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<br />Closure costs are estimated at approximately $2,500,000. It has been suggested that these fwtds <br />will be made available at the time the funds are needed. While delaying closure for 2+ years will <br />delay this expenditure, the delay also does not represent any savings that can directly offset <br />increased expenditures related to transferring waste. <br />OCher' savings are not likely in this option due to having to maintain two operations (transfer station <br />and landfill) simultaneously. <br />Therefore the total amoral cost to the solid waste fund of transferring MSW to Alamance County, <br />depending on the two above tomiage scenarios is estimated at between $1,210,000 and $2,420,000 <br />annually. <br />Option 2: Negotiating for the transfer of waste to Alamance County in 2010, when the Orange <br />County landfill reaches capacity <br />The primary benefit of'this option is that it does not require sinntltaneous operation of a landf II and <br />a transfer station, and does not require an inunediate expenditure of funds for transfer station <br />development. The primary disadvantage of this option is that it doesn't take into consideration that <br />other, less costly out-of-county disposal options maybe available though a competitive bidding <br />process. This option also does not provide for preserving landfill capacity. <br />From a financial perspective, transferring waste at any time will be more expensive than utilization <br />of a County owned and operated facility, as contemplated in our 10-year financial plan. Costs of <br />this option will be in the same order of magnitude as the first option. Even in 2010, a significant <br />redistribution of tipping fee revenue will take place along with new costs of development for a <br />transfer station, hauling, and disposal costs at the distant landfill. Closure costs will be incurred <br />regardless of the timing. <br />Option 3: In about 2 years, consistent with a typical timeline for identifying a future disposal <br />destination, prepare a bid for out-of-county disposal service and weigh the Alamance County <br />disposal option against other available options <br />This option is similar to the previous options, except that it assumes allowing Alamance County to <br />compete with all/every other possible out-of=county disposal prospect through a competitive <br />bidding process and does not assume preserving landfill capacity. This option, as with the other <br />ri~ansfer station options, results in significant additional expenditures to Orange County related to <br />transferring waste vs. in-county landf Ming. <br />Option 4: Negotiation for an equity arrangement with Alamance County that could provide <br />long-term advantages/security for Orange County <br />In the event that the apparent financial disadvantages of Alamance County's $.36 tipping fee <br />coupled with issues surrowiding expediting development of a transfer station result in a decision not <br />to pursue a waste transfer customer arrangement with Alamance County in the near term, the issue <br />of an equity arrangement long term may present a unique opportunity that should be explored. <br />Even if a short-term waste transfer arrangement is pw•sued, an equity arrangement should <br />still be considered. While this may still result in some significaut increases in expenses for <br />waste disposal short term, acquiring equity during this period may have significant long-term <br />4 <br />