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HomeMy WebLinkAboutAgenda - 12-06-2012 - 1 ORANGE COUNTY ASSEMBLY OF GOVERNMENTS AGENDA ITEM ABSTRACT Meeting Date: December 6, 2012 Action Agenda Item No. 1 SUBJECT: Solid Waste Updates DEPARTMENT: Solid Waste Management PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: A) Draft City of Durham/Orange County Transfer Station Agreement Gayle Wilson, 919-968-2885 Michael Talbert, 919-245-2308 B) SWAB Memo of November 2010 — Interlocal Agreement C) History of the City/County Utility Commission —Winston-Salem/Forsyth County D) Comprehensive Review of Solid Waste Collection and Disposal Options Report— Town of Chapel Hill — (LINK ONLY) http://chapelhillpublic.novusagen da.com/Bluesheet.aspx?itemid=1999&m eetingid=174 PURPOSE: To provide an opportunity for each jurisdiction to present an update of local solid waste management issues and to initiate discussion or inquiries of selected topics of interest. BACKGROUND: The following updates are provided by each jurisdiction: Town of Carrboro The Carrboro Board of Aldermen recently discussed various solid waste issues at their November 13, 2012 meeting and was provided an update on solid waste operations by staff on December 4, 2012. Information and discussions included: • Update on proposed changes to solid waste collection operations due to closing of landfill come June 30, 1013 - including residential route changes, purchase of new front loader truck for dumpster service, re-configuration of yard waste collection service. • Enter into an agreement for disposal of municipal solid waste (MSW) in early 2012. • Time table for public education on route changes — brochures, on-line information. • Continue collaboration and discussion with Orange County and other Towns on various solid waste topics such as: organics collection and disposal, pay-as-you-throw and other 2 waste reduction strategies, site/construct a new transfer station, new inter-local agreement, re-establishment of the Solid Waste Advisory Board (SWAB). Town of Chapel Hill The Town of Chapel Hill will provide an update on its solid waste issues and operations at the meeting. Town of Hillsborough Hillsborough has indicated that it wishes to become a party to the "Interlocal Agreement Between Orange County and the City of Durham Regarding the Disposition of Municipal Solid Waste Generated in Orange County at the Durham Transfer Station" (Attachment A). Orange County Orange County staff provides updates on the following items: Single Stream Recycling — Starting in July 2012 the County transitioned all recycling programs (except government buildings) to single stream collection in which all bottles, cans, and paper are collected together. Formerly paper was separated in its own bin. Overall, total material tonnage is up compared to last year, notably, curbside recycling tonnage in the three towns has increased over 6 percent. At this point it is difficult to quantify all the efficiency gains from the increased speed and ease of collection; total efficiencies and savings will not be fully realized until roll carts replace curbside bins throughout the towns, resulting in more automated recycling collection. Based on experiences elsewhere, staff anticipates increased participation diverting more waste tonnage from the Durham transfer station to recycling alternatives. Landfill Closure — The Orange County MSW Landfill will close permanently on June 30, 2013. Staff is currently finalizing closure construction plans, finalizing an agreement to haul County waste to the City of Durham Transfer Station, downsizing staff consistent with the reduction in landfill operations and preparing Eubanks Road and Convenience Center facilities for post- landfill operations. Interlocal Agreement with Durham for Use of Waste Transfer Station (WTS) - The County has concluded negotiations with the City of Durham regarding the issue of the Durham WTS and will consider approval of an Interlocal Agreement with Durham at the Board of Commissioners' December 11, 2012 regular meeting. The current draft agreement (Attachment A) can be further revised as necessary should any of the Towns wish to also be authorized to utilize the Durham facility through this agreement. Joining in the agreement with the County does not obligate a Town to deliver waste to Durham, only allows such a delivery at the Town's option. A Town that does not wish to become part of the agreement at this time can request the agreement be amended at some future date. Interlocal Agreement for Waste Management in Orange County — In 1999 Orange County, Carrboro, Chapel Hill and later Hillsborough entered into an interlocal cooperation agreement for the management of solid waste. The Towns' and County attorneys have jointly determined that upon the June 30, 2013 closure of the Orange County MSW Landfill, the Interlocal Agreement effectively terminates with regard to the provisions related to MSW. Given the limited extent to which the current Interlocal Agreement addresses the management of recyclable materials and 3 Construction and Demolition (C&D) waste, it was suggested that if the County and Towns desire some level of cooperation to continue, a new Interlocal Agreement should be developed. In December 2010 the BOCC established a Solid Waste Interlocal Agreement Work Group with appointments made by all four jurisdictions. The Work Group has not been activated in part due to uncertainty with regard to outcomes of the Town of Chapel Hill's comprehensive analysis of its solid waste services and programs (see Electronic Link Attachment D under ATTACHMENTS above). Given that negotiations of a new Interlocal Agreement, should the jurisdictions desire one, could take several months, it may be advisable to immediately reactivate the Work Group (or establish an alternative process) to begin work creating this new document. Department staffs have recently initiated discussions of potential elements of a new agreement and the Solid Waste Advisory Board (SWAB) has previously commented on various occasions (Attachment B). The issue of an Interlocal Agreement was also discussed at the January 26, 2012 Assembly of Governments (AOG) meeting. Solid Waste Authority/Solid Waste Districts - An occasional topic of discussion has been the notion of an alternative organizational structure such as the creation of a Solid Waste Authority, Solid Waste Districts or other local waste management entity that could manage various solid waste functions. Recently the County Manager inquired about Solid Waste Authorities and Solid Waste Districts in North Carolina. In follow-up staff identified two Solid Waste Authorities in North Carolina - Albemarle Regional Solid Waste Management Authority - Perquimans, Chowan, Gates, Dare, Currituck, Hyde and Tyrell (including all of the towns within except Duck) created in 1992 and Coastal Regional Solid Waste Management Authority — Craven, Carteret and Pamlico, created 1990. The SWAB received a presentation in 2010 from Ms. Kara Millonzi, Associate Professor of Public Law and Government with the UNC School of Government, on the issue of Solid Waste Authorities in North Carolina. With regard to Solid Waste Districts staff was unable to locate any active