Agenda - 04-01-2014 - 5a - Laserfiche WebLink

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9 The County Attorney and the County Manager recommended to the Board of County Commissioners last year that the Board abolish the RAral 3-RFee due to some uncertainty with regard to the fee being wholly consistent with state law authorizing counties to assessthese type of fees. Following that recommendation,the Board agreed it did not wish to risk continuing a practice that was not unmistakably consistent with state law,so the annual rural recycling fee was eliminated and consideration of alternative financing of the rural recycling service was initiated. After several months of examining numerous funding alternatives the Board is proposing the Slid Waste Service Tax District to generate the replacement program funding. About 13,750 residentswho were eligible for the service were previously assessed the fee. 7. Will the Solid Waste Service District apply to vacant (undeveloped)land? Yes,the district taxwould apply to all taxable property located within the proposed district without regard to whether structuresor homes exist on the property. 8. If the Board chooses not to adopt a Solid Waste Service District and wishes to establish a service opt-out program what would the estimated cost be for annual curbside recycling service? What is the scientific basisfor the 60 percent estimate of participants in an opt-out scenario?Isthere data or information relating to performance of opt-out programs? Are any of these participation assumptions based on fact? Key to estimation of the cost for opt-out service isthe assumption made regarding how many paying customers will remain in the program. If the assumption is that of the current approximate 13,750 customers only about 60%currently participate, and that of that 8,250 monthly users 20%(1,650)choose to opt-out as not wishing to pay a service fee,the estimated annual fee for service would be about$95.45(based on an estimated annual program cost of $630,000). And if, after a few months, due to the rather high cost of service(compared to the previous$38/year)another 10%of the 6,600 choose to cancel service,the estimated annual cost would increase to about$106.00 per year or almost$13/month. Of course there could be a small number of additional subscribersfrom current non-part icl pants that could moderate any fee increases.The 60%basis results from the current participation rate of 57%rounded. The assumption that 20%of the currently participating 7800 householdswill leave the system under voluntary subscription would seem to be an optimistic estimate of how many customers the program would lose once the fees increased and it was voluntary. When fees in Forsyth County's voluntary program rose from$2.65 a month to$8.65 a month the subscription declined by 11%from approximately 3,000 users out of 22,000 households(14%) to 2,700 (12%). Forsythe County most recently implemented a subscription type rural curbside/roadside recycling program and the Director of the County Office of Environmental Assistance and Protection stated"I would definitely expect and predict that if recycling collection service is made available on a voluntary subscription basis as a stand-alone service,you will be lucky to have a 25%participation rate." Experience in other governmental jurisdictions(states and NCcounty's)provides convincing evidence that many property ownerswill choose not to participate,which will result in increased costs for those who do participate. Economies of scale exist in recycling collection services like most other programs and services, meaning that the more property owners that join in funding a given service results in a reduced cost per each service unit. Alternatively, as 2