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HomeMy WebLinkAboutAgenda - 06-01-1999 - 9aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 1, 1999 Action Agenda Item No. C~~_ SUBJECT: 1999-2000 Landfill Fund Budget Approval DEPARTMENT: County Manager/Public Works PUBLIC HEARING: (Y/1~ No ATTACHMENT(S): 1999-2000 Landfill Fund Budget Summary 5/18/99 BOCC Q&A Proposed Resolution Chapel Hill Solid Waste Dept Budget Request (distributed with 5/18/99 agenda) INFORMATION CONTACT: Rod Visser, ext 2300; Wilbert McAdoo, ext 2625; Gayle Wilson, 968-2800 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill ~ 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To approve the proposed budget for the Landfill Enterprise Fund for fiscal yeaz 1999-2000. BACKGROUND: At their May 18 meeting, the Boazd held preliminary discussions about the 1999- 2000 Landfill Fund budget. Under the County's current proposal to assume overall solid waste management responsibility, the Board of Commissioners is slated to approve this budget, which is currently administered by the Town of Chapel Hill. The Landfill Owners' Group met on May 6 and considered the proposed budget. The LOG voted unanimously to support the 1999-2000 budget as presented (without any of the potential program/service additions), with the stipulation that funding for the landfill community benefits be addressed during 1999-2000 budget deliberations. County Public Works staff and Chapel Hill. Solid Waste Department staff have collaborated to prepare the attached summary of the major elements of the proposed 1999-20001andfi11 fund budget. Solid Waste Director Gayle Wilson has also prepared written responses (see pages 20-22) to various questions raised by the Board during the May 18 meeting. Pursuant to staff analysis of the budget and Boazd comments and questions, we recommend that the Board consider the following points: 1) The 1999-20001andfill budget should be increased by $40,000, using landfill reserves (fund balance) to cover the anticipated costs of landfill transition activities, as it now appears virtually certain that the transfer of responsibility for solid waste management will take glace sometime during 1999-2000 2) Adequate funds are available in landfill reserves to purchase and develop a new C&.D disposal site, which is particulazly urgent because of the looming exhaustion of capacity at the current C&D landfill 3) Consideration should be given to establishing a reserve earmazked for the completion of remaining landfill community benefits. While the exact scope and timing of these benefits will need to be determined after the Landfill Benefits Committee issues its report, we believe it is likely that some 2 portion of community benefits will be determined to be appropriate for financing through enterprise funds. The Board may pursue several approaches to funding such a reserve: a) A portion of existing landfill reserves could be redesignated for community benefits, with the understanding that tipping fees would likely need to be raised in the future to generate reimbursement to the specific landfill reserve account which has been tapped as the interim source of funding for community benefits b) Increase the MSW and C&D tipping fees by an additional dollaz per ton to $40 for 1999-2000. The resulting revenue would be designated for implementation of remaining community benefits. c) Some combination of a) and b). As a matter of legislative process, we recommend that the Boazd establish the major pazameters (size of budget, tipping fees, use of reserve funds, etc) that it wishes to use to shape the 1999-20001andfill budget. The Boazd could then adopt the attached resolution (see page 23 - to be modified during the course of the Boazd's discussion during the June 1 meeting), which would convey to the Chapel Hill Town Council the Boazd's intended structure for the budget. The Town Council would then exercise its continuing responsibility to administer the Landfill Fund by adopting a budget ordinance which reflects the major pazameters specified by the Boazd of Commissioners. Adoption of such a resolution at this June 1 meeting will subsequently permit the Chapel Hill Town Council to include the Landfill Fund when it approves the Town's 1999-2000 Budget Ordinance at its June 14 meeting. The Town of Chapel Hill will continue to administer the Landfill Fund until handover to the County later in FY 1999-2000. The handover is scheduled to take place six months after the consummation of a solid waste management interlocal agreement between the County and the Towns of Carrboro, Chapel Hill, and Hillsborough. It is important to note that under the current interlocal agreement, all three governing boazds must approve any change to the tipping fee schedule. Accordingly all three boazds must indicate a willingness for the MSW and C&D tipping fees to increase to $39 or $40 per ton, or the fees will remain at $38 per ton for 1999-2000. FINANCIAL IMPACT: The Landfill Fund is administered by the Town of Chapel Hill as aself-funded enterprise operation. The County will assume operations sometime during the 1999-2000 fiscal yeaz and will continue operations under the same principles. There will be no direct impact on the County's General Fund or on the County's ad valorem property tax rate from the County's assumption of overall solid waste responsibility. The proposed Landfill Fund budget includes an increase in the tipping fee from $38/ton to $39/ton for mixed solid waste (MSW). Based on an estimate of 12,600 tons of MSW to be collected and disposed of by Orange County Public Works, the County budget impact from the tipping fee increase is estimated at $12,600 for 1999-2000. This increase has been included in the recommended County budget for the Public Works Department. If the Boazd of Commissioners and other governing boazds approve an increase to $40 per ton, there would be a need to add an additional $12,600 