2014-04-21 SM Exhibit 8.8 5/22/2014
Exhibit
Book ii page.113.
Solid Waste Management
Request for Proposal
Analysis & Discussion
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April 21,2014
New Hanover County
Background & Overview
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, 11 New Hanover County Slide 2
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Background
1. Department tasked to issue an RFP for Solid Waste Services
October 21, 2013
2. RFP approved for release November 18, 2013
3. Responses due January 31, 2014 — staff received two bids
a. Waste Management
b. Waste Industries
• A April 21,2014
New Hanover County Slide 3
The RFP
1. Basic Services (Required Bid): Transfer station; load,
transport, and dispose of municipal solid waste (MSW)
2. Optional Services:
a. Landfill maintenance
b. Construction and Demolition Debris (C&D) recycling
c. Recycling collection, processing, and marketing
d. Yard waste processing
e. Household Hazardous Waste collection
April 21,2014
'" New Hanover County Slide 4
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Proposal Review
1. Review Committee: Consisted of members from Finance, Legal, County
Manager's office, Environmental Management, and County
Commissioners
2. Review Process:
a. Responsiveness of the bids
b. Proposer Interviews
c. Capability, Experience, and Historical Performance
d. Cost Effectiveness
e. Financial Strength
f. Exceptions to Contract Principles
April 21,2014
g. New Hanover County Slide 5
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Proposed Costs
April 21,2014
New Hanover County
Slide 6
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Base Bid
• Base bid:
• Construction/improvement of transfer station
• Operation of transfer station
• Loading transfer vehicles and transportation to
final disposal facility
• Disposal of MSW
April 21,2014
New Hanover County Slide 7
Waste Management — Base Bid
YEAR1 YEAR2 YEAR3 YEAR4 YEARS YEAR6 YEAR7 YFAR8 YEAR9 YEAR10 10YearTotal
BASIC SERVICES
MSW Disposal $ 7,138,560 $ 7,11,,126 $ 6,->r,443 $ 6,755,443 $ 6,633,061 $ 6,513,234 $ 6,395,900 $ 6,281,000 $ 6,168,473 $ 6,058,265 65,832,504
NC Solid Waste Tax 416,000 402,938 390,285 378,030 366,160 354,663 343,526 332,740 322,292 312,172 3,618,806
$ 7,554,560 $ 7,411,064 $ 7,270,728 $ 7,133,473 $ 6,999,221 $ 6,867,897 $ 6,739,427 $ 6,613,739 $ 6,490,765 $ 6,370,436 $ 69,451,310
Fee per ton 36.32 36.79 37.26 37.74 38.23 38.73 39.24 39.75 40.28 40.81 $ 38.38
• Base bid of$34.32 plus $2.00 NC solid waste tax.
• Transfer station operation, loading and disposal subject to CPI increase each year.
Above estimated costs reflect estimated CPI increase of 1.76% each year based on the
past 5 year average change.
• Above estimated costs reflect an estimated tonnage of 208,000. Tonnage decreases
each year based on the 5 year history of MSW tonnage.
April 21,2014
New Hanover County Slide 8
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Waste Industries — Base Bid
YEAR1 YEAR2 YEAR3 YEAR4 YEAR5 YEAR6 YEAR7 YEAR8 YEAR9 Y EAR 10 10YeetTotal
BASIC SERVICES
MSW Disposal $ 7,893,600 $ 7,695,175 $ 7,520,555 $ 7,350,986 $ 7,186,321 $ 7,001,432 $ 6,871,127 $ 6,720,324 $ 6,573,874 $ 6,431,650 71,245,044
NC Solid Waste Tax 416,000 402,938 390,285 378,030 366,160 354,663 343,526 332,740 322,292 312,172 3,618,806
$ 8,309,600 $ 8,$'+,113 $ 7,910,840 $ 7,729,016 $ 7,552,481 $ 7,356,095 $ 7,214,653 $ 7,053,064 $ 6,896,166 $ 6,743,822 $ 74,863,850
Fee per ton 39.95 40.20 40.54 40.89 4125 4148 42.00 42.39 4279 43.21 4137
• Base bid of$37.95 plus $2.00 NC solid waste tax
• Transfer station operation, loading, non-fuel component of hauling and disposal
subject to CPI increase each year. Above estimated costs reflect estimated CPI increase
of 1.76% each year based on the past 5 year average change.
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• Fuel component of the hauling fee subject to a fuel escalation charge of 1%fee
increase for every 10 cent fuel cost increase.
• Above estimated costs reflect an estimated tonnage of 208,000. Tonnage decreases
each year based on 5 year history of MSW tonnage.
