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HomeMy WebLinkAboutAgenda - 04-23-2013 - 6a1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 23, 2013 Action Agenda Item No. 6 -a SUBJECT: Public Hearing to Consider Operational and Funding Options for Orange County's Solid Waste and Recycling Programs DEPARTMENT: Solid Waste /Recycling PUBLIC HEARING: (Y /N) Yes ATTACHMENT(S): 1) General Statutes 153A -421 Regional Solid Waste Management Authorities 2) Analysis of Operational and Funding Options for Solid Waste and Recycling Programs INFORMATION CONTACT: Frank Clifton, 245 -2300 Gayle Wilson, 968 -2885 John Roberts, 245 -2318 Michael Talbert, 245 -2308 PURPOSE: To hold a public hearing to consider operational and funding options for Orange County's Solid Waste and Recycling Programs. BACKGROUND: Orange County is recognized as being number one in the state for waste reduction, reaching 59% of its 61% aggressive reduction. The County is disposing only 0.56 tons /person compared to the base year of 1991 -92, when the disposal rate measured 1.36 tons. In the region, Wake County has achieved a 25% reduction rate, Durham County rate is at 21 %, Chatham County is 37 %, and Alamance County with 26 %. Orange County's 61 % waste reduction goal was adopted in 1997 by the County and by the Towns of Carrboro, Chapel Hill and Hillsborough as part of the County's original Comprehensive Solid Waste Plan. The County is committed to robust public education services and waste reduction programs regardless of the funding options preferred by the Board. The County's Reduce, Reuse & Recycle (3 -R) Fees consists of four annual recycling fees adopted by Orange County in 2004 to fund recycling programs and services that are billed in conjunction with the annual property tax. The fee consists of a Basic Fee ($37 /year) that is charged to all improved properties county -wide and funds various recycling operations such as the county Toxicity Reduction Improvement Program (Household Hazardous Waste, batteries, waste oil, electronics, etc.), recycling drop -off sites, recycling at solid waste convenience centers, education and outreach, enforcement, planning, etc. An Urban Curbside Fee $52/ ear is assessed to improved residential properties within incorporated municipalities and funds weekly curbside recycling service. A Rural Curbside Fee ($38 /year) is charged to residential property in areas of unincorporated Orange County eligible to receive bi- weekly curbside recycling service. Finally, a Multi- family Fee ($19 /year) is charged multi - family units throughout Orange County for multi - family recycling services. See the Attachment 4, Solid Waste Recycling Division Schedule of Revenues and Expenses for Fiscal 2011/2012. Not related to recycling, the County also assesses a county -wide Solid Waste Convenience Center Fee that is billed in conjunction with the annual property tax. The Unincorporated Areas Fee is ($20 /year /Household), Incorporated Areas Fee is ($10 /year /Household), and Multi- family Fee is ($2 /year /multi - family unit). This basic Solid Waste Convenience Center Fee covers a portion of the operating costs of the County's five (5) Convenience Centers. A recent court decision, Lanvale v Cabarrus County, essentially says that where there is no direct statutory authority to levy a fee, a local government cannot levy a fee. Since the Lanvale opinion was issued, Orange County's staff has been engaged in discussions regarding how, going forward, the County can best address the issues created by this action by the Supreme Court. The Supreme Court decision indicates that the Basic Fee is likely consistent with existing law, but the Urban, Rural and Multi- family recycling fees may not be consistent with existing case law. The County Manager will recommend that the Board of County Commissioners cease assessing the Urban, Rural and Multi- family recycling fees beginning with the Fiscal 2013/14 Annual Budget. The County Manager further recommends funding these services for Fiscal 2013/14 only with solid waste enterprise fund reserves in order to allow the Board of Commissioners time to resolve the funding problem. The Rural Curbside program currently is limited to 13,730 households eligible in the unincorporated area of the County. A rural curbside recycling fee is charged to those households where recycling services are made available. These services are provided by County Solid Waste staff. Just 6,000 households lack access to rural curbside service at this time and are not charged the Rural Curbside Fee. Waste collections in unincorporated Orange County are provided by several private haulers, without a County Franchise Agreement, on a voluntary basis to those using the services. The Urban Curbside recycling fee is charged to Chapel Hill, Carrboro and Hillsborough municipal residents by the County for urban curbside recycling services. The services are paid for by Orange County Solid Waste under contract with Waste Industries, Inc. and the towns are responsible for household solid waste within their town limits. The Multi- family Fee is charged to each multi - family establishment in both incorporated and unincorporated Orange County based on the number of residential units for collection of recyclable materials at each of these locations. The multi - family recycling services are provided by Orange County Solid Waste staff. On April 9, 2013 the Board reviewed eight (8) options for Orange County to fund the County's Solid Waste and Recycling Services and eliminated a county -wide Franchise agreement from consideration. The Board instructed staff to repurpose the public hearing scheduled for April 23, 2013 to take public comments on the top three (3) options identified by the Board on April 9, 2013. Attachment 2 provides a detailed assessment of the three (3) options considering the Board's goals and commitment to recycling. Listed below are the (3) options identified by the Board: 1. County -Wide Solid Waste Management Authority Eliminate all 3 -R Fees & Create a County -Wide Solid Waste Management Authority. North Carolina General Statute's 153A -421 (Attachment 1) outlines how two or more units of local government may create a regional solid waste management authority by adopting substantially identical resolutions to that effect in accordance with the provisions of this Article. The K resolutions creating a regional solid waste management authority and any amendments thereto are referred to in this Article as the "charter" of the regional solid waste management authority. Units of local government which participate in the creation of a regional solid waste management authority are referred to in this Article as "members ". The purpose of a regional solid waste management authority is to provide environmentally sound, cost effective management of solid waste, including storage, collection, transporting, separation, processing, recycling, and disposal of solid waste in order to protect the public health, safety, and welfare. 