Agenda - 01-26-2012 - 4 - Laserfiche WebLink

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REVISED Item 8-a Abstract—Page 3 Only 13 May 17,2011 BOCC Meeting 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. Pro'ected Revenues from an increasin Ti in Fee Surchar e Fiscal Year Tipping Annual Revenue Total Revenues Fee Surcharge Fund Balance Ap ro riation $750,000 $750,000 2011/2012 $5.00 $240,000 $990,000 2012/2013 $7.00 $336,000 $1,326,000 2013/2014 $9.00 $432,000 $1,758,000 2014/2015 $11.00 $528,000 $2,286,000 O tion 1 close 1/1/2016 $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 rojected to reach capacity about June 30, 2013. 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 Communiiy including but not limited to the following elements: