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1 SECTION 2- SITE OPERATIONS PLAN Page 2-50 The public's perception that the City is performing its job can be maintained although the private company's presence may gain public attention to some degree. 2.7.3 Private Ownership and Operation A third, although unlikely, alternative is a fully privatized approach. in this situation, a vendor and the City would negotiate a contract for sale of the existing landfill and expansion properties and enter into an ongoing landfill disposal service agreement. The contract would cover a long-term time frame and the private entity would be responsible for providing all services at the landfill facility. The private vendor takes responsibility for all aspects of the construction, operation, financing, and significant regulatory exposure. The private operator would also assume all I economic responsibility associated with any technical failures at the facility. .� Service contracts usually specify performance standards. The City would need to assure that it obtains whatever minimum requirements it desires during the drafting of this contract. Although City control is at a minimum in this alternative, costs can still be reasonable. Similar to contract operations under public ownership,the private operator can bring experienced people directly on- line and can adjust staffing requirements more easily than the City. The City would likely receive a franchise or other form of fee from the vendor to cover the City's other program and administrative costs. A private owner may also have access to equity capital to aid in financing the facility(ies). lastly, the private investment in this infrastructure is taxable + J property and future revenues can be expected from it. - However, since the City is currently under a Verification Monitoring and Corrective Action Plan M for groundwater contamination, it is highly unlikely the City would be successful in transferring ownership of the Austin Road Landfill property under this option and is not considered a viable option. 2.7.4 Summary of Ownership and Operation Alternatives There are two viable alternatives for ownership and operation of a solid waste management facility. In general, the options are public ownership and operation and combined public/private ownership and operation. Table 2-10 lists some of the major advantages and disadvantages of each option. Table 2.10 SUMMARY OF OWNERSHIP AND OPERATION ALTERNATIVES Option Advantages Disadvantages Public Ownership and Operation Full control assured. All risks on the City. Public perception of effective government. Public Ownership and Private High degree of control. Ownership risks on City. Operation Operating risks on contractor. City pays operator fees. e Existing contractor in place. R.W.Beck and Associates city of stockton 1811.002