Districts. Winston- Salem has incorporated solid waste operations into the Winston-Salem Public Utilities Commission and Forsyth County participates. This is an unusual situation in North Carolina as far as can be determined. Originally this Commission (1976) dealt only with water and sewer. Solid waste management was added in 1990. North Carolina General Statute 160A-462 — See Attachment C for history of the Commission. Solid Waste Advisory Board — The SWAB, as defined in the Interlocal Agreement for Solid Waste Management in Orange County, consists of eight members with two each representing each of the four partner jurisdictions. At present only three members are actively appointed, two representing the Town of Chapel Hill and one representing the Town of Hillsborough. If the AOG believes there is still work to do for the SWAB, then discussion of specific potential work tasks or a mission and filling of vacancies should ensue. Alternatively, an AOG consensus could be that SWAB activity should be suspended until if/when a new advisory board is created or the current SWAB reactivated through a new Interlocal Agreement. Solid Waste Convenience Center Upgrades — The BOCC has authorized a major modernization/upgrade of the Walnut Grove Solid Waste Convenience Center as a first step in eventual improvements to all five solid waste convenience centers. These improvements conceive of creating two centrally located District Centers (Walnut Grove and Eubanks) which would have extended hours of operation and a wide range of services to include Household 4 Hazardous Waste, expanded salvage sheds, food waste/cooking oil recycling and various other new and improved recycling opportunities. Neighborhood Centers would have slightly reduced hours of operation and more limited services. All would utilize compaction for more efficient hauling and be paved for a more sanitary and aesthetic resident experience with more user friendly and safer waste/recycling receptacles. Roll-Carts to Curbside Programs — The County has postponed the acquisition and distribution of roll carts in the Urban Curbside Recycling Program in the three Towns, pending a decision of the Town of Chapel Hill to continue partnering with Orange County with regard to existing and future county-wide recycling and waste reduction programs. Assurance of the Town's continued participation could be included in a new Interlocal Agreement to allow this investment in carts to proceed. In the event that finalizing a new Interlocal Agreement is likely to take several months, it may be possible for the Town Council to adopt a resolution of intent to allow the County to proceed toward roll cart implementation more quickly. Once the BOCC is ready to proceed, the roll carts will be acquired concomitant with a Request for Proposals for the collection service contract. FINANCIAL IMPACT: There are no financial impacts related to the presentation of solid waste updates or general discussion of solid waste services, facilities or programs. RECOMMENDATION(S): The County Manager recommends that the Boards receive the updates and discuss issues, options, needs and processes relative to addressing current and future solid waste management matters in Orange County. 5 Attachment A Interlocal Agreement Between Orange County and the City of Durham Regarding the Disposition of Municipal Solid Waste Generated in Orange County at the Durham Transfer Station THIS AGREEMENT, made this day of , 20_ between the City of Durham, North Carolina ("City"), a North Carolina municipal corporation, of Durham County, North Carolina; and Orange County ("County"), a political subdivision of the State of North Carolina, for the disposition and funding responsibilities related to municipal solid waste, as that term is defined in North Carolina General Statutes Section 130A-290(a)(18a) ("MSW"), generated in Orange County and delivered to the City of Durham owned and operated waste transfer station ("Station"). WITNESSETH WHEREAS, the County and City are public bodies, politic and corporate, under the laws of the State of North Carolina and are vested with the power and authority to operate solid waste disposal facilities for the benefit of the public and are authorized by Article 20 of North Carolina General Statutes Chapter 160A to enter into this Interlocal Agreement ("Agreement"); and WHEREAS, the County owns and operates a solid waste landfill affording services to all residents of Orange County and the City operates its Station for the principal benefit of City residents; and WHEREAS, the County-owned landfill is scheduled to close in June of 2013 thus creating a need for County to find a suitable means of disposing of MSW generated in Orange County; and WHEREAS, the County and City (which hereinafter may be referred to jointly as the "Parties" and individually as "Party") acknowledge that City has the available capacity at the Station to dispose of MSW generated within and by County. NOW, THEREFORE, in consideration of the foregoing and on mutual promises and obligations set forth herein, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. TERM a. This Agreement shall commence on the date set out above and shall continue through June 30, 2018. b. This Agreement may be renewed beyond June 30, 2018 upon written agreement of the Parties. Page 1 of 4 6 2. MATERIALS DISPOSED a. County will transport to the Station only MSW. b. With the exception of incidental amounts, the following materials will be segregated from the waste stream and continue to be processed in Orange County: Construction and Demolition waste; tires, White Goods; Yard Trash; electronics, and Recyclable Materials,. c. County will commence delivery of MSW to Station on or about July 1, 2013, and shall continue to do so per this Agreement, except as otherwise provided herein. d. Definitions found in North Carolina General Statute 130A-290(a) shall apply when those terms are used in this agreement. 3. FEE AND PAYMENT a. County will pay the City's per ton tipping fee ("Fee") for County MSW transported to and disposed of at the Station, which is currently $42.50. b. City shall generate and maintain an accurate account of County MSW load deliveries to the Station. City shall invoice County for MSW loads generated by County monthly. c. Upon receipt of an invoice for MSW loads, County shall pay such invoice within 30 days. 4. CAPACITY AND FEE MODIFICATION a. The Parties acknowledge that the Station currently disposes of approximately 475 tons per day of MSW and the Station has a facility design capacity of 1,100 tons per day of MSW. b. The Parties agree that County currently disposes of approximately 200 tons per day. Pursuant to the terms of this Agreement City will accept approximately 200 tons per day from County. c. The Parties acknowledge the Fee may be modified by the City Council at any time. City shall provide County ninety (90) days advance notice of any increase in Fee. 5. DELIVERY SCHEDULE a. Station currently receives MSW loads Monday through Friday, 7:30 a.m. to 4:30 p.m. and Saturday. 7:30 a.m. to 12:00 p.m. County shall ensure that MSW loads generated by County are delivered to Station during its regular hours of operation. b. Should County be unable to reasonably deliver MSW loads only during Station's regular hours of operation, County may request City expand its Station hours to accommodate County's needs. Should such expansion of Station hours be reasonable and feasible City shall make such expansion. Page 2 of 4 7 6. ADDITIONAL PARTIES a. The City and the County anticipate that multiple Orange County municipalities may desire to participate in this agreement. b. Should Chapel Hill, Carrboro, or Hillsborough desire to be added as a party to this Agreement and the City agrees to do so, an amendment to this agreement shall be executed between that town and the City. The County hereby consents to such amendment. Should another party join, the definition of "Party" and "Parties", above, shall be read to include the additional town. A separate financial account will be generated for each town by the City. 7. ORDINANCE ENFORCEMENT a. City shall not be responsible for enforcing any Orange County Ordinance. Any MSW load delivered to Station shall be presumed to be in compliance with County Ordinances. b. County shall enforce its ordinances with respect to MSW within Orange County or at the Station upon loads originating within Orange County. Such enforcement activity occurring at Station shall involve County enforcement personnel and shall not interfere with Station operations. 8. AMENDMENTS AND NOTICES This Agreement may be amended and/or renewed by mutual written consent of the Parties. Any notice required or authorized by this Agreement shall be delivered by certified or registered mail, return receipt requested to the following: If to County If to City Orange County City of Durham County Manager City Manager P.O. Box 8181 101 City Hall Plaza Hillsborough, NC 27278 Durham, NC 27701 9. TERMINATION a. This Agreement may be terminated by the Parties hereto upon one year advance notice by either Party or at any time by mutual written agreement of the Parties. b. Should City increase the Fee by ten percent (10%) or more in any one annual period, then upon sixty (60) days' notice to City, County may terminate this Agreement without penalty to County. Page 3 of 4 8 10. INDEMNIFICATION No party hereto, together with its respective officers or employees, shall assume any liability for the acts, omissions, or negligent or intentional conduct of the other party, its officers or employees. 11. ENTIRE AGREEMENT This Agreement constitutes the entire Agreement of the Parties hereto and is effective the date first above recorded. City Manager Chair, Board of Orange County Commissioners ATTEST: ATTEST: City Clerk Clerk to the Board This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. Orange County Director Finance and Administrative Services Page 4 of 4 Attachment B 9 Memorandum To: Board of County Commissioners From: Jan Sassaman, Chair Solid Waste Advisory Board Subject: SWAB Interlocal Agreement and Alternative Technology Framework/Timeline Recommendation Date: November 11, 2010 The Solid Waste Advisory Board (SWAB)has been discussing issues concerning the future of the Interlocal Agreement (IA) as well as a possible response to the Alternative Technology Timeline and framework request made by the BOCC in item 4 of its motion, adopted December 2009, to utilize the City of Durham transfer station as a disposal site when the Orange County-owned landfill ceases to accept waste. At the SWAB's November 2010 meeting, general consensus was reached on a number of points that are presented below. These issues will probably be further discussed at the December SWAB meeting. In addition, the SWAB has identified those elements that we believe should be incorporated/included in any new Interlocal Agreement for Solid Waste Management for Orange County. Key Points from SWAB • Discussions on revising the current IA should proceed at a higher political and managerial level than the SWAB. We believe that a group of representatives from the four jurisdictions should be formed immediately to begin active discussions on the political and functional possibility of a future partnership for local solid waste management. These discussions could even consider the notion of a public solid waste authority. The SWAB feels strongly that the organizational issue and what the governments will do with their waste during and following a possible 3-5 year interim period following landfill closure are inextricably related and need to be addressed with all due haste. • The governing bodies should move deliberately as the 3-5 year period will pass very quickly and a goal of not only deciding what to do and how to do it, but of actually implementing a solution, would be in our mutual best economic and environmental interests. In fact, with staff continually endeavoring to extend the life of the landfill, a timely organizational and operational resolution could avoid or at least limit the interim option and related expense of hauling to the City of Durham. In other words, the process for post-Durham transfer station waste management should begin immediately, along with the organizational discussion. 10 • The range of technical, economic and risk-related issues surrounding a thorough and effective consideration of alternative technologies for solid waste may require far more resources and expertise than the SWAB has available. If the Board wishes the SWAB to remain lead entity in conducting this evaluation, a clear and detailed set of parameters and criteria for evaluating technologies needs to be provided. • SWAB also felt that many of the issues associated with alternative technologies (i.e. those associated with emerging thermal technologies for waste conversion) had already been presented to the Board in the GBB report of August 2008 and those technologies that would incorporate multi jurisdictional actions were beyond the scope of the SWAB as we understand it to be and would, furthermore, be dependent upon any mutual agreement of Orange County and the individual municipalities that would be affected. • Based on the inter-dependence of the IA and consideration of alternative means to dispose of solid waste, and the imperative to find a workable solution for Orange County and it's municipalities, SWAB agreed that an interim Memorandum of Understanding among the current IA signatories to agree to work together to find a solution and in the interim to commit to use of the Durham transfer station, should that become necessary, was an important initial step in this process. • Mr. John Stephens of the UNC School of Government might be considered to provide professional assistance with process issues related to organizational discussions and/or long-term waste disposal decisions. Mr. Stephens's areas of expertise are Inter-agency and public policy dispute resolution; citizen participation; group collaboration and facilitation. Recommended Elements of a New Interlocal Agreement The SWAB has reached consensus with regard to the elements that should be included/incorporated into any new IA. The SWAB concept is for a comprehensive solid waste management agreement that builds on current successes, improves existing shortcomings and provides a means to deal with future challenges. • Financial responsibility for closure and post-closure of landfills —Identifies and clarifies financial responsibilities. • Provision of storm debris management/processing—Provides for effective ongoing emergency storm debris management. • Provision of yard waste management/processing—Continues and encourages responsibility for improvements in organics management. 