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<br />SBWMA Contractor Seiection Process <br /> <br />78 <br />Attachment 2 Page 35 <br />Executive Summary <br /> <br />Summary of SBWMA Board Recommendations <br /> <br />collection were increased to reflect a higher route productivity level and lower cart costs. <br />In some instances, estimated costs are not provided because of the complexity of the <br />collection system, the interrelationship of various factors, and different approaches and <br />pricing strategies companies may use. <br /> <br />The estimated fiscal impacts presented in this report provide a planning-level estimate <br />of the impact to collection rates to illustrate the relative magnitude of the cost impacts. <br />The estimates provide a perspective on the potential impacts associated with the <br />proposed programs, services, and contract arrangements, but do not provide a <br />definitive estimate of the fiscal impact. For simplicity purposes, the estimated rate <br />impact is calculated in terms of the average change to current rates assuming the <br />savings or costs for a program or policy have been distributed: (1) evenly across the <br />SBWMA service area; and (2) evenly across the entire rate base rather than to the <br />specifIC customer base (e.g., residential, multi-family, or commercial customers). <br /> <br />Table 1 summarizes the estimated collection rate impact of the programmatic changes <br />that are anticipated to have a material impact on the cost of service. Other Board <br />recommendations may also impact cost, but such cost impacts are not anticipated to be <br />substantial and are not reflected herein. The estimated rate impact shown in Table 1 <br />ranges from a 3.22% to 10.75% rate increase (excluding costs or savings for programs <br />and contract terms that have not been estimated). This wide range is particularly driven <br />by the potential range in financing costs for capital expenditures that are financed by the <br />companies. <br /> <br />The table shows that most of the rate increases are attributable to the residential <br />program changes - weekly service and single stream recyclables collection. Other <br />changes that may significantly increase costs are universal roll-out of recyclables <br />collection for commercial and multi-family customers, and the incentive payments that <br />the collection and operations contractors may receive for outstanding performance. <br /> <br />{Remainder of page intentiona/Jy blank} <br /> <br />HF&H Consultants. LLC <br /> <br />ES-14 <br />