to the County Public Works budget during June budget work sessions. RECOMMENDATION(S): The Manager recommends that the Boazd determine the parameters of the 1999-2000 Landfill Fund budget and adopt the attached resolution conveying those budget parameters to the Chapel Hill Town Council. DATE: 05/12/99 TO: - Johrt Link FROM: ~ Wilbert McAdoo RE: 1999/2040 Landfill Budget Summary This report has been prepared by Town of Chapel Hill and Orange County staff to provide a summary of highlights of the 1999/2000 Fiscal Year Solid Waste Management Department Budget Request document. Included with each summary item are references to the applicable page numbers from the full Solid Waste Management Department Budget Request document. Copies of summary tables have been presented in several instances. The Summary Budget Overview Sheet (pg. 8 of the Solid Waste Management Department Budget Request document) has also been attached. SOLIO WASTE AMNAGEMENI' OEPAR~AAENT BUDGET RECUESf - ; ._ _. _~ __ _ _ - S11Mf1AARX _ 9ndQet Page _ . ~ _ .; - ~_ -- - LandRlt Fund Rewnues~ _ - - - . _ _ .. Tonnage and associated revenues for C8D waste for 1998/99 FY will be higher --, than anticipated. q Tonnage and associated revenues for M W for 1998/99 FY will be slightly higher than anticipated 4 The proposed budget as per previous budgets suggests that the Town Manager maintain authority to adjust. at his discretion, the fees for the sale of mulch and the incoming fees for dean wood and metals from construction and demolition. 7 Anticipated revenue from FEMA reimbursements related to Hurricane Fran have not been included. The FEMA reimbursement was a part of the overall reimbursement request submitted by the Town of Chapel Hill. 7 White goods reimbursement funds will be lower due to surplus funds received in previous years. 11 Landfill fines levied on loads of mixed solid waste delivered to the landfill that contain unacceptable quantities of cardboard or yard waste will be higher than G:~SMARED~WFENTOMWASTE~POUCYILOG\Lf_BGTt.DpC Printed: 05/12/99 3 Summary Budget Overview Sheet •~. Budget Cabgory 1998.99 Original Budget 1998-99 Revised Budget 1998-99 Estimated FY 1999-00 Request `/. Change over Original Budget ANDFlLL REVENUER 4andfill Fees 3,247,970 3,247,970 3,484,800 3,500,700 7.78% Other Revenue 565,200 565,200 481,100 441,750 -21.84% Appropriations from Fund Balance and Reserves 1,264.440 1,792,810 1,792,810 1,663,769 31.58°'0 TOTAL REVENUES 5,077,610 5,605,980 5,758,710 5,606,219 10.41% LANDFILL CD3T9 Ngn-DeRaRment~l Operations 1,018,024 1,018,024 1,018, 024 1,198,189 17.70°10 100a Personnel 818,158 816.158 818,309 837,954 2.8796 Operations 893,400 1,177,531 1,043,459 819,350 -8.2996 Capital 210,000 283,744 283,388 1,080,400 414.4896 Subtotal LandflU Opsratlons Total 1,919.558 2,277,433 2,147.158 2,737,704 42.62% General RecvcJi ~e Personnel 352.428 352,428 339.399 366,028 3.57% Operations 872.400 838,186 771,658 558,380 -16.96% Capital 363,200 365,200 335,950 31,500 -91.37% ~.uti~slsi!!. OPerations 750,000 754,710 879,500 715,450 -4.61% Subtotal . Recydlrq Total 2,140,028 2,310,523 2,128,307 1,870,328 -21.95% GRAND TOT COSTS 5,077,810 5,805,980 5,1.91,68 5,808,219 10.41 % TOTALS 8Y CATEGORY - At.LL DMSIOiVS COMBINED Personne! 1.188,586 1,168,588 1,157,708 1,202.980 2.949'° Oper'ationa 3,333,824 3,788,450 3,514,641 3,291,339 -1.27% Capital 575,200 648,944 619,338 1,111,900 93.31% TOTAL BY CA ORY 5,077,810 5,605,980 5,291,687 5,608,219 10.41% Revised: 3/18/99 - 9:51 AM SOLID WASTE MANAGEMENT DEPARTMENT BUDGET REQUEST - SUMMARY Budget Page .. # originally budgeted for the 1998!99 FY ($90,000 rather than $56,500). 11 REVENUE Current (FY 1998-991 Landfill Fees T i po n9 Fee ESt~24~ 8~C~18 • Mixed Solid Waste $38/ton 58 000 $ 2 204 000 , , , • C&D $38/ton 32,000 1,216,000 • Yd/Clean Wood $12/ton 5,400 64,800 • Tires (not eligible for free disp) $100/ton 1.100 0 Total Fees 96,500 $ 3,484,800 Other Rsvenue Recycling Program material sales' S 83,450 Other (interest, tie S wh gd reimbursement, muk:h, metal sales S 397,650 Appropriations from Eubanks, Equipment and Acquisition and Construction reserves S 529,500 ro A riat d f d b l p,~ e un o a ance $1.263.310 TOTAL REVENUE $5,758,710 Proposed BudgeR (FY 19991 Landfill Fees M;~t~l Tipa~g Fee Est. Tons ggYg~g MSW $39Vton 58,100 $2,265,900 C&D $39/ton 30,000 $1,170,000 Yd/Clean Wood $12/tan 5,400 $ 64,800 Tires (not eligible for free disp) $100Jton 1.100 $_Q Total Fess 94.600 $3,500,700 Other Rwenue Recycling Program materiel sales S 119,150 11.12 Other (interest. fire 8 wh gd reimbursement, mulch, metal sales S 322,600 Appropriatkx~s from Eubanks. Equipment and Acquisition and Construction reserves S1,160,800 ri d f d b l A ate un a Oproc~ ances $ 502.969 TOTAL REVENUE $5,606,219 Landfill Non-Depertmenta[ The preliminary estimate for the Non-departmental budget includes funds for reserves and indirect expenses, such as insurance and bonds, and administrative and support services by the Town of Chapel Hill. Funding contributions to reserves are included as follows: Please note that most material revenues are credited against the recycling collection and marketing contract to reduce net contract costs. c:~s~o~wFexroMwns~aoucrwoG~ e~T~.coc Printed: 05/12/99 SOLID WASTE MANAGEMENT DEPARTMENT BUDGET REQUEST - SUMMARY Budget Pags Reserve for equipment - $ 500,000 Reserve for South Eubanks construction - $ 250,000 Reserve for land acquisitions and landfill construction - $ 260.000 TOTAL $1,010,000 17 Detailed tables present information for LandfiN Non-Departmental and for each reserve account (copies attached). 18-22 Lan IlOperaHons t_andfill -Operations: 2,737,704 Our. preliminary estimate for the Landfill Operations division includes funds for the day-today operations of the landfill, overall administration of slid waste management programs and engineering services for the current landfip. Major items included in this budget aro the fallowing. • ' $226,900 Includes funds for operations for both North and South Eubanks Road IandfiN, medical/drug testing services, and legal lfinanaal services. • • $315,100 Includes funds far scrap tiro disposal, leachate tr~irnent, grinding of yard waste, scrap metal, hauling, and aftemative daffy ever. • Capital Outlav: $1,080,400 includes the following items: a) construction of IandfB disposal c:eil fi4 ($748,800);2 b) purchase of a parUscraper for IandfiA operations ($315,000); and c) tods/equipment for iandfll operatbns and equipment maintenance ($16,600). 23-33 No allowance has been made in the 1 budget for costs associated with reorganization. Town of Chapel HilULandfill staff indicate that the estimated costs associated with reorganization ($37,750) can easily be acxommodated by the undesignated fund balance. 6 No allowance has been made in the 1399/00 budget for costs associated with the acquisition and development of a new C&D landfill, although. Town of Chapel Hill/Landfili staff indicate that the Acquisitions and Construction Reserve Funds contains adequate revenues to acquire the proposed site on Guess Road at an estimated purchase price of $496,620. The estimated costs ' Cell construction and equipment purchase costs will be funded from established Solid Waste Reserve Accounts. G:ISNARE0IWPENTOMWAS7EIP000YILOG~LF_BGT1.pOC Printed: 05/ 12199 SOLID WASTE MANAGEMENT DEPARTMENT BUDGET REQUEST - _ SUMMARY Budget Page associated with permitting and development of the Guess Road site are currently being determined, but could be accommodated from the Acquisitions and Construction Reserve account. 6-7 Recycling B~rsliIIs; 1, 670, 326 The preliminary estimate for Recycling programs is divided between General Recycling ($954,876) and Curbside Recycling ($715,450). The former provides funding for drop-of( services, commerdal services, multifamily services, and household hazardous waste services. Curbside provides funds for recycling colled9on service to sine-family homes in the urban and rural areas. The general recycling program budget provides for continuation of current .. programs. The estimate far the curbside recycling program budget does not include any new programs, only antidpated program expansions to service additional housing units newly constructed and some existing homes akxig established routes. 34..47 General Recycling Division c•,osts wiU decrease by an estimated 35,000 during the 1999/00 FY due to one-time capital costs associated with taking commercial glass and drop-ofr recycling services "in-house" that were incurred during the 1998/99 FY. ~ 1999/00 FY curbside recycling related cysts will decrease by 34,550 due to contract bid prices being kywer than estimated costs to provide rural curbside recycling service} ~ 43 G:~SHAREDIWFENTOMWA$TE1POlICY~lOG1LF_8GTI.000 Printed: 05/12/99 SOLID WASTE MANAGEMENT DEPARTMENT BUDGET REQUEST - __ SUMMARY Budget Page Add Items:--:- The prospective add items and impact on the tipping fee for the 1999/00 fiscal year include: • Construction of recycling site at Southern Village ($1.07); • Expansion of rural curbside recycling collections ($0.43); • Addition of enforcement personnel for C8D waste ordinance ($0.50) • Use of Work First employee(s) at landfill ($0.20) • Engineering/supervision work for MaYls Recovery Facility (MRF) ($0.34) NOTE: These add items an aQt included in the proposed S39.OO/ton 48-49 tip fee. No funding has been included in the proposed budget for implementation of'the integrated Solid Waste Management Plan. Many decisions regarding implementation of the Integrated Sdid Waste Management Plan are still to be determined. Staff have assumed that these decisions will be not be reached until after organizational issues have been resolved. thereby delaying further implementation. 7 The 2,000 funding request from the Triangle J Council of Governments (TJCOG) for development of a tong-term regional strategy for solid waste management, if approved, can be accommodated through the undesignated reserve account. No funding has been allocated in the 1 budget for community benefits, it is determined that these benefits can be legally funded through use of landfill revenues, and if governments decide to use LOG funds. the option to borrow from reserve funds would be available. It is assumed that no signiAcant expenditures would be required during this fiscal year due to the time required for system design, etc,, theroby providing the opportunity for staff and elected officials to determine tfle appropriate funding mechanism, and inclusion in the 2000-01 FY budget. G:1S-iAREDtWFENTOMWASTErPOUCV~OGLLF_eGT1.pOC Printed: 05/12/99 Eywpmerrt Rc,~~aG-went •~. YEAR CONTR IBUTION OUTLAY RESIDUAL Fiscal Year 1998-99 Estimates 1999-2000 Revised Estimates 1998-99 Estimates 1999-2000 Revised Estimates 1988-8~ 50,000 50,000 50,000 1989-9A 109,300 109,300 159,300 1990.91 273,819 273,819 433,119 1991-92 350,415 350,415 783,534 1992-93 242,411 242,411 215,545 215,545 810,400 1993-94 0 0 234,500 234,500 575,900 1994-93 175,000 175,000 252,000 252,000 498,900 1995-% 216,000 216,000 317,000 317,000 397,900 1996-97 275,000 275,000 255,504 255,504 681,900 1997-98 385,000 385,000 601,000 601,000 465,900 1998-99 475,000 300,000 343,000 353,000 412,900 1999-00 550,000 500,000 305,000 315,000 597,900 2000-oi 550,000 480,000 609,000 609,175 468,7u 2001-OZ 550,000 470,000 504,000 SO~t,242 434,483 2002-03 550,000 400,000 506,000 505,300 329,183 2003-04 550,000 410,000 509,500 525,000 214,183 2001-03 550,000 430,000 364,000 364,186 279,997 Zoos-Oi 0 440,000 0 401,479 318,518 2006-07 0 440,000 0 344,371 414,147 2~-~ 0 450,000 0 585,784 278,363 2008-0! 0 470,000 0 0 •748,363 Footnobs: Noss Purchass~ / Cotnmettb Adthmetis anomdy is bend upm a recos~a7iation of Heave acco~mb with the catteat audited financlsl alb, ahioh tetuilad in hi8har raaetve axamt balames. 