SWAG agenda 082514 - Laserfiche WebLink

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Comprehensive Review of S olid W aste Collection and Disposal Options v2.1 108 10/22/12 While the scenario assumptions are similar to the direct haul scenario, a few distinct differences are noted as related to collection routing and fleet modifications, and transportation-related factors. 7.2.1 Summary Results The analysis has evaluated the option to have Town collection vehicles deliver MSW to a new transfer station located within the Town limits beginning in FY 2014-15 (July 1, 2014), where it will be consolidated, loaded into transfer trailers, and transported to an existing landfill. Accordingly, projected capital expenditures include the planned replacement of one (1) rear loader compactor truck in accordance with the 7-year vehicle replacement schedule. Because the Town collection vehicles travel distances and times traveling to a new transfer station within the Town limits would be similar to their current travel associated with disposal at the Orange County Landfill (and comparatively shorter distances and times than would be required under the direct haul scenarios) no new residential routes or additional salary expenses for collections crew is anticipated. Compared to the current FY 2012-13 budget, the analysis projects an additional $592,000 dollars would be incurred of the Town budget in FY 2014-15 to implement this option. Exhibit 7-8 summarizes the comparative cost analysis of the top identified destination landfills versus current budgetary expenses. 7.2.2 Net Present Value Evaluation The financial modeling conducted under this evaluation provides the capability to project and calculate the Town’s total SWSD program cost over a 30-year period while assuming the implementation of the various disposal options evaluated. This analysis assumes a 5% discount factor and includes year-over-year adjustments for inflation, capital expenditure schedule, salary projections, and other Town and scenario-specific program assumptions. The total program costs for each disposal option may then be compared in terms of present term, 2013 value. Comparing the option of permitting, constructing, and operating a new transfer station to accept MSW collected by the Town exclusively and hauling the waste in transfer trailers to the Upper Piedmont Landfill, versus continuing disposal to the Orange County Landfill, over a 30-year period, the net present value for this scenario of $75 million is greater than the $68 million associated with the status quo, as depicted below in Exhibit 7-9. This is expected considering the additional expense incurred in permitting, design, construction, and operation of the transfer station over the projected life cycle. Considering the option for a regional transfer station presents some inherent advantages. The pre-development, construction, and equipment costs are expected to be generally similar or represent a relatively small increase compared to the Town-Only scenario. For example, accepting the Town of Carrboro’s waste under a regional scenario, means these costs can be amortized over the larger waste acceptance quantities and the Town would be able to allocate a representative portion of the costs to the Town of Carrboro. Furthermore, by sharing the up-front capital costs and risk promotes a stronger commitment from the involved regional partners to continue participation throughout the facility’s life cycle. As shown in Exhibit 7-7, this example of a regional approach yields a lower break-even tipping fee and, assuming