use. Assumes that Public Works employees would
be certified to carry out basic maintenance obligations.
3. Assumes approximately $750 per occurrence done semi-annually
4. Assumes approximately 1,000 gallons per week - Free for the first year
to two years (CV A grant funding will cover the cost).
5. Used to "sweeten" holding tanks between and at time of pump-out.
6. Assumed to be high in the first year ($1,500) and less in the 2nd and 3rd
years ($500).
7. Assumes 1,000 gallons per week at 20 gallons per holding tank (pump-
out) and $5 per pump-out
5