Minutes 03-27-2014 - Laserfiche WebLink

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The Town of Chapel Hill has requested information regarding the County's recommended annual household fee that is intended to fund the Weekly Urban Curbside Recycling Program in the three municipalities. Based on the County's fee recommendation, this fee would be authorized by each Town through its individual budget process, which the County would collect and administer to provide revenues to fund the program. A single uniform fee that would be applied to each single family house or duplex would be required. The Multi-family fee would follow the same fee approval process. Additionally, the Town has requested information that delineates the various cost components of the proposed fee, including indirect costs. The information provided below has not yet been presented to, nor approved by the Board of County Commissioners. It is anticipated that the fee establishment and approval process will be incorporated into the pending Inter-local Agreement for Solid Waste and Recycling. Projected FY 2014/15 Urban Recycling Fee - $59/Year/Unit EXPENSES Percentage of Budget Recycling Division Expenditure - Urban Program $1,131,250 Urban Contract (18,271 units at $3.29/month) $721,339 64% Solid Waste Recycling Direct Expense' $139,036 12% Solid Waste Indirect Costs2 $178,095 16% New Roll Cart Amortized Cost (over 10 Years) $92,780 8% REVENUES Recycling Division Revenue — Urban Program $1,131,907 Material Revenue $86,250 8% Household Fee at 97% Collection $1,045,649 92% The proposed annual Urban Curbside Fee for FY 14/15 is projected at $59 versus previously paid $52. If a five year guaranteed rate is required by the Towns the County would propose an annual fee of$62 for the five year period. The primary variables in projecting a set annual fee over five years includes an increase of households, increase in roll carts needed in the last two years, incremental cost increases in direct and indirect costs and the vendor contractual CIP provision (Services Agreement with Contractor-Section 5.a.), based upon the Bureau of Labor Statistics Consumer Price Index for All Urban Consumers: US City Average, Expenditure category Garbage and Trash, effective July 1 of each year. This CPI is applied only to the contract cost for collection and over the past 5 years the previous contract average CPI increase is about 2.5% annually. Other inflation factors are projections based on experience and historical data. 1) These expenditures include a portion of the expenses of the materials processing and transfer pad, material quality control, and loading/hauling of dumped materials to the materials recovery facility. All recycling programs share expenses of processing pad and hauling operations. 2) These expenses are Urban Curbside's share of the Recycling Division portion of Environmental Support Division (ES) expenses (net of revenue). Landfill Division and Sanitation Division also fund share of ES. Basic/Multi-family/Rural programs are also assigned a portion of Recycling Division's ES funding responsibility. Urban Curbside's share represents about 20% of the Recycling Division share of ES.