2 11 • Greene Tract issues -Addresses as necessary any remaining issues pertaining to the County-owned 60 acre portion of the Greene Tract, including enterprise fund reimbursement. • Solid waste transfer and disposal—Assigns responsibility and accountability for providing environmentally responsible and economically viable/cost-effective waste disposal solutions, involving other jurisdictions when feasible/beneficial and providing opportunity for meaningful public input. • Local government solid waste advisory body—Necessity of a permanent advisory body to represent citizens and the governments in local solid waste matters. • Solid Waste Collection systems in Orange County, including Convenience Centers - Consideration of cooperation, collaboration and/or consolidation of waste collection operations among the jurisdictions. • State waste planning and plan preparation/coordination—Clarifies centrally managed and coordinated State planning and reporting responsibilities. • Provision of recycling and waste reduction services/programs —Continue County leadership in recycling and waste reduction services, facilities and programs. • Long-term management of solid waste enterprise fund and programs/facilities— Maintain system wide management of facilities and continue enterprise fund financing utilizing diverse income streams, examples of which may be user fees, tipping fees, household fees, recyclable material revenues, etc. SWAB Recommendations SWAB recommends that the BOCC initiate conversations with the other IA signatories and other potentially interested parties (such as the University of North Carolina at Chapel Hill)in order to begin the process of modifying the current IA or developing a new IA that is responsive to the present solid waste priorities of Orange County and its municipalities. SWAB further requests clarification from the BOCC regarding the Board's request for a framework and timeline for evaluating alternative technologies in terms of the scope of inquiry and role of SWAB as noted in our "Key Points" enumerated above. We remain committed to assist you in these matters and we look forward to taking these next steps, especially as the Solid Waste Plan Draft has been completed and provides a continued framework for continuing local dialogue for future solid waste handling and disposal for Orange County. 3 12 Attachment C A HISTORY OF THE CITY/COUNTY UTILITY COMMISSIOIN WINSTON-SALEM / FORSYTH COUNTY 1994 (Amended 2009) Written and Researched by: Bridget Tatazona, Utilities Division Intern Edited by: Mylinda Jacobsen and Teresa L. Lockamy, Utilities Administration Amended by: Carolyn Smith David Saunders 13 FORWARD (Written in 1994) The following pages document the history of the City/County Utility Commission of Winston-Salem and Forsyth County. It begins with the formation of the Commission in 1976, describing events and individuals who have contributed to its creation and growth. What this glimpse does not capture is the dramatic sense of empowerment to staff members by the Utility Commission. In the early days of the Commission, I was a frequent visitor to John Watlington's office where he so clearly stated the expectations he had for the Commission. His confidence, trust and support were very clearly given. Although not spoken, it was just as clear that failure was not an option. Other commissioners, especially that first group of committee chairmen, were smart, hardworking business people who made tough decisions which created the opportunity for us to accomplish heights beyond our expectation. It is this contribution by former Utility Commission Members that has positioned the organization to be one of the few AAA bonds rated public utilities in the United States. This community is indebted to those members who have given their energy and commitment to create the successful organization we have today. Moreover, the staff is grateful for the leadership provided by former Commission Members, as well as their contributions to staff's professional development. It is important to appreciate the legacy inherited from those who worked so diligently to build a solid foundation for the City/County Utility Commission. It is equally important to appreciate today's Commissioners who continue the pursuit of excellence. P. W. Swann Assistant City Manager/Public Works 14 TABLE OF CONTENTS Page No. I. Executive Summary 1 II. Introduction ... 3 III. Murmurs of Consolidation 4 IV. Consolidation Agreement .. 7 V. Milestones .. 8 VI. Legacy of the Utility Commission 11 VII. Financial Success 12 VIII. Future Plans 13 IX. Conclusion 14 X. Appendix 15 XI. Bibliography 17 15 EXECUTIVE SUMMARY 1778 — 1994 In 1778, the Village of Salem installed 332 wooden rods of water pipes. The cost of these pipes was approximately $2,000.00 and the average citizen compensated the village at a rate of 9 pence per four weeks, regardless of the usage. Later, these wooden pipes were replaced with clay and still later the pipes were replaced with iron and a cistern in an attempt at providing the best possible service. This glimpse of the area's oldest utilities management shows how service was a primary issue for local governing officials. The desire to serve constituents effectively and efficiently was an important value back in 1778 that remains today. By the mid 1970's, City of Winston-Salem and Forsyth County Officials were faced with considerable water and sewer service challenges. Thus, consolidation of the two separate water systems became an option to consider. Beginning in the mid 1960's, City and County leaders begin talking about consolidation. This need was confirmed by an engineering firm, Piatt and Davis, who was hired to review the situation and the demographics. They recommended that all water and wastewater services be placed under a single authority that would not necessarily be identified with the county or a municipality. From this recommendation, committees were formed but talks stalled until late 1973 when a new committee was established. This group was faced with the subject of timing, because by then, there was no doubt that consolidation would occur. Discussions continued through various committees and negotiations on specify took some time. In April of 1976, an abruptly called special meeting brought the issue to a close. Consolidation was approved, albeit by a very narrow margin. Along with consolidation came provisions such as the following: 1) the facilities would be owned by the City, 2) the City would pay the utility debt of the County, 3) the City would provide water and sewer services to the consolidated area, 4) utilities would operate on an enterprise fund, and most importantly, 5) the formation of the City/County Utility Commission. Soon after its formation, the Commission had to deal with many major projects that soon became milestones for the organization. The first major project was the 201 plan. This plan was in response to EPA mandated legislation that required public utilities to better clean the wastewater being discharged into raw water sources. Unlike many other public utilities, the Commission had been studying this issue and was able to submit its 201 plan in a timely fashion. Consequently, the City/County Utility Commission received a grant from the EPA which paid for 75% of the $70 million environmental improvements. These included sewer line and wastewater plant improvements, construction of new lines, construction of the Muddy Creek Wastewater Treatment Plant, and a regional laboratory and maintenance building at the Archie Elledge Plant. Another milestone came in 1990 when the City/County Utility Commission assumed responsibility for the Solid Waste Disposal Management Program. A Citizen Task Force was formed and based on their recommendations, the City/County Utility Commission began to operate a comprehensive Waste Management System that included aggressive long-term plan for waste disposal and funded curbside recycling for the City of Winston-Salem as well as many other recycling/waste reduction programs. 