HomeMy WebLinkAboutSolid Waste Rate Study and Recycling and Collection Station Business Case Analysis Hearing1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Kevin Handelin, Solid Waste Superintendent Craig Woolard, Director of Public Services
SUBJECT: Solid Waste Rate Study and Recycling and Collection Station Business
Case Analysis
MEETING DATE: June 24, 3013
AGENDA ITEM TYPE: Action
KEY ISSUES AND RECOMENDATIONS: This memo summarizes the results of two solid waste studies conducted by SAIC Energy,
Environment & Infrastructure, LLC (SAIC). Staff is requesting that the City Commission:
• Implement solid waste collection rates based on the Solid Waste Rate Study completed in
August 2012. Staff recommends an overall strategy of small rate increases in automated collection rates coupled with gradual changes in commercial dumpster and roll-off rates
to bring revenues in line with costs.
• Review the business case for single stream recycling and provide Commission direction
on implementing an improved program. Staff recommends implementing a subscription
based, single stream recycling program.
• Review the business case for improved operations by development of a solid waste
consolidation station and provide direction on implementation of the project. Staff
recommends proceeding with the design of a consolidation station located at the City
landfill to improve operations and mitigate the need for future rate increases.
RECOMMENDED MOTIONS:
1. Having reviewed the reports, considered public comment and staff analysis, I move to
accept the Solid Waste Rate Study prepared by SAIC and direct staff to return to the Commission on August 5, 2013 with a resolution to implement the rates for fiscal year (FY) 2014 and FY 2015 as specified in this report.
2. Having reviewed the reports, considered public comment and staff analysis, I move to
accept the business case assessment for single stream recycling prepared by SAIC and direct staff to implement a subscription based single stream recycling program and
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return to the Commission by August 5, 2013 with a final recommendation for rates and
an implementation plan.
3. Having reviewed the reports, considered public comment and staff analysis, I move to accept the business case assessment for solid waste consolidation station prepared by SAIC and direct staff to initiate design of the facility and return to the Commission a final
cost estimate when design is complete.
BACKGROUND: In July 2011, the City of Bozeman entered into a professional services agreement with SAIC Energy, Environment & Infrastructure, LLC (SAIC) for the preparation of a Solid Waste Services Rate Study. The purpose was to determine the cost of providing the four
services offered by the Solid Waste Division [automated (i.e., residential), dumpster, roll-off and
curbside recycling], equitably distribute the cost among customers, and design rates to safeguard
the financial integrity of the Division. A copy of the study, which was completed in June 2012, is attached to this memorandum.
That study projected that the City’s current rates for solid waste services would result in a
cumulative under recovery of revenue (relative to the cost of service) of approximately $502,000
for the 5 year study period. An over recovery ranging between $160,120 and $220,312 annually was projected for automated collection service. Roll-off and recycling services were projected to under recover revenues by $10,272 to $24,406 annually. Commercial dumpster rates resulted in
an annual under recovery ranging from $197,452 - $279,432. SAIC also projected a gradual
erosion of operating reserves.
SAIC provided a number of options for making rate adjustments to recover costs. Their recommendations considered that City’s Solid Waste Division operates in a competitive
environment, and as such, may not be able to increase its rates to recover costs for all classes of
service. The overall strategy recommended by SAIC was to slightly increase rates for automated
collection and adjust commercial and roll off rates to recover costs. Options for immediate and gradual increases were provided. SAIC did not recommend adjusting rates for recycling but rather recommended that the City make a long term commitment to developing a high quality,
cost effective recycling program.
In addition to the rate recommendations, SAIC suggested that the City review billing practices and conduct a review to improve operations. The Solid Waste Division conducted this internal review over the last 9 months. Changes to routes and collection methods, improvement of fleet
operations and a staff reduction of 0.5 full time equivalents resulted in an operating cost
reduction of approximately $100,000 in FY 2013. Operational revenues due to improved billing
practices, improved marketing and customer growth resulted in gross revenues for FY 2013 that exceeded the SAIC study projections by $195,300. The overall estimated under recovery for FY 2013 is $106,000.
In January of 2013, SAIC was engaged to provide a business case analysis for improving the
City’s recycling program and for the development of a consolidation facility at the former landfill (the current location of the Solid Waste Division). As part of this work, SAIC conducted an extensive review of the Solid Waste Division that included analysis of operational data and an
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on-site review of operations. A copy of the analysis, which was completed in June 2013, is
attached to this memorandum.
The results of the rate study and the business case analysis have been reviewed and analyzed. Staff recommendations for Commission action are summarized in the following sections.
RECOMMENDED RATE CHANGES: Staff recommends the Commission adopt an overall
strategy of small rate increases in automated collection rates coupled with gradual changes in
commercial dumpster rates to bring revenues in line with costs over a 5 year period. This strategy will reduce the cross subsidization that occurs between automated and commercial dumpster services and improve the City’s competitive position in the market. This strategy will
eliminate the anticipated overall under recovery.
Table 1 summarizes the projected rate increases for automated (residential) collection service. Annual rate increases of approximately 2.3% are recommended for customers utilizing totes <100 gallons. These adjustments will bring automated rates in line with the cost of service.
Staff is requesting approval to implement rates specified in Table 1 for FY 2014 and FY 2015.
Future rate increases will be based upon analysis of actual operating data and brought before the
Commission for review and approval. Table 1 – Projected and Recommended Rate Increases for Automated Collection Service
Size Current Rates FY2014 FY2015 FY2016 FY2017
35 gal $ 11.51 $ 11.76 $ 12.03 $ 12.30 $ 12.60
65 gal $17.56 $17.95 $18.35 $18.77 $19.22
100 gal $22.50 $23.00 $23.51 $24.05 $24.63
220 gal $39.26 $39.26 $39.26 $39.26 $39.26
300 gal $49.22 $49.22 $49.22 $49.22 $49.22
450 gal $70.92 $70.92 $70.92 $70.92 $70.92
Table 2 provides and example of the proposed rate increases for commercial dumpster service collected twice per week. Rate increases are proposed for the 2 and 3 cubic yard (cy) dumpsters.
Rate reductions are proposed for larger dumpsters thus improving their competitive position in
the market. These adjustments will bring rates in line with costs of service. Modest annual
increases in commercial rates are projected for future years.
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Table 2 – Projected Rate Increases for Commercial Dumpster Service
Container
Size Current FY 2014 FY 2015 FY 2016 FY 2017
2 cy $ 127.68 $ 153.42 $ 153.74 $ 155.65 $ 155.70
3 cy 168.53 173.33 173.65 175.76 178.03
4 cy 209.11 193.23 193.56 195.88 198.37
6 cy 257.78 233.04 233.37 236.11 239.05
8 cy 422.70 272.85 273.19 276.34 279.72
(Note that the FY 13 rates recommended in SAIC’s rate study are proposed for implementation in FY 14 because of
the interval lapsed since completion of the study).
Table 3 summarizes the proposed rates for all commercial dumpster rates (i.e., rates for all dumpster sizes and collection frequencies currently offered). Staff is requesting approval to
implement rates specified in Table 3 for FY 2014 and FY 2015.
Table 3 – Recommended Rates for Commercial Dumpster Service for FY 2014 and FY2015
Table 4 list the proposed rate increases for roll-off service. Regular increases in the pull rate (the
cost charged to deliver and remove a dumpster for home construction, remodels, special events
or other temporary disposal needs) are recommended as are increases in container rental costs.
The contract with Gallatin County for roll off service will be renegotiated in FY 2015. Staff is
requesting approval to implement rates specified in Table 4 for FY 2014 and FY 2015.
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Table 4 – Projected and Recommended Rate Increases for Roll-Off Service
Current FY 2014 FY 2015 FY 2016 FY 2017
Rate Per Pull
Non-Contract $250 $264 $271 $277 $284
Contract $201 $201 renegotiate
Rental Fees
Daily Fee $1.00 $3.00 $3.00 $3.00 $3.00
(Note that the FY 13 rates recommended in SAIC’s rate study are proposed for implementation in FY 14 because of
the interval lapsed since completion of the study) RECOMMENDED RECYCLING CHANGES: SAIC analyzed if the City would benefit from transitioning from a curb-sort to a single stream recycling program. In the curb-sort program, subscription customers set out an 18 gallon tote
weekly. Recycled materials are manually sorted into separate bins using a specialized recycling
truck only used for recycling operations. The City currently charges $10 month for weekly
pickup which does not recover costs (see SAIC rate study). 1161 customers currently participate in the program and generate approximately 272 tons of recyclables annually. Curb-sort recyclables are bailed at a local recycling operation and then sold on the commodities market.
With the current equipment, the curb-sort program is approaching capacity. Expansion of the
existing program would require investment in additional specialized trucks.
In single stream recycling, recycled materials are
combined into a single large (95 gallon) tote collected
every two weeks using standard automated collection
trucks (the same vehicles used to provide residential
service). This single stream of material is taken to a local recycling facility for bailing and sale on the
commodities market. There are several advantages to
single stream recycling operations that include increased
collection speed, higher participation rates, increased
recycling volumes, better utilization and standardization of equipment and improved worker safety.
SAIC evaluated two single stream recycling options. In the universal option, all of the City’s
solid waste customers would be charged a recycling fee and provided a recycling tote upon
request. Universal assessment of a recycling fee distributes recycling costs over a wide customer base resulting in low per household rates. In the subscription option, customers would
voluntarily subscribe for recycling service (as is the current practice). Individual rates for the
subscription option are higher. For both options, SAIC estimates substantial increases in
participation rates and amounts of recycled materials.
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Table 5 summarized SAIC’s analysis of the direct cost comparison over a 5 year period. For the
low participation scenario of the universal single stream program, SAIC assumed a set out rate of
50 percent and annual pounds per household of 300 pounds. For the high participation scenario,
SAIC assumed a set out rate of 75 percent and annual pounds per household of 600 pounds. For the low participation scenario of the subscription single stream program, SAIC assumed a set out rate of 85 percent and annual pounds per household of 562 pounds. For the high participation
scenario, SAIC assumed a set out rate of 90 percent and annual pounds per household of 609
pounds.
Table 5 – Recycling Options Direct Cost* Summary
Service Year 1 Year 2 Year 3 Year 4 Year 5
Status Quo $ 8.63 $ 13.94 $ 14.34 $ 14.75 $15.17
Universal – Low $2.67 $2.75 $2.84 $2.93 $3.03
Universal - High $3.79 $3.92 $4.06 $4.20 $4.35
Subscription -
Low $6.24 $6.43 $6.63 $6.83 $7.04
Subscription - High $6.73 $6.94 $7.15 $7.37 $7.60
*The direct cost analysis used to evaluate recycling options differs from SAIC rate study that utilized full cost
accounting methodology. Vehicle costs and labor costs also varied between t the two studies.
Based on SAIC’s analyses and review of existing operations, staff recommends implementation
of a single stream subscription recycling service. A 10-15% increase in customer growth is
anticipated due primarily to the added convenience of the single stream service. SAIC estimates that the City could implement this service for a direct cost of between $6.24 and $6.73/month, a
22- 28% reduction in direct cost (depending upon participation rate) relative to the current curb-
sort service. When indirect costs are included, Staff estimates a single stream subscription
service could be provided for less than $9.00 per month. The final rate will depend upon the
contract price for bailing and hauling.
Staff is requesting Commission approval to initiate implementation of a single stream recycling
program by purchasing recycling totes, contracting with a local recycling service for bailing and
hauling services and developing a customer outreach and implementation plan.
Recommendations for final rates would be brought before the Commission for approval by August 5, 2013.
RECOMMENDED OPERATIONAL IMPROVMENTS:
SAIC prepared a business case analysis for the development of a consolidation station designed
specifically to improve the efficiency of the City’s solid waste operations. The consolidation station would be designed to handle 50 tons of waste per day and consist of a basic 56 x 73 ft
clear span unheated metal building with a concrete tipping floor and loading bay. Water service
would be installed to provide for fire suppression for the station and the existing solid waste
facilities. Residential and commercial collection trucks would discharge their loads onto the
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floor where it would be pushed into 22 ton tractor-trailer units and hauled to the Logan landfill.
Development of a consolidation station would eliminate the current daily commute of collection
vehicles to the Logan landfill.
The consolidation station would be located at the City landfill next to the existing Solid Waste Division operational facilities. The proximity to existing facilities will allow the station to be
operated with existing staff with minor changes to existing job duties. The collection station
would used only by City Solid Waste Division staff or by other government agencies (i.e.,
Montana State University) through appropriate agreements. The station would not be open to the public or available for private use, which greatly simplifies the design and operation of the facility. The station will also increase utilization of existing equipment and delay the need for
additional truck purchases to expand service.
The results of SAIC’s business case analysis based on the City’s current customer base are shown in Table 6. Annualize capital, operation and maintenance (O&M), and hauling costs sum to $430,000 /year. Savings in labor, fuel and maintenance costs would reduce the City’s
collection costs by $486,759 annually for a net savings of $56,759 per year. Over the course of
five years, SAIC estimates the City would save a total approximately $387,756 to $646,983,
depending on the rate of customer growth (estimated from customer data to range from 3-5% annually). Cost savings resulting from construction of a consolidation station would mitigate the need for future rate increases.
Table 6 – Summary of Consolidation Station Business Case Analysis
SAIC and City staff also analyzed other potential impacts of a consolidation station, including
the potential changes to traffic patterns on Story Mill Road, climate impact, and risk mitigation:
• Traffic would increase by approximately 1.5 truck trips per day on Story Mill Road.
• The station would reduce the total fuel consumed by the Solid Waste Department annually by approximately 14,617 gallons which is equivalent to a decrease of 154
Metric Tons of CO2 equivalents (MTCO2e) per year, or 1.5 percent of the City’s current
carbon emissions.
Total Cost Annual Cost
Transfer Station Capital Cost $1,844,000 $149,000 (20 yr)
Transfer Station O&M Costs $130,000
Transfer Station Hauling Costs $151,000
Route Reduction Costs -$486,759
Net First Year Savings $56,759
Five Year Cumulative Savings
(3% - 5% growth ) $387,756 - $646,983
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• Currently, the City does not have fire suppression capabilities at its Solid Waste
Department office and equipment yard. SAIC’s capital cost estimates for the
consolidation station include a $175,000 charge for the expansion of the City’s water system to the solid waste facility, which would allow the City to install the appropriate fire suppression equipment.
Staff is requesting Commission approval to initiate design of the facility and return to the
Commission a final design, cost estimate and implementation plan in approximately one year. POLICY AND OPERATIONAL ISSUES The policy issues have been summarized in the recommended motions.
FISCAL EFFECTS: The fiscal effects on the City’s solid waste customers have been summarized in the staff report. A full financial analysis of the impacts of rate adjustment, changes to the recycling program and development of a consolidation station are included in the
attached reports.
ALTERNATIVES: 1. Adopt some or all of the motions recommended by staff. 2. Modify the motions and provide direction to staff to evaluate alternate options for rates,
recycling and improved operations.
3. Maintain current operations.
ATTACHMENTS: Final Report – Solid Waste Rate Study
Draft Report – Business Case Assessment for Consolidation Station Development and Single-
Stream Recycling.
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Schedule 1 - Test Year
SAIC Energy, Environment Infrastructure, LLC A-1
2011 2012
Account Number Description ACTUAL BUDGET Adjustments Test Year Notes
COMMERCIAL/ RESIDENTIAL ACCOUNTS
1 640-5810-447.10-01 REGULAR EARNINGS 565,920$ 660,747$ -$ 660,747$
2 640-5810-447.10-02 ADDITIONAL EARNINGS 2 339 - 339
3 640-5810-447.10-03 DIFFERENTIAL EARNINGS 502 222 - 222
4 640-5810-447.10-04 TERMINATION PAY 5,608 - - -
5 640-5810-447.10-05 VACATION 37,240 - - -
6 640-5810-447.10-06 SICK LEAVE 22,333 - - -
7 640-5810-447.11-20 OVERTIME 26,084 30,770 - 30,770
8 640-5810-447.12-30 PERS 48,648 47,718 - 47,718
9 640-5810-447.12-33 HEALTH/DENTAL INSURANCE 135,730 142,684 - 142,684
10 640-5810-447.12-34 LIFE INSURANCE 498 512 - 512
11 640-5810-447.12-35 UNEMPLOYMENT TAX 986 1,041 - 1,041
12 640-5810-447.12-36 F.I.C.A 47,770 52,341 - 52,341
13 640-5810-447.12-37 WORKERS' COMP 25,701 26,749 - 26,749
14 640-5810-447.20-10 OFFICE SUPPLIES 4,665 5,200 - 5,200
15 640-5810-447.20-20 COMPUTER SUPPLIES 158 450 - 450
16 640-5810-447.20-21 PERSONAL COMPUTERS 1,661 950 - 950
17 640-5810-447.20-30 CLOTHING & UNIFORMS 2,318 1,800 - 1,800
18 640-5810-447.20-50 ROAD SUPPLIES 2,975 5,000 - 5,000
19 640-5810-447.20-60 VEHICLE SUPPLIES 1,957 1,500 - 1,500
20 640-5810-447.20-61 GASOLINE AND OIL 141,198 165,100 - 165,100
21 640-5810-447.20-65 SMALL EQUIPMENT AND TOOLS 2,403 1,000 - 1,000
22 640-5810-447.20-70 BOOKS & REFERENCE MTRLS 66 - - -
23 640-5810-447.20-99 GENERAL 5,793 40,000 - 40,000
24 640-5810-447.30-10 REPAIR & MAINT- EQUIPMENT 92,399 90,000 - 90,000
25 640-5810-447.30-20 REPAIR & MAINT- BUILDINGS 5,681 2,000 - 2,000
26 640-5810-447.30-30 REPAIR & MAINT - OTHER 122 - - -
27 640-5810-447.40-10 ELECTRICITY 7,037 6,500 - 6,500
28 640-5810-447.40-41 PROPANE GAS FOR BUILDINGS 14,794 15,000 - 15,000
29 640-5810-447.40-50 TELEPHONE 2,260 2,800 - 2,800
30 640-5810-447.40-55 INTERNET 5,582 5,800 - 5,800
31 640-5810-447.40-60 REFUSE DISPOSAL 355,258 431,000 (120,000) 311,000 E, G
32 640-5810-447.40-99 GENERAL - - - -
33 640-5810-447.50-10 CONSULTANTS & PROF SERV 6,831 27,700 - 27,700
34 640-5810-447.50-20 MAINTENANCE CONTRACTS 3,862 2,850 - 2,850
35 640-5810-447.50-30 JANITORIAL CONTRACTS 4,396 6,000 - 6,000
36 640-5810-447.50-80 MEDICAL SERVICES 1,860 1,200 - 1,200
37 640-5810-447.50-99 GENERAL 5,561 4,400 - 4,400
38 640-5810-447.60-10 IN-STATE 1,072 1,000 - 1,000
39 640-5810-447.60-20 OUT-OF-STATE 2,699 1,000 - 1,000
40 640-5810-447.70-10 ADVERTISING 7,004 6,000 - 6,000
263
Schedule 1 - Test Year
SAIC Energy, Environment Infrastructure, LLC A-2
41 640-5810-447.70-20 SUBSCRIPTIONS 191 500 - 500
42 640-5810-447.70-40 POSTAGE 18,139 17,700 - 17,700
43 640-5810-447.70-55 DUES & SUBSCRIPTIONS 736 1,000 - 1,000
44 640-5810-447.70-60 TAXES & ASSESSMENTS 31,465 24,058 - 24,058
45 640-5810-447.70-70 INSURANCE 68,779 56,330 - 56,330
46 640-5810-447.70-80 DEPRECIATION - - - - H
47 640-5810-447.70-90 RENTS & LEASES 137 100 - 100
48 640-5810-447.70-99 GENERAL 7,754 8,500 - 8,500
49 640-5810-447.75-10 ADMINISTRATIVE OVERHEAD 153,454 139,720 - 139,720
50 640-5810-447.75-30 VEH MAINT FUND ALLOCATION 96,892 109,829 - 109,829
51 640-5810-447.80-10 VEH:AUTOS + LIGHT TRUCKS - - - -
52 640-5810-447.80-20 M&E:MACH+EQUIP/HEAVY TRU 129,021 - - -
53 640-5810-447.80-30 M&E:COMPUTER HARDWARE 10,374 - -
54 640-5810-447.80-40 M&E:OFFICE EQUIP+FURNITUR 696 - - -
55 640-5810-447.80-80 BLD:BUILDINGS+BLDG DESIGN 12,439 - - -
56 640-5810-447.99-10 TRANSFERS TO OTHER FUNDS - - - -
57 COMMERCIAL/ RESIDENTIAL TOTAL 2,126,710$ 2,145,110$ 2,025,110$
RECYCLING ACCOUNTS
58 640-5820-447.10-01 REGULAR EARNINGS 31,743$ 99,757$ (63,274)$ 36,483$ E, F
59 640-5820-447.10-05 VACATION 352 - - - E
60 640-5820-447.10-06 SICK LEAVE 267 - - - E
61 640-5820-447.11-20 OVERTIME 1,978 - - - E
62 640-5820-447.12-30 PERS 1,330 7,489 (4,910) 2,579 E
63 640-5820-447.12-33 HEALTH/DENTAL INSURANCE 6,818 6,168 (406) 5,762 E
64 640-5820-447.12-34 LIFE INSURANCE 32 35 7 42 E
65 640-5820-447.12-35 UNEMPLOYMENT TAX 52 150 (88) 62 E
66 640-5820-447.12-36 F.I.C.A 2,557 7,663 (4,876) 2,787 E
67 640-5820-447.12-37 WORKERS' COMP 1,404 4,157 (2,639) 1,518 E
68 640-5820-447.20-10 OFFICE SUPPLIES 37 250 - 250
69 640-5820-447.20-20 COMPUTER SUPPLIES - 100 - 100
70 640-5820-447.20-30 CLOTHING & UNIFORMS 316 325 - 325
71 640-5820-447.20-60 VEHICLE SUPPLIES 17 500 - 500
72 640-5820-447.20-61 GASOLINE AND OIL 8,652 15,000 - 15,000
73 640-5820-447.20-65 SMALL EQUIPMENT AND TOOLS - 250 - 250
74 640-5820-447.20-99 GENERAL 2,357 5,000 - 5,000
75 640-5820-447.30-10 REPAIR & MAINT- EQUIPMENT 6,118 15,000 - 15,000
76 640-5820-447.50-10 CONSULTANTS & PROF SERV - - - -
77 640-5820-447.50-20 MAINTENANCE CONTRACTS 29 50 - 50
78 640-5820-447.50-80 MEDICAL SERVICES 198 200 - 200
79 640-5820-447.50-99 GENERAL 8,639 1,000 - 1,000
80 640-5820-447.60-10 IN-STATE - - - -
81 640-5820-447.70-10 ADVERTISING 985 5,000 - 5,000
264
Schedule 1 - Test Year
SAIC Energy, Environment Infrastructure, LLC A-3
82 640-5820-447.70-40 POSTAGE 2,500 - 2,500
83 640-5820-447.70-70 INSURANCE - - - -
84 640-5820-447.70-80 DEPRECIATION - - - - H
85 640-5820-447.70-99 GENERAL - - - -
86 640-5820-447.80-20 M&E:MACH+EQUIP/HEAVY TRU - - - -
87 640-5820-447.80-40 M&E:OFFICE EQUIP+FURNITUR 350 - - -
88 RECYCLING TOTAL 74,230$ 170,594$ 94,409$
DEDUCTIONS
89 640-9999-999.80-10 VEH:AUTOS+LIGHT TRUCKS -$ 367215 367,215$ D
90 640-9999-999.80-20 M&E:MACH+EQUIP/HEAVY TRU (129,021) - -
91 640-9999-999.80-40 M&E:OFFICE EQUIP+FURNITUR (1,046) - -
92 640-9999-999.80-80 BLD:BUILDINGS+BLDG DESIGN (11,739) - -
93 DEDUCTIONS TOTAL (141,806)$ -$ 367,215$
94 SOLID WASTE SUBTOTAL 2,059,134$ 2,315,704$ 2,486,734$
REVENUE OFFSETS
95 345 30 20 Special Garbage Pickup (48,284)$ -$ (42,584)$ (42,584)$ A
96 Large Item Pickup -$ C
97 345 30 41 Recycling Cardboard (31,759) - (23,968) (23,968)$ A
98 345 30 42 Recycling Compost (11,999) - (12,177) (12,177)$ A
99 345 30 43 Recycling White Goods (299) - (100) (100)$ A
100 345 30 45 Curbside Recycling Commodity (25,615) - (28,000) (28,000)$ E
101 360 00 00 Interest Income (25,364) - (47,845) (52,061)$ A,B
102 387 **Other (9,178) - (9,303) (9,303)$ A
103 393 **Asset Disposal Proceeds - - - -$ A
104 REVENUE OFFSETS TOTAL (152,499)$ -$ (168,192)$
105 SOLID WASTE TOTAL REVENUE REQUIREMENT 1,906,636$ 2,315,704$ 2,318,542$
Notes
(A) Used a 3 year historical average
(B) Includes interest earned on CIP Reserve Balance
(C) Revenues from Large Item pickups are used to offset Residential costs, as a large percentage are abandoned items whose costs are not recoverable
(D)This value is the SAIC annual CIP contribution estimate
(E)Adjusted as per conversations with City staff
(F)Inclusive of costs from line items 58-67
(G)This value does not inclue the $84,000 of roll-off disposal costs, due to our assumption that these costs are passed through to the consumer
(H)The depreciation line items 46 and 84 have been replaced by an annualized equipment replacement contribution in line 89
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Schedule 2 - Revenue Requirement Forecast
SAIC Energy, Environment Infrastructure, LLC A-1
2011 2012 Test Year 1 Year 2 Year 3 Year 4 Year 5
Account Number Description ACTUAL RECOMMENDED Year FY2012 FY2013 FY2014 FY2015 FY2016
1 640-5810-447.10-01 REGULAR EARNINGS 565,920$ 660,747$ 660,747$ 660,747$ 667,354$ 674,028$ 680,768$ 687,576$
2 640-5810-447.10-02 ADDITIONAL EARNINGS 2 339 339 339 342 346 349 353
3 640-5810-447.10-03 DIFFERENTIAL EARNINGS 502 222 222 222 224 226 229 231
4 640-5810-447.10-04 TERMINATION PAY 5,608 - - - - - - -
5 640-5810-447.10-05 VACATION 37,240 - - - - - - -
6 640-5810-447.10-06 SICK LEAVE 22,333 - - - - - - -
7 640-5810-447.11-20 OVERTIME 26,084 30,770 30,770 30,770 31,078 31,388 31,702 32,019
8 640-5810-447.12-30 PERS 48,648 47,718 47,718 47,718 48,195 48,677 49,164 49,656
9 640-5810-447.12-33 HEALTH/DENTAL INSURANCE 135,730 142,684 142,684 142,684 156,952 172,648 189,912 208,904
10 640-5810-447.12-34 LIFE INSURANCE 498 512 512 512 524 537 550 563
11 640-5810-447.12-35 UNEMPLOYMENT TAX 986 1,041 1,041 1,041 1,066 1,092 1,118 1,145
12 640-5810-447.12-36 F.I.C.A 47,770 52,341 52,341 52,341 53,597 54,884 56,201 57,550
13 640-5810-447.12-37 WORKERS' COMP 25,701 26,749 26,749 26,749 27,391 28,048 28,722 29,411
14 640-5810-447.20-10 OFFICE SUPPLIES 4,665 5,200 5,200 5,200 5,325 5,453 5,583 5,717
15 640-5810-447.20-20 COMPUTER SUPPLIES 158 450 450 450 461 472 483 495
16 640-5810-447.20-21 PERSONAL COMPUTERS 1,661 950 950 950 973 996 1,020 1,045
17 640-5810-447.20-30 CLOTHING & UNIFORMS 2,318 1,800 1,800 1,800 1,843 1,887 1,933 1,979
18 640-5810-447.20-50 ROAD SUPPLIES 2,975 5,000 5,000 5,000 5,120 5,243 5,369 5,498
19 640-5810-447.20-60 VEHICLE SUPPLIES 1,957 1,500 1,500 1,500 1,536 1,573 1,611 1,649
20 640-5810-447.20-61 GASOLINE AND OIL 141,198 165,100 165,100 165,100 173,355 182,023 191,124 200,680
21 640-5810-447.20-65 SMALL EQUIPMENT AND TOOLS 2,403 1,000 1,000 1,000 1,024 1,049 1,074 1,100
22 640-5810-447.20-70 BOOKS & REFERENCE MTRLS 66 - - - - - - -
23 640-5810-447.20-99 GENERAL 5,793 40,000 40,000 40,000 40,960 41,943 42,950 43,980
24 640-5810-447.30-10 REPAIR & MAINT- EQUIPMENT 92,399 90,000 90,000 90,000 92,160 94,372 96,637 98,956
25 640-5810-447.30-20 REPAIR & MAINT- BUILDINGS 5,681 2,000 2,000 2,000 2,048 2,097 2,147 2,199
26 640-5810-447.30-30 REPAIR & MAINT - OTHER 122 - - - - - - -
27 640-5810-447.40-10 ELECTRICITY 7,037 6,500 6,500 6,500 6,656 6,816 6,979 7,147
28 640-5810-447.40-41 PROPANE GAS FOR BUILDINGS 14,794 15,000 15,000 15,000 15,360 15,729 16,106 16,493
29 640-5810-447.40-50 TELEPHONE 2,260 2,800 2,800 2,800 2,867 2,936 3,006 3,079
30 640-5810-447.40-55 INTERNET 5,582 5,800 5,800 5,800 5,939 6,082 6,228 6,377
31 640-5810-447.40-60 REFUSE DISPOSAL 355,258 431,000 311,000 311,000 314,110 317,251 320,424 323,628
32 640-5810-447.40-99 GENERAL - - - - - - - -
33 640-5810-447.50-10 CONSULTANTS & PROF SERV 6,831 27,700 27,700 27,700 28,365 29,046 29,743 30,456
34 640-5810-447.50-20 MAINTENANCE CONTRACTS 3,862 2,850 2,850 2,850 2,918 2,988 3,060 3,134
35 640-5810-447.50-30 JANITORIAL CONTRACTS 4,396 6,000 6,000 6,000 6,144 6,291 6,442 6,597
36 640-5810-447.50-80 MEDICAL SERVICES 1,860 1,200 1,200 1,200 1,229 1,258 1,288 1,319
37 640-5810-447.50-99 GENERAL 5,561 4,400 4,400 4,400 4,506 4,614 4,724 4,838
38 640-5810-447.60-10 IN-STATE 1,072 1,000 1,000 1,000 1,024 1,049 1,074 1,100
39 640-5810-447.60-20 OUT-OF-STATE 2,699 1,000 1,000 1,000 1,024 1,049 1,074 1,100
40 640-5810-447.70-10 ADVERTISING 7,004 6,000 6,000 6,000 6,144 6,291 6,442 6,597
41 640-5810-447.70-20 SUBSCRIPTIONS 191 500 500 500 512 524 537 550
42 640-5810-447.70-40 POSTAGE 18,139 17,700 17,700 17,700 18,125 18,560 19,005 19,461
43 640-5810-447.70-55 DUES & SUBSCRIPTIONS 736 1,000 1,000 1,000 1,024 1,049 1,074 1,100
44 640-5810-447.70-60 TAXES & ASSESSMENTS 31,465 24,058 24,058 24,058 24,635 25,227 25,832 26,452
COMMERCIAL/ RESIDENTIAL ACCOUNTS
266
Schedule 2 - Revenue Requirement Forecast
SAIC Energy, Environment Infrastructure, LLC A-2
45 640-5810-447.70-70 INSURANCE 68,779 56,330 56,330 56,330 57,682 59,066 60,484 61,935
46 640-5810-447.70-80 DEPRECIATION - - - - - - - -
47 640-5810-447.70-90 RENTS & LEASES 137 100 100 100 102 105 107 110
48 640-5810-447.70-99 GENERAL 7,754 8,500 8,500 8,500 8,704 8,913 9,127 9,346
49 640-5810-447.75-10 ADMINISTRATIVE OVERHEAD 153,454 139,720 139,720 139,720 143,073 146,507 150,023 153,624
50 640-5810-447.75-30 VEH MAINT FUND ALLOCATION 96,892 109,829 109,829 109,829 112,465 115,164 117,928 120,758
51 640-5810-447.80-10 VEH:AUTOS + LIGHT TRUCKS - - - - - - - -
52 640-5810-447.80-20 M&E:MACH+EQUIP/HEAVY TRUK 129,021 - - - - - - -
53 640-5810-447.80-30 M&E:COMPUTER HARDWARE 10,374 - - - - - - -
54 640-5810-447.80-40 M&E:OFFICE EQUIP+FURNITUR 696 - - - - - - -
55 640-5810-447.80-80 BLD:BUILDINGS+BLDG DESIGN 12,439 - - - - - - -
56 640-5810-447.99-10 TRANSFERS TO OTHER FUNDS - - - - - - - -
57 2,126,710$ 2,145,110$ 2,025,110$ 2,025,110$ 2,074,138$ 2,125,495$ 2,179,354$ 2,235,904$ COMMERCIAL/ RESIDENTIAL TOTAL
267
Schedule 3 - Monthly Automated Collection Cost of Service
SAIC Energy, Environment Infrastructure, LLC A-1
FY12
Collection Disposal Admin Once per Month Once per Week
35 gal .25x 2.42$ 0.31$ 2.68$ 5.41$ 35 gal 5.41$ 13.60$
65 gal .25x 2.42 0.58 2.68 5.67 65 gal - 14.67
100 gal .25x 2.42 0.89 2.68 5.98 100 gal - 15.91
220 gal .25x 2.42 1.95 2.68 7.05 220 gal - 20.16
300 gal .25x 2.42 2.66 2.68 7.76 300 gal - 23.00
450 gal .25x 2.42 3.99 2.68 9.09 450 gal - 28.32
35 gal 1x 9.69 1.24 2.68 13.60
65 gal 1x 9.69 2.30 2.68 14.67
100 gal 1x 9.69 3.54 2.68 15.91
220 gal 1x 9.69 7.80 2.68 20.16
300 gal 1x 9.69 10.63 2.68 23.00
450 gal 1x 9.69 15.95 2.68 28.32
FY13
Collection Disposal Admin Once per Month Once per Week
35 gal .25x 2.46$ 0.31$ 2.70$ 5.47$ 35 gal 5.47$ 13.78$
65 gal .25x 2.46 0.58 2.70 5.74 65 gal - 14.84
100 gal .25x 2.46 0.89 2.70 6.05 100 gal - 16.09
220 gal .25x 2.46 1.95 2.70 7.12 220 gal - 20.35
300 gal .25x 2.46 2.66 2.70 7.83 300 gal - 23.19
450 gal .25x 2.46 4.00 2.70 9.16 450 gal - 28.52
35 gal 1x 9.83 1.24 2.70 13.78
65 gal 1x 9.83 2.31 2.70 14.84
100 gal 1x 9.83 3.55 2.70 16.09
220 gal 1x 9.83 7.81 2.70 20.35
300 gal 1x 9.83 10.66 2.70 23.19
450 gal 1x 9.83 15.98 2.70 28.52
Collection Frequency
Collection Frequency
Container Size
Container Size Weekly Frequency
Monthly
Subtotal Container Size
Subtotal
Detailed Cost Breakout Cost Summary
Container Size Weekly Frequency
Monthly
268
Schedule 3 - Monthly Automated Collection Cost of Service
SAIC Energy, Environment Infrastructure, LLC A-2
Detailed Cost Breakout Cost Summary
FY14
Collection Disposal Admin Once per Month Once per Week
35 gal .25x 2.50$ 0.31$ 2.74$ 5.54$ 35 gal 5.54$ 13.96$
65 gal .25x 2.50 0.58 2.74 5.67 65 gal - 15.03
100 gal .25x 2.50 0.89 2.74 5.98 100 gal - 16.28
220 gal .25x 2.50 1.96 2.74 7.05 220 gal - 20.55
300 gal .25x 2.50 2.67 2.74 7.76 300 gal - 23.40
450 gal .25x 2.50 4.00 2.74 9.09 450 gal - 28.74
35 gal 1x 9.98 1.25 2.74 13.96
65 gal 1x 9.98 2.31 2.74 15.03
100 gal 1x 9.98 3.56 2.74 16.28
220 gal 1x 9.98 7.83 2.74 20.55
300 gal 1x 9.98 10.68 2.74 23.40
450 gal 1x 9.98 16.02 2.74 28.74
FY15
Collection Disposal Admin Once per Month Once per Week
35 gal .25x 2.53$ 0.31$ 2.77$ 5.62$ 35 gal 5.62$ 14.15$
65 gal .25x 2.53 0.58 2.77 5.67 65 gal - 15.22
100 gal .25x 2.53 0.89 2.77 5.98 100 gal - 16.47
220 gal .25x 2.53 1.96 2.77 7.05 220 gal - 20.75
300 gal .25x 2.53 2.68 2.77 7.76 300 gal - 23.61
450 gal .25x 2.53 4.01 2.77 9.09 450 gal - 28.96
35 gal 1x 10.14 1.25 2.77 14.15
65 gal 1x 10.14 2.32 2.77 15.22
100 gal 1x 10.14 3.57 2.77 16.47
220 gal 1x 10.14 7.85 2.77 20.75
300 gal 1x 10.14 10.70 2.77 23.61
450 gal 1x 10.14 16.06 2.77 28.96
Collection Frequency
Collection Frequency
Container Size Weekly Frequency