April 21,2014
' :; New Hanover County
Slide 9
Waste Industries Alt W— Base Bid
YEAR1 YEAR2 YEAR3 YEAR4 YEARS YEAR6 YEAR7 YEAR8 YEAR9 YEAR10 10 Year Total_
BASIC SERVICES
MSW Disposal $ 7, ;.,000 $ 7,302,311 $ 7,144027 $ 6,982,406 $ 6,829,314 $ 6,680,618 $ 6,536,189 $ 6,395,903 $ 6,259,640 $ 6,127,283 67,741,690
NC Solid Waste Tax(F) 416,000 402,938 390,285 378,030 366,160 354,663 343,526 332,740 322,292 312,172 3,618,806
$ 1,904,000 $ 7,705,248 $ 7,530,312 $ 7,360,437 $ 7,195,475 $ 7,035,281 $ 6,879,715 $ 6,728,643 $ 6,581,932 $ 6,439,455 $ 71,360,4%
1 Fee per ton 38.00 38.25 38.59 38.94 39.30 39.67 40.05 40.44 40.84 4126 39.44
• Base bid of$36.00 plus$2.00 NC solid waste tax
• Details of CPI increases and fuel escalation were not made available for Waste
Industries Alternate W. As such, the same assumptions were used as were in the
Waste Industries response to County's proposal.
• Above estimated costs reflect an estimated tonnage of 208,000. Tonnage decreases
each year based on 5 year history of MSW tonnage.
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'. '` New Hanover County Slide 10
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Optional Service Bids
• Optional bid:
• Compliance maintenance, landfill operations, site maintenance, site
leachate system and wetlands operation &maintenance
• Operation & maintenance of 7 public recycling drop off centers, 2
government facilities,transfer, hauling, processing and marketing of
recyclables
• Household hazardous waste &electronic waste collection site
operation &maintenance
• Operation & management of construction & demolition diversion &
recycling site
• Operation & management of yard waste collection site &processing
April 21,2014
New Hanover County Slide 11
Optional Services
Request for Proposal Cost Analysis(Year One)
Waste Management Waste Industries Waste Industries Alternate W
Tip Fee I Cost Tip Fee I Cost Tip Fee I Cost
Optional Services:
C&D Recycling In Landfill Maintenance In Landfill Maintenance 2.51 522,080 2.51 522,080
Yard Waste Processing In Landfill Maintenance In Landfill Maintenance 0.18_ 37,440 0.18 37,440
Landfill Maintenance 21.15 4,400,000 7.24 1,505,681 1.61 334,880
Recycling 3.39 705,825 2.60 540,800 2.85 592,800
HHW No bid No bid 0.90 186,239 0.72 149,760
Waste Water Treatment System In Landfill Maintenance In Landfill Maintenance In Landfill Maintenance In Landfill Maintenance 2.50 520,000
Administration and Scale House N/A N/A N/A N/A 1.50 312,000
NC Grant and rebate credits N/A N/A N/A N/A (1.87) (388,960)
Total Optional Services $ 24.55 $5,105,825 $ 13.42 $ 2,792,240 $ 10.00 $2,080,000
April 21,2014
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New Hanover County Slide 12
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Optional Services
YEAR1 YEAR2 YEAR3 YEAR4 YEAR5 YEAR6 YEAR7 YEAR8 YEAR9 YEAR10 10 Year Total
Waste Management optional service fees 5,105,83 5,180,576 5,262,698 5,346,259 5,431,281 5,493,310 5,605,812 5,695,371 5,786,495 5,879,210 54,786,837
Wastelndustriesoptionalservicefees 2,792,240 2,803,485 2,826,163 2,849,541 2,873,628 2,::,006 2,923,958 2,950,216 2,977,213 3,004,960 28,885,409
Waste Industries Alternate W optional service fees 1,636,960 1,626,210 1,626,530 1,627,182 1,628,164 1,629,478 1,631,126 1,633,106 1,635,421 1,638,072 16,312,249
NHCcostsquotedinAlternateW 443,040 457,683 472,584 487,747 503,177 518,879 534,857 551,116 567,661 584,498 5,121,243
Alternate Woptional service fees and other costs 2,080,000 2,083,893 2,099,115 2,114,929 2,131,341 2,148,357 2,165,983 2,184,222 2,203,083 2,222,570 21,433,493
• Above estimated costs reflect estimated CPI increases of 1.76% each year based on the
past 5 year average change.
• Above estimated costs reflect an estimated tonnage of 208,000. Tonnage decreases
each year based on 5 year history of MSW tonnage.
