Agenda - 06-01-1999 - 9a - Laserfiche WebLink

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BUDGET NOTES FISCAL 1999-00 18 ASSTJMPTIONS/ADDITTONAL INFORMATION a 1) SOLID WASTE DE'PARTMEIV'I' REORGAMZAT'ION At this time, decisions are pending regarding the reorganization of the Solid Waste Management Department It is possible that these decisions will be made in the current year and that there will be expenditures associated with the reorganization which will be incurred in Fiscal 1999-00. We have not included any funding for expenses related to any reorganization in the 1999-00 budget request and have assumed in the base budget the co~inued management of Solid Waste by the Tows of Chapel Hill. Any additional funding required for the reorganization can be adequately provided from the remaining undesignated surplus in the fund. No expenditures have been assumed for relocation of or new administrative offices due to a possible reorgaairdtion. Due to the enterprise fiord nature of the Solid Waste Management Department and the corollary need for full cost accountin8 to ~PPoK ~ enterprise, most typical overhead costs are already paid by the fund either directly to the vendor lie. janitorial services), are charged directly to our accounts by the Town for Town managed services (vehicle fuel and parts, telephone, electricity, office supplies, or are covered by the non-depatmaeatal "Charges by the Genera- Fund" for administrative, personnel, legal, and financial support l'a the event that we are asked m assume that reorganization expenses should be iachrdcd is the 1999-00 budget, we have estimated that the items we would r+ecommead for inchuion would total about 537,750 for need year, or about 536,300 assuming an October 1,1999 transfer datie. Each additional quarter year delay would reduce the amount by about 51,400. It should be noted that any exgeagas related to payroll adjustments for transferring staff is not included Preliminary transition meetings were held by Orange Courty and Chapel Bill staff more than a year ago to begin ironing-out transitional details, iachu#iag costs. These meetings stopped whoa discussions regarding the reorganization reached as impasse, with moat work incomplete. Therefore, the 537,750 result from a preliminary ~~ assessment by Chapel HtTI staff r+egardiag several possible reorganization related expenses tesnltiag from staff's best guess, gives the existing knowledge of our department and some of the issues discussed is our preliminary meetings with Orange County. We feel that the order of magnitude presented by the suggested expenses is a reasonable expectation. Items addressed in the e.~timate fachrde labor for Public Works maintenance of vehicles and burTding, increased fuel costs due to need to contract with public Works, legal expenses, phone system maintenance, new IetOerhesd/uaiform insigaias/vehicle decals, human services consulting services, and miscellaneous e~cgenses. It is assumed that existing budgeted Charges by General Fund ae~aunt wiU fund routine overhead charges until Orange County analyzes its adequacy sad ra~mmends changes in ~ budget years. 2) DEVELOPII~N'r OF CONSTRIICTION & DEMOLITION LANDFII.L The proposed budget does not include fimding.for the purchase or development of a CdtD landfill. The timeline of the CBtD Site Selection Work Group indicates a decision oa and acquisition of a site during the current budget year. The Work Group has identified two final candidate sites on which exploratory work will ba scheduled, once ongoing negotiations with owners are complete. Assuming that one of these two sites will ultimately be selected and approved by the governing boards, we are presenting below the estimated costs of buying and developing each of the two sites. It is also assumed that most of the costs for acquisition and development of the selected site would be funded by through the Reserve Fuad • Acquisitions and Construction (estimated cunmt balance = 58ti8,550). We would recommend that site acquisition costs be made available in the current budget year through a budget amendment from the Acquisitions and Construction Reserve Fund lest 5476,000 for Eubanks site and est. 5439,000 for Northern 86 site).