Monthly
Subtotal Container Size
Container SizeWeekly Frequency
Monthly
Subtotal Container Size
269
Schedule 3 - Monthly Automated Collection Cost of Service
SAIC Energy, Environment Infrastructure, LLC A-3
Detailed Cost Breakout Cost Summary
FY16
Collection Disposal Admin Once per Month Once per Week
35 gal .25x 2.58$ 0.31$ 2.81$ 5.69$ 35 gal 5.69$ 14.36$
65 gal .25x 2.58 0.58 2.81 5.96 65 gal - 15.43
100 gal .25x 2.58 0.89 2.81 6.28 100 gal - 16.68
220 gal .25x 2.58 1.97 2.81 7.35 220 gal - 20.98
300 gal .25x 2.58 2.68 2.81 8.06 300 gal - 23.84
450 gal .25x 2.58 4.02 2.81 9.41 450 gal - 29.20
35 gal 1x 10.30 1.25 2.81 14.36
65 gal 1x 10.30 2.33 2.81 15.43
100 gal 1x 10.30 3.58 2.81 16.68
220 gal 1x 10.30 7.87 2.81 20.98
300 gal 1x 10.30 10.73 2.81 23.84
450 gal 1x 10.30 16.10 2.81 29.20
Collection Frequency
Container Size Weekly Frequency
Monthly
Subtotal Container Size
270
Schedule 4 - Monthly Dumpster Collection Cost of Service
SAIC Energy, Environment Infrastructure, LLC A-1
FY12
Collection Disposal Admin 1x 2x 3x 4x 5x 6x
2 cy 1x 55.51$ 24.41$ 28.01$ 107.92$ 2 (cy)$107.92 $187.84 $267.75 $347.67 $427.58 $507.50
3 cy 1x 55.51 36.61 28.01 120.13 3 (cy)120.13 212.25 304.37 396.49 488.61 580.73
4 cy 1x 55.51 48.82 28.01 132.33 4 (cy)132.33 236.66 340.98 445.31 549.63 653.96
6 cy 1x 55.51 73.23 28.01 156.74 6 (cy)156.74 285.48 414.21 542.95 671.68 800.42
8 cy 1x 55.51 97.64 28.01 181.15 8 (cy)181.15 334.30 487.44 640.58 793.73 946.87
2 cy 2x 111.01 48.82 28.01 187.84
3 cy 2x 111.01 73.23 28.01 212.25
4 cy 2x 111.01 97.64 28.01 236.66
6 cy 2x 111.01 146.46 28.01 285.48
8 cy 2x 111.01 195.28 28.01 334.30
2 cy 3x 166.52 73.23 28.01 267.75
3 cy 3x 166.52 109.84 28.01 304.37
4 cy 3x 166.52 146.46 28.01 340.98
6 cy 3x 166.52 219.69 28.01 414.21
8 cy 3x 166.52 292.92 28.01 487.44
2 cy 4x 222.02 97.64 28.01 347.67
3 cy 4x 222.02 146.46 28.01 396.49
4 cy 4x 222.02 195.28 28.01 445.31
6 cy 4x 222.02 292.92 28.01 542.95
8 cy 4x 222.02 390.56 28.01 640.58
2 cy 5x 277.53 122.05 28.01 427.58
3 cy 5x 277.53 183.07 28.01 488.61
4 cy 5x 277.53 244.10 28.01 549.63
6 cy 5x 277.53 366.15 28.01 671.68
8 cy 5x 277.53 488.20 28.01 793.73
2 cy 6x 333.03 146.46 28.01 507.50
3 cy 6x 333.03 219.69 28.01 580.73
4 cy 6x 333.03 292.92 28.01 653.96
6 cy 6x 333.03 439.38 28.01 800.42
8 cy 6x 333.03 585.83 28.01 946.87
Container
Size
Weekly
Frequency
Monthly
Total
Detailed Cost Breakout Cost Summary
Container Size
Collection Frequency
271
Schedule 4 - Monthly Dumpster Collection Cost of Service
SAIC Energy, Environment Infrastructure, LLC A-2
Detailed Cost Breakout Cost Summary
FY13
Collection Disposal Admin 1x 2x 3x 4x 5x 6x
2 cy 1x 55.51$ 24.41$ 28.33$ 108.24$ 2 (cy)108.24$ 188.16$ 268.08$ 347.99$ 427.91$ 507.82$
3 cy 1x 55.51 36.61 28.33 120.45$ 3 (cy)120.45$ 212.57$ 304.69$ 396.81$ 488.93$ 581.05$
4 cy 1x 55.51 48.82 28.33 132.65$ 4 (cy)132.65$ 236.98$ 341.30$ 445.63$ 549.96$ 654.28$
6 cy 1x 55.51 73.23 28.33 157.06$ 6 (cy)157.06$ 285.80$ 414.53$ 543.27$ 672.00$ 800.74$
8 cy 1x 55.51 97.64 28.33 181.47$ 8 (cy)181.47$ 334.62$ 487.76$ 640.91$ 794.05$ 947.20$
2 cy 2x 111.01 48.82 28.33 188.16$
3 cy 2x 111.01 73.23 28.33 212.57$
4 cy 2x 111.01 97.64 28.33 236.98$
6 cy 2x 111.01 146.46 28.33 285.80$
8 cy 2x 111.01 195.28 28.33 334.62$
2 cy 3x 166.52 73.23 28.33 268.08$
3 cy 3x 166.52 109.84 28.33 304.69$
4 cy 3x 166.52 146.46 28.33 341.30$
6 cy 3x 166.52 219.69 28.33 414.53$
8 cy 3x 166.52 292.92 28.33 487.76$
2 cy 4x 222.02 97.64 28.33 347.99$
3 cy 4x 222.02 146.46 28.33 396.81$
4 cy 4x 222.02 195.28 28.33 445.63$
6 cy 4x 222.02 292.92 28.33 543.27$
8 cy 4x 222.02 390.56 28.33 640.91$
2 cy 5x 277.53 122.05 28.33 427.91$
3 cy 5x 277.53 183.07 28.33 488.93$
4 cy 5x 277.53 244.10 28.33 549.96$
6 cy 5x 277.53 366.15 28.33 672.00$
8 cy 5x 277.53 488.20 28.33 794.05$
2 cy 6x 333.03 146.46 28.33 507.82$
3 cy 6x 333.03 219.69 28.33 581.05$
4 cy 6x 333.03 292.92 28.33 654.28$
6 cy 6x 333.03 439.38 28.33 800.74$
8 cy 6x 333.03 585.83 28.33 947.20$
Container
Size
Weekly
Frequency
Monthly
Total Container Size
Collection Frequency
272
Schedule 4 - Monthly Dumpster Collection Cost of Service
SAIC Energy, Environment Infrastructure, LLC A-3
Detailed Cost Breakout Cost Summary
FY14
Collection Disposal Admin 1x 2x 3x 4x 5x 6x
2 cy 1x 55.51$ 24.41$ 28.68$ 108.59$ 2 (cy)108.59$ 188.51$ 268.42$ 348.34$ 428.25$ 508.17$
3 cy 1x 55.51 36.61 28.68 120.80$ 3 (cy)120.80$ 212.92$ 305.04$ 397.16$ 489.28$ 581.40$
4 cy 1x 55.51 48.82 28.68 133.00$ 4 (cy)133.00$ 237.33$ 341.65$ 445.98$ 550.30$ 654.63$
6 cy 1x 55.51 73.23 28.68 157.41$ 6 (cy)157.41$ 286.15$ 414.88$ 543.62$ 672.35$ 801.09$
8 cy 1x 55.51 97.64 28.68 181.82$ 8 (cy)181.82$ 334.97$ 488.11$ 641.26$ 794.40$ 947.55$
2 cy 2x 111.01 48.82 28.68 188.51$
3 cy 2x 111.01 73.23 28.68 212.92$
4 cy 2x 111.01 97.64 28.68 237.33$
6 cy 2x 111.01 146.46 28.68 286.15$
8 cy 2x 111.01 195.28 28.68 334.97$
2 cy 3x 166.52 73.23 28.68 268.42$
3 cy 3x 166.52 109.84 28.68 305.04$
4 cy 3x 166.52 146.46 28.68 341.65$
6 cy 3x 166.52 219.69 28.68 414.88$
8 cy 3x 166.52 292.92 28.68 488.11$
2 cy 4x 222.02 97.64 28.68 348.34$
3 cy 4x 222.02 146.46 28.68 397.16$
4 cy 4x 222.02 195.28 28.68 445.98$
6 cy 4x 222.02 292.92 28.68 543.62$
8 cy 4x 222.02 390.56 28.68 641.26$
2 cy 5x 277.53 122.05 28.68 428.25$
3 cy 5x 277.53 183.07 28.68 489.28$
4 cy 5x 277.53 244.10 28.68 550.30$
6 cy 5x 277.53 366.15 28.68 672.35$
8 cy 5x 277.53 488.20 28.68 794.40$
2 cy 6x 333.03 146.46 28.68 508.17$
3 cy 6x 333.03 219.69 28.68 581.40$
4 cy 6x 333.03 292.92 28.68 654.63$
6 cy 6x 333.03 439.38 28.68 801.09$
8 cy 6x 333.03 585.83 28.68 947.55$
Container
Size
Weekly
Frequency
Monthly
Total Container Size
Collection Frequency
273
Schedule 4 - Monthly Dumpster Collection Cost of Service
SAIC Energy, Environment Infrastructure, LLC A-4
Detailed Cost Breakout Cost Summary
FY15
Collection Disposal Admin 1x 2x 3x 4x 5x 6x
2 cy 1x 55.51$ 24.41$ 29.04$ 108.96$ 2 (cy)108.96$ 188.87$ 268.79$ 348.70$ 428.62$ 508.54$
3 cy 1x 55.51 36.61 29.04 121.16$ 3 (cy)121.16$ 213.28$ 305.40$ 397.52$ 489.64$ 581.76$
4 cy 1x 55.51 48.82 29.04 133.37$ 4 (cy)133.37$ 237.69$ 342.02$ 446.34$ 550.67$ 654.99$
6 cy 1x 55.51 73.23 29.04 157.78$ 6 (cy)157.78$ 286.51$ 415.25$ 543.98$ 672.72$ 801.45$
8 cy 1x 55.51 97.64 29.04 182.19$ 8 (cy)182.19$ 335.33$ 488.48$ 641.62$ 794.77$ 947.91$
2 cy 2x 111.01 48.82 29.04 188.87$
3 cy 2x 111.01 73.23 29.04 213.28$
4 cy 2x 111.01 97.64 29.04 237.69$
6 cy 2x 111.01 146.46 29.04 286.51$
8 cy 2x 111.01 195.28 29.04 335.33$
2 cy 3x 166.52 73.23 29.04 268.79$
3 cy 3x 166.52 109.84 29.04 305.40$
4 cy 3x 166.52 146.46 29.04 342.02$
6 cy 3x 166.52 219.69 29.04 415.25$
8 cy 3x 166.52 292.92 29.04 488.48$
2 cy 4x 222.02 97.64 29.04 348.70$
3 cy 4x 222.02 146.46 29.04 397.52$
4 cy 4x 222.02 195.28 29.04 446.34$
6 cy 4x 222.02 292.92 29.04 543.98$
8 cy 4x 222.02 390.56 29.04 641.62$
2 cy 5x 277.53 122.05 29.04 428.62$
3 cy 5x 277.53 183.07 29.04 489.64$
4 cy 5x 277.53 244.10 29.04 550.67$
6 cy 5x 277.53 366.15 29.04 672.72$
8 cy 5x 277.53 488.20 29.04 794.77$
2 cy 6x 333.03 146.46 29.04 508.54$
3 cy 6x 333.03 219.69 29.04 581.76$
4 cy 6x 333.03 292.92 29.04 654.99$
6 cy 6x 333.03 439.38 29.04 801.45$
8 cy 6x 333.03 585.83 29.04 947.91$
Monthly
Total Container Size
Collection FrequencyContainer
Size
Weekly
Frequency
274
Schedule 4 - Monthly Dumpster Collection Cost of Service
SAIC Energy, Environment Infrastructure, LLC A-5
Detailed Cost Breakout Cost Summary
FY16
Collection Disposal Admin 1x 2x 3x 4x 5x 6x
2 cy 1x 55.51$ 24.41$ 29.45$ 109.36$ 2 (cy)109.36$ 189.28$ 269.20$ 349.11$ 429.03$ 508.94$
3 cy 1x 55.51 36.61 29.45 121.57$ 3 (cy)121.57$ 213.69$ 305.81$ 397.93$ 490.05$ 582.17$
4 cy 1x 55.51 48.82 29.45 133.77$ 4 (cy)133.77$ 238.10$ 342.42$ 446.75$ 551.08$ 655.40$
6 cy 1x 55.51 73.23 29.45 158.18$ 6 (cy)158.18$ 286.92$ 415.65$ 544.39$ 673.12$ 801.86$
8 cy 1x 55.51 97.64 29.45 182.59$ 8 (cy)182.59$ 335.74$ 488.88$ 642.03$ 795.17$ 948.32$
2 cy 2x 111.01 48.82 29.45 189.28$
3 cy 2x 111.01 73.23 29.45 213.69$
4 cy 2x 111.01 97.64 29.45 238.10$
6 cy 2x 111.01 146.46 29.45 286.92$
8 cy 2x 111.01 195.28 29.45 335.74$
2 cy 3x 166.52 73.23 29.45 269.20$
3 cy 3x 166.52 109.84 29.45 305.81$
4 cy 3x 166.52 146.46 29.45 342.42$
6 cy 3x 166.52 219.69 29.45 415.65$
8 cy 3x 166.52 292.92 29.45 488.88$
2 cy 4x 222.02 97.64 29.45 349.11$
3 cy 4x 222.02 146.46 29.45 397.93$
4 cy 4x 222.02 195.28 29.45 446.75$
6 cy 4x 222.02 292.92 29.45 544.39$
8 cy 4x 222.02 390.56 29.45 642.03$
2 cy 5x 277.53 122.05 29.45 429.03$
3 cy 5x 277.53 183.07 29.45 490.05$
4 cy 5x 277.53 244.10 29.45 551.08$
6 cy 5x 277.53 366.15 29.45 673.12$
8 cy 5x 277.53 488.20 29.45 795.17$
2 cy 6x 333.03 146.46 29.45 508.94$
3 cy 6x 333.03 219.69 29.45 582.17$
4 cy 6x 333.03 292.92 29.45 655.40$
6 cy 6x 333.03 439.38 29.45 801.86$
8 cy 6x 333.03 585.83 29.45 948.32$
Container
Size
Weekly
Frequency Container Size
Collection FrequencyMonthly