1:Lgbsr teeetve arxouot 1996-9T ~yu00a an dne b t5s di~ataaoe beta~xa charpag ody the actml a~peadibap tatbar thaa the bnd8sbed appeopdaboos in several Seca! yews pceceedin8 the sxous~ teoaoa'Gatioa in 1996.97. bendamar ~s19ooooX Rou-o~rruck (51 ls,oook aged mooor gtada (noooo} gad 1998-!! Bates -5353,000. 1999-0~ aE 5315.000 Zooo~>t ranase s32o no), nss,4o - s6o917s. 2001-a12 Bulldozes 5378,515 gad I~oader/backhoe (5125 - 5504,242 Laad6II compactor (5340,305) and front-loadia8 recyciittg truck (5164,998) 2002-03 SSOS 03. Zoo3-04 Purcb„et Z,aodSll doze jals3asr Leachate rnukrraok 106 to - ss2a ss. 2004-03 Pucrhasea: Cn<wiia-bazar 5226 870} Roll-0@'Tcuclt (5137 16 -5364186. Purcbavax Artiwbtted L,caderlfocl cagier (5118,879}; Fcoat-ead Loader, cubbatited 2005-06 (5215,000}, (567,600) -5401,479. 2006-07 1?urchaaes: S 5344,371 . Purchases: Landfill compactor (5394,506) and front-loading recycling truck (5191 X78) - 2007-08 5585,784. 2008-09 No purchases are scheduled during this fiscal year Revised 3/18/99 - 9:53 AM ResarveFunds00 / LANDFII.L RESERVE FLND for. Eub:u~s Construction 10 -~. YEAR CONTRI BUTIONS OUT LAY ~~U~, 1998-99 Estimate 1999-2000 Revised ~ Estimate 1998-99 Estimate 1999-2040 Revised Estimate 1988-89 100,000 100,000 0 0 100, 000 1989-90 3 00, 000 300, 000 0 0 400,000 1990-91 250,000 250,000 0 0 650,000 1991-92 550,000 550,000 0 0 1,200,000 1992-93 650,000 650,000 0 0 1,850,000 1993-94 567,000 567,000 0 0 2,417,000 199495 835,000 835,000 3,038,500 3,038,500 213,500 1995-96 855,000 855,000 0 0 1,068,500 1996-97 670,000 670,000 272,000 272,000 1,738,500 1997-98 400,000 400,000 1,550,000 ~ 1,550,000 588,500 1998-99 335,000 335,000 71,500 71,500 852,000 1999-00 440,000 250,000 0 845,800 256,200 2000-01 440,000 105,000 1,400,000 0 361,200 2001-02 225,000 105,000 0 0 466,200 ZooZ-o3 225,000 105,000 0 0 571,200 2003-04 225,000 100,000 680,000 0 671,200 2004-05 0 100,000 0 0 771,200 2005-06 0 90,200 0 0 861,400 2006-07 2007-08 2008-09 0 0 0 861,400 0 ~Cs~-~~ Fiscal Year Purchases /Comments Arithmedc aoomoly is based upon s ra~ncilimioa of reserrn accounts with the can=+eat audited Enaacial statement, which resuitad is higher reserve account balances. Higlxr reserve account 1996-97 balances are due to tine cti$ereaoa between cbar~ng only the actual ~di0am, rather tbm tba budgeted approptiations in several fiscal years preceediag the account recoaociliation is 1996-97. 1997-98 Construction of Landfill Cell #3 1998-99 enditure: f at land5ll (571,500). 1999-00 Construction of Landfill Cell #4 (final cell) Projected capacity/closurt date. Reserve accouiat ~cpires, with ongoiagpast-clostae maiateaance 2006-07 ceded throw transfer station revenues. Revised: 3/18/99 - 9:52 AM ReserveFunds00 / Eubsaks00 L.4NDFII,L RESERVE PiJND for. Acquisition and Construction '~• o. YEAR CONTRI BUTIONS OUTLAY RESIDUAL 1998-99 Estimate ,1999-2000 Revised Estimate 1998-99 Estimate 1999-2000 Revised Estimate 1988-89 0 0 0 p 1989-90 100,000 100,000 0 0 100,000 1990-91 110,000 110,000 0 0 210,000 1991-92 110,000 110,000 0 0 320,000 1992-93 130,000 130,000 0 0 450,000 1993-94 110,000 110,000 0 0 560,000 199495 135,000 135,000 0 0 695,000 1995-% 160,000 160,000 202,450 202,450 652,550 1996-97 185,000 185,000 0 ~ 837,550 1997-98 210,000 614,680 309,300 713,680 738,550 1998-99 235,000 235,000 255,000 105,000 868,550 1999-00 260,000 260,000 0 604,000 524,550 2000-01 285,000 285,000 0 0 809,550 2001-OZ 700,000 500,000 0 0 1,309,550 2002-03 700,000 500,000 0 0 ` 1,809,550 2003-04 700,000 500,000 0 0 2,309,550 2004-05 925,000 725,000 0 2,400,000 634,550 Zoos-o6 0 700,000 ~ 0 1,280,000 54,550 2006-07 0 700,000 754,550 2007-08 0 700,000 1,454,550 2008-09 0 700,000 2,154,550 NOTES: 1995-1996 far of Neville trail and Johnson trae! 1997-1998 to ~ilsoa sail related landfill site search services. Facpeaditra+es iaalude allocation far desigtt/development expenses (550,000) and ~t~tion of 1998-1999 materials separation area (555,000). Additional expenditures probabk fa purchase and level meat of CAD ate. 1999-2000 ~~ and development casts far the new CdtD disposal facility. Decision an acquisition is " torten Costa shown are for the less easive of the two facilities b ' considered. 20042005 Transfer Station level Purchase of transfer station tractors and trailers (with replacement of this equipment to be provided for 2005-2006 in the E lacemeat Fundl. Revised: 3/18/99 - 4:53 AM 11 ResaveFuads00 / LandAc00 SOLID WASTE MANAGEMENT DEPARTMENT BUDGET REQUEST Table of Content Introduction/Overview Budget Notes Summary budget Overview Spreadsheet Personnel Sheets Landfill Fund Revemres . Cover Narrative Undesignated Fund Balance Calculation Summary Spreadsheet Landfill Non Departmental Cover Narrative Summary Spreadshat Detail Justifications Reserve for E Replacement Table Reserve for Eubanlo Construction Table Reserve far Acquisitions and Construction Table ~~ • y Landfill Operations Cover Narrative Summary. Spreadsheet Detail Justifications Business Meetings and Training Justification Landfill General Recycling Cover Narrative Summary Spreadsheet Detail Justificxtians Business Meetings and Training Justification Landfill C~abside Recycling. Cover Narrative Summary Spreadsheet Detail Justifications Add List 1 6 8 9 11 14 16 17 18 19 20 21 22 23 25 27 33 34 37 38 41 43 46 47 48 12 a. MEMORANDUM ~~ TO: W. Calvin Horton, Town Manager FROM: Gayle Wilson, Solid Waste Director SUBJECT: Fiscal Year 2040 Landfill Fund Budget DATE: February 12, 1999 13 Attached for your review is the Landfill Fuad recoauaended budget for fiscal year 1999-00. The usual forms and tables are included, along with supplementary information regarding specific accounts and programs, Additional information on potential program additions and expansions is included as as attachment, This memorandum ssmmunius significant items and issues is the curr~t year and next year's proposed budget. Detailed information concerning specific items is found in each division's budget docummb, 1998-99 Bndge~t (7/1/98k 