2. (Options 2,3 & 4) Solid Waste Tax Service District Keep the Basic 3 -R Fee and Create a single Solid Waste Tax Service District that would include the Towns (who would be encouraged to join) and the current Rural Curbside Service Area serving 13,730 households. In addition, approximately 2,300 additional rural households (Map Attachment) could be added relatively quickly, without additional resources, due to recently gained single stream efficiencies (leaving only approximately 3,700 rural households outside of the district). Towns that choose not to join would become responsible for their own curbside and multi - family recycling services. Effective date of Tax District would be July 1, 2014. 3. Eliminate Rural Curbside Recycling Keep the Basic 3 -R Fee, eliminate all other 3 -R Fees, and eliminate rural curbside recycling relying on Convenience Centers and Drop- off - sites. Urban and Multifamily curbside recycling would be left up to the Towns. The County could increase the number of Recycling Drop -off- sites, both urban & rural, and increase the Basic 3 -R fee to pay for the operation of the new facilities. FINANCIAL IMPACT: There is no financial impact to the County in discussing funding options for the County's Recycling Programs. There will not be an impact on Solid Waste employees, any reductions in allocated positions to be managed through attrition, retirement and /or placement within Solid Waste. RECOMMENDATION(S): The Manager recommends that the Board hold the public hearing to consider operational and funding options for Orange County's Solid Waste and Recycling Programs and provide guidance to staff for a short -term solution for the next fiscal year and a comprehensive long -term solution for solid waste management practices in Orange County going forward after June 30, 2014. 1. The optimal long -range solution for Orange County in this situation may be the formation of a Solid Waste Management Authority provided for within North Carolina General Statutes. The hurdle to this approach is that at least one of the three primary Towns within the county must also agree to the creation of the Authority. A comprehensive approach to both solid waste and recycling services can then be pursued that is functional and fundable via many various options. Services can be provided by County staff, contracted, franchised, optional or mandatory programs can be developed and /or otherwise formulated to compensate for a transitional process that ensures solid waste management and recycling remain an environmental priority in Orange County. 2. A county -wide Solid Waste Tax Service District approach is the more comprehensive and flexible option if a Solid Waste Management Authority is not considered. It can M provide services via County staffing, contracted, optional or mandatory programs or otherwise formulated approaches to both solid waste and recycling services as long as services are delivered and funded on some basis county -wide in the unincorporated areas of the County and can allow one or more towns to opt into the District. There are challenges and timelines that must be addressed with any of the options considered. Funding constraints do exist for continuation of existing programs beyond June 2014. As difficult as this decision may be, ultimately a change from existing circumstances is required. If any of the variances outlined above under Item #2 (options 2, 3 and 4) Tax Service Districts is pursued, it is recommended that the Board move forward immediately to authorize the creation of the selected tax district approach. The Tax District if created now would not levy the actual tax until FY 2014 -15. Variations of a mix of fees (Basic R Fees) and property taxes within the Tax District could be evaluated over the next twelve months before final decisions are made. Chapter 153A ATTACHMENT 1 Page 1 of 6 5 Article 22. Regional Solid Waste Management Authorities. § 153A -421. Definitions; applicability; creation of authorities. (a) Unless a different meaning is required by the context, terms relating to the management of solid waste used in this Article have the same meaning as in G.S. 130A -2 and in G.S. 130A -290. As used in this Article, the term "solid waste" means nonhazardous solid waste, that is, solid waste as defined in G.S. 130A -290 but not including hazardous waste. In addition to the meaning set out in G.S. 130A -290, the term "unit of local government" means the Eastern Band of the Cherokee Indians in North Carolina. (b) This Article shall not be construed to authorize any authority created pursuant to this Article to regulate or manage hazardous waste. An authority created under this Article may manage sludges, other than a sludge that is a hazardous waste, under rules of the Commission for Public Health and criteria established by the Department of Environment and Natural Resources for the management of sludge. (c) Any two or more units of local government may create a regional solid waste management authority by adopting substantially identical resolutions to that effect in accordance with the provisions of this Article. The resolutions creating a regional solid waste management authority and any amendments thereto are referred to in this Article as the "charter" of the regional solid waste management authority. Units of local government which participate in the creation of a regional solid waste management authority are referred to in this Article as "members ". (d) As used in G.S. 153A- 427(a)(24), the term "transferred" means placed at or delivered to any (i) place normally and customarily used by the authority for the collection of solid waste, (ii) other place agreed upon by the generator or owner of recyclable materials and the authority, or (iii) facility owned, operated, or designated by the authority. (1989 (Reg. Sess., 1990), c. 888, s. 1; 1991, c. 580, s. 2; 1991 (Reg. Sess., 1992), c. 932, s. 4; c. 948, s. 1; 1997 -443, s. I IA. 123; 2007 -182, s. 2.) § 153A -422. Purposes of an authority. The purpose of a regional solid waste management authority is to provide environmentally sound, cost effective management of solid waste, including storage, collection, transporting, separation, processing, recycling, and disposal of solid waste in order to protect the public health, safety, and welfare; enhance the environment for the people of this State; and recover resources and energy which have the potential for further use and to encourage, implement and