Total
275
Schedule 5 - Proposed Monthly Automated Collection Rates
SAIC Energy, Environment Infrastructure, LLC A-1
FY12 FY15
Once per Month Once per Week Once per Month Once per Week
35 gal 8.54$ 11.51$ 35 gal 9.13$ 12.30$
65 gal - 17.56 65 gal - 18.77
100 gal - 22.50 100 gal - 24.05
220 gal - 39.26 220 gal - 39.26
300 gal - 49.22 300 gal - 49.22
450 gal - 70.92 450 gal - 70.92
FY13 FY16
Once per Month Once per Week Once per Month Once per Week
35 gal 8.73$ 11.76$ 35 gal 9.35$ 12.60$
65 gal - 17.95 65 gal - 19.22
100 gal - 23.00 100 gal - 24.63
220 gal - 39.26 220 gal - 39.26
300 gal - 49.22 300 gal - 49.22
450 gal - 70.92 450 gal - 70.92
FY14
Once per Month Once per Week
35 gal 8.93$ 12.03$
65 gal - 18.35
100 gal - 23.51
220 gal - 39.26
300 gal - 49.22
450 gal - 70.92
Collections per Week
Collections per Week
Collections per Week
Collections per Week
Container Size
Container Size
Container Size
Container Size
Container Size
Collections per Week
276
Schedule 6 - Proposed Monthly Dumpster Collection Rates
SAIC Energy, Environment Infrastructure, LLC A-1
Proposed Commercial Dumpster Rates (Gradual Increase)Proposed Commercial Dumpster Rates (Immediate Increase)
FY12 FY12
Container Size Container Size
(Cubic Yards)1 2 3 4 5 6 (Cubic Yards)1 2 3 4 5 6
2 86.28$ 150.16$ 214.05$ 277.94$ 341.82$ 405.71$ 2 107.92$ 187.84$ 267.75$ 347.67$ 427.58$ 507.50$
3 96.03 169.68 243.32 316.97 390.61 464.25 3 120.13 212.25 304.37 396.49 488.61 580.73
4 105.79 189.19 272.59 355.99 439.39 522.80 4 132.33 236.66 340.98 445.31 549.63 653.96
6 125.30 228.22 331.13 434.05 536.96 639.88 6 156.74 285.48 414.21 542.95 671.68 800.42
8 144.82 267.25 389.68 512.11 634.53 756.96 8 181.15 334.30 487.44 640.58 793.73 946.87
FY13 FY13
Container Size Container Size
(Cubic Yards)1 2 3 4 5 6 (Cubic Yards)1 2 3 4 5 6
2 88.26$ 153.42$ 218.59$ 283.75$ 348.91$ 414.07$ 2 108.24$ 188.16$ 268.08$ 347.99$ 427.91$ 507.82$
3 98.21 173.33 248.44 323.56 398.67 473.78 3 120.45 212.57 304.69 396.81 488.93 581.05
4 108.16 193.23 278.30 363.36 448.43 533.50 4 132.65 236.98 341.30 445.63 549.96 654.28
6 128.07 233.04 338.01 442.98 547.95 652.92 6 157.06 285.80 414.53 543.27 672.00 800.74
8 147.97 272.85 397.72 522.59 647.46 772.34 8 181.47 334.62 487.76 640.91 794.05 947.20
FY14 FY14
Container Size Container Size
(Cubic Yards)1 2 3 4 5 6 (Cubic Yards)1 2 3 4 5 6
2 88.56$ 153.74$ 218.92$ 284.09$ 349.27$ 414.44$ 2 108.59$ 188.51$ 268.42$ 348.34$ 428.25$ 508.17$
3 98.52 173.65 248.78 323.91 399.04 474.17 3 120.80 212.92 305.04 397.16 489.28 581.40
4 108.47 193.56 278.64 363.72 448.81 533.89 4 133.00 237.33 341.65 445.98 550.30 654.63
6 128.38 233.37 338.36 443.35 548.35 653.34 6 157.41 286.15 414.88 543.62 672.35 801.09
8 148.29 273.19 398.09 522.98 647.88 772.78 8 181.82 334.97 488.11 641.26 794.40 947.55
FY15 FY15
Container Size Container Size
(Cubic Yards)1 2 3 4 5 6 (Cubic Yards)1 2 3 4 5 6
2 89.79$ 155.65$ 221.50$ 287.36$ 353.22$ 419.08$ 2 108.96$ 188.87$ 268.79$ 348.70$ 428.62$ 508.54$
3 99.85 175.76 251.68 327.59 403.51 479.42 3 121.16 213.28 305.40 397.52 489.64 581.76
4 109.91 195.88 281.85 367.82 453.80 539.77 4 133.37 237.69 342.02 446.34 550.67 654.99
6 130.02 236.11 342.20 448.29 554.38 660.46 6 157.78 286.51 415.25 543.98 672.72 801.45
8 150.14 276.34 402.55 528.75 654.95 781.16 8 182.19 335.33 488.48 641.62 794.77 947.91
FY16 FY16
Container Size Container Size
(Cubic Yards)1 2 3 4 5 6 (Cubic Yards)1 2 3 4 5 6
2 91.12$ 157.70$ 224.28$ 290.86$ 357.44$ 424.02$ 2 109.36$ 189.28$ 269.20$ 349.11$ 429.03$ 508.94$
3 101.28 178.03 254.78 331.53 408.28 485.03 3 121.57 213.69 305.81 397.93 490.05 582.17
4 111.45 198.37 285.29 372.21 459.13 546.04 4 133.77 238.10 342.42 446.75 551.08 655.40
6 131.79 239.05 346.30 453.56 560.81 668.07 6 158.18 286.92 415.65 544.39 673.12 801.86
8 152.13 279.72 407.31 534.90 662.50 790.09 8 182.59 335.74 488.88 642.03 795.17 948.32
Collections per Week
Collections per Week
Collections per Week
Monthly Rates
Monthly Rates
Collections per Week
Collections per Week
Monthly Rates
Monthly Rates
Monthly Rates
Monthly Rates
Monthly Rates
Collections per Week
Collections per Week
Collections per Week
Collections per Week
Monthly Rates
Monthly Rates
Monthly Rates
Collections per Week
277
DRAFT REPORT
June 4, 2013
Mr. Craig Woolard
Public Works Director
City of Bozeman
121 N. Rouse Bozeman, Montana 59715
Subject: Solid Waste Consulting Services – Business Case Assessments for Consolidation
Station Development and Single-Stream Recycling
Dear Mr. Woolard:
SAIC Energy, Environment & Infrastructure, LLC (SAIC) was retained by the City of Bozeman
(City) to conduct business case assessments of whether the City would benefit from 1) developing
and operating a consolidation station1 as compared to direct hauling and 2) implementing single-
stream curbside recycling on either a subscription or citywide basis. This report provides a
discussion of the methodology utilized in our analysis, as well as the business case outcomes for
each assessment.
Executive Summary
This Executive Summary provides a brief overview of the contents of this report.
Consolidation Station Development Business Case
SAIC analyzed whether the City would benefit from developing a consolidation station at the site of
the former landfill. Based on our analysis, building and operating a consolidation station would cost
the City approximately $430,000 per year but would allow the City to reduce the level of personnel
and equipment necessary to running the solid waste operation. These reductions would decrease the
City’s collection costs by approximately $486,759 per year, creating a net savings of approximately
$56,759 per year. Over the course of five years, SAIC estimates the City would save a total
approximately $387,756 to $646,983, depending on the rate of customer growth. On a cost of
service basis, the development of a consolidation station could reduce the magnitude of future
annual rate increases immediately upon the completion of the facility and commencement of
operations.
Single Stream Recycling Business Case
SAIC analyzed whether the City would benefit from transitioning to single stream recycling from the
current curb-sort program. For this analysis, SAIC compared the City’s status quo recycling
1 SAIC would define a consolidation station as a facility designed to consolidate municipal refuse loads for hauling to the landfill. Refuse collection drivers would tip their loads at the facility and the loads would be consolidated into a tractor-
trailer. This facility would be limited to the City’s use.
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program to a universal single stream program2 and a subscription single stream program. Currently
the City’s monthly cost per household is approximately $8.63. Under a universal program, the
City’s monthly cost per household would be $2.67 to $3.79, depending on the level of participation.
Under a subscription program, the monthly cost would be $6.24 to $6.73, depending on the level of
participation.
Other Impacts
SAIC also analyzed other potential impacts of a consolidation station, including the potential
changes to traffic patterns on Story Mill Road, climate impact, and risk mitigation:
Traffic would increase by approximately 1.5 truck trips per day on Story Mill Road.
From a climate impact perspective, the City would reduce the total fuel consumed by the Solid
Waste Department annually by approximately 14,617 gallons. Per calculations provided by
City staff, this reduction in fuel consumption is equivalent to a decrease of 154 Metric Tons of
CO2 equivalents (MTCO2e) per year, or 1.5 percent of the City’s current carbon emissions.3
Currently, the City does not have fire suppression capabilities at its Solid Waste Department
office and equipment yard. SAIC’s capital cost estimates for the consolidation station include a
$175,000 charge for the expansion of the City’s water system to the solid waste facility, which
would allow the City to install the appropriate fire suppression equipment.
Assumptions
For the single stream recycling analysis, SAIC assumed the City would not lose any customers under
a universal program.
Cost Methodology
SAIC would emphasize that the costs and savings estimates represented in this report are reflective
of direct costs only. In contrast, SAIC’s previous cost of service study utilized full cost accounting
methodology which accounted for indirect costs. Other differences between the reports include
vehicle costs and the number of full-time employees (FTEs) involved in the operation. A more
detailed explanation of the key differences between the monthly recycling costs listed in the cost of
service study and this report can be found in Appendix A.
2 Under a universal program, all solid waste customers would be provided recycling service and would share in the
program’s costs regardless of actual participation.
