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! Page 2-49 SECTION 2-SITE OPERATIONS PLAN It is assumed that operating supplies(other than fuel)and materials required for landfill operations will be approximately 10%of operating costs. Leachate generation for the first year is estimated at approximately 1,500,000 gallons which will require haul and treatment. Contract tanker transport is assumed with haul estimated at$100/6000 gallons (tanker load), or$0.0167/gal, and treatment at the City's WWTP estimated at $.03 per gallon. These costs will be new operating expenses and the same for either public or private operation. It is also assumed that administrative costs would remain unchanged. Based on these assumptions, the capital (equipment) and operations costs for City operation of the landfill are as follows: Capital Equipment $388,100 Personnel 316,000 Operating Supplies 70,000 Leachate haul and treatment 70,000 t Total First Year Costs $844,100 i 2.7.2 Public Ownership and Private Operation A second alternative for consideration is the current method of management: public ownership but private operation of the facility. The City would finance, design, permit and construct the facility through the various forms of procurement available to it. Then the City contracts with a private company to operate the facility. For these services, the private company receives compensation, via a management fee paid by the City, to cover operational expenses. To select the operations contractor, the City would typically use a competitive bidding process with several variables subject to definition in the bidding process. The holder of the operating permit must be determined either by owner designation or contractual negotiations. Similarly,the degree of contractor financial commitment/involvement, contractor activities and responsibilities, and method of payment are all negotiable in the process. The City can specify in the Request for Proposals the degree of definition and/or flexibility it will allow concerning each variable. The City must be willing to fund and provide programs to the extent it retains specific responsibilities. Those responsibilities typically fall within three areas: local enforcement of regulations(a regulatory,not operational,responsibility),ownership and operatorship. Contractual conditions for the latter(operations) must be sufficiently defined so that the City meets its owner- ship obligations and is protected as the owner from undue operational risks and liabilities. The City must also have provisions for funding its other programmatic requirements. In a contracted operation, the City must carefully negotiate contractual provisions to maintain control of the operations. However,by using the competitive process,it can achieve cost savings, because there will probably be competition by several private operators. In the negotiation period when the contract is being established, the City should include language requiring certain minimum standards alluded to above. R.W.Sock and Associates City of Stockton 1811.002