1 16 Historically, the City/County Utility Commission has had the privilege of excellent leadership that takes their volunteer positions very seriously. In response, the Utility Commission Staff has acted with a willingness to serve the Commission conscientiously. The Staff and Commission Members have combined their efforts to produce a successful organization that has been beneficial to the entire community. Indeed, many industrial customers such as R. J. Reynolds, Lee Jeans, Corn Products and Stroh Brewery have benefited from the sound management principals of the Utility Commission. The Commission has governed the Utilities Division in a manner that has allowed the unit to grow. Consequently, the Division has plans for the future with many of the projects underway. In the past three decades, the Utility Commission has added one new wastewater treatment facility; the Lower Muddy Creek Wastewater Treatment Plant performed two major upgrades to the Archie Elledge Wastewater Treatment Plant, and is in the process of constructing a totally new preliminary treatment facility and influent pump station there. The Utility Commission has also added one new raw water supply intake on the Yadkin River and 25 Million Gallon per day water treatment facility, the Northwest Water Treatment Plant, The list of other projects includes the refurbishment the R.W. Neilson Water Treatment Plant, and completely replacing the RA Thomas Water Treatment Plant near downtown Winston-Salem. In addition to these major plant facilities, the Commission has provided for the long term management of its wastewater treatment residuals by implementing a phased approach to biosolids management, culminating in the construction of a biosolids dryer facility in 2008 that will meet the systems biosolids disposal needs for the next 20 years. Faced with aging infrastructure in the water distribution and waste water collection piping systems, the Utility Commission began focusing on pipeline rehabilitation in 2004. In the past 5 years, $ 27,800,000 has been invested in pipeline rehabilitation to insure the longevity of the systems for future generations. The Solid Waste Disposal Program has performed long range master planning for Forsyth County and all 8 municipalities within the county under the guidelines of the North Carolina Division of Environment and Natural Resources for 10 Year Solid Waste Management Plans. In performing its duties to provide long range planning and solid waste management, the Utility Commission has served its neighbors in a regional capacity. Beginning in 1999 it expanded the Hanes Mill Road Landfill providing an additional 30 years of landfill capacity for the local service area. In addition, the Commission has built and operated the Old Salisbury Road Construction and Demolition Landfill on the southern reaches of the service area, and has acquired land to provide additional capacity on the northern side of the service area. The City/County Utility Commission is an organization with the vision and leadership dedicated to service the Winston-Salem and Forsyth County community well into the future. The Commission is committed to professional management of environmental, financial and human resources. 2 17 INTRODUCTION "January 5, 1778 —Br. Triebel and Strehle went today to the English settlement to cut logs suitable for water pipes". (Neilson, 35) In December of the same year the Village of Salem installed 332 wooden rods of water pipes, costing over $2,000.00. The average citizen of Salem was expected to help with the upkeep of this system by paying 9 pence per 4 weeks, regardless of how much water they used. As the town grew, so did the demand on water, which resulted in the need for better pipes. In the book, A Historical Account of the Water Supply Systems of Salem and Winston 1752 to 1913, these are numerous diary entries that illustrate the quality of pipes during that time. One entry reads, "May 31, 1791... President Washington visited out water works and gave his approval of them and the service it gives". (Phillips, 7) Although the water system worked, there were problems. The major problem was the short ground life the wooden logs had, which resulted in leaks and the lack of water pressure or the delivery of water at all. By 1806, Br. Crist suggested that clay pipes should be used to replace the wooden ones. There is evidence that clay pipes were used but an extensive replacement program did not occur at that time. (Phillips, 8) In 1828, a Committee was established to examine the water shortage and how water could be distributed more effectively. The committee's report, "proposed to use the free spring at Br. Theodore Shulz water-works leading the water to his line and Br. Benzion's bottom garden and there the water can be taken in a direct line to a point in front of the house of Theod. Shulz, the highest place in town, and can from there be distributed. Iron pipes to be used from the wheel to the cistern" (Note: a cistern is an artificial reservoir for storing liquids, especially water). (Phillips 9) This brief look into the earliest form of public utilities management for the local community gives some insight into what officials of the City of Winston-Salem and Forsyth County faced in the 1970's when considering consolidation of the County's and City's Water System. Like the early citizens of Salem, City and County officials both wanted to serve their communities well in service and in cost, and so the seed of a consolidated system was sown in Forsyth County in the late 1960's. 3 18 MURMURS OF CONSOLIDATION County and City leaders began talking about consolidation as an alternative to the two existing Public Water Systems. The need for consolidation was confirmed by an Engineering Firm in 1965, Piatt and Davis & Associates of Durham, who was hired to review the projected population growth in the area. The Engineering Firm concluded "that the nature of Forsyth County and its growth pattern are such that possibly another approach would be preferable to the present methods of providing services, and that all water and wastewater services be placed under a single authority". (Piatt & Davis, 6) Piatt and Davis further recommended, "The