3 The City currently calculates the emissions factor for diesel at 0.0105322 Metric Tons of CO2 equivalents (MTCO2e)
per gallon. 14,617 gal/year x 0.0105322 MTCO2e = 154 MTCO2e/year.
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Summary of Consolidation Station Development Business Case
SAIC analyzed whether the City would benefit from developing a consolidation station at the site of
the former landfill. As a part of this analysis, SAIC focused on the two primary cost drivers with
relation to the development of a consolidation station: 1) the comprehensive costs of consolidation
station development and operation (e.g., capital, operational, and hauling costs) and 2) the savings
associated with reducing the number of routes required to run the solid waste operation.
SAIC assumed the City would build a relatively small consolidation station. Based on conversations
with City staff regarding the City’s solid waste needs, SAIC developed a cost analysis of a basic
consolidation station capable of processing 50 tons of municipal solid waste (MSW) per day. A list
of assumptions used to develop SAIC’s consolidation station cost estimates can be found in
Appendix B.
Consolidation Station Costs
Consolidation station development entails three primary cost categories: 1) capital costs, 2)
operating and maintenance (O&M) costs, and 3) hauling costs. The three cost categories are
discussed below. SAIC estimates a consolidation station would cost the City approximately
$430,000 per year.
Capital Costs
SAIC anticipates a relatively small consolidation station would cost the City approximately
$149,000 per year in capital costs, based on a capital cost of 3.5 percent and a term of 10 years for
mobile equipment and 20 years for the building and site work. These costs are summarized in Table
1. More detailed costs can be found in Appendix C.
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Table 1
Consolidation Station Capital Costs
Cost Item Total Cost Term Annual Cost
Site Acquisition $ 0 20 years
Sitework $ 474,000 20 years $ 33,000
Consolidation Station Building $ 651,750 20 years $ 46,000
Mobile Equipment $ 269,000 10 years $ 32,000
Subtotal: Construction & Mobile Equipment $ 1,319,750 $ 111,000
Design / Engineering (15%) $ 169,000 20 years $ 12,000
Permitting (2%) $ 26,000 20 years $ 2,000
Surveying and Soils Report $ 15,000 20 years $ 1,000
Construction Oversight / Inspection (4%) $ 53,000 20 years $ 4,000
Construction Contingency (20%) $ 225,000 20 years $ 16,000
Bond Float (2%) $ 36,200 20 years $ 3,000
Total (Rounded) $ 1,844,000 $ 149,000
O&M Costs
Based on SAIC’s experience, a consolidation of the size specified by the City would cost
approximately $130,000 per year, assuming staffing of approximately 1.35 full time employees
(FTEs).4
Table 2
Consolidation Station O&M Costs
Cost Item Annual Cost
Labor $ 83,000
Building and Site Maintenance $ 6,000
Equipment O&M $ 3,000
Utilities (Building and Site) $ 4,000
Rolling Stock Fuel Costs $12,000
Insurance $1,000
Subtotal: Construction & Mobile Equipment $ 109,000
Contingency (15%) $ 16,000
Accounting, Supplies, Miscellaneous (5%) $ 5,000
Total $ 130,000
4 Per conversations with City staff, employees from other parts of the solid waste operation would be able to contribute
part of their time to the consolidation station, thus providing flexibility to accommodate the need for a partial FTE.
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Hauling Costs
Based on SAIC’s analysis of the City’s solid waste program, SAIC anticipates the City will average
two trips per day from the consolidation station to the Gallatin County Landfill (Landfill), with an
average payload of approximately 22 tons per trip. SAIC anticipates the City would need
approximately 0.75 FTEs to preform daily hauling duties. Under this scenario, annual O&M costs
would amount to approximately $151,000.
Table 3
Consolidation Station Hauling Costs
Cost Item Annual Cost
Labor $ 46,000
Fuel and Oil $ 26,000
Tires $ 9,000
Maintenance and Repairs $ 20,000
Vehicle Replacement Fund $ 21,000
Insurance, License, and Taxes $ 14,000
Subtotal: Construction & Mobile Equipment $ 136,000
Contingency (10% of non-vehicle replacement costs) $ 12,000
Accounting, Supplies, Miscellaneous (5% of non-vehicle
replacement costs) $ 3,000
Total $ 151,000
Route Reduction Cost Savings
The primary benefit of a consolidation station to a city is the potential to reduce the number of daily
routes. To determine the City’s potential cost savings, SAIC used our proprietary routing model to
forecast routing impacts to the residential refuse, commercial, and roll off operations. Based on
SAIC’s estimates, the City could potentially reduce the number of FTEs and vehicles necessary to
run the operation by 1.8 for the residential refuse operation, 0.7 for the commercial operation, and
0.8 for the roll off operation.5 This is equivalent to an annual savings of approximately
$486,759.
The route impacts for the operations are summarized in Table 4 and the corresponding cost impacts
are summarized in Table 5. SAIC would note that the number of employees and vehicles needed to
run a route is approximately 20 percent higher than the number of routes, due to the necessity of
maintaining backup equipment and personnel.
5 Based on discussions with City staff, SAIC used partial route counts, FTEs, and vehicle counts to determine cost savings estimates. Given the equipment and personnel levels within the Solid Waste Department, SAIC anticipates that
management would be able to cross-utilize employees and equipment to ensure proper usage rates.
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Table 4
Residential Refuse Route Impacts
Item
Routes w/o
Consolidation
Station
Routes w/
Consolidation
Station
Route Savings
Residential Refuse
Routes 4.1 2.7 1.5
Employees 5.0 3.2 1.8
Vehicles 5.0 3.2 1.8
Commercial
Routes 1.6 1.0 0.6
Employees 1.9 1.2 0.7
Vehicles 1.9 1.2 0.7
Roll Off
Pulls per Year 792.0 792.0 0.0
Employees 1.5 0.7 0.8
Vehicles 1.5 0.7 0.8
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Table 5
Residential Refuse Cost Impacts
Item
Routes w/o
Consolidation
Station
Routes w/
Consolidation
Station
Route Savings
Residential Refuse
Employees $ 320,604 $ 206,450 $ 114,155
Vehicles
Capital $ 154,082 $ 99,219 $ 54,862
O&M $ 135,173 $ 87,043 $ 48,130
Fuel $ 111,247 $ 71,637 $ 39,611
Subtotal: Residential Refuse $ 721,106 $ 464,349 $ 256,757
Commercial
Employees $ 122,694 $ 79,070 $ 43,625
Vehicles
Capital $ 50,371 $ 32,462 $ 17,910
O&M $ 56,521 $ 36,425 $ 20,096
Fuel $ 33,629 $ 21,672 $ 11,957
Subtotal: Commercial $ 263,216 $ 169,628 $ 93,588
Roll Off
Employees $ 4,885 $ 43,629 $ 51,256
Vehicles
Capital $ 31,394 $ 15,615 $ 15,780
O&M $ 85,060 $ 48,582 $ 36,478
Fuel $ 39,424 $ 6,524 $ 32,900
Subtotal: Roll Off $ 250,763 $ 114,349 $ 136,413
Total $ 1,235,085 $ 748,326 $ 486,759
Consolidation Station Five-Year Financial Impact
SAIC anticipates that the City could realize a modest annual financial benefit through the
development of a consolidation station. SAIC also anticipates that the financial benefit to the City of
developing a consolidation station would increase as the City’s population increases. SAIC
therefore developed two five-year financial forecasts based on low- and high-growth scenarios. For
the purposes of this analysis, SAIC assumed a low growth rate of three percent per year and a high
growth rate of five percent per year. SAIC also applied a 2.5 percent inflation factor to each year of
the forecast. Table 6 shows the five-year net financial impact of developing a consolidation station
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under the low-growth scenario. Table 7 shows the five-year net financial impact of developing a
consolidation station under the high-growth scenario.
Table 6
Five-Year Residential Refuse Route Impacts – Low Growth Scenario
Annual Costs Year 1 Year 2 Year 3 Year 4 Year 5
Routes w/o Consolidation
Station $ 1,235,085 $ 1,309,113 $ 1,375,076 $ 1,444,541 $ 1,517,699
Routes w/ Consolidation
Station $ 748,326 $ 800,087 $ 847,760 $ 894,158 $ 943,207
Consolidation Station $ 430,000 $ 440,750 $ 441,769 $ 463,063 $ 474,640
Annual Savings $ 56,759 $ 68,276 $ 75,547 $ 87,320 $ 99,853
Cumulative Savings $ 387,756
Table 7
Five-Year Residential Refuse Route Impacts – High Growth Scenario
Annual Costs Year 1 Year 2 Year 3 Year 4 Year 5
Routes w/o Consolidation
Station $ 1,235,085 $ 1,330,100 $ 1,419,820 $ 1,516,089 $ 1,619,398
Routes w/ Consolidation
Station $ 748,326 $ 814,238 $ 877,985 $ 942,578 $ 1,012,161
Consolidation Station $ 430,000 $ 440,750 $ 441,769 $ 463,063 $ 474,640
Annual Savings $ 56,759 $ 75,112 $ 90,067 $ 110,448 $ 132,598
Cumulative Savings $ 464,983
Cost of Service Impact
On a cost of service basis, SAIC anticipates the development of a consolidation station would
decrease the magnitude of our previously proposed future rate increases. SAIC would emphasize
that it will take between one and two years for the City to approve, design, build, and begin
operations of a consolidation station and that the savings indicated above will not begin until such
time as these activities have been completed. Assuming the City could have the consolidation
station operational by the start of Fiscal Year (FY) 2015, SAIC anticipates the City would be able to
decrease its projected cumulative five-year under-recovery from ($173,076) in FY 2016 to a modest
cumulative over-recovery of $14,097.6 SAIC would also note that the City could potentially
6 These projections are based on the previously proposed automated collection rates and the historical dumpster, roll-off,
and recycling rates in FY 2012.
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Page 9
decrease the need for residential rate increases as soon as the consolidation station became
operational if it enacts the operational suggestions provided in the previous cost of service study.
Other Impacts
SAIC also analyzed other potential impacts of a consolidation station, including the potential
changes to traffic patterns on Story Mill Road, climate impact, and risk mitigation:
Traffic would increase by approximately 1.5 truck trips per day on Story Mill Road.
From a climate impact perspective, the City would reduce the total fuel consumed by the Solid
Waste Department annually by approximately 14,617 gallons, a decrease of approximately 27
percent. Per calculations provided by City staff, this reduction in fuel consumption is equivalent
to a decrease of 154 Metric Tons of CO2 equivalents (MTCO2e) per year,7 or 1.5 percent of the
City’s current carbon emissions. Per City staff, this would rank as one of the five highest
impact carbon emissions impact reduction strategies under consideration.8
Currently, the City does not have fire suppression capabilities at its Solid Waste office and
equipment yard. SAIC’s capital cost estimates for the consolidation station include a $175,000
charge for the expansion of the City’s water system to the Solid Waste facility, which would
allow the City to install the appropriate fire suppression equipment.
Summary of Single Stream Recycling Business Case
SAIC analyzed whether the City would benefit from transitioning to single stream recycling from the
current curb-sort program. Single stream recycling programs offer several significant advantages
relative to curbsort programs, including dramatically increased collection speed, higher participation
rates, and increased recycling volumes. As a part of our analysis, SAIC compared the status quo
solid waste operation with two alternative scenarios: 1) single stream recycling on a universal basis
(i.e., in which every residential refuse customer would receive a recycling cart and would share in
the recycling program costs) and 2) single stream recycling on a subscription basis. In each of these
scenarios, recycling collection would be provided every other week.
SAIC would note that in a single stream recycling program, two of the most critical factors in
determining the routing requirements for a recycling operation are: 1) daily set out rate and 2) annual
pounds per household. To develop financial projections for the potential single stream recycling
programs, SAIC created low and high participation scenarios for both the universal and subscription
options.
7 The City currently calculates the emissions factor for diesel at 0.0105322 Metric Tons of CO2 equivalents (MTCO2e) per gallon. 14,617 gal/year x 0.0105322 MTCO2e = 154 MTCO2e/year.
8 It is SAIC’s understanding that the City’s stated goal is to achieve a 15 percent reduction below 2000 levels by 2020.
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Cost Methodology
SAIC would emphasize that the costs and savings estimates represented in this report are reflective
of direct costs only. In contrast, SAIC’s previous cost of service study utilized full cost accounting
methodology which accounted for indirect costs. Other differences between the reports include
vehicle costs and the number of full-time employees (FTEs) involved in the operation. A more
detailed explanation of the key differences between the monthly recycling costs listed in the cost of
service study and this report can be found in Appendix A.
