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Page 2-47 SECTION 2-SITE OPERATIONS PLAN contract with a private firm to perform all or a portion of the work. After construction is complete, public employees would operate and maintain the facility on a force account basis. In this case, control is at a maximum since all decisions are made by the City and all personnel work directly for the City. There could be lower annual operating and maintenance expenses because there is no annual overhead and profit ccmponent of the service fee paid to a private entity. The same regulations apply to the operation of the landfill whether it is owned/operated privately or publicly (regulations are listed in Section 1 of this report). In addition, the liability exposure for the City is not significantly different from the public ownership/private operation scenario as the City, as owner, is ultimately responsible for the landfill. Public operation simply gives the City maximum control over all aspects of the landfill operation. The perception of the public to this alternative can be either positive or negative depending on the local philosophy of government. The government can be viewed as providing required ser- vices to its citizens and its legitimacy will be reinfcrced. However, as there is a relatively large public resource commitment involved, some individuals may contend that such a facility could be better managed in the private sector; the facility may then become a disadvantage to the City Administration. Because full ownership and control responsibility is taken on, the full risks of revenue and expense management are assumed by the City. If employees incurliabilities in the execution of their duties, the City also becomes liable. There is also the potential that the costs of developing and operating the facility(ies) may be greater than the fees and revenues obtained. Thus, there is a risk that other revenue sources within the City will be required until such time rates can be appropriately adjusted. There is also a regulatory risk borne by the City since air and water quality standards may become even more stringent. Since the City is currently contracting the operation of the landfill, the City would need to acquire all operating equipment required for operation. The City would have the option of purchase or lease; however, acquisition of all new equipment could be costly as compared to the contract operator's cost. New heavy equipment is normally amortized over 6-8 years depending on its use. Staffing and equipment levels for the landfill operation is discussed in Section 2.5. Assuming equivalent equipment requirements and staffing levels for City force account operations, the capital (equipment) and operating personnel costs for the first year of operation by the City would be as shown on Tables 2-8 and 2-9 below. C.'Y of S"acKmon R.W.Back and Associates 1811.002