authority would not be identified necessarily with the County or a Municipality, but could be a separate entity". It was the Piatt and Davis report that generated initial discussions of the City/County Utility Commission. From this recommendation, a Committee was jointly established by Fred D. Hauser, who was then Chairman of the Forsyth County Board of Commissioners, and the Mayor of Winston-Salem, M. C. Benton. Both the City and the County placed four individuals on the Committee. (Sparrow, 12-10-65) the ninth member was Kernersville Mayor Roger Swisher. The County appointees were G. S. Coltrane, G. G. Reynolds, County Manage Robert Hauser, Jr., and Purchasing Agent and General Director of the County James B. Nowell. The City appointed members included Aldermen Floyd S. Burge and C. C. Ross, City Manager John Gold, and Superintendent of City Water Stanford E. Harris, Jr. The Goals for this group were to assess the consolidation proposal, to examine what sort of governing "authority"would benefit Forsyth County and actually determine, if at this time, a merger was feasible. (Sparrow 12-10-65) After six months of debate and discussion, City Manager John Gold made a controversial remark that "the County should build a Water System so that they have something to consolidate". (Winston-Salem Journal 3-22-66) this remark proved to be a splinter in the City's side for quite some time. The controversial remark was perhaps spoken in haste, but nonetheless had some validity. The County was undeveloped with sparse water lines. The goal for the County was to develop the water lines and then tap into the City's system. 4 19 The talk of consolidating the City and County Water Systems stalled until late 1973. An article appeared in the Winston-Salem Journal on November 29, 1973 entitled, Water/Sewer Study Starts Friday. The article announced a new committee. Members to the committee were appointed as before, with fair representation from both the City of Winston-Salem and Forsyth County. Appointed by the Winston-Salem Board of Aldermen were Director of Hanes Dye and Finishing Company, Joel A. Weston, Sr.; Vice President of Wachovia Mortgage Company, Sterling A. Spainhour; and the Manager of Westinghouse, Alan J. Melinger. The Forsyth County Commissioners appointed Director of Western Electric Company, H. J. Shultz; a Lumber Company Executive from Rural Hall, Burke E. Wilson; and Fred D. Hauser, a former Chairman of the Forsyth County Board of Commissioners. (Hore, 12-4-73) The final member of the group was George S. Coltrane of Kernersville. Fred Hauser was chosen to serve as the Chairman of the group because he had dealt with the consolidation talks in 1965. This group was faced with the subject of timing of consolidation, since by this time; there was no question that it would occur. (Hoar, 11-29-73) Discussions regarding the details of the consolidation agreement bounced through various committees of both the City and County for several months. Negotiations on specifics took some time. Discussions of a consolidated water system came to a head at an abruptly called special meeting of the Forsyth County Commissioners and the Winston-Salem Board of Aldermen in April of 1976. The meeting was called to vote on a final agreement, designated to create a unified Public Water System. The Commissioners and the City Aldermen voted in separate sessions, with the agreement being passed in a 3-1 vote and 5-4 vote, respectively. With the close vote on the consolidation issue, it quickly became apparent that opposition to some critical sections of the agreement still existed for both elected officials and citizens alike. This lack of agreement came as a surprise to many, because all involved had previously appeared satisfied with negotiations. One figure in particular, Alderman Richard N. Davis, was a vocal opponent. He argued that the terms of this agreement had been changed to the City's disadvantage and the Aldermen had no control over what would be decided. He preferred an earlier proposal that gave the Board of Aldermen final approval over all actions of the appointed commission. (Hoar and Slater, 4-21-76) 5 20 Concerns were also expressed by a number of citizens present at the special meeting. Their concerns were of a slightly different interest. One issue expressed was that an appointed committee would not listen to the people or care about how issues affected the community. Others worried that the Board of Aldermen and the County Commissioners would not take their job of appointing outstanding community leaders to the consolidated commission seriously. Citizen Sue Drummond, also wife of County Commissioner David L. Drummond, was quoted by the Winston-Salem Journal at the County Commissioners meeting as saying, "The Board, including my husband, does not have a good record of appointing people to various citizen's Boards and Commissions. Nearly all appointees are Democrats, most are men, and many are not qualified". Mrs. Drummond went on to say that she has done some eavesdropping and has heard frantic last minute calls among the Commissioners trying to fill appointed positions. She asked, "Will the Utility Commission be any different?" (Hoar, 4-21-76) In spite of the controversy, in the spring of 1976, the City of Winston-Salem and Forsyth County followed in the footsteps of other North Carolina Cities, such as Greensboro and Charlotte, and created a consolidated City/County Water and Wastewater System. The consolidation was officially effective July 1, 1976. (Hoar, 4-21-76) 6 21 CONSOLIDATION AGREEMENT The agreement to consolidate the public utility facilities of Winston-Salem and Forsyth County contained several important provisions. Among them were: 1) both parties agreed that all facilities would be owned by the City, 2) the City agreed to pay the utility debt of the County, 3) the City agreed to provide water and sewage services to the consolidated area, and 4) all water and sewage operations would be financed through a separate utility fund. A fifth, and perhaps the most significant aspect to the merge, was the formation of the City/County Utility Commission (CCUC). Mr. William Hobbs, a former City/County Utility Commission Member, explained the main goal of Commission Members was to oversee the successful merge of water services, and make a unified system which was efficient in operation and cost. (Hobbs, Summer 94) The first 11 members appointed were: Thomas H. Davis, Flake F. Steele, Jr., William D. Hobbs, William H. J. Schultz, Willie E. Grissom, Leonard E. Warner, Jack L. Covington, Martha Lowrance, G. S. "Sol" Coltrane, Joe L. Pinnix, and John F. Watlington, Jr., who served as Chairperson until his retirement in 1986. (City/County Utility Commission Minutes, 37) The City Aldermen and County Commissioners each appointed five members, with the eleventh member being appointed by the Mayor and the County Commission Chairperson. This member would serve as the City County Utility Chairperson. Along with the formal provisions, there was also an understanding that the City/County Utility Commission would be run as a private enterprise. Therefore, the people placed on the Commission would represent no special interest groups, and all operations were to be financed by revenue