Agenda - 05-17-2011- 8a - Laserfiche WebLink

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On April, 5, 2011 the concept of instituting a tipping fee surcharge with the intent of generating funds over the remaining life of the landfill for neighborhood improvements was discussed. Within life remaining in the Orange County Landfill, there is limited time to fund meaningful reserves for remediation. Currently the FY 2011/12 projection of municipal solid waste tonnage is 48,000 tons per year. This means that each dollar on the tipping fee would generate about $48,000 annually. The County Manager recommends a tipping fee surcharge of $5.00 per ton. This recommended increase would generate $240,000 in the first year to be reserved for neighborhood improvements. To immediately fund reserves for neighborhood improvements, an initial contribution of $750,000 is recommended to be appropriated from the Solid Waste Fund Balance. This would bring the reserve for neighborhood improvements balance to $990,000 as of June 30, 2012. Incremental annual increases in the tipping fee surcharge of $2 per ton per year would generate total revenues shown below. Projected Revenues from an increasing Tipping Fee Surcharge Fiscal Year Tipping Fee Surcharge Annual Revenue Total Revenues Fund Balance Appropriation $750,000 $750,000 2011/2012 $5.00 $240,000 $990,000 201212013 $7.00 $336,000 $1,326,000 201312014 $9.00 $432,000 $1,758,000 2014/2015 $11.00 $528,000 $2,286,000 Option 1 close 111/2016 $11.00 $264,000 $2,550,000 FINANCIAL IMPACT: The financial impact of extending landfill capacity could be considerable for Orange County and the Interlocal Agreement partners (as well as other users). The landfill is currently projected to reach capacity about June 30, 2013. Option 1 would generate about $0.9 million of additional funds that could be reserved for closure /post closure costs and delay closure over current projections and permit authority by about 2.5 years. Option 2 would generate about $1.25 million of additional funds that could be reserved for closure/ post closure costs and closure for about 3.5 years. Option 3 would generate about $1.6 million of additional funds that could be used for closure/ post closure costs and delay closure for about 4.5 years. The Landfill tipping fee surcharge could generate $1,800,000 over five years. Combined with the $750,000 initial contribution from the Solid Waste Fund Balance, total revenues of $2,550,000 could be established for the Rogers Road Remediation Reserve Fund. The extension of time provides an opportunity to build reserves from a tipping fee surcharge as outlined in the Background. Additionally, extension of landfill life would delay incurring the additional expenses by all Interlocal Agreement partners related to the hauling of waste to the City of Durham Transfer Station (undetermined but substantial). RECOMMENDATION(S): The Manager recommends that the Board provide guidance to staff with regard to the staff proposal related landfill capacity issues. Provide guidance to staff on a plan for the Remediation of the Historic Rogers Road Community including but not limited to the following elements: