Minutes 06-02-2016 - Laserfiche WebLink

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