generated from the services provided, not tax money. (Winston-Salem/Forsyth County Utility Commission) 7 22 MILESTONES Soon after its formation, the Utility Commission embarked upon the most significant infrastructure capital building project to date. In 1972, federal legislation was passed that required public utilities to better clean the wastewater being discharged into rivers, streams or other raw water sources. The Federal Government offered grant money administered by the Environmental Protection Agency to assist with this point source clean up. To qualify for the grant money, each Public Utility had to conduct an extensive study to determine specific problems, methods to remedy them and a timetable for completion. This document became known as a 201 plan. Fortunately, the Staff of the Utility Commission had already completed this research and was all but ready to process. However, at that time, the Utility Commission had insufficient funds to pay for all the projects needed. Because many other North Carolina Public Utilities had not prepared their 201 plans in time, the City/County Utilities Division was able to submit its plan and receive $70 million in EPA grant money. The EPA grant money paid for 75% of the designated environmental improvements, leaving the State and City/County Utility Commission to pay the remaining 12.5% respectively. The $70 million improvements were spent on the following projects: • $7.2 million Connected Town of Kernersville's Sanitary Sewer System Archie Elledge Wastewater Treatment Plant. • $5.5 million Major improvements at the Archie Elledge Wastewater Treatment Plant. • $2.0 million Construction of Regional Laboratory and Maintenance Building at Elledge to serve Wastewater Treatment Plants. • $2.3 million Inspections and repairs of existing sewer lines to reduce infiltration and inflow. • $3.0 million Construction of new sewer lines. • $50.0 million Construction of the Muddy Creek Wastewater Treatment Plant. (Hoar, 2-24-82) 8 23 As the era of EPA funding closed out on the 1980's other funding sources were identified by the Utility Commission. In 1988, the Utility Commission began using revenue bonds to fund most of its Capital Improvement Needs. Many other projects that have been constructed by the Utility Commission and funded by Revenue Bonds issued by the City of Winston-Salem include: • $30.7 million The 1991 odor abatement project at the Elledge Waste Water Treatment Plant • $15.3 million The 1996 upgrade of the Lower Muddy Creek Wastewater Plant • $3.0 million The 1998 Phase 1 modernization of the R W Neilson Plant • $84.4 million The 2002 25 MGD North West Water Treatment Pant, Dam and Intake • $6.5 million The 2003 Biosolids dewatering facility • $30.8 million The 2006 Biosolids Dryer Facility • $65.3 million The 2008 replacement of the Thomas Water Treatment Plant • $60.5 million The 2008 relocation and upgrade of the Archie Elledge Wastewater Treatment Plant Headworks 9 24 Solid Waste In the late 1980's, a Citizen Task Force was appointed to weigh the pros and cons of consolidating the City's and County's Solid Waste Disposal Operations into a Single Operation. The 1990 report assessed present and future waste disposal issues, and recommended a Waste Management Plan. The primary outcomes of the Task Force efforts were: • The Technical Sub-Committee made two recommendations; to institute solid waste recycling efforts, and to work on consumer waste reduction. • The Finance Sub-Committee, keeping increased recycling efforts in mind, advised the compensation for public recycling efforts. • The Public Awareness Sub-Committee suggested that a Public Relations Firm be hired to communicate the City's recycling efforts to the public. • The Organizational Sub-Committee made the key recommendation that the "County-Wide Solid Waste Management Authority should be put under the auspices for the City/County Utility Commission" (Report of the City/County Task Force on Solid Waste Disposal p.25). The Utilities Division considered the recommendations of the Task Force and instituted a comprehensive Waste Management Program. This Program included funding a City-Wide Curbside Recycling Program and long-term planning for Solid Waste Disposal in Winston-Salem and Forsyth County. The enterprise operation for water and wastewater proved such a success that it became the impetus for the addition of the Solid Waste Disposal Program as an enterprise fund in 1988 to the City/County Utility Commission's responsibility. 10 25 LEGACY OF THE UTILITY COMMISSION The most significant facet to the City/County Utility Commission's success is the quality of membership, leadership and support the group has been able to acquire. The early Commission Members achieved the goals for consolidation and efficient operation of the Water and Wastewater Systems. The success of this organization can be attributed to the quality of the people that served on the City/County Utility Commission. All members have demonstrated outstanding leadership skills. When the Commission was first formed, the City and County both saw the benefits of appointing people who has venerable personalities and who could work in a team effort. The Senior Staff Member to the Utility Commission, Assistant City Manager/Public Works, Mr. P. W. Swann, emphasized the importance of obtaining community leaders to serve on the Utility Commission; "they give instant credibility that brings honor to the Commission". (Swann, 94) This frame of mind continues to draw people to serve on the Commission. No person has turned down the opportunity to work on the Utility Commission since its formation. When looking at the achievements of the Utility Commission, it is important to highlight the leadership of Mr. John F. Watlington. He is the former City/County Utility Commission Chairperson who served for ten years and made a bold impact during the formative years of the organization. Mr. P. W. Swann, Assistant City Manager/Public Works, recalled the impact Mr. Watlington had on people and situations, "Mr. Watlington made it clear that the City/County Utility Commission would be run according to the original provisions and as a private enterprise, minus political interference". This leadership also allowed a highly effective support staff to evolve. Dr. Manson Meads, who succeeded Mr. Watlington as Commission Chairperson, emphasized the significant support the Commission received from Assistant City Manager/Public Works, Mr. P. W. Swann and Utilities Superintendent, Mr. Thomas Griffin. The Staff quickly discovered how seriously the City/County Utility Commission members took their volunteer responsibilities, and responded with a willingness to serve the Commission conscientiously. The delicate balance of members and supporting staff has been vital to the success of the City/County Commission. (Meads, Summer 94) 11 26 FINANCIAL SUCCESSES No review of the City/County Utility Commission would be complete without examination of its financial success. Because the Utilities Division was to be operated as an enterprise fund, shrewd business people needed to serve on the Commission. (See Graph 1 & 2) Graph Revenue and Expenses • `�fahf�Revenues 1976 - 1994 ❑�fehre&'ems 40 I I I� 35 50 c 25 