1998-99 Budget (UU'99r 1998-99 Estimazed Expeaditu~es: 1998.99 Estimated Expmdit<a~e Savings: Or: 55,077,610 5,605,980 5,291,687 314,293 5.61'X. 1999.00 Proposed Budget; Or. 5,606,219 up 10.4yL from 55,077,610 The 5528,609 ina^ease for FY 199900 results primarily fivm a 5845,8001and511 cell construction (Cell #4) Pm1~ ~P~ ~ expeaditut+e for replacement of a scraperfpan foe landfill operations (5315,000), sad increased contdbatiaos m the Solid Waste Fund Raserve Accounts (5140,000 balanced by a reduction in: Landfill non-capital costs (-552,254X Geatral Recycling Division ex~ditures (-5435,152); and Curbside Recycling expenditures (534,SS0~ At this brae, decisions are pending regarding the reorganization of the Solid Waste Management Department. It is possible that these decisions will be made in the current year and that there will be expenditures associated with the reorganization which will be incurred is Fiscal 199900. We have not included any funding for expenses related to any reorganization is the 1999-00 budget request and have assumed is the base budget the continued management of Solid Waste by the Town of Chapel Frill. No expenditures have been assumed for relocation of or new administrative offices due to a possible reorganization. Fiscal Year 1999,:00 Request 14 The budget includes continuation of cmnnt operations and recycling programs at current levels, A discussion of possible additions to the requested base budget is included in the add list section. Revenues and Fees for 1999-00. We recommend the fees and estimate the revenues from these fees for fiscal year 1999-00 as follows: Maxerial Costlton T~ Total Revenue Mixed waste 539.00 58,100 52,265,900 Construction & Demo 539.00 30,000 51,170,000 Clean Wood/Yard W. S1Z.00 6,400 5 64,800 T'ues (most free) 0 .0 1.100 s_o TOTAL RECEIVED 94,600 53,500,700 For the convenience of comparison, I have provided the curzent year.(FY 1998-99) tormage sad fee nwenue. S,as~n ~ ~ Tit l Revenue Mixed waste 53s.oo s8,ooo 52,204,000 Consf:ucdon dt Demo 538.00 32,000 SI,216,000 Clew wood/Yard W. 512.00 5,400 S .64,800 Tires (most free) x.00 1.100 ~, 0 TOTAL RECIIVED 96,500 53,484,400 Estimated non-fee riwenue is 5441,?SO and includes landfill fines, fire and whits good tax reimbursements, sale of scrap metal, newspaper and cardboard, sate of mulch and interest esraiags. ~° Estimated revenue from reserve accounts and urrdesignated reserves totals 51,678„769. A detailed breakdown Yof these fiords is provided in the Revenue section Major projects funded ftom reserves iachide: ripcneat Reserve • purchase of a replacement saaper/pan for lar~fill operations (5315,000) Eubanks Landfill Reserve • installation of the final landfill disposal cell (Cell #4) (5845,800). Acquisition ~ Ca 'oa Reserve • the base lrodgeR anticipates no revenue from this fund during the fiscal year Use of undesigmted reserves totaling 5502,969 is proposed is 1999-00 to balance the fund. Estimated June 30, 1999 undesignated reserves are 5719,334, or 12.8% of the total landfill fiord opecatiag budget. We have recommended the above tipping fees in order to meet the revenue requirements of the fund while attempting to minimize increases in fees. Ia 1998-99, we raised tipping fees 53 per ton for both mixed solid waste and construction and demolition waste is order to cover a projected revenue deficit. We propose utilizing a combination of other revenues, reserves and the recoaunended fee increase of 51.00 per ton for mixed solid waste sad construction and demolition waste, to meat the estimated riweaue needs of the landfill fund for 1999-00. Note that the recommended tipping fee for mixed solid waste and construction and demolition waste are increased by the same amount from last fiscal year, as has bees the recommendation of the Landfill Owner's Group is recent budget. 15 Operations The recommended Operations budget for fiscal year 1999-00 is 52,737,704, an increase of 5818,146 (42.6%) from the 7/1/98 budget. 'This increase is due primarily to the construction of the final landfill disposal cell (Cell #4). Professional services (5226,900) include funds for groundwater monitoring operations at the existing Eubanks Road facility, engineering services associated with new cell development, and legs! and financial services. Contractual services (5315,100) include funds for alternate daily cover system; leschate treatment and hauling; scrap fire hauling and disposal; grinding of yard waste for mulch; and scrap metal hauling, Capital outlay (S1,080,400) includes fimding for the following major items: • purchase of a replacement scraper/pan (5315,000) for landfill operations; • computer hardware, a gas meter nerd miscellaneous tools for landfill operations and equipment maintenance (512,1oox • computer equipment and related peripherals to eoabie public presentations (54,500 and • construction of the spat landfill disposal cell (5748,800). Funding is ra~mmended for continuation of the reserve accounts previously established. Note that the reserve ' ~ account continbutions have been restructured to reflect projected cost savings on some projects in recent years. Detailed reserve tables are iaclnded with the Noo-Depart<nental Budges. The foIloariag is a summary of contributions for 1999-00: • contnbuti'on ~ capital equipment (SS00,000~ the projected net balance in this reserve at June 30, 2000, ~' will be 5537,900; y • reserve for Eubanks construction (5250,000); the projected net balance in this rescue at June 30, 2000, will be 5852,000; • reserve for aequisiti~s and won (5260,000); the projected net balance in this reserve at June: 30, 2000, will be 5923,250. Fund balances as of Jae 30, 1999, take into accotmt proposed use of the reserve funds as landfill revenues in FY 199900 as discussed in the Revenue section. Recvclina The base budget request for general recycling includes the continuation of current programs with modest increases is the member of commercial