HomeMy WebLinkAboutAgenda - 05-20-2014 - 6cORD- 2014 -024
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 20, 2014
Action Agenda
Item No. 6 -c
SUBJECT: Approval of Budget Amendment #8 -A Appropriating Unassigned Fund Balance
from the Solid Waste Enterprise Fund for Additional Landfill Closure Costs and
Purchase of 19,500 Urban Roll Carts
DEPARTMENT: Solid Waste PUBLIC HEARING: (Y /N) No
ATTACHMENT(S): INFORMATION CONTACT:
Gayle Wilson, (919) 968 -2885
PURPOSE: To 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.
BACKGROUND:
Landfill Closure - Based on the June 30, 2013 Municipal Solid Waste closure, the BOCC
approved proceeding with the funding of final closure of the Orange County Municipal Solid
Waste (MSW) Landfill as part of the Fiscal Year 2013 -14 budget process.
Development of landfill closure construction documents was started by the County's engineering
consultant, HDR Engineering, Inc., immediately following the October 2013 receipt of the North
Carolina Department of Environment & Natural Resources (DENR) permit modification approval.
In February 2014, the County advertised Bid Number 367 -293 for the construction project.
HDR Engineering reviewed the submitted bids for conformance with the bidding requirements,
and T &K Construction LLC of Vinemont, AL was determined to be the lowest responsive bidder
for this specialized construction project. The construction bid award of $3,432,142 was
approved by the Board of Commissioners at the April 15, 2014 meeting. The budgeted amount
approved in the Solid Waste Enterprise Fund for Fiscal Year 2013 -14 budget was $3,292,149.
A budget amendment of $443,304 is necessary to cover the additional costs related to the bid
award and to provide for an 8% construction project contingency, bringing the total construction
appropriation to the estimated project budget amount of $3,735,453. This amount is consistent
with the project budget currently stated in the Manager Recommended Fiscal Year 2014 -19
Capital Investment Plan for Fiscal Year 2013 -14.
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% project contingency; and
(2) $1,013,251 to purchase 19,500 roll carts related to the Urban Curbside Recycling
program. The urban 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.