Agenda - 02-22-2011 - 3 - Laserfiche WebLink

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• • • SWCC 7 YEAR BUDGET PROJECTION -BOARD OF ORANGE COUNTY COMMISSIONERS WORK SESSION PAGE 3 LINE ITEM NOTES FOR TARGETED EXPENSES: #1 SWCC Improvements -As shown, Walnut Grove upgrade is constructed in FY 2011/12 and the upgraded site open in 2012/13, High Rock upgrade constructed in FY 2012/13 and opened in 2013/14, Eubanks upgrade constructed in FY 2013/14 and opened in 2014/15, Ferguson upgrade constructed in 2014/15 and opened in 2015/16 and Bradshaw Quarry upgrade constructed in FY 2015/16 and opened in FY 2016/17. The landfill is assumed to close in 2016. #2 SWCC Compactors and Equipment is the capital proposed for all hardware at each site as it is upgraded. These are the currently agreed to budget amounts for each site with contingency and egineering for the comapctors and related hardware. These capital costs are inflated at three percent per year. Part of these costs will be covered by the 3-R fee for those compactors associated with recycling operations. #3 SWCC Construction Costs is all remaining capital expenditures proposed for each site as it it upgraded. These are the currently agreed to budget amounts for each site (with contingency and engineering) for all remaining improvements at each site. These capital costs are inflated @ 3% to the year of actual construction. #4 Personnel costs build from baseline direct costs in FY 2011-12 and are not escalated. #5 Operating costs build from the baseline direct costs in FY 2010 then increased at 3% per year. #6 Environmental Support costs are prorated among Landfill Division, Recycling Division and Sanitation Division and are not escalated. #7 Cost Increase due to increased tons -increasing at 5% per year across all sites with costs associated with increased hauling only -see "Updated BP Summary Savings Worksheet" for details. f#8 SWCC Business as Usual will experience cost increases when the Durham Transfer Station has to be used beginning in 2016/2017. Staff calculated these costs at $140,000 in 2010 dollars, escalated to the year 2016/17 and beyond at 3% per year. #9 Existing rolling stock replacement not currently included in Enterprise fund equipment replacement reserves. #10 SWCC Business as Usual costs -showing the total annual expenses projected if no efficiency improvements are made to the SWCCs. #11 Cost forAdded Hours -Cost increase for added hours phased in as Walnut Grove expands hours in 2012/13 (going to 5.5 days incl Sunday 4 hours + Thursday 11 hrs, High Rock in 2013/14 (open 4 days per week), Eubanks in 2014/15 expanding hours (going to 5.5 days incl Sunday 4 hours + Thursday 11 hrs), and finally adding Ferguson in 2015/16 (open 4 days per week). #12 Cost savings due to increased efficiencies from compacting/fewer. hauls, phased in as sites are improved, with savings documented when upgraded site opens -see "Updated Summary Savings Worksheet' for details. Note that these cost savings include net savings from hauling projected increased tons more efficiently than they are currently hauled in business as usual #13 -Total adjustments to operating costs with increased hours adding operating costs and efficiency improvements eliminating operating costs #14 SWCC Debt for Capital Improvements -Hardware is assumed to be the annualized amortization of capital for the Neighborhood/District SWCC System broken out by the recycling related improvements hardware -financed over 8 years @ 4% (Calculated based on the capital cost of the hardware for each facility improvement being added to the debt payment formula at the time that those funds are borrowed) #15 SWCC Debt for Capital Improvements -Non-Hardware is assumed to be the annualized amortization of capital for the Neighborhood/District SWCC System for the balance of all remaining improvements -financed over 15 years @ 4% (Calculated based on the capital cost of the remaining upgrades for each facility improvement being added to the debt payment formula at the time that those funds are borrowed) #16 Total SWCC Targeted Expenses -this is the total for annual expenses at the SWCCs with all upgrades completed and' financed, added open hours and cost savings from efficiency improvements. February 5, 2011 DRAFT N ~A