glass, food waste, and multifamily recycling sites. The curbside recycling program bass budget, includes funds to cover the anticipated contract costs for urban and rural service. ~ ~ Current Year - 1998-99 Current Year's Revenues 16 Revenue is discussed is some detail in a separate section. We estimate that the cun~eat years landfill fee revenue will exceed the revised budget by about 5152,730, or 2.72°/a This results primarily from: • a higher thaw anticipated delivered tonnage of construction and demolition materials (+5152,000) due to year-end estimate of 32,000 tons received as compared to the original estimate for this year of 28,000; • a slightly higher than anticipated revenue from mixed solid waste (541,800) due to a year-end estimate of 58,000 tons received versus 56,900 tons origsaally estimated; and Non fee revenue is estimated to lx 584,100, or 14.9%, less than budgeted. The following components contributed to this anticipated deficit in non-fee revenues: Original Budges Projected Yeat-end Projected F~siimate Variance A a) landfill. fines S 56,500 5 90,000 mount 533,500 b) fire tax reimbursement 75,000 83,000 8,000 c) white goods tax reimbursement ?5,000 22,100 (52,900} d) interest income 137,000 137,000 - -0- e) sale of recycling paper 20,000 18,000 (2,000) f) ~ sale of recycling cardboard 25,000 25,000 -0- ' q) sale of composting bias 11,000 -0- (11,000) h) • sale of mulch 95,000 S 1,000 (44,000) i) sales of commetzial glass 10,500 5,900 (4,600) j) sales of metal cans 3,504 5,500 2,000 ~' k) sales of fixed assets -0- 1,400 ~ 1,400 ~ ],) sale of scrap metal 26,600 27,500 900 m) sale recycling cxantamerslbins 100 1,550 1,450 n) miscellaneous revenues 30.040 13.14 L~.$~41 TOTAL S 565,200 S 481,100 S (84,100) The revised budget is 5528,370, ac 10,4X, snore than the original budget dne to t+eappropriated carryovers from FY 1997-98 (5433,370) and a budget amendment ordinance increasing la~adfill fund appropriations (595,000) for Professional Servicas is the Recycling Division towards development of the Materials Recovery Facility. Reappropriated carryovers in landfill operations totaled 5433,370. Major components of the reappropriation include: • Landfill professional services (5189,892 • Landfill contract services (570,008X • Land Improvement (Capstan for completion of landfill disposal cell #3 (545,000); • Genera! Recycling (570,786), including 553,119.92 in recycling conIIacted services, 55,00$.43 in supplies and 58,204.00 sn vehicle maintenance and repair; and. • Curbside Recycling (x4,709.66). 11 17 The other budget ctvision since July 1 is the budget amendment ordinance to increase Landfill appropriations by $95,000 for prelbainary planning and design of a Materials Recovery Facility for raycling operations as planned for is the adopted Integrated Solid Waste Management Plant. The budget amendment appropriated funds originally appropriated is FY 1997-98for this purpose which were not spent or encumbered during that Period. The current estimated expenditure savings of about 5314,294, or 5.61%, relates m the following: • Landfill Operations (5130,277) due to lower "Professional Services," "Supplies' and "Miscellaneous Vehicle Supplies" expendittues; • Recycling Personae! (513,029) due primarily to the delayed appointments to fill vacant positions; • Recycling Operations (566,528) due to lower than anticipated expeaditia~es for Coed Services; • Curbside Recycling (575,210) due to lower thaw anticipated expenditures for contracted services. ~: . y BUDGET NOTES FISCAL 1999-00 18 ASSTJMPTIONS/ADDITTONAL INFORMATION a 1) SOLID WASTE DE'PARTMEIV'I' REORGAMZAT'ION At this time, decisions are pending regarding the reorganization of the Solid Waste Management Department It is possible that these decisions will be made in the current year and that there will be expenditures associated with the reorganization which will be incurred in Fiscal 1999-00. We have not included any funding for expenses related to any reorganization in the 1999-00 budget request and have assumed in the base budget the co~inued management of Solid Waste by the Tows of Chapel Hill. Any additional funding required for the reorganization can be adequately provided from the remaining undesignated surplus in the fund. No expenditures have been assumed for relocation of or new administrative offices due to a possible reorgaairdtion. Due to the enterprise fiord nature of the Solid Waste Management Department and the corollary need for full cost accountin8 to ~PPoK ~ enterprise, most typical overhead costs are already paid by the fund either directly to the vendor lie. janitorial services), are charged directly to our accounts by the Town for Town managed services (vehicle fuel and parts, telephone, electricity, office supplies, or are covered by the non-depatmaeatal "Charges by the Genera- Fund" for administrative, personnel, legal, and financial support l'a the event that we are asked m assume that reorganization expenses should be iachrdcd is the 1999-00 budget, we have estimated that the items we would r+ecommead for inchuion would total about 537,750 for need year, or about 536,300 assuming an October 1,1999 transfer datie. Each additional quarter year delay would reduce the amount by about 51,400. It should be noted that any exgeagas related to payroll adjustments for transferring staff is not included Preliminary transition meetings were held by Orange Courty and Chapel Bill staff more than a year ago to begin ironing-out transitional details, iachu#iag costs. These meetings stopped whoa discussions regarding the reorganization reached as impasse, with moat work incomplete. Therefore, the 537,750 result from a preliminary ~~ assessment by Chapel HtTI staff r+egardiag several possible reorganization related expenses tesnltiag from staff's best guess, gives the existing knowledge of our department and some of the issues discussed is our preliminary meetings with Orange County. We feel that the order of magnitude presented by the suggested expenses is a reasonable expectation. Items addressed in the e.