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12 <br />SOLID WASTE WORK GROUP SWCC RECOMMENDATIONS <br />BASIS FOR RECOMMENDATION -FINANCIAL PERFORMANCE <br />The Work Group evaluated the projected capital and expected costs and operational <br />efficiencies for the final recommendation. The capital and operating projections developed by <br />staff and consultant are the basis for the Work Group recommendation and are endorsed by <br />the Work Group as a starting point for moving forward. <br />Efficiencies and cost savings are key to the Work Group's final recommendation. The $220,805 <br />in projected savings in hauling labor and equipment (2010 dollars) shown in Table 2 is realized <br />from a projected reduction of 74,000 miles each year in hauling. <br />These savings are in addition to $140,000 in avoided hauling costs increase that could <br />otherwise be expected if no changes are made to the SWCCs or hauling schedules once the <br />landfill closes -that will be avoided with implementation of the final recommendation. <br />Table 2: Final Recommendation Operating Cost Savings <br />(When Fully Implemented) <br />FUNCTION ANNUAL <br />SAVINGS ' DF~CRIPTION <br />Direct Costs <br />~__. <br /> <br />Reduced MSW and Bulk Tri s <br />y p <br />__ <br /> <br />$ <br /> <br /> <br />8,419 <br />_. _ <br /> <br />Reduced Fuel/Maint from from 74 213 fewer truck miles <br />labor Costr <br />., _ _ _ <br /> <br />Reduced MSW/Bulky Collection Labor <br />__. <br />$ <br />74,679 <br />1.3 less driver FTE needed, including benefits <br /> <br />Reduced OCC Collection Labor <br />$ <br />15,589 _. <br />0.3 less driver FTE needed, including benefits <br /> <br />Equipment Savings _ _. <br />_ _ _ _ <br /> <br /> <br />Eliminate 2 Front Load Trucks <br />~._ <br /> <br />$ <br /> <br />91,826 __ _ <br /> <br />:Eliminates 2 @ $270,550 each {$45,913 annually) <br />'Add 1 Hook Lift Roll-off <br />{29,707)' Adds 1 Hook Lift Roll-off @ 167,275 ($29,707 annually) <br />NET ANNUA! SAVINGS $ 220,805 <br />This total of $360,805 in projected net savings (the $220,805 in annual savings from Table 2 and <br />the $140,000 in increased costs that would be avoided) justifies the $2.5 M in capital required <br />to move forward with the upgrades -the "business case" for the final recommendation, <br />providing a payback of less than 10 years and a reasonable "return on investment" for this <br />public service. The projected amortization is detailed in separate upgrade cost projections and <br />differs for equipment and site improvements at each site. <br />Table 3: Final Recommendation Capital Cost Projection <br />Lapita ost nua <br />Center Estimate' Amortization <br />Eubanks {district $1,084,949 $79,798 <br />Walnut district $852,570 $62,581 <br />Ferguson (nei hborhood $194,124 $12,914 <br />High Rock (nei hborhood) $216,112 $13,924 <br />Bradshaw neighborhood $152,414 $12,964 <br />Total costs $2,500,168 $182,180 <br />10/27/10 ORANGE COUNTY SOLID WASTE Page 4 of 8 <br />