The rubble material the landfill receives consists of broken concrete, asphalt, and bricks.
The rubble data used through this section is drawn from the Concrete Receipt & Crushed Concrete Sales Analysis (dated 3/19/18) that BRS received from SWRD while on-site.
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The following chart indicates that rubble material is routinely being brought in at approximately half the listed gate rate. The average gate revenue received for all rubble material in fiscal years 2015-2017 was $3.02/ton.
Rubble material brought to the landfill is currently stockpiled for processing by the CDL or an outside contractor (Big City). This material has historically been processed into aggregate base material, and stockpiled elsewhere on-site for sales to customers, or used as landfill road base, or placement at the tipping face during wet weather.
While this processed aggregate base material is useful for well-manicured roads and may have increased outside sales potential, it is not effective road base for landfill access roads or wet weather tipping pads. In the landfill setting, with heavy trucks and equipment, this aggregate base material is easily pushed into the soil, especially in wet weather, providing little to none of the desired benefit.
We suggest that most of the concrete and asphalt rubble can be used as is (un-processed) for roads and tipping pads, because this type of material creates a stronger, much more durable road.
Some processed aggregate is being sold to customers. In the past 3 fiscal years (2015-2017) however, only about 10% of inbound concrete and asphalt was sold. This means that the majority of rubble material is currently:
Listed Gate Rate
$/ ton
Average Gate Revenue
$/ ton
Concrete $8.00 $3.37
Asphalt $8.00 $3.39
Brick $2.00 $0.01
Average Total Rubble $6.00 $3.02
Fiscal Years 2015-2017
Rubble Listed Gate Rate vs. Average Gate Revenue
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1. Being brought across the scales at nearly half price (averaging $3.02/ton) 2. Handled by CDL equipment and placed in stockpiles
3. Processed by either CDL (averaging $5.04/ton) or by Big City (averaging
$7.35/ton)
4. Handled by CDL equipment and placed in stockpiles
5. Roughly 10% of processed material handled by CDL equipment and sold to customers (averaging $8.66/ton)
6. Remaining 90% of processed material is either:
a. Handled by CDL equipment and placed on roads and tipping pads for little to no benefit, and potentially taking up airspace (currently valued by SWRD at
$6/cubic yard)
b. Collecting in on-site stockpiles
As the following chart indicates, 205,474 tons of processed material has remained on-site in the last 3 years, and a combined loss of $387,039 has occurred due to the rubble processing operation. Of course, this “loss” is based on cost v. revenue and does not account for the benefit of the material that was used on-site. However, even though the CDL did receive some benefit from the processed material, the value to the landfill does not warrant the high cost of processing this material, because:
The CDL may not have needed the full volume of aggregate that was produced. We suspect that it was used because it was available on-site;
We also believe that processing the rubble into aggregate base adds significant cost to create a product that doesn’t perform as well as the unprocessed material;
Based on the ongoing financial losses, expensive specialized equipment required, and inefficient operations and staff utilization, we recommend that the SWRD:
Tons Revenue/ Expenses Concrete, Asphalt, & Brick Tons Received 226,171 $683,116.00 Material Processed by Big City (Actual Expenses 2015-2017) 45,729 -$336,162.00 Material Processed by SWRD (Actual Expenses 2015-2017) 180,442 -$910,366.00
Crushed Concrete & Asphalt Sales 20,697 $176,373.00
Tons of Concrete & Asphalt Remaining On-Site
(Processed & Not Sold) 205,474
-$387,039.00 Rubble Processing Operation Fiscal Years 2015-2017
Concrete & Asphalt Income FY 2015-2017
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1. As previously mentioned in this report, develop a detailed SMP and FSP that will identify the location of future tipping pad(s). Those pads be constructed a year or more prior to when they will be used. The inbound customers with select rubble would then be directed to the future tipping pad(s), thus eliminating the CDL’s future cost of processing and transporting.
2. We estimate a wet-weather tipping pad and access road requiring roughly 3,380 tons of rubble annually
3. Discontinue processing rubble in-house. Most rubble can be used as-is for other on-site purposes, without further processing or taking up valuable airspace. This would allow the sale of all heavy equipment,
grinders and screeners dedicated to this operation. Money received from these equipment sales should be set aside in CDL reserves for future equipment maintenance/purchases.
4. Contract Big City on an annual basis to process large pieces of concrete (thicker than 2 feet) or pieces with lots of protruding rebar. Big City would also process into fine aggregate only the amount of tonnage CDL forecasts selling in the coming fiscal year and needs on-site based on landfill planning.
a. We estimate the amount of processed tonnage required will reduce to 10,000 tons per year or less.
5. Gate rates for all rubble materials should be increased and consistently charged. Detailed analysis and trials should be conducted to determine the price point that:
a. Ensures that the CDL receives
the rubble tonnage required for on-site uses and forecasted aggregate sales b. Reduces incoming tonnage that will end up stockpiled and unused
c. Maximizes CDL profitability overall included tonnages and values for rubble/aggregate material that was inconsistent with the data we received specifically for rubble processing.
Inconsistencies included:
Rather than forensically analyze and manipulate the data to reconcile these inconsistencies, we have conducted our analysis of these portions using the respective data sources SWRD provided.
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