promote the purposes set forth in Part 2A of Article 9 of Chapter 130A of the General Statutes. (1989 (Reg. Sess., 1990), c. 888, s. 1.) § 153A -423. Membership; board; delegates. (a) Each unit of local government initially adopting a resolution under G.S. 153A -421 shall become a member of the regional solid waste management authority. Thereafter, any unit of local government may join the authority by ratifying its charter and by being admitted by a unanimous vote of the existing members. All of the rights and privileges of membership in a regional solid waste management authority shall be exercised on behalf of the member units of local government by a board composed of delegates to the authority who shall be appointed by and shall serve at the pleasure of the governing boards of their respective units of local government. A vacancy on the board shall be filled by appointment by the governing board of the unit of local government having the original appointment. (b) Any delegate appointed by a member unit of local government to an authority created pursuant to this Article who is a county commissioner or city or town alderman or commissioner serves on the board of the authority in an ex officio capacity and such service shall not constitute the holding of an office for the purpose of determining dual office holding under Section 9 of Article VI of the http: // www.ncga.state.nc.us /gascripts/ statutes /statutelookup.pl ?statute =153a 3/26/2013 Chapter 153A Page 2 of 6 6 Constitution of North Carolina or of Article 1 of Chapter 128 of the General Statutes. (1989 (Reg. Sess., 1990), c. 888, s. 1.) § 153A -424. Contents of charter. (a) The charter of a regional solid waste management authority shall: (1) Specify the name of the authority; (2) Establish the powers, duties and functions that the authority may exercise and perform; (3) Establish the number of delegates to represent the member units of local government and prescribe the compensation and allowances, if any, to be paid to delegates; (4) Set out the method of determining the financial support that will be given to the authority by each member unit of local government; and (5) Establish a method for amending the charter, and for dissolving the authority and liquidating its assets and liabilities. (b) The charter of a regional solid waste management authority may, but need not, contain rules for the conduct of authority business and any other matter pertaining to the organization, powers, and functioning of the authority that the member units of local government deem appropriate. (1989 (Reg. Sess., 1990), c. 888, s. 1.) § 153A -425. Organization of authorities. The governing board of a regional solid waste management authority shall hold an initial organizational meeting at such time and place as is agreed upon by its member units of local government and shall elect a chairman and any other officers that the charter may specify or the delegates may deem advisable. The authority shall then adopt bylaws for the conduct of its business. All meetings of regional solid waste management authorities shall be subject to the provisions of Article 33C of Chapter 143 of the General Statutes. (1989 (Reg. Sess., 1990), c. 888, s. 1.) § 153A -426. Withdrawal from an authority. If the authority has no outstanding indebtedness, any member may withdraw from a regional solid waste management authority effective at the end of the current fiscal year by giving at least six months notice in writing to each of the other members. Withdrawal of a member shall not dissolve the authority if at least two members remain. (1989 (Reg. Sess., 1990), c. 888, s. 1.) § 153A -427. Powers of an authority. , (a) The charter may confer on the regional solid waste management authority any or all of the following powers: (1) To apply for, accept, receive, and disburse funds and grants made available to it by the State or any agency thereof, the United States of America or any agency thereof, any unit of local government whether or not a member of the authority, any private or civic agency, and any persons, firms, or corporations; (2) To employ personnel; (3) To contract with consultants; (4) To contract with the United States of America or any agency or instrumentality thereof, the State or any agency, instrumentality, political subdivision, or municipality thereof, or any private corporation, partnership, association, or individual, providing for the acquisition, construction, improvement, enlargement, operation or maintenance of any solid waste management facility, or providing for any solid waste management services; (5) To adopt bylaws for the regulation of its affairs and the conduct of its business and to http: / /www.ncga.state.nc.us /gascripts/ statutes /statutelookup.pl ?statute =153a 3/26/2013 Chapter 153A Page 3 of 6 7 prescribe rules and policies in connection with the performance of its functions and duties, not inconsistent with this Article; (6) To adopt an official seal and alter the same; (7) To establish and maintain suitable administrative buildings or offices at such place or places as it may determine by purchase, construction, lease, or other arrangements either by the authority alone or through appropriate cost - sharing arrangements with any unit of local government or other person; (8) To sue and be sued in its own name, and to plead and be impleaded; (9) To receive, administer, and comply with the conditions and requirements respecting any gift, grant, or donation of any property or money; (10) To acquire by purchase, lease, gift, or otherwise, or to obtain options for the acquisition of any property, real or personal, improved or unimproved, including an interest in land less than the fee thereof, (11) To sell, lease, exchange, transfer, or otherwise dispose of, or to grant options for any such purposes with respect to any real or personal property or interest therein; (12) To pledge, assign, mortgage, or otherwise grant a security interest in any real or personal property or interest therein, including the right and power to pledge, assign, or otherwise grant a security interest in any money, rents, charges, or other revenues and any proceeds derived by an authority from any and all sources; (13) To issue revenue bonds of the authority and enter into other financial arrangements including those permitted by this Chapter and Chapters 159, 159I, and 160A of the General Statutes to finance solid waste management activities, including but not limited to systems and facilities for waste reduction, materials recovery, recycling, resource recovery, landfilling, ash management, and disposal and for related support facilities, to refund any revenue bonds or notes issued by the authority, whether or not in advance of their maturity or earliest redemption date, or to provide funds for other corporate purposes of the authority; (14) With the approval of any unit of local government, to use officers, employees, agents, and facilities of the unit of local government for such purposes and upon such terms as may be mutually agreeable; (15) To develop and make data, plans, information, surveys, and studies of solid waste management facilities within the territorial jurisdiction of the members of the authority, to prepare and make recommendations in regard thereto; (16) To study, plan, design, construct, operate, acquire, lease, and improve systems and facilities, including systems and facilities for waste reduction, materials recovery, recycling, resource recovery, landfilling, ash management, household hazardous waste management, transportation, disposal, and public education regarding solid waste management, in order to provide environmentally sound, cost - effective management of solid waste including storage, collection, transporting, separation, processing, recycling, and disposal of solid waste in order to protect the public health, safety, and welfare; to enhance the environment for the people of this State; recover resources and energy which have the potential for further use, and to promote and implement the purposes set forth in Part 2A of Article 9 of Chapter 130A of the General Statutes; (17) To locate solid waste facilities, including ancillary support facilities, as the authority may see fit; (18) To assume any responsibility for disposal and management of solid waste imposed by law on any member unit of local government; (19) To operate such facilities together with any person, firm, corporation, the State, any entity of the State, or any unit of local government as appropriate and otherwise http: / /www.ncga.state.ne.us /gascripts/ statutes /statutelookup.pl ?statute =153a 3/26/2013 Chapter 153A Page 4 of 6 8 permitted by its charter and the laws of this State; (20) To set and collect such fees and charges as is reasonable to offset operating costs, debt service, and capital reserve requirements of the authority; (21) To apply to the appropriate agencies of the State, the United States of America or any state thereof, and to any other appropriate agency for such permits, licenses, certificates, or approvals as may be necessary, and to construct, maintain, and operate projects in accordance with such permits, licenses, certificates, or approvals in the same manner as any other person or operating unit of any other person; (22) To employ engineers, architects, attorneys, real estate counselors, appraisers, financial advisors, and such other consultants and employees as may be required in the judgment of the authority, to fix and pay their compensation from funds available to the authority therefor, to select and retain, subject to approval of the Local Government Commission, the financial consultants, underwriters, and bond attorneys to be associated with the issuance of any revenue bonds, and to pay for services rendered by financial consultants, underwriters, or bond attorneys from funds available to the authority including the proceeds of any revenue bond issue with regard to which the services were performed; (23) To acquire property located within the territorial jurisdiction of any member unit of local government by eminent domain pursuant to authority granted to counties; (24) To require that any and all (i) solid waste generated within the authority's service area and (ii) recyclable materials generated within the authority's service area and transferred to the authority be separated and delivered to specific locations and facilities provided that if a private landfill shall be substantially affected by such requirement then the regional solid waste management authority shall be required to give the operator of the affected landfill at least two years written notice prior to the effective date of the requirement; and (25) To do all things necessary, convenient, or desirable to carry out the purposes and to exercise the powers granted to an authority under its charter. (b) The acquisition and disposal of real and personal property by an authority created under this Article shall be governed by those provisions of the General Statutes which govern the acquisition and disposal of real and personal property by counties, except that Article 8 of Chapter 143 of the General Statutes and Part 3 of Article 8 of Chapter 153A of the General Statutes do not apply. No authority created pursuant to this Article shall exercise any power of eminent domain with respect to any property located outside the territorial jurisdiction of the members of such authority. (c) Each authority's plan shall take into consideration facilities and other resources for management of solid waste which may be available through private enterprise. This Article shall be construed to encourage the involvement and participation of private enterprise in solid waste management. An authority created pursuant to this Article shall establish goals for the procurement of goods and services from minority and historically underutilized businesses. (1989 (Reg. Sess., 1990), c. 888, s. 1; 1991, c. 580, s. l; 2007 -131, ss. 1, 2.) § 153A -428. Fiscal accountability; support from other governments. (a) A regional solid waste management authority is a public authority subject to the provisions of Chapter 159 of the General Statutes. (b) The establishment and operation of an authority as herein authorized are governmental functions and constitute a public purpose, and the State and any unit of local government may appropriate funds to support the establishment and operation of an authority. (c) The State and any unit of local government may also dedicate, sell, convey, donate, or lease any of their interests in any property to an authority. (1989 (Reg. Sess., 1990), c. 888, s. 1.) http: / /www .ncga.state.nc.us /gascripts/ statutes /statutelookup.pl ?statute =153a 3/26/2013 Chapter 153A Page 5 of 6 9 § 153A -429. Long -term contract permitted by and with an authority. (a) To the extent authorized by its charter, an authority may enter into long -term and continuing contracts, not to exceed a term of 60 years, with member or other units of local government for the acquisition, construction, improvement, enlargement, operation, or maintenance of any solid waste management facility or for solid waste management services with respect to solid waste generated within their geographic boundaries or brought into their geographic boundaries. (b) Contracts entered into by an authority may include, but are not limited to, provisions for: (1) Payment by the members of the authority and other units of local government of a fee or other charge by the authority to accept and dispose of solid waste; (2) Periodic adjustments to the fee or other charges to be paid by each member of the authority and such other units of local government; (3) Warranties from the members of the authority and such other units of local government with respect to the quantity of the solid waste which will be delivered to the authority and warranties relating to the content or quality of the solid waste; and (4) Legal and equitable title to the solid waste passing to the authority upon delivery of the solid waste to the authority. (1989 (Reg. Sess., 1990), c. 888, s. 1.) § 153A -430. Compliance with other law. (a) Repealed by Session Laws 1989 (Regular Session, 1990), c. 1004, s. 47, effective July 20, 1990. (b) An authority created pursuant to this Article shall comply with all applicable federal and State laws, regulations, and rules, including specifically those enacted or adopted for the management of solid waste or for the protection of the environment or public health. (c) Except as provided by subsection (d) of this section, a unit of local government that is exempt from compliance with State laws or rules enacted or adopted for the management of solid waste or for the protection of the environment shall, by becoming a member of a regional solid waste management authority created under this Article and as a condition of such membership, agree to comply with and to be bound by all applicable federal and State laws, regulations, and rules enacted or adopted for the management of solid waste and for the protection of the environment with respect to all solid waste management activities of the authority within the territorial jurisdiction of the unit of local government and with respect to all solid waste management activities performed by the unit of local government in connection with membership in the authority. (d) A unit of local government that is exempt from compliance with State laws or rules enacted or adopted for the management of solid waste shall obtain all permits that may be necessary for the conduct of solid waste management activities within the territorial jurisdiction of the unit of local government as provided by federal law and regulations. Responsibility for the enforcement of laws, regulations, and rules enacted or adopted for the management of solid waste within the territorial jurisdiction of a unit of local government that is exempt from compliance with State laws or rules enacted or adopted for the management of solid waste shall be as provided by federal law and regulations. (1989 (Reg. Sess., 1990), c. 888, s. 1; c. 1004, s. 47; c. 1075, s. 5; 1991 (Reg. Sess., 1992), c. 948, s. 2.) § 153A -431. Issuance of revenue bonds and notes. The State and Local Government Revenue Bond Act, Article 5 of Chapter 159 of the General Statutes, governs the issuance of revenue bonds by an authority. Article 9 of Chapter 159 of the General Statutes governs the issuance of notes in anticipation of the sale of revenue bonds. (1989 (Reg. Sess., 1990), c. 888, s. l.) § 153A -432. Advances. http: / /www.ncga.state.nc.us /gascripts/ statutes /statutelookup.pl ?statute =153a 3/26/2013 Chapter 153A Page 6 of 610 Any member or other units of local government may make advances from any monies that may be available for such purpose, in connection with the creation of an authority and to provide for the preliminary expenses of an authority. Any such advances may be repaid to such member or other units of local government from the proceeds of the revenue bonds or anticipation notes issued by such authority or from funds otherwise available to the authority. (1989 (Reg. Sess., 1990), c. 888, s. 1.) §§ 153A -433 through 153A -434: Reserved for future codification purposes. http:// www.ncga.state.nc.us /gascripts/ statutes /statutelookup.pl ?statute =153a 3/26/2013 11 Attachment 2 Analysis of Operational and Funding Options for Solid Waste and Recycling Programs 1) Option 1 -Solid Waste Management Authority Establishment of a Solid Waste Management Authority county -wide could allow the elimination of all 3 -R Fees, with the authority governing all recyclables collection, processing and marketing among the member jurisdictions. An authority could also include municipal solid waste collection and disposal operations as well as large scale composting or other processing facilities. North Carolina General Statute's 153A -421 outlines how two or more units of local government may create a regional solid waste management authority by adopting substantially identical resolutions to that effect in accordance with the provisions of this Article. The resolutions creating a regional solid waste management authority and any amendments thereto are referred to in this Article as the "charter" of the regional solid waste management authority. Units of local government which participate in the creation of a regional solid waste management authority are referred to in this Article as "members ". The purpose of a regional solid waste management authority is to provide environmentally sound, cost - effective management of solid waste, including storage, collection, transporting, separation, processing, recycling, and disposal of solid waste in order to protect the public health, safety, and welfare. The Charter of a Regional Solid Waste Management Authority typically contains provisions delineating: • Powers, duties and functions • Number of delegates from each local government • Amount (or formula) of financial contributions from each local government • Methods for amending charter, dissolving Authority, liquidating assets The authority conveyed by the Members can include the following provisions: • Exercise "corporate" powers • Enter into up to 60 -year contracts to provide solid waste services with member or other local governments • Assume responsibility for disposal and management of solid waste imposed by law on any member unit • Set and collect fees and charges to cover operating and capital costs • Exercise power of eminent domain • Issue revenue bonds, special obligation bonds, and grant security interests in real or personal property • Exercise some degree of flow control An Authority may finance services, facilities and programs by: • Assessing fees and charges to customers directly to cover solid waste collection or disposal operating and capital costs • Each member local government may appropriate funds to Authority using: • Local tax revenues • Local solid waste fee revenues 12 Conformance with Adopted Goals A Solid Waste Management Authority would conform with Board of Commissioner (BOCC) Goals to a large extent according to the provisions established within the charter. Considerable uncertainty