DEPARTMENT OF PUBLIC WORKS: NORTHWEST TRANSFER STATION
Operating costs of the Northwest Transfer Station are high (approximately $2.5 million per year) due primarily to the maintenance of old equipment.
Estimated Annual Impact:
Estimated Implementation Costs:
Barriers to Implementation:
Utilizing managed competition to select the station’s operator could help reduce the high equipment and operating costs currently being incurred while ensuring the retention of the station for its current purpose. The City would almost certainly be the single largest user of the Station (approximately 20 percent of the City’s mixed refuse collections are processed through the station). This would place the City in a strong bargaining position with the future owner/operator.
While it is difficult to estimate the potential financial impact of the implementation of this recommendation, Bureau management believes that it could approach $1,000,000 to $1,500,000 per year. Additionally, the complete sale of the asset could result in an estimated one-time infusion of $4,000,000. This is also an option worthy of serious consideration since the City’s position as the station’s largest customer would help dictate favorable terms for the continued use of the facility.