Agenda - 02-22-2011 - 3 - Laserfiche WebLink

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Attachment 2 . Revised Financial ~ 19 Analysis Report including Financial Forecast • Memorandum To: Frank Clifton, County Manager From: Gayle Wilson, Solid Waste Director Subject: Follow-up to November Solid Waste Work Session Date: February 14, 2011 This report is a follow-up to the discussion and feedback received by the Board of County Commissioners (BOCC) at the November 18, 2010 Work Session at which Staff presented the Solid Waste Planning Work Group Recommendations for Orange County Solid Waste Convenience Centers (SWCCs). The attached financial plan/analysis reflects and incorporates the input received at that Work Session. The basis for the Work Group's recommendations are outlined in the attached agenda item from the November meeting, and includes discussion of center locations and design, operations, funding, phasing and timeline, Work Group decision-making criteria, business case, and implementation. Adjustments have been made in the current revised analysis based on comments received from the BOCC and further staff work on plan details. • BOCC guidance received at the November Work Session included: • If this recommendation is to go forward an education plan would need to be developed for the public, especially with regard to the annual household fee • Prefer a tiered approach whereby the rural, urban and multi-family sectors are assessed different amounts based roughly on anticipated sector usage • Prefer a phased implementation approach for the annual household fee (potential "4-R Fee") that began at a lower amount and escalated over time, but not with the objective of totally replacing general fund fmancing of the SWCCs in the foreseeable future • Interest in expanding proposed hours of operation The attached revised fmancial analysis has incorporated the tiered approach and the phased implementation approach, reflective of the guidance noted above. The tiered structure builds on the guiding principles for the 3-R Fee (Rural, Urban and Multi- Family), based on intensity of use and goals for developing funding sources that are predictable, equitable and sustainable. Data from SWCC user studies indicate that rural users are more frequent than urban single family and urban users more frequent than multifamily. The proposed tiered fee structure mirrors this variation in actual and projected usage intensity. The revised fmancial analysis has also incorporated a phased approach to the household fee implementation. The fee is proposed to begin in FY 2011/12 and fund 25% of • Sanitation Division revenue requirements (that would include years land 2 of SWCC