ORD-2014-024 Budget Amendment #8 Appropriating Unassigned Fund Balance from Solid Waste Enterprise Fund for Landfill Closure Costs and Purchase of 19,500 Urban Roll Carts

Browse Search

2 Urban Curbside Recycling Cart Acquisition: At the November 19, 2013 Board of Commissioners regular meeting, the Board authorized staff to begin the acquisition process for the urban roll carts and authorized the Manager to award the bid. The Board also authorized the Manager to execute an interim agreement with the Towns that would allow the County to proceed with implementation of the urban roll carts. The Manager subsequently authorized the purchase of 19,500 roll carts at a cost of $1,020,825. The Recycling Division Equipment Account has an estimated year -end balance of $7,574, so a budget amendment is necessary to fund the remaining $1,013,251 costs of the roll carts. The interim agreement with the Towns provides that the County would purchase the roll carts, the Towns would apply for state grant funds, and if the Towns are awarded the grants, the grant funds would be delivered to the County to off -set the costs of the roll -carts. It is anticipated that the County will receive about $208,425 in grant fund reimbursements next fiscal year to off -set the purchase. Cart delivery within the Towns is scheduled to begin June 9 with cart service initiated on June 30, 2014. FINANCIAL IMPACT: This budget amendment provides for the appropriation of Unassigned Fund Balance of $1,456,555 from the Solid Waste Enterprise Fund to cover the costs of the following: (1) $443,304 to cover the difference between the current budgeted amount of $3,292,149 for the Landfill closure costs and the approved construction bid award of $3,432,142, plus an 8-0 /o project contingency; and (2) $1,013,251 to purchase 19,500 roll carts related to the Urban Curbside Recycling program. The urbarf roll carts will be funded through a loan from landfill- reserves at an interest rate of 2.5% with a term of five years. The annual debt service required for payback of the self - funded loan would be approximately $218,100 per year. RECOMMENDATION(S): The Manager recommends that the Board approve Budget Amendment #8 -A appropriating $1,456,555 in unassigned fund balance from the Solid Waste Enterprise Fund for the additional Landfill closure costs and to purchase 19,500 roll carts related to the Urban Curbside Recycling program.