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIPOPIIIIIII grim lom loulm 01 0 20 00 1 00 0 00 1 00 0 00 11 g 15 0 limporri Imp la pi 114 Ili 1 I I I I I I I I I 1.0111 I I I 1111 111 1111 II 1111 1 1111 II II I 5 111111111111111111111111111111111111111111111111111111111111111111111111111111111111EMEN 1111111111111 1111111111111 1111111111111 11011, 11111 rn rn rn rn �i �i �i �i � �i � �i �i �i � � � � 0) ion on 2 Operating Revenues Graph and Expenses oOpe,ating Expenses �o 1995-2009 I N 5° 001111.0011100010100000000010000000000000000000000000000000000001111111111111111111111111 ill ill ill ill 0101 O :00 0 IibIiI: I I i71011001101 100 01 01 1 01 01 01 1 1 _ [ 12 27 One should not neglect the financial gains the extraordinary management of the City/County Utility Commission brought to the Piedmont. The Winston-Salem/Forsyth County area with its abundant water and wastewater resources is held in high regards throughout the Stat of North Carolina as an example of prudent long range planning coupled with strong financial principles. FUTURE PLANS The City/County Utility Commission has long had the reputation as an efficient operation with a long-range vision. Future plans for the water and wastewater system include maintaining a competitive water rate in the state, sustaining the goal of providing the best possible service to its more than 120,191 customers and continued investment in the critical infrastructure of water and sewer lines and treatment plant facilities. In order to collect and distribute wastewater and water throughout the system, the maintenance of lines must be managed. Since 1976, the total miles of sewer and water lines have grown to 1,046 miles and 2,088 miles, respectively. The solid waste disposal program is has sufficient capacity to meet the community's solid waste management needs well into the future. The program must find ways to meet the challenges of funding its core responsibilities, and continuing to provide excellent management oversight into the valuable waste reduction and recycling programs needed to ensure sustainability of the regions waste management assets. 13 28 CONCLUSION The City/County Utility Commission has become synonymous with success. The respect the members and supporting staff have earned is based on professionalism and hard work. The best way to summarize the mission of the City/County Utility Commission is found in a speech given by Dr. Manson Meads, who served as Commission Chairperson from 1986-1990. He writes, "First, that, as the utilities system is self-financing, it must be operated as a business with commensurate authority and public accountability, but freed as much as possible from political winds; Second, that it would serve the needs of all of its customers (municipal, corporate, business and individuals) in an equitable and sensitive manner; Third, that it would maintain sound professional management that would seek to give high quality service at the lowest possible cost; Fourth, that it would be proactive in planning and action in anticipation of future needs." (Meads, Summer 94) 14 29 APPENDIX FORMER AND PRESENT CITY/COUNTY UTILITY COMMISSION MEMBERS Toyoko "Toy"Beaty (2005-Present) Bernard L. Beatty (1979-1985) John B. Brady (1986-Present) Herbert K, Brenner(1984-1989) Curtis W. Carpenter (2002-2004) F. Hudnall Christopher(1986-1991) G. S. "Sol" Coltrane(1976) Charles A. Coone(2000-2004) Jack L. Covington (1976-1984) Thomas H. Davis (1976-1985) Brenda B. Diggs (1990-1999) Carmen Elijah (1983-1988) Jack D. Fernery (1976-1979) Lyons Gray (1985-95 and 2002-2005) Willie E. Grissom (1976-1984 and 1988-1998) J. Andrew Hancock(1996-2006) William D. Hobbs (1976-1983) Harold R. Holmes (2007-Present) Janeen Lalik(2009-Present) George L. Little, Jr. (1995-2005) James E. Lowe (2004-Present) Martha Lowrance(1976-1983) Paul S. McGill(2003 -Present) Manson Meads, M.D. (1983-1986) L. Homer Moeller(1990-1996) David Neill (2006-2009) Robert L. Neill (1981-1986) R. Allen Osborne, Jr. (1982-1992) 15 30 APPENDIX FORMER AND PRESENT CITY/COUNTY UTILITY COMMISSION MEMBERS Stephen D. Poe(1996-2006) Joe L. Pinnix, Sr. (1976-1982) John A. Redding, Sr. (1992-2002) Melvin J. Scales (1998-2003) William H. J. Schultz (1976-1981) James C. Schupp (1995-1998) Al H. Seymour (2006-Present) Stephen M. Shelton (2005-Present) G. Dee Smith (1982-1987) Flake F. Steele, Jr. (1976-1982) Donald R. Stewart(2003-2008) J. Hill Stockton (1999-2004 and 2005-Present) Richard Stockton (1985-1995) Paschal "Pat"W. Swann (1997-2007) Raymond D. Thomas (1998-Present) Isaiah Tidwell (1984-1994) Randall S. Tuttle (2008-Present) Leonard E. Warner(1976-1986) Claudette Weston (1986-1998) Paul M. Wiles (1989-1999) A. Tab Williams (1987-1997) L. C. Woolard, Sr. (1998) CHAIRMEN FORMER AND PRESENT John F. Watlington, Jr. (1976-1986) J. Hugh Wright(1998-2007) Manson Meads, M. D. (1986-1990) Paschal "Pat"W. Swann (2007-2009) Christopher J. Chapman (1990-1998) David Neill(2009-Present) 16 31 BIBLIOGRAPHY City Secretary's Office, City/County Utility Commission Minutes, Vol. 1, City/County Utility Commission, Winston-Salem, NC,pp.1-35. City/County Utility Commission Administration Staff, Personal Interviews, Summer 1994. Finance Department, Annual Reports, City of Winston-Salem, NC, 1973-1993. Hoar, Stephen, "Hauser To Head Study Of Water-Sewer Move, Winston-Salem Journal, December 4, 1973. Hoar, Stephen, "More Water Bonds Urged", The Winston-Salem Journal, December 8, 1977. Hoar, Stephen, "The Race Is On For Sewerage Improvement Funds", The Winston-Salem Journal, February 24, 1981. Hoar, Stephen, "Water Sewer Study Names 7th Member", The Winston-Salem Journal, November 30, 1973. Hoar, Stephen, "Water Sewer Study Starts Friday", The Winston-Salem Journal, November 29, 1973. Hoar, Stephen and Paul Slater, "Mayors Vote Clinches Deal", The Sentinel, April 21, 1976. Hobbs, William, Personal Interview, Summer 1994. Meads, Manson Dr., Personal Interview, Summer 1994. Neilson, R. W., History of Government; City of Winston-Salem, NC: All American City, 1766—Bicentennial— 1966, Vol.l p.35. Perry, Rachel, "County Has Model Water-Sewer System After 10 Years' Development". The Winston-Salem Journal, March 9, 1986. Philip, Benbow A., A Historical Account of the Water Supply Systems of Salem And Winston 1752 to 1913 and of Winston-Salem, NC 1913 to 1960, Unknown: Winston-Salem, 1943,pp. 1-22. 17 32 Piatt& Davis and Associates, Study For the County ff Forsyth, NC Concerning Water And Wastewater Facilities", Board of County Commissioners, Durham, NC 1965,pp. 1-15. Staff Writer, "County Wide Water Plan Abandoned", The Winston-Salem Journal, March 22, 1966. Staff Writer, "Officials Discuss County Sewer System", Winston-Salem Journal, January 21, 1966. Swann, P. W., Personal Interview, Summer, 1994. Utilities Division Staff, Final Script for Slide Presentation, City/County Utility Commission, Winston-Salem, NC, February 8, 1990,pp.1-5. Utilities Division Staff, Report of City/County Task Force on Solid Waste Disposal, January 1990. Utilities Division Staff, Winston-Salem/Forsyth County Utility Commission, City/County Utility Commission, Winston-Salem, NC,pp.1-3. Utilities Division Staff, Winston-Salem, Forsyth County Utilities Division Brochure, City of Winston-Salem, NC, April 1991,pp.1-4. 18