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Analysis:
This updated analysis uses a revenue amount for the WasteZero proposal that is consistent with
the Graduated Bin System (GBS) proposal. WasteZero has indicated that the price per bag could
be adjusted to generate a desired amount of revenue. This analysis also classifies the payment
from WasteZero ($540,000 annually) to the City as a negative expense rather than classifying it
as revenue as was done in our initial analysis. It was WasteZero's intent that this $540,000 in
"guaranteed savings" be classified as a negative expense.
By changing how the credit from WasteZero to the City is classified, and adjusting the
revenue originally proposed by WasteZero, I would summarize that the WasteZero program
could save $486K.
Waste Zero has indicated that they are on the State Contract for PAYT programs however the
guarantee is not on the State contract. They have also indicated that the terms of contracts of
this nature are typically 3 years however that would be dependent on some additional details.
Based on the proposal, the City would pay WasteZero an amount equal to the 2010 tipping fee
($3,281,236) each year for the term of the contact with an offset of an annual guarantee from
Waste Zero of $540K. This amount is part of the OTPS expenses on the following page.
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Projected Expense Compared to Projected Revenue:
Initial City Analysis of Second City Analysis of
EXPENSES Graduated Bin System
WasteZero Proposal WasteZero Proposal
SUMMARY
Summary of Options:
Initial City Analysis of Second City Analysis of
Graduated Bin System
WasteZero Proposal WasteZero Proposal
Projected Net Cost $ 6,391,315 S 4,688,550 $ 5,904,975
Household cost range $40 -$100 /year $52 -$273 /year $52-$84/year
Annual Tonnage Est 38,000 26,000 26,000
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