~timate fachrde labor for Public Works maintenance of vehicles and burTding, increased fuel costs due to need to contract with public Works, legal expenses, phone system maintenance, new IetOerhesd/uaiform insigaias/vehicle decals, human services consulting services, and miscellaneous e~cgenses. It is assumed that existing budgeted Charges by General Fund ae~aunt wiU fund routine overhead charges until Orange County analyzes its adequacy sad ra~mmends changes in ~ budget years. 2) DEVELOPII~N'r OF CONSTRIICTION & DEMOLITION LANDFII.L The proposed budget does not include fimding.for the purchase or development of a CdtD landfill. The timeline of the CBtD Site Selection Work Group indicates a decision oa and acquisition of a site during the current budget year. The Work Group has identified two final candidate sites on which exploratory work will ba scheduled, once ongoing negotiations with owners are complete. Assuming that one of these two sites will ultimately be selected and approved by the governing boards, we are presenting below the estimated costs of buying and developing each of the two sites. It is also assumed that most of the costs for acquisition and development of the selected site would be funded by through the Reserve Fuad • Acquisitions and Construction (estimated cunmt balance = 58ti8,550). We would recommend that site acquisition costs be made available in the current budget year through a budget amendment from the Acquisitions and Construction Reserve Fund lest 5476,000 for Eubanks site and est. 5439,000 for Northern 86 site). Eubanks Road Site (Dena and Duke Ptogertvl 19 Expenses related to permitting and development (est. S 128,000) would need to be budgeted from the Acquisitions and Construction Reserve Account in lY 1999-00. Sufficiern funds for developmern of this site exist in the "Acquisition and Cons~uction" reswe account. Northern~Hiahwav 86 site (Site #121 Expenses related to the permitting and development (est. 5813,550) would need to be budgeted from the Acquisitions and Const<uction Reserve Account in FY 1999-00. Sufficient funds are available is the reserve accopnts for the acquisition and development of this site: 3) INTEGRATED SOLID WASTE MANAG The proposed budget does not inchide funding for the Integrated Plan impl®entatioa costs or furtba study. A separate. "BUDGET NOTES" report will be provided ffi a later date, due in part to ongoing discussions among the governing bodies ~ CERTAIl~i FEE RA Q Sii:'i' AV M~N1(_~'R The proposed budget„ es per pcersoos budget, suggest the Tows •'.....06~+ maratam aut~r~y t0 edjtLlt, ffi his discretion, tlm fns for the sale of nnkh and the incoming fees for clean wood and metals fi~om won and demolitia®. Sl .HURRICANE FRAM - FEMA The Solid Waste Furui n still owed 548,680 ifam FEMA as a result of damage and additions! services incurred as a '~~ resuh of hurricane Fnm in September, 1996. 'Ilya reimbursement from FEMA was originally a~ticipsted is FY 1998- 99~ bad due to delays in processing that date was delayed. As there is no reasanabb asamance that this reimbursement will be received daring FY 199900, it is ad being anticipated as reveaa~e during this year. O~ To: John Link, Orange County Manager ~~ r From; Gayle Wilson, Solid Waste Director Subject: Response to HOCC Budget Queatioas Date: May 29, 1999 Several questions were raised at the BacC meeting on May 18, 1999. 2 have provided aasxers be1oN. Please let me lmow if you need additional detail regarding my responses. 1. Shouldn't xe be initiating a process to establish the Solid Waste Advisory Coaamission since it is to begin Nosk in August? Answer - Development of the interlocal Agreement is proceeding in a timely fashion. svwQvQr, until such a tiwe as this work is completed and the Interlocal Agreement is presented tb, considered and adopted by all the governing bodie9, the fostn and responsibilities oP the Commission are uncertain. = believe• the Saterlocal Work c3roup is considering September i5,ae as alternative to the first draft's August 1 goal for activating the Comd~i.ssion. Z. What is thA status of the $48,460.89 Fffi~A reimbursement? Answer - officials of FEMA are scheduled to meet Kith the Town o! Chapel idiil FSl~U1 coordinator on June 3 to conduct a final evaluation of documentation. We had believed this issue rwould have been resolved several months ago, hoxever, contirniing personnel turnover at FffiKA has delayed final decisions on reimbursement. While xo have received no aasuranees that xe ~tili recover the full amount cla~3aied, xe also have ao basis for assuming we will not be fully reimbursed. 3. Why isn't the $2,000 TJC06 add item for development of a long- tezm regional strategy for solid vra-ste management included in thQ bss~ budget request? Aasner - Oyu b~udg~et request nrad Finalised prior to the TJCOa request for funding. tte xould at this titee reea®mend that the $2,000 be considered for iaelusion in the base budget, funded troe; the uadesignated rsaerve, with no impact va the proposed tipping fee. 4, in reviewing the Bquipaaent Replacement Reserve it appears that wv are reserving foods for landfill equipment xhich Nill not be needed once the 1$~lfill closes in 2006. Wby hasa~t this equipment been eliminated from the reservQ fund? The attached equipment replaceatent schedule represents all major equipment used by the Solid Wast• Department. 1~lajor equip~neat is defined as that costing in excess of $25,000. Smaller equipment are not included because the impact on a s.6 million annual budget of an $18,000 pickup truck is small and can usually be fut~ed 20 21 through tipping ~ee~. A revie~r of the replaceas~nt schedule shows that three major pieces of landfill equipment, together valued in excess of i million doSlars are being phased-out tCocnpactor, Doaer, sad Scraper/Pan). The rstaaining equipment are assigned to C&D disposal, mulch/yard waste, dust control, or White goods and scrip tiro atianageyaeat. The scraper/pan and dozer that are not being replaced will bt utilizQd to perfoz~a closure activities on the site for about a year after the site reaches capacity. 