exists with regard to how this type of entity would be created in Orange County. Until Authority is created, the number of towns participating is known, it is difficult to address the effectiveness and efficiency regarding recently adopted BOCC goals. Cost Efficiency • Existing recycling program and service efficiencies could be maintained or improved by an authority. • Could shift financial responsibility • Without anchor waste facilities that generate revenue, recycling collection fees or convenience center fees (fees for service) alone would likely be sufficient to fund services and programs. Additional supplemental funding by members would likely be required. • If residential or non - residential solid waste collection is included as a function collection fees could generate income; • Most efficient with current Interlocal Agreement parties as members; fewer members would likely mean less cost efficiency i.e. reduced economies of scale and duplication of services by non - members Recycling Maximization • Has potential to continue current high performing programs and services if three Towns join the County. Fewer participating members will mean diminished recycling performance, participation, materials recovery, public confusion caused by non - uniform service practices and methods Equity Maximization • Unknown Fairness to Private Haulers and County Staff • If the authority considers flow control or other means to regulate, license etc. that could impact private haulers • Authority could contract with some private garbage and /or recycling haulers for certain collection services to the exclusion of other private haulers • It is possible that existing recycling services and programs could be continued preserving or minimizing impacts on existing staff functions Advances Comprehensive Waste Reduction in Partnerships with Towns • Could provide the vehicle to strengthen long term partnerships with member towns that continues and improves existing programs and services • Could limit the County's influence and involvement and lessen local government interactions 13 Non - member Towns could result in duplication of services, reduced economies of scale and public confusion with regard to differing rules and practices for recycling Authority could facilitate collaboration in waste reduction Transition Planning /Timeline Based on statutory requirements the timeline could be a matter of only a few months, collaboration in Orange County to establish a Solid Waste Authority would take much longer. If negotiations were prolonged a longer interim agreement could be required to maintain existing services and programs until the process could be completed. April - June 2013 • Staff to finalize budget for continuing existing urban and rural programs through FY 2013/14. BOCC to adopt interim funding source FY 13/14 utilizing solid waste enterprise fund reserves, a temporary property tax increase, contribution from the General Fund fund balance or some combination. • BOCC to initiate discussions /negotiations with Towns to establish an interim /short -term Interlocal Agreement (IA) that addresses all recycling services for at least Fiscal 2013/14. • Local governments to create a means for broader discussion and decisions on how to proceed to consider creation of a Solid Waste Authority. The UNC School of Government among other resources could assist in this educational effort. July - December 2013 • Urban, Rural and Multi- family 3 -R Fee components to be eliminated and not billed. • Implement process for discussion and orientation of local elected officials on particulars of a Solid Waste Authority. • Following informational process, interested governments would establish a process to proceed to discuss specific charter provisions and conveyed authority, including financing provisions and all issues relating to establishing an Authority. January - June 2014 • If Authority is determined to be desirable, BOCC and Towns determine deadline for commitments from each Town to join Authority • Governments pledged to join Authority proceed to complete Charter and develop other operating and financial provisions necessary to create Authority. • Plan for withdrawing curbside and multi - family recycling services from non - participating Towns • Authority created effective July 1, 2014. 2) Options 2,3 & 4 -Solid Waste District Tax Keep the Basic 3 -R Fee and Create a single Solid Waste Tax Service District that would include the Towns (who would be encouraged to join) and the current Rural Curbside Service Area serving 13,730 households. In addition, approximately 2,300 additional rural households (Map Attachment) could be added relatively quickly, without additional resources, due to recently gained single stream efficiencies (leaving only approximately 3,700 rural households outside of 14 the district). Towns that choose not to join would become responsible for their own curbside and multi - family recycling services. Effective date of Tax District would be July 1, 2014. The Board must consider: a. The resident population and population density of the proposed district; b. The appraised value of property subject to the taxation in the proposed district; c. The present tax rates of the County and any city or special district tax in which the district or any portion is located; d. The ability of the proposed district to sustain additional taxes, and; e. Any other matters the board believes to have bearing on whether the district should be established. The Board may then establish a service district if, upon information and evidence it receives, it finds that all of the following apply: a. A demonstrable need for providing the service in the district; b. It is impossible or impractical to provide the service on a county -wide basis; c. It is economically feasible to provide the proposed services in the district without unreasonable or burdensome annual tax levies; and d. A demonstrable demand for the proposed services by the persons residing in the district. Conformance with Adopted Goals Cost Efficiency • Allows maintenance of existing costs /efficiencies and provide a stable platform for implementation of additional efficiency measures such as roll -carts and automated compaction collection vehicles for both rural and urban curbside programs • Allows consideration of future inclusion of Solid Waste Convenience Center Fee and /or Base 3 -R Fee into a more comprehensive district tax funding mechanism • Would be accounted for in a separate fund, public school funding match policy (48.1) would not apply • Remaining 3,700 rural area households could be included for inclusion in the district Recycling Maximization • Would allow continuation of existing integrated programs and waste