Universal Single Stream Program
For the low participation scenario of the universal single stream program, SAIC assumed a set out
rate of 50 percent and annual pounds per household of 300 pounds. For the high participation
scenario, SAIC assumed a set out rate of 75 percent and annual pounds per household of 600
pounds. SAIC would emphasize that the actual participation rate would likely fall somewhere
within this range and that the results will depend, in part, on the amount of public education and
enforcement the City provides the program. The annual program costs for a universal single stream
recycling program are summarized in Table 8. The operational assumptions and changes from the
status quo are listed in Table 9.
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Table 8
Universal Single Stream Recycling Annual Costs
Cost Item Status Quo Universal Low Universal High
Capital
Carts 1 $ 1,865 $ 45,127 $ 53,956
Vehicles $ 19,967 $ 28,776 $ 39,961
Operations
Personnel $ 53,065 $ 68,429 $ 95,027
O&M $ 27,177 $ 24,043 $ 33,388
Fuel $ 23,080 $ 19,787 $ 27,478
Contract
Hauling $ 11,969 $ 48,952 $ 97,904
Baling $ 12,241 $ 50,065 $ 100,130
Public Education $ 0 $ 22,251 $ 29,668
Subtotal: Costs $ 149,364 $ 307,430 $ 477,512
Disposal Savings 2 $ 7,345 $ 30,039 $ 60,078
Revenue Sharing 3 $ 21,762 $ 40,052 $ 80,104
Subtotal: Savings $ 29,107 $ 70,091 $ 140,181
Net Costs $ 120,257 $ 237,339 $ 337,331
Monthly Cost per HH $ 8.63 $ 2.67 $ 3.79
1. Cart costs represent the average annual cost, assuming a 10 year cart life.
2. Disposal savings represent those savings generated by not landfilling materials.
3. Revenue sharing is based on the assumption that curbsort materials have an average value of $80 per ton
while single stream have a materials have an average value of $40 per ton.
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Table 9
Routing Requirements: Universal Single Stream Recycling
Status Quo Scenario 1:
Low Participation
Scenario 2:
High Participation
Annual Tons 272 1,113 2,225
Total Households 1,161 7,417
Average Pounds of Recyclables
per Household 469 300 600
Households Served per Day 290 927 927
Set Out Rate 75% 50% 75%
Households with Setouts 218 464 695
Households Collected per Hour
per Route 27 89 96
Number of Daily Routes
Needed 1.4 routes 0.9 routes 1.2 routes
Subscription Single Stream Program
For the low participation scenario of the subscription single stream program, SAIC assumed a set out
rate of 85 percent and annual pounds per household of 562 pounds. For the high participation
scenario, SAIC assumed a set out rate of 90 percent and annual pounds per household of 609
pounds. SAIC would emphasize that the actual participation rate could vary and that the results will
depend, in part, on the amount of public education and enforcement the City provides the program.
The annual program costs for a subscription single stream recycling program are summarized in
Table 10. The operational assumptions and changes from the status quo are listed in Table 11.
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Table 10
Subscription Single Stream Recycling Annual Costs
Cost Item Status Quo Subscription Low Subscription High
Capital
Carts 1 $ 1,865 $ 7,064 $ 8,446
Vehicles $ 19,967 $ 14,330 $ 15,066
Operations
Personnel $ 53,065 $ 34,078 $ 35,826
O&M $ 27,177 $ 11,973 $ 12,588
Fuel $ 23,080 $ 9,854 $ 10,360
Contract
Hauling $ 11,969 $ 14,363 $ 15,560
Baling $ 12,241 $ 14,689 $ 15,913
Public Education $ 0 $ 1,161 $ 2,322
Subtotal: Costs $ 149,364 $ 107,512 $ 116,080
Disposal Savings 2 $ 7,345 $ 8,814 $ 9,548
Revenue Sharing 3 $ 21,762 $ 11,751 $ 12,731
Subtotal: Savings $ 29,107 $ 20,565 $ 22,279
Net Costs $ 120,257 $ 86,947 $ 93,801
Monthly Cost per HH $ 8.63 $ 6.24 $ 6.73
1. Cart costs represent the average annual cost, assuming a 10 year cart life.
2. Disposal savings represent those savings generated by not landfilling materials.
3. Revenue sharing is based on the assumption that curbsort materials have an average value of $80 per ton
while single stream have a materials have an average value of $40 per ton.
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Table 11
Routing Requirements: Subscription Single Stream Recycling
Status Quo Scenario 1:
Low Participation
Scenario 2:
High Participation
Annual Tons 272 1,113 2,225
Total Households 1,161 1,161 1,161
Average Pounds of Recyclables
per Household 469 562 609
Households Served per Day 290 145 145
Set Out Rate 75% 85% 90%
Households with Setouts 218 123 131
Households Collected per Hour
per Route 27 47 48
Number of Daily Routes
Needed 1.4 routes 0.4 routes 0.5 routes
Single Stream Recycling Five-Year Financial Impact
SAIC anticipates that the City could realize a recurring annual financial benefit from transitioning to
a single stream recycling program on either a universal or subscription basis. SAIC also anticipates
that the financial benefit to the City of transitioning to single stream recycling would increase as the
program’s customer base increases (whether through an increased participation rate or an increased
population). SAIC therefore developed two five-year financial forecasts based on low- and high-
customer growth scenarios for each of the single stream options.
For the universal program, SAIC assumed a low customer growth rate of three percent per year and a
high customer growth rate of five percent per year. SAIC also applied a 2.5 percent inflation factor
to each year of the forecast. Table 12 shows the five-year net financial impact of developing a
consolidation station under the low-growth scenario. For the subscription program, SAIC assumed a
low customer growth of 10 percent per year and a high customer growth rate of 15 percent per year.
Table 13 shows the five-year net financial impact of developing a consolidation station under the
high-growth scenario.
Per direction from City staff, SAIC forecasted costs for partial routes, FTEs, and vehicles. SAIC
would note that the costs in the tables below assume uniform growth and the City’s ability to utilize
the partial employees’ and vehicles’ time efficiently in other parts of the solid waste operation.
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Table 12
Five-Year Residential Refuse Route Impacts – Low Growth Scenario
Costs Year 1 Year 2 Year 3 Year 4 Year 5
Annual Costs
Status Quo 1 $ 120,257 $ 200,008 $ 211,930 $ 224,540 $ 237,878
Universal Single Stream
Low Participation $ 237,339 $ 252,376 $ 268,305 $ 285,177 $ 303,048
High Participation $ 337,331 $ 359,747 $ 383,521 $ 408,732 $ 435,463
Subscription Single Stream
Low Participation $ 86,947 $ 98,598 $ 111,792 $ 126,729 $ 143,640
High Participation $ 93,801 $ 106,374 $ 120,610 $ 136,730 $ 137,335
Monthly Cost per HH
Status Quo $ 8.63 $ 13.94 $ 14.34 $ 14.75 $ 15.17
Universal Single Stream
Low Participation $ 2.67 $ 2.75 $ 2.84 $ 2.93 $ 3.03
High Participation $ 3.79 $ 3.92 $ 4.06 $ 4.20 $ 4.35
Subscription Single Stream
Low Participation $ 6.24 $ 6.43 $ 6.63 $ 6.83 $ 7.04
High Participation $ 6.73 $ 6.94 $ 7.15 $ 7.37 $ 7.60
1. The status quo shows a significant increase in costs from Years 1 to 2, as SAIC’s analysis does not account for overtime and therefore, the
City would need to increase its level of vehicles and staffing in order to keep up with the program’s existing demands.
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Table 13
Five-Year Residential Refuse Route Impacts – High Growth Scenario
Costs Year 1 Year 2 Year 3 Year 4 Year 5
Annual Costs
Status Quo 1 $ 120,257 $ 203,891 $ 220,240 $ 237,876 $ 256,889
Universal Single Stream
Low Participation $ 237,339 $ 257,276 $ 278,826 $ 302,114 $ 327,281
High Participation $ 337,331 $ 366,732 $ 398,560 $ 433,007 $ 470,283
Subscription Single Stream
Low Participation $ 86,947 $ 103,080 $ 122,186 $ 144,808 $ 171,592
High Participation $ 93,801 $ 111,209 $ 131,824 $ 156,235 $ 185,136
Monthly Cost per HH
Status Quo $ 8.63 $ 13.94 $ 14.34 $ 14.75 $ 15.17
Universal Single Stream
Low Participation $ 2.67 $ 2.75 $ 2.84 $ 2.93 $ 3.03
High Participation $ 3.79 $ 3.92 $ 4.06 $ 4.20 $ 4.35
Subscription Single Stream
Low Participation $ 6.24 $ 6.43 $ 6.63 $ 6.83 $ 7.04
High Participation $ 6.73 $ 6.94 $ 7.15 $ 7.37 $ 7.60
1. The status quo shows a significant increase in costs from Years 1 to 2, as SAIC’s analysis does not account for overtime and therefore, the
City would need to increase its level of vehicles and staffing in order to keep up with the program’s existing demands.
Assumptions
For the single stream recycling analysis, SAIC assumed the City would not lose any customers under a universal program.
Conclusion
SAIC appreciates the opportunity to be of assistance to the City of Bozeman. If there are any
questions concerning this analysis please feel free to contact Scott Pasternak at (512) 651-6405.
Sincerely,
SAIC Energy, Environment & Infrastructure, LLC
Scott R. Pasternak
Assistant Vice President
293
DRAFT REPORT APPENDIX A
Key Financial Differences Between the Cost of Service Study and
Business Case Assessment
Background
The monthly cost per household figures presented in SAIC’s cost of service and business case
assessment studies do not match, given differences in the methodology utilized for each analysis.
This appendix provides a summary and explanation of the differences.
Cost of Service Study Residential Recycling Costs
The cost of service study utilized a full cost accounting methodology and indicated a projected cost
of approximately $162,370. Table A-1 shows a summary of the FY 2012 recycling program costs,
as described in the cost of service study.
Table A-1
Cost of Service Residential Recycling Costs
Cost Item Annual Cost
Salary & Benefits $ 83,900
Vehicles $ 66,380
Advertising $ 5,265
Postage $ 3,282
Other Costs (including Admin.) $ 29,962
Subtotal: Expenses $ 194,961
Disposal Savings $ 0
Revenues $ 32,592
Net Costs $ 162,370
Number of Households (HH) 1,133
Monthly Costs per HH $11.94
Business Case Assessment Residential Recycling Costs
In contrast, the business case assessment was conducted utilizing direct costs only and indicated an
estimated annual cost of $120,257. Table A-2 shows a summary of these costs.
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FINAL REPORT
June 4, 2013
Page 2
Table A-2
Business Case Assessment Residential Recycling Costs
Cost Item Annual Cost
Salary & Benefits $ 53,065
Vehicles $ 70,224
Advertising $ 0
Postage $ 0
Other Costs (not including Admin.) $ 26,075
Subtotal: Expenses $ 149,364
Disposal Savings $ 7,345
Revenues $ 21,762
Net Costs $ 120,257
Number of Households (HH) 1,161
Monthly Costs per HH $8.63
Key Differences
1. The number of FTEs assumed in the cost of service was approximately 1.5, compared to 1.2
FTEs in the business case assessment. This creates a difference of approximately $30,835.
2. Administrative costs, including advertising and postage, were not included in the analysis for
the business case assessment. Advertising and postage create a difference of $8,547.
3. Other administrative costs, as well as a slight change in the number of customers account for
the rest, account for most of the remaining difference.
295
DRAFT REPORT APPENDIX B
Assumptions Used to Develop the Consolidation Station Business Case
1. Proposed Station would be open to receive city deliveries during the SWD’s operating hours
2. City vehicles can unload without an attendant present
3. Station receives approximately 220 tons of waste per week including roll-off boxes
a. This is equivalent to 10 22-ton trailer payloads per week, or two loads per day
4. Carefully loaded 18,000 lb trailers pulled by 18,000 lb tractors should be able to achieve 22-
ton payloads.
