Agenda - 10-04-2011 - 8a - Laserfiche WebLink

Browse Search

6 The Towns maintain (justifiably) that Solid Waste Enterprise Funds `must' by law be used in connection to mitigation issues having linkage to the landfill location. The County and Towns adopted a well repair/replacement program funded with solid waste enterprise revenues. There is consensus that public water service extension does extend to a landfill related environmental concern. It is difficult to find an environmental link between the landfill and failing individual septic tanks in the Rogers/Eubanks Road area. No scientific study has been pursued on this issue due to the unlikeliness of linking the landfill's location to septic tank failures. The County is restricted in how it may use landf-ill revenues (Enterprise Funds). The Towns use their individual General -Funds to expense out residential solid waste collection programs. The Towns do not charge separately for household solid waste collection. It is a service the Towns provide via- the municipal tax rate and other local revenues. The landfill tipping-fees paid to the County by the Towns are Town General Fund expenditures. Thus, the Towns have greater funding latitude accordingly. The longer the current County operated landfill stays open, the longer the Towns can defer the added_expense of transporting their collected MSW to another location (Durham or elsewhere). Estimates of that savings do not appear in any calculation of the County's closure/post closure costs. More recent estimates put the annual savings to Chapel Hill at -about $350,000-$400,000 and at $100,000-$150,000 annually for Carrboro. (Changes to equipment and other efficiency efforts would impact these estimates) FINANCIAL IMPACT: The County is restricted in its use of the Solid Waste Enterprise Fund revenues or reserves. Per previously noted estimates, closure/post closure expense is estimated at $7,941,275 (update analysis is being pursued). The Water Service extension proposal outlined earlier is estimated to cost $4,077,587. The Dump Sites clean-up proposal has an estimated cost of $50,000 without verification of the number of sites within a 3/ mile range of the landfill. MSW Landfill Enterprise Reserve Funding is $7,403,190 as of June 30, 2011. The current landfill agreement between the County and Towns limits the County's ability to raise tipping fees to a 10% annual adjustment with a 60 days written notice. Currently, the base landfill tipping fee is $57 per ton. The County will need to increase tipping fees according to the direction taken in addressing the items outlined above. The lifecycle of the landfill (remaining months of operation) will dictate anticipated revenues, assuming the volume of waste remains consistent as tipping fees rise. RECOMMENDATION(S): The Manager recommends that the Board: 1. Direct staff to initiate the Water Service improvements as outlined. Further refinement of those estimates, engineering and construction would be scheduled accordingly and Solid Waste Enterprise Funds be the source of funding for these projects. The Board of Commissioners would approve each project and OWASA would be the contract administrator. 2. Authorize the Dump Sites clean-up program as proposed. Solid Waste Enterprise Funds would be the source of funding for this effort. Solid Waste Staff