CSWD staff presented an updated financial model for the Murph materials-recovery facility on July 30, showing four scenarios that vary assumed processing volumes and whether operation would be contracted out or run by district staff.

"For FY26 it looks like the Murph, given all of the assumptions listed in the memo, looks like we should have a positive cash flow coming out of the Murph as a standalone entity of $2,300,000," a staff member identified as John said while walking the board through the scenarios. He and other presenters emphasized these are modelled projections based on assumptions current to July 23 and that actual timing of commissioning, the construction schedule, decommissioning costs of the old facility and final debt terms will materially affect results.

The four scenarios presented were: lower volumes with contracted operation; lower volumes with district operation; higher volumes with contracted operation; and higher volumes with district operation. Across scenarios, annual cash flow remained positive in the model through the multi-year projection, though some quarters show negative cash flow when principal payments begin. Staff noted year-to-year variation depends on timing of transition from the old facility, the start of principal payments and final terms of any operating contract or bond amortization.

John said the district is preparing a request for information (RFI) and expects to issue a request for proposals (RFP) for operations in late 2025 or early 2026 to gauge market interest and firm up assumptions. "We will go out to bid for the operations," he said. Staff also noted they are separating the operating contract from material-marketing services in the procurement.

Presenters said the bond bank completed a sale that staff will incorporate into amortization schedules and that additional inputs (final construction schedule, transition plan and broker fees for material marketing) will be integrated as they become available. Commissioners expressed that the near-term modeling showing positive multi-year cash flow under the presented assumptions was reassuring but reiterated the results depend on many uncertain variables.

No formal procurement decisions were made at the July meeting; the presentation was informational and staff outlined next steps including RFI/RFP work and further model refinements as construction and financing details are finalized.