April 21,2014
New Hanover County Slide 13
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Other County Operational Costs
• Household hazardous waste for Waste
Management bid as this service was not bid on
by this vendor
• Household hazardous waste disposal costs for
Waste Industries
• Administrative and personnel costs
April 21,2014
New Hanover County Slide 14
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County Capital, Long Term, & One Time Costs
• Capital projects include wastewater treatment system
upgrade, cell 5B/6A closure and southern property
permitting
• Demolition of Wastec
• Separation costs
• Debt service for outstanding debt
• Rain cover installation under Waste Industries proposal
• Creating reserve for closure/post closure costs
• Creating reserve for unexpected storms or events
April 21,2014
New Hanover County Slide 15
Operational, Capital and Long Term Costs
YEAR1 YEAR2 YEAR3 YEAR4 YEARS YEAR6 YEAR7 YEAR8 YEAR9 YEAR10 10 Year Total
Waste Management
Operational costs 976,879 994,072 1,011,568 1,029,371 1,047,488 1,065,924 1,084,684 1,103,775 1,123,201 1,142,970 10,579,932
Capital,LT,&One Time costs 5,945,542 1,328,292 1,324,608 1,258,981 1,220,221 1,620,280 1,617,426 1,558,869 1,558,869 1,558,869 18,991,957
6,922,421 2,322,364 2,336,176 2,2::,352 2,267,709 2,686,204 2,702,110 2,662,644 2,682,070 2,701,839 29,571,889
Waste Industries
Operational costs 646,085 657,456 669,027 680,802 692,784 704,977 717,385 730,011 742,859 755,933 6,997,321
Capital,IT&One lime costs 6,466,277 1,328,292 1,324,608 1,258,981 1,220,221 1,620,280 1,617,426 1,558,869 1,558,869 1,558,869 19,512,692
7,112,362 1,985,748 1,993,635 1,939,783 1,913,005 2,325,257 2,334,811 2,288,880 2,301,728 2,314,802 26,510,013
Waste Industries Alternate W
Operational costs 281,436 285,175 288,981 292,853 296,793 300,803 304,885 309,036 313,261 317,561 2,990,786
Capital,LT&One Time costs 5,732,914 1,328,292 1,324,608 1,258,981 1,220,221 1,620,280 1,617,426 1,558,869 1,558,869 1,558,869 18,779,329
6,014,350 1,613,467 1,613,589 1,551,834 1,517,014 1,921,083 1,922,311 1,867,905 1,872,130 1,876,430 21,770,115
April 21,2014
New Hanover County Slide 16
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Revenues
• Tip fee of$59.00 per ton
• State distribution and rebates
• Sale of current fixed asset
• Sale of current inventory
• i April 21,2014
New Hanover County Slide 17
Results
>« >« /EAU YEW /Eta >« WM >« Ilan >«
Wate Management:
TOTAL OPERATING REVENUE 12,605,000 12,219,659 11,846,418 11,484,897 11,134,727 10,795,553 10,467,029 10,148,820 9,80,604 9,542,065 110,084,772
TOTAL EXPENDITURES (19,582,906) (14,914,007) (14,869,602) (14,768,084) (14,698,211) (15,047,411) (15,047,349) (14,971,754) (14,959,330) (14,951,485) (153,810,037)
NON-OPERATING REVENUES(SALE OF ASSETS&INVENTORY) 3,332,012 - - - - - - - - - 3,332,012
SURPLUS/(DEFICIT) (3,645,794) (2,694,345) (3,023,184) (3,283,187) (3,563,484) (4,251,858) (4,580,320) (4,822,934) (5,118,727) (5,409,420) (40,393,253)
TIP FEE 76.53 72.37 74.49 76.37 78.46 82.98 85.67 87.99 90.76 93.66 81.32
Waste Industries:
TOTAL OPERATING REVENUE 12,641,840 12,256,499 11,883,258 11,521,737 11,171,567 10,832,393 10,503,869 10,185,660 9,877,444 9,578,905 110453,172
TOTAL EXPENDITURES (18,214,202) (12,887,345) (12,730,638) (12,518,341) (12,339,115) (12,565,358) (12,473,422) (12,292,159) (12,175,108) (12,063,584) (130,259,272)
NON-OPERATING REVENUES(SALE OF ASSETS&INVENTORY) 3,332,012 - - - - - - - - - 3,332,012
SURPLUS/(DEFICIT) (2,240,350) (630,846) (847,380) (996,604) (1,167,547) (1,732,965) (1,969,553) (2,106,499) (2,297,664) (2,484,679) (16,474,088)
TIP FEE 69.77 62.13 63.34 64.27 65.38 6877 70.47 71.66 73.26 74.92 68.10
IWaste Industries Alternate W: •
TOTAL OPERATING REVENUE 12,321,840 11,936,499 11,563,258 11,201,737 10,851,567 1,512,393 10,183,869 9,865,660 9,557,444 9,258,935 107,253,172
TOTAL EXPENDITURES (15,998,350) (11,402,609) (11,243,015) (11,027,200) (10,843,831) (11,104,722) (10,968,008) (10,780,770) (10,657,145) (10,538,455) (114,564,105)
NON-OPERATING REVENUES(SALE OF ASSETS&INVENTORY) 3,332,012 - - - - - - - 3,332,012
SURPLUS/(DEFICIT) (344,498) 533,890 320,243 174,537 7,736 (592,329) (784,139) (915,110) (1,099,702) (1,279,550) (3,978,922)
TIP FEE 60.66 56.35 57.36 58.08 58.96 62.34 63.57 6450 65.82 67.20 61.20
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i New Hanover County Slide 18
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