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Minutes - Regular Meeting <br /> Solid Waste Advisory Board <br /> January 8 , 2004 <br /> Approved February 12, 2004 <br /> are no , savings due to the hiring of personnel and the acquisition of equipment . Over <br /> the first, 5 years, total savings would be approximately $ 140, 000 . Staff has <br /> recommended to me that we proceed to recommend this to the manager . Before <br /> doing this we would like to get your critical review . <br /> Smith states that he is in favor of taking over the program as the analysis shows <br /> savings . <br /> Kabrick asks who is the contractor ? <br /> Wilson replies Waste Industries has the contract for the rural and urban collection . <br /> The proposal is that when the contract expires that we make a change in it and rebid <br /> the urban part . We could do both collections but we don ' t have the management <br /> capability to take the urban collection on also . <br /> Draney states that nor do we have the ability to handle the materials . <br /> Kabrick states the analysis shows a cumulative cost savings of $ 792, 000 but he can' t <br /> tell what dollars those are, whether you used the net present value analysis . . . <br /> Tom replies current dollars . <br /> Kabrick states that there are two concerns . Waste Industries now takes all the risks on <br /> the end product market . Your analysis heavily depends on recycling revenues . <br /> Wilson states that we made very conservative estimates on market value of the <br /> material . We actually expect to achieve a higher market value for the materials than <br /> we show . <br /> Kabrick asks if it would be possible to lock Waste Industries in a 10 - year contract and <br /> let them take the risk on the market? <br /> Sassaman states that we have to think more of the reason that we are doing this, <br /> which was performance not money . <br /> Wilson states that there are some shortcomings , but in the long run feels confident in <br /> the numbers based on other services that we have assumed . <br /> Kabrick states that the other concern is increasing our risk exposure by taking on <br /> more trucks and personnel . <br /> Wilson states that given the size of our operation and looking at the county as a <br /> _whole, this would be a drop in the bucket . <br /> 5 <br />