SWAB minutes 033109 - Laserfiche WebLink

Browse Search

Minutes - Special Meeting Solid Waste Advisory Board March 31 , 2009 Approved May 7, 2009 We developed two reports on cost. This report was presented to the Commissioners in January . Again the question was, " Can the vendors handle the County ' s trash on an interim basis, which meant a couple of years ? The answer was not only yes, but using a conservative assumption, we ' d actually save money by using vendors . We then visited the waste transfer station in Greensboro and realized that some of our assumptions were too conservative, so we thought the savings would be higher, somewhere between $2 to $4 million a year to use a vendor . The question on the table is not " How much we can save ? " The question is, " Are vendors a suitable alternative on an interim basis? " Preliminary Analysis of Alternatives and Costs for Orange County's Solid Waste Management Operation Prepared for Orange County's Board of County Commissioners This report compares estimated costs for Orange County's planned waste disposal services to costs for services from leading local vendors. Data is based on readily available Information and is intended to demonstrate that cost effective alternatives are immediately available to the county. The information provided is based on informal discussions with leading vendors who mal {RFP) or indicated that lower prices would be available through a competitive bidding process. Vendors offered to bid on a for informal basis. Costs for Orange County are based on county documents combined with vendor input and have not been verified county staff. Estimated Costs For oisposai waste management Services Costs Per Ton Orange County Vendor 1 Vendor 2 Vendor 3 Low High Build and Operate Transfer Station * $ 11600 $20.00 Long Distance Hauling (130 miles roundtrip) $11. 00 $ 11.00 Landfill Disposal $25 . 00 $31 .00 Total Disposal Cost per Ton $40e00 $43'00 $50.00 $47`OO $62'00 increased Collection Cost @$.75/ton/mile** $6, 00 $ 6a00 $7 . 50 $0.00 $0.00 Total Cost to orange County and Municipalities $46.00 $49vOO $57.50 $47*00 $62 .t?0 `Transfer station estimates are based on 312 day/year operation and 20 year life; all estimates assume fuel @$2.60 gallon ital investment, $500,000 - si,000 ow/year operating cost, 240 tons per day. Orange County estimates assume $7-10 mm cap if orange County closes transfer station after 10 years, estimated cost per ton ranges from $52-$70 * *" Increased collection cost" estimates costs incurred by muncipalities (over and above 11 miles estimated from the waste centroid to the Howell Forest); costs do not include capital costs for new trucks that may be needed by the municipalities. Orange County estimates do not. include financing costs (e.g. bond issuance) or lost revenue from business disruption or property devaluation Vendors can confirm capacity for 20 years Vendors unclear about the 40mph speed limit on Orange County collection trucks, Might be due to "governors" designed to control speeding rather than inherent limitations of trucks (unless the trucks are very old) 1 Prepared by Orange Cour?ry Volta The three vendors, in no specific order, are Waste Industries, Waste Management, and Republic Waste . I did not identify which vendor is which because this is not a comparative, bid - they didn' t want to be identified because they didn' t want to be penalized if they were asked to bid for this business . These costs are all commercial rates . If we were under contract these numbers would be less . The rates are subject to quarterly review and they could increase per quarter 2