reduction accomplishments in County and in Towns who join district • Could provide the platform for expanding and enhancing current programs and services • Would allow expanding District in the future to include currently ineligible rural areas that would then provide more convenience for residents and opportunity to increase recycling participation and quantities of recyclable materials • Would continue local government control and ability to direct levels of service and pursuit of waste reduction goals Equity Maximization 15 • Could be established to not impose District Tax on unincorporated areas ineligible for rural curbside service • Would allow for the inclusion of currently ineligible areas at some future time on an equal basis as remainder of unincorporated area • Combines urban, multi - family and rural recycling services (for towns that join) into a single district tax rate that should reduce annual costs to majority of those now paying 3- R Fee • Some property owners who now are not charged the current 3 -R Fee (vacant property) would pay district tax • District taxes would not generate funding from each recipient of the service at the same rate, but funding would be generated by property relative values • Non - profit owned properties would not pay district tax, however, a special voluntary fee could be applied to those receiving services Fairness to Private Haulers and County Staff • Maintains county programs and services and thus maintains county staffing • Private waste haulers would experience little change to status quo, except some limited impacts in the proposed expanded rural recycling area Advances Comprehensive Waste Reduction in Partnerships with Towns • Allows Towns who agree to join District to maintain uninterrupted, integrated existing curbside and multi - family services • Agreement to join District would allow proceeding with roll cart implementation and addition of new materials curbside which are likely to increase recycling rates • Allows continued provision of enforcement, educational and customer service activities within towns • Allows Towns to concentrate on addressing /improving municipal solid waste collection and transfer functions without having to also be concerned with recycling • Allows continuance of uniform materials accepted for recycling and uniform education and outreach between urban and rural programs resulting in greater program understanding by all residents Transition Planning /Timeline April -June 2013 • Staff to finalize budget for continuing existing urban and rural programs through FY 2013/14. BOCC to adopt interim funding source FY 13/14 utilizing solid waste enterprise fund reserves, a temporary one year property tax increase, contribution from the General Fund fund balance or some combination. • Urban, Rural and Multi- family 3 -R Fee components to be eliminated and not billed. • BOCC to initiate discussions /negotiations with Towns to establish a basic interim /short- term Interlocal Agreement (IA) that addresses all recycling services. This IA should also establish process or otherwise create a means for broader discussion and decisions on the future of the county -wide recycling system and the extent of continuing existing partnerships and methods of funding remaining waste management services. July — December 2013 • BOCC to finalize rural boundaries for Solid Waste District • Staff calculates District Tax rate necessary to fund curbside and multi - family programs for various scenarios depending on which Towns are anticipated to join • BOCC requests commitment from each Town to join district (May require joint meeting of Towns /County to discuss and /or small working group of elected officials) • County provides legal advertisement, public hearing, findings and other statutory requirements • With an Interlocal Agreement the County operation of curbside and multi - family recycling programs County would let bid for roll carts for urban curbside program • County to apply on behalf of Towns for State grants (totaling about $225,000) to help purchase of roll carts • County to solicit request for proposals for urban curbside recycling contract to become effective July 1, 2014 (roll carts to be distributed by this date also) • Bid award for roll carts and urban collection contract January — June 2014 • BOCC formally establish Solid Waste Tax District effective July 1, 2014, with specific tax rate to be established through FY 2014/15 county budget process or other timeline as determined • Staff plans rural curbside expansion of about 2,300 more homes with service to begin in fall with potential to piggyback on previous urban roll cart bid; staff bids for automated compaction curbside trucks to replace existing manual, non - compacting collection trucks July 2014 - ?? • Tax Administration bills District Tax, along with Base 3 -R Fee and Convenience Center Availability Fee. • Initiate discussion between Towns and County regarding elimination of Base 3 -R Fee and /or Convenience Center Availability Fee and incorporation into Solid Waste Tax District • Alternatively, Towns and County could begin discussions regarding establishment of Solid Waste Management Authority 2) Option 8 - Convenience Center /Drop -off Recycling Site Expansion This option would keep the Basic 3 -R Fee, eliminate all other 3 -R Fees, and eliminate rural curbside recycling relying instead on Convenience Centers and Drop- off - sites. Urban and Multi- family curbside recycling would be left up to the Towns. The County could increase the number of Recycling Drop- off -sites and Convenience Centers and increase the Basic 3 -R fee to pay for the operation of the new facilities. For this option staff would plan for the addition, in unincorporated areas, of a minimum of two new Neighborhood Solid Waste Convenience Centers which would receive both recyclable and municipal solid waste and maintenance of the existing five drop -off recyclables only sites. Also, one additional recycling drop -off site in Chapel Hill and one in Carrboro for will be needed for a total of seven sites located within the three municipalities. Conformance with Adopted Goals Cost Efficiency 16 17 • Would incur costs and administrative time related to siting, purchasing land, construction, equipment and operating a minimum of two additional neighborhood solid waste convenience centers and two new urban drop -off sites • Impact on hauling costs at existing convenience centers and drop -off sites is uncertain without further evaluation and knowledge as to Towns intentions on replacing eliminated curbside and multi - family services. • Anticipated inefficiencies (overloading of existing centers) due to ceasing rural curbside program effective July 1, 2014 and