Agenda - 06-21-2016 - 5-a - Minutes

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7 1 2 3 3. Solid Waste Management- Gayle Wilson 4 a) Solid Waste Programs Fee 5 6 Gayle Wilson, Solid Waste Director, said the County is facing a deterioration of recycling 7 revenues, while expanding services. He said the enterprise fund reserves are also being 8 drained. 9 Gayle Wilson reviewed the following information: 10 The Solid Waste Programs Fee has been recommended to remain at $107 for Fiscal 11 Year 2016-17. In collaboration with the Town Managers, the County Manager has initiated a 12 process to perform a rate study and create a long-term financial plan for the enterprise fund, 13 using the consultant SCS Engineers, PC. The study will not be concluded in time for discussion 14 and endorsement by the Solid Waste Advisory Group (SWAG), or consideration by the various 15 governing boards, so the recommendation was made to maintain the current fee until these 16 discussions can be accomplished. The impetus for the study at this time is the escalating cost 17 of some of the recycling services coupled with the substantive deterioration of recycling markets 18 and loss of revenue. This study will take into account the financial implications of the recent 19 closing of the municipal solid waste landfill and the associated loss of revenue as well as the $3 20 million expense paid from reserves to construct the final cap system required for closure and 21 the reserve funding of recycling programs following the suspension of the 3-R Fee for two 22 years. 23 24 A 5-year financial plan, including annual fee projections and an analysis of the enterprise fund 25 reserve structure, is an expected outcome of the study. The initial component of the study— 26 Establishing the Financing Modeling (basis for revenues and expenses) and SCS's 27 familiarization with the Enterprise Fund's Programs and Services — has been recently 28 completed. 29 30 Chair McKee said there is a discussion in the legislature about recycling and asked if 31 there is any update on this matter. 32 Gayle Wilson said his understanding is that there is a bill in the Senate that would 33 eliminate the current law on electronic recycling, but he understands the House bill was a bit 34 different. He said the recycling of cathode ray tubes (CRTs) is the most expensive element, 35 and some counties are asking for relief from the obligation. He said Orange County has not 36 budgeted money for this type of recycling this year; however, next year there will be about 37 $130,000 allocated to recycle CRTs. He said he would be very surprised if the entire law 38 regarding electronics recycling was repealed. 39 Chair McKee asked for him to send out any information/updates on this issue to the 40 County and all municipalities as well. 41 Commissioner Jacobs asked previously if there was an estimated cost the County would 42 incur if the State no longer funded an electronic recycling program. He said Gayle Wilson had 43 provided this information, but he could not recall the estimated amount. 44 Gayle Wilson said he did not recall the number either, but the County receives around 45 $10,000 from the State in fees collected from electronics companies. 46 Commissioner Jacobs said if it would only cost $10,000 for the County to fund their own 47 program to recycle electronics, it may be worth doing. He asked if a more definitive cost could 48 be determined. 49 Gayle Wilson said the cost for the actual collection of electronic items, as well as the 50 recycling process, costs in the range of $250,000 per year.