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14 <br />SOLlD WASTE WORK GROUP SWCC RECOMMEIUDATIONS <br />• <br />BASIS FOR RECOMMENDATION - FlNANClAt PERFORMANCE <br />The Work Group evaluated the projected capital and expected costs and operational <br />efficiencies for the final recommendation. The capita! 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 mites 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 wilt be avoided with implementation of the final recommendation. <br />Table 2: Final Recommendation Operating Cost Savings <br />(f3'lrenFullylnrplemented) . <br />Direct Costs ! i <br />:Reduced M_ SW and Bulky Trips <br />.. ~ $ 58,419 ;Reduced Fuel/Maint from from 74 213 fewer truck miles <br />Labor Costs <br />-.- i• _ <br />i ._....- --. -. . <br />:Reduced MSW/Bulky Collection Labor ; $ 74,679 ;1.3 less driver FTE needed, Including benefits <br />Reduced OCC Collection <br />Labor ; $ 15 <br />, <br />5 <br />89 0.3 less driver FTE needed, including benefits <br />_ <br />_ <br />EqufpmentSavings ~ ~ ~ j _ <br />_ <br />. <br />~~ <br />_..... _ ._... _... - <br />'Eliminate 2 Front Load Trucks __.._.._ <br />~ $ _ ,.... ._ ....i .... y~... .... <br />91,826 'Eliminates 2 @ $270,550 each $45,913 <br />annual) <br /> <br />Add 1 Hook Lift Roil-off <br />' $ . <br />__ <br />(29,707t'•Adds i Hook Lift Roll-off @ 167,275 ($29,707 annually) <br />NETANiVUALSAVINGS ~ $ 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 fn separate upgrade cost projections and <br />differs for equipment and site improvements at each site. <br />Table 3: Final Recommendatforr Capital Cost Projectfor: <br /> <br />.,~; ._.. <br />. . __,. <br />_Geh {~-.:'=~~~ `,~s math>.~P:~<w _r:A. brtizattnn~".~ <br />Eubanks (dis#rict $1,084,949 $79,798 <br />Walnut (district $852,570 $62,581 <br />Fe uson nei hborhood 194,124 $12,914 <br />Hi h Rock nei hborhood $216,112 13,924 <br />Bradshaw nei hborhood $152,414 12,964 <br />Total costs $2,500,168 $182.180 <br /> <br />• <br />10/27/10 ORANGE COUNTY SOLID WASTE Page 4 of 8 <br />