HomeMy WebLinkAboutAgenda - 08-30-2000 - 6ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: August 30, 2000
Action Agenda
Item No. 6
SUBJECT: Solid Waste Financing Alternatives
DEPARTMENT: Solid Waste Management PUBLIC HEARING: (YIN) No
ATTACHMENT(S):
8/24/00 Staff Memorandum
INFORMATION CONTACT:
Gayle Wilson, Solid Waste Management
Director, 968-2885
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To discuss solid waste financing issues and provide direction to staff on how to
proceed.
BACKGROUND: The Landfill Owners Group began discussing alternative financing in 1993.
In February of 1998 an Alternative Finance Committee was established as asub-committee of
the LOG. This group was active until January, 1999, but never formally issued a final report, as
the member government focus at that time shifted to resolving matters related to solid waste
organization and management responsibility.
Staff will be prepared to review some of the major points of discussion during the Alternative
Finance Committee's meetings in 1998 and 1999, and to proceed with formal development of a
revised solid waste financing structure, pending Board direction. Staff can also bring back,
when the BOCC's meeting schedule permits, a more detailed report on specific revenue
mechanisms considered as part of the Committee's work.
FINANCIAL IMPACT: There is no direct financial impact on the County associated with a
discussion of alternative financing. However, the issue is critical to the continued financial
viability of the Orange County Solid Waste/Landfill Operations Enterprise Fund.
RECOMMENDATION(S): The Manager recommends that the Board discuss alternative
financing for current and future solid waste programs and services, and provide direction to staff
regarding the production of a report addressing options and recommendations for future solid
waste operational financing. This report would be prepared following a final decision regarding
whether a new C&D disposal. facility in Orange County is to be pursued and the Board's
reassessment and/or confirmation of the County's waste reduction goals and other elements of
the solid waste management plan.
2
MEMORANDUM
To: Orange County Board of Commissioners
John Link, County Manager
From: Gayle Wilson, Solid Waste Director
Subject: Alternative Financing for Solid Waste
Date: August 30, 2000
This memorandum provides supplemental information to aid in the discussion of alternative
financing for solid waste programs and services. Some key issues for discussion are cited
below:
• What is the basis of the funding requirements for current or future activities that likely cannot
be met by existing sources of funding?
• replacement of discontinued C&D disposal revenue (if no new C&D disposal facility
pursued)
• replacement of discontinued MSW disposal revenue once MSW landfill reaches capacity
• funding C&D recycling and waste reduction programs/services
• funding implementation of Solid Waste Management Plan for reaching Orange County
waste reduction goals which presently includes materials processing (MRF), significantly
expanded collection programs, public education, etc.
• expanded public education and outreach programs
• What is the estimated amount of the funding requirements and when will the funding be
needed?
Once decisions are made regarding the issue the key issues of C&D disposal, and the Solid
Waste Management Plan are made, staff can prepare reliable estimates of funding
requirements. Absent these decisions, numerous assumptions must be made in order to
arrive at an "order of magnitude" estimate.
• When would the additional funding be required?
If a decision is made not to pursue a new in-County C&D disposal facility this fall, staff will
need to develop the coming budget with an eye towards replacing approximately $1.2 million
in annual C&D disposal revenue that would not be realized by FY 2002-03. Moreover, if
C&D recycling and waste reduction programs are implemented in FY 2000-01, additional
funding will most likely be required in FY 2001-02.