Agenda - 06-16-2009 - 6-2-c - Laserfiche WebLink

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to MEMORANDUM TO: Roger Stancil, Town Manager FROM: Lance Norris, Public Works Director SUBJECT: Clarification on Differing Transfer Station Cost Analyses DATE: May 15, 2009 On May 6, 2008, I provided you a memorandum regarding Orange County's transfer station siting process. Specifically the memorandum detailed the anticipated financial impacts to the Town's Solid Waste Services Division for upgrading collection equipment and increased ongoing operations costs associated with hauling Town refuse to a transfer station in Durham that was under consideration at that time. Subsequent to that financial impact analysis, the Orange County Board of Commissioners undertook a search for additional transfer station sites. On February 12, 2009, Orange County Solid Waste Director Gayle Wilson requested assistance from the Town in developing an updated financial analysis associated with these additional siting options. Beginning in March 2009, Town Solid Waste Superintendent Harv Howard worked with Olver Inc., Orange County's siting consultants, to develop this updated analysis. This updated analysis reflects a number of changes that have occurred since the original analysis described in the May 6, 2008 memorandum was submitted. Most notably are the costs attributed to equipment upgrades as the Town's has recently acquired 3 of the 5 dual rear axle vehicles needed by the Town to utilize a remote site. Accordingly, the anticipated net impact to the Town is less in the current analysis than previously estimated. The difference in equipment costs impacts between the two financial analyses also reflects different cost modeling methods, with the May 6, 2008 analysis based on total one-time costs for new equipment versus the updated analysis which amortized costs. Changes in the updated analysis also reflect slight increases in anticipated personnel costs, adjustments related to changing fuel cost estimates and modest reductions in ongoing fleet maintenance costs due to the acquisition of new equipment. We recognize that this is a point in time analysis of the Town's Solid Waste Services Division's costs associated with possible transfer station locations and may change depending on actual fuel costs and the final transfer station location selected.