5. At what point was the interim C&D site oa Bubaaks Road abandoned in favor o! a large northern site? A CaD Taak Force was created bar the Landfill. Owners Group sad charged to identify a site, obtain art option ozt the property and, orue it ie deemed permittable by the state, to recomeaead to the three governing bodies that it be purchased b'Y the landfill Fund. The Task Force has identified a site in aorthezn Orange County . 2t has facilitated an option on the property- and is currently having the site evaluated for its riuitab3lity as a C&D disposal facility. In choosing to pursue this site, the Task Force determined that the larger rsorthera situ would provicue ample C34D capacity in a reasonable timeframe without the need for an interim site. There may be some juptificatioa for reconsidering this recoaerendation. Hy our estimation, d~iopcaent of Site #8 IGuesa Raad~ to open is the syriag of 1999, iaclucling additional •quipawnt and personnel would coat approximately $1.3eo.ooo for FY 1999/00. our estimate for developing au iateriaa sitQ on Eubanks eoad, Mith a life of about 21 years is $~jQ,~QQQ for FY 1999/00. This estimate assu~cres that Duke University Would assess either no or a very low gee for granting us buffer easement on their property. This estimate also aasum+es that the Ding groperty will be scqus.red by eminent domain. Aa additional 11 years of CS~D landfill capacity could bQ gained by acquiring Site 8 sad obtaining the necessary SUP, sad simultaneously acquiring and developing the SubaakS Road iaterittt site to receive waste beginning next year. The estimated cost of both developing th! interim site and acquiring Site 8 is S~2e_ooo. The advantage of pursuing the interioa site in conjunction with acquiring Site #8 is abtai~ting an additional ii years of capacity at a Iawer initial cost tS920,000 vs. ;1,3ov,00o) thaw only developing Sita #8. This optioA coaceptually~a~eaas that vn would be laadbanking Site #8. Another advantage is that hauler convenience Mould be maintained for another li years. 91e estimate that approximately 70 minutes would be added to the haul time for the users of the Ci~D facility. A third advantage ie that development costs for Site )F8 would be incurred 9-10 years irval now. 22 The disadvgatage is that landbartlcing involve9 BoamB risk of a ru7.e change in the interim period rendering Site #8 aoa-permutable. 6. Sow can community benefits be dealt with in the FY 1999/00 budget? Since thQ final ComaRUUity Benefits Committee Report hae not yet been presented, we are uncertain at to the scope of the benefits to b! recouumuded, the estimated Costs of those benefits, artd the racona~nded source of the funds. it is very likely, however. that the Landfill Pund vrill be propveed as a source of at least a portion of the costa. Due to the fairly rigid schedule for FY 2999/00 Landfill Budg@t agproval, we are unabl• to rocolve all of the funding issues and iacorporste them is aQxt YQaz''e budget. Based oa the broad concern of nrember8 of all three boards regarding the eom~ttnity beaefite, I propose consideration of the creation of a new reserve fund titled "Resfrved for 8ubaaks Community Benefits". I suggest a one dollar increase in the CaA sad MSM tipping fee to begin funding Chia reserve. The projected revcaua mould be $88,000 in 1999/00. Miaiaia]. expenditures are anticipated iu Fiseal 1999/00 regarding comom~aity benefits. 7. How vrill costs aeaociattd with reorganization be handled? The base budget does not include fuado associated with the reorganization of the Solid 1laete Manageaieat Department. ~1e have, however, estimated the cost of reorganization at about $3'x,000. if the BOCC feels confident that reorganization is likely, then we would propose including the estimated coat {$37,000) in the base budget. 2t would be funded through uudesignatad reserves. Alternatively, once the decision is made to ierplemeent reorganization, we could request adoption of a budget amendment. Attachment 23 ORANGE COUNTY BOARD OF COMMISSIONERS A RESOLUTION APPROVING THE PARAMETERS OF THE 1999-2000 LANDFILL FUND BUDGET WHEREAS, in February 1999 the Orange County Board of Commissioners prepared, and disseminated to the Towns of Carrboro, Chapel Hill, and Hillsborough a proposal under which the County would assume overall solid waste management responsibility in Orange County; and WHEREAS, one provision of that proposal was for the Boazd of County Commissioners to review and approve the 1999-2000 Landfill Fund Budget; and WHEREAS, it appears that the County and Towns aze nearing completion of an interlocal agreement that would govern future solid waste management, and which substantially incorporates the points outlined in the Commissioners' February 1999 proposal; and WHEREAS, the Town of Chapel Hill will continue to administer solid waste operations and the Landfill Fund Budget until such time as the County assumes those responsibilities; and WHEREAS, it will therefore be necessary for the Chapel Hill Town Council to adopt a budget ordinance for the 1999-2000 fiscal year that includes appropriations for the Landfill Fund, based on the parameters approved by the Orange County Board of Commissioners; NOW, THEREFORE, BE IT RESOLVED THAT the Orange County Boazd of Commissioners does hereby approve the 1999-2000 budget for the Landfill Fund as prepared by the Chapel Hill Solid Waste Management Department, with the following amendments: • (points to be enumerated here as necessary during 6/1/99 BOCC meeting -for example, any change to proposed $39 tipping fee, appropriation of reserves for community benefits, etc) • ..... • .... This, the 1 ~ day of June, 1999.