the likelihood of taking up to two or more years to site and construct new convenience centers and perhaps that long for the new recycling only drop -off sites (based on past experiences) • Difficult to estimate cost/gas /emissions for individual residents to deliver materials to drop -off sites and convenience centers versus curbside service collecting hundreds of residences together, but a total system cost analysis that factors in all elements self - hauling versus building and operating the new facilities would prove this option more costly that current methodologies of service • Ability of existing centers to manage anticipated new quantities being diverted from curbside and multi - family programs and associated increase in costs to service new and existing centers /drop -off sites likely to result in a less efficient program • Elimination of solid waste staff and equipment associated with rural curbside and multi- family service would partially offset added cost of new centers; • Reduction in revenue from recovered materials due to anticipated reduced tonnages recycled Recycling Maximization • The combination of curbside /multi - family recycling and convenience center recycling would be expected to generate significantly more recoverable recyclables and realize higher resident participation than utilization of only convenience centers /recycling drop - off sites • Convenience is generally acknowledged as the greatest factor for maximizing recycling performance and curbside service is a more convenient method of service. The easier you make recycling, the more recycling material you will get • Should expect to see a reduction of resident participation and quantities of materials recycled for self - hauling to centers Equity Maximization • All residents would continue to pay Base Fee, there are still some residents who would choose not to recycle, thus paying for service they do not use • Increases in Base Fee could be partially offset by elimination of Urban /Rural and Multi- family Fees • Some residents without transportation or with physical limitations may be required to rely on others to deliver recyclables to centers or to not recycle (currently special back -door recycling collection is provided for handicap citizens in both Urban and Rural programs) • Residents who live adjacent to where new convenience centers /drop -off sites are located may feel unequal burden of hosting the center • New convenience centers /drop -off sites may be more convenient to some residents than existing centers Fairness to Private Haulers and County Staff lW • Three county staff would be displaced by elimination of rural curbside recycling and one additional for multi - family program; staff could be transferred to Center Operator positions at new centers (although new centers would not be available for staffing until sometime after curbside service eliminated); may also need additional staff driver to service centers; other staff impacts require more detailed analysis • Locating new convenience centers in rural areas now serviced by private haulers could reduce customers of haulers if customer shift to using now more closely located convenience centers for garbage • Residents who prefer curbside recycling could seek private service, but would still pay for convenience center and drop -off site expansions • There would be no restrictions for any private hauler to collect garbage in the rural part of the County Advances Comprehensive Waste Reduction in Partnerships with Towns • If urban curbside and multi - family services were eliminated by County, Towns would be forced to proceed outside of partnership; this option would likely eliminate opportunity for continued Town partnerships and could negatively impact current integrated recycling program waste reduction successes • Considerable difficulty would be encountered by attempting to site additional recycling drop -off sites in Towns; meeting local Town development codes may be prohibitive • Town recycling drop -off sites may be overwhelmed with displaced materials from curbside service elimination (unincorporated residents near Towns would also use municipal recycling infrastructure) • New convenience centers /drop -off sites would be available to town residents, although centers may generally be too distant for use • Elimination of urban curbside and multi - family recycling services by County may negatively impact effectiveness and performance of remaining Base Fee provided non- residential services within Towns Transition Planning /Timeline This transition discussion does not include what actions Towns might take to address cessation of urban curbside and multi - family recycling services beginning July 2014. April -June 2013 • Staff to finalize budget for continuing existing urban and rural programs through FY 2013/14. BOCC to adopt interim funding source FY 13/14 utilizing solid waste enterprise fund reserves, a temporary property tax increase, contribution from the General Fund fund balance or some combination. • BOCC to initiate discussions /negotiations with Towns to establish an interim /short -term Interlocal Agreement (IA) that addresses all recycling services. This IA should also establish process or otherwise create a means for broader discussion and decisions on a more comprehensive and longer -term IA governing the future of the county -wide recycling system and other solid waste management issues of mutual interest. July- December 2013 • Urban, Rural and Multi- family 3 -R Fee components to be eliminated and not billed. 19 • Initiate process for discussion of a longer -term Interlocal Agreement between Towns and County for post July 2014 that includes county residential recycling operations to shift to drop -off methodology. January -June 2014 • Evaluate preferred areas of county for new centers and establish siting process. • Consult Towns with regard to potential process for establishing new recycling drop -off sites; develop cost estimates for new drop -off sites • Use existing conceptual design cost estimates for Neighborhood Convenience Centers for budgeting for FY 2014/15, when new SWCC's would be constructed (if sites can be identified). Budget should also include funds to purchase property (5 acres minimum) for two new centers. • Budget for two new recycling drop -off sites in towns; one in Carrboro, one in Chapel Hill. • Eliminate rural, urban and multi - family recycling from FY 2014/15 Budget. July 2014 - ?? • Complete site search, purchase property, design and construct two new convenience centers and two new drop -off sites. • Evaluate if two new centers and two new drop -off sites sufficient or whether others should be considered. • New long -term Interlocal Agreement implemented.