5. A load should take less than an hour to make ready for transport (e.g., loading, compacting,
and covering with tarp)
6. For safety, two operators will be at the station for the loading process
7. Two operators will report to station at 10:00 am each day and start the first load. The first
load will leave the station at approximately 11:00 am, dump, and return by 1:30 pm. The
driver of this load eats on route to/from the landfill
8. From approximately 11:00 am to 1:30 pm the remaining operator has a lunch break and does
other non-consolidation station assignments (i.e., 1.5 hours of non-consolidation station time
assuming a one hour lunch break)
9. At approximately 1:30 pm, the two operators load the second load. The second load will
leave the station by 2:30 pm, dump, and return by 5:00 pm
10. From approximately 2:30 pm to 5:00 pm the remaining operator will carry out other non-
consolidation station assignments (i.e., 2.5 hours of non-consolidation station time)
11. From 5:00 pm to 6:00 pm, the two operators load residual waste and clean up the station. A
partial load is left in the station overnight most evenings
12. The two operators alternate who takes the first load each day for parity regarding lunch in
transit
13. This arrangement would require one active tractor and trailer at any one time and there would
be a second combination in standby
a. Per City staff, the consolidation station would be able to utilize the wastewater
department’s tractor and trailer to assist with running loads to the landfill
14. There would need to be up to four trained operators/drivers available in the system to run the
station and hauling operation taking into account personal time off
296
DRAFT REPORT APPENDIX C
Table 1
CONSOLIDATION STATION
CAPITAL COST ESTIMATE SUMMARY
Cost Item Cost
I. SITEWORK $474,000
II. CONSOLIDATION BUILDING $651,750
III. MOBILE EQUIPMENT $269,000
Subtotal Construction and Mobile Equipment $1,394,750
DESIGN / ENGINEERING (15%) $169,000
PERMITTING (2%) $28,000
SURVEYING AND SOILS REPORT $15,000
CONSTRUCTION OVERSIGHT/INSPECTION (4%) $56,000
CONSTRUCTION CONTINGENCY (20%) $225,000
BOND FLOAT (2%) $37,800
Total: Capital Cost $1,925,600
SITE AND BUILDING (20 YEARS) $1,656,000
MOBILE EQUIPMENT (10 YEARS) $269,000
ANNUAL DEBT SERVICE (3.5%) (1) SITE AND BUILDING (20 YEARS) $117,000
MOBILE EQUIPMENT (10 YEARS) $32,000
Total: Annual Debt Service $149,000
NOTES:
(1) Assumes $1,888,000 in bond sale amount
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DRAFT REPORT APPENDIX C
Table 2
CONSOLIDATION STATION
CAPITAL COST ESTIMATE SUMMARY
I. SITEWORK
Item Quantity Units Unit Price Item Cost Total
Earthwork
Excavation & Backfill-Trench (2) 2000 CY $15.00 $30,000
General Earthwork 5000 CY $15.00 $75,000
Finishing Grading 0.5 Acres $10,000 $5,000 Gravel Base (3) 100 CY $25.00 $2,500 Asphalt Pavement, Parking (4) 550 Tons $90.00 $49,500 Site Utilities Fire Protection (5) 1000 LF $50.00 $50,000
Water Supply (6) LS LS LS $175,000
Sewer System (7) LS LS LS $30,000
Electrical (8) 400 LF $100.00 $40,000 Site Signage 10 EA $200.00 $2,000 Landscaping (Minimal) 1 LS LS $5,000 Subtotal: II Sitework $474,000
II. CONSOLIDATION BUILDING
Item Quantity Units Unit Price Item Cost Total
Metal Building (9)
Manufacturer Design 1 LS LS $10,000
Manufacture & Deliver (10) 4,100 LF $20.00 $82,000
Erection 4,100 LF $10.00 $41,000
Building Enhancements
Hot Dip Galv Framing 1 LS LS $30,000
Translucent Siding 1,000 SF $3.00 $3,000
Condensation Control
Insulation 4,100 SF $2.00 $8,200
Rubber Coiling Overhead
Door 1,000 SF $40.00 $40,000
Concrete Slabwork (11) 90 CY $400.00 $36,000
Concrete Footings & Foundation Walls 300 CY $500 $150,000
Concrete Push Walls (12) 45 CY $1,000 $45,000
Loadout Hopper Framing and Metals 20,000 LB $3.00 $60,000
Loading Bay Axle Scales 1 LS LS $40,000
Mechanical
Washdown Water System 1 LS LS $25,000
Wall Exhaust Fans 4 EA $4,000 $16,000
Floor Drain System 1 LS $20,000 $20,000
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DRAFT REPORT APPENDIX C
Electrical
Electrical Distribution Equipment 1 LS $10,000 $10,000
Lighting 4,100 SF $4.00 $16,400
Grounding System 1 LS LS $7,000
Power Outlets 4,100 SF $1.50 $6,150
Heat Tracing Systems 1 LS LS $6,000
Subtotal: III Consolidation Building $651,750
III. MOBILE EQUIPMENT
Item Quantity Units Unit Price Item Cost Total
Consolidation Tractor (13) 1 EA $119,000 $119,000
Consolidation Trailers (14) 2 EA $75,000 $150,000
Subtotal: IV Mobile Equipment $269,000
Total Capital Costs: I through IV $1,394,750
NOTES:
(1) City owns the land
(2) No demolition required. General earthwork includes excavation, moving soil, importing soil, embankments, placement
and compaction.
(3) 12" thick grave base over 2,700 square yards.
(4) 5" thick asphalt pavement over 2,100 square yards.
(5) Assume 8" PVC primary loop with 2 fire hydrants and dbl. check valve backflow protection in vault.
(6) As provided by City.
(7) Assume septic tank and drain field located to NW of consolidation building for washdown water. Alternative would be
a buried holding tank that would be pumped and hauled.
(8) Assume underground from existing facility distribution system with admount 250 kVA transformer.
(9) Assume 56' by 73 clear span w/ common column base elevations, 30' interior vertical clearance, and single coiling
overhead doors.
(10) Manufacturer's standard metal siding profile w/ standing seam roof; baked on enamel finish.
(11) 10" thick slab.
(12) 12" thick x 12' high w/ 1/2" steel armor plate to 8' high.
(13) Similar to Volvo VNL 300 (13 liter) with automatic transmission w/ wet kit.
(14) Based on Reliance or Star 48 foot/110 CY, steel, walking floor trailers with fliptop top closure and single rear door.
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DRAFT REPORT APPENDIX C
Table 3
CONSOLIDATION STATION
ANNUAL OPERATION AND MAINTENANCE ESTIMATE SUMMARY
Cost Item Cost
I. LABOR $83,000
II. BUILDING AND SITE MAINTENANCE $6,000
III. EQUIPMENT OPERATING AND MAINTENANCE COSTS $3,000
IV. UTILITIES - BUILDING AND SITE $4,000
V. ROLLING STOCK FUEL COSTS $12,000
VI. INSURANCE $1,000
Subtotal: Operation and Maintenance $109,000
CONTINGENCY (15%) $16,000
ACCOUNTING, SUPPLIES, MISC. (5%) $5,000
Total: Annual Operation and Maintenance Cost $130,000
ANNUAL UNIT COST FOR 11,400 TONS $11.40
NOTES:
All Costs Rounded to Nearest Thousand Dollars
300
DRAFT REPORT APPENDIX C
Table 4
CONSOLIDATION STATION
ANNUAL OPERATIONS AND MAINTENANCE ESTIMATE
I. LABOR
Job Classification Personnel Wage per
Hour (1)
Hours per
Year (2) Annual Cost Total
Loader Operator/Driver 1 $29.39 2,808 $82,514
Subtotal: I Labor $82,514
II. BUILDING AND SITE MAINENANCE (0.5% of Capital excluding Mobile Equipment) $5,629
Subtotal: II Building and Site Maintenance $5,629
III. EQUIPMENT OPERATING AND MAINTENANCE COSTS
Item Vehicles Quantity Units Unit Price Annual Cost Total
Backhoe Loader (3) 1 1,040 Hours $3.00 $3,120
Subtotal: III Equipment Operating and Maintenance Costs $3,120
IV. UTILITIES - BUILDING AND SITE
Item Quantity Units Unit Price Annual Cost Total
Electricity
Delivery Demand Charge 50 kW-Mo $10.00 $500
Energy Charge 50,000 kWh $0.07500 $3,750
Subtotal: IV Building and Site $4,250
V. ROLLING STOCK FUEL COSTS
Item No. Units Quantity Unit Unit Price Annual Cost Total
Backhoe - Loader 1,040 3 gal/hour $4.00 $12,480
Subtotal: V Rolling Stock Fuel Costs $12,480
VI. INSURANCE
Item No. Units Quantity Unit Unit Price Annual Cost Total
Property Insurance (4) 6,518
$100
Facility
Value
$0.11 $723
Subtotal: VI Insurance $723
Total Annual Operations and Maintenance Costs: I through VI $108,729
NOTES:
(1) Provided by City, Includes fringe benefits.
(2) Based on 9 FTE hours per day, five days per week, and 52 weeks per year. Hours per year have been inflated by 20% to
account for personal leave, training, sick/injury leave and other non-productive time.
(3) Assumes backhoe loader operates 4 hours per day. Assume the backhoe loader replaced in years 8, 15, 22 with 20%
resale value.
(4) Assume tractor is operated 50% of station operating hours. Assume tractor replaced in years 6, 11, 16 with 25% resale
value.
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DRAFT REPORT APPENDIX C
Table 5
CONSOLIDATION STATION
HAULING OPERATIONS ESTIMATE SUMMARY
HAUL TO GALATIN COUTY LANDFILL, 50tpd, WITH 22 TON PAYLOADS
Cost Item Cost
I. LABOR $46,000
II. FUEL AND OIL $26,000
III. TIRES $9,000
IV. MAINTENANCE AND REPAIRS $20,000
V. EQUIPMENT RENEWAL & REPLACEMENT FUND $21,000
VI. INSURANCE, LICENSE AND TAXES $14,000
Subtotal Annual Haul Cost $136,000
ANNUAL CONTINGENCY (10% on non-equipment renewal & replacement costs) $12,000
ACCOUNTING, SUPPLIES, MISC. (3% of items I, II, III, IV and VI) $3,000
Total Annual Haul Cost $151,000
ANNUAL UNIT COST FOR 11,400 TONS $13.25
COST PER MILE $3.64
COST PER TON-MILE $0.17
NOTES:
All Costs Rounded to Nearest Thousand Dollars
302
DRAFT REPORT APPENDIX C
Table 6
CONSOLIDATION STATION
HAULING OPERATIONS ESTIMATE
HAUL TO GALATIN COUTY LANDFILL, 50tpd, WITH 22 TON PAYLOADS
I. LABOR
Job Classification Personnel Wage per
Hour (1)
Hours per
Year (2) Annual Cost Total
Drivers 1 $29.39 1,560 $45,841
Subtotal: I Labor $45,841
II. FUEL AND OILS
Item Annual Miles (3) Rate Unit Unit Price (4) Annual Cost Total
Fuels and Oils 41,500 6.5 mpg $4.00 $25,538
Subtotal: II Fuel and Oils $25,538
III. TIRES
Item Vehicles Quantity (5) Unit Unit Price Annual Cost Total
New - Tractor 2 0.69 10 tires $4,000 $5,520
Retread - Trailer 2 1.04 8 tires $1,600 $3,328
Subtotal: III Tires $8,848
IV. MAINTENANCE AND REPAIRS
Item Vehicles Quantity Unit Unit Price Annual Cost Total
Tractors 1.5 12 Mo $600 $10,800
Trailers 1.5 12 Mo $500 $9,000
Subtotal: IV Maintenance and Repairs $19,800
V. EQUIPMENT RENEWAL & REPLACEMENT FUND
Item Life (years) Unit Cost (6) Vehicles Annual R&R
Contribution
Tractors 15 $100,000 1.5 $10,000
Trailers 10 $70,000 1.5 $10,500
Subtotal: V Equipment Renewal and Replacement Fund $20,500
303
DRAFT REPORT APPENDIX C
VI. INSURANCE LICENSE AND TAXES
Item Vehicles Unit Unit Price Annual Cost Total
Auto Insurance (7) 2 EA $7,000 $14,000
Subtotal VI $14,000
Total Annual Hauling Operations Costs: I through VII $134,528
NOTES:
(1) Includes fringe benefits.
(2) Based on 5 FTE hours per day, 5 days per week, and 52 weeks per year. Hours per year have been inflated by 20% to
account for personal leave, training, sick/injury leave and other non-productive time.
(3) Two roundtrips of 80 miles each 260 days per year.
(4) Per the City.
(5) Assume new tires on tractor every 30,000 miles and retreads on trailers ever 20,000 miles; equal travel distance on all units.
Every two years each tractor uses 1.38 sets of tires, or 0.69 sets per year, and each trailer uses 2.08 sets every two years,
or 1.04 sets per year. A tractor has 10 tires, trailer has 8 tires.
(6) Based on price quotations from equipment manufacturers.
(7) Estimate based on previous experience.
304