HomeMy WebLinkAboutAgenda - 06-05-1997 - 3 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 5, 1997
Action Agenda
Item No.
SUBJECT: Amendments to Orange Regional Landfill Tipping Fee Schedule
DEPARTMENT: Public Works PUBLIC HEARING: (Y/l)
BUDGET AMENDMENT: (Y/1)
ATTACHMENT(S): INFORMATION CONTACT:
5/15/97 Memo from LOG Chair Wilbert McAdoo, ext 2625
5/30/97 Memo from LOG Chair
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 227-2031
PURPOSE: To consider changes to the landfill tipping fee schedule to take effect July 1, 1997.
BACKGROUND: In a May 15 memo (Attachment 1), LOG Chair Richard Franck explained the
rationale for the Landfill Owners' Group's recommendation that the tipping fees for mixed solid
waste (MSW), and construction and demolition(C & D)materials be raised, effective July 1, 1997,
to $36 per ton, and$34.25 per ton,respectively. The current fees are $33 per ton for MSW and C &
D materials. The proposed fee increases were intended to address the third of three additions to the
1997-98 Landfill Budget: first year implementation of the integrated solid waste management plan.
The other two additions - a C &D manual separation program and a construction waste reduction
program- are intended to be funded through a surcharge on building permits for projects costing
over$50,000.
At their May 28 meeting, the LOG considered a suggestion from the Chapel Hill Town Manager
that instead of raising the tip fees to the levels suggested, that the solid waste plan implementation
costs for 1997-98 be funded by using an existing landfill fund reserve account. The LOG took no
action on this suggestion, but in Attachment 2, the LOG Chair explains how this arrangement would
work. County staff s view is that the Town Manager's proposal is an acceptable alternative to tip
fee increases beyond the$35 per ton level for mixed solid waste.
Under terms of the 1972 landfill agreement between Orange County and the Towns of Chapel Hill
and carrboro, all fees must be approved by each of the three boards. If all three boards do not agree
on a change to a particular fee, that fee remains unchanged.
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RECOMMENDATION(S): The Manager recommends that the Board approve tipping fees of
$35.00 per ton for mixed solid waste, and $33.00 per ton for construction and demolition materials,
with both fee changes to take effect July 1, 1997.
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To: Carrboro Board of Alderman
Chapel Hill Town Council
Hillsborough Board of Commissioners
Orange County Board of Commissioners
From; Richard Franck, Chair
Landfill Owners Group
Subject : Fiscal 1997-98 Landfill Fund Budget Recommendation
Date: May 15, 1997
Landfill Owners Group met on May 8 and finalized the LOG budget
recommendations for the 19.97-98 Fiscal Year. The Owners Group
considered several potential additions to the Chapel Hill Town
Managers ' proposed budget that will result, if approved by all
three member governments, in a tipping fee increase in excess of
that proposed by the Town Manager. The three recommended additions
are:
1 . Construction & Demolition Manual Separation Program
This program would provide for a landfill salvage operation
that manages a limited number of items for reuse by non-profit
organizations such as Habitat for Humanity, etc . , and/or
discounted resale to the general public . This program
represents one full-time materials handler and is estimated to
cost $39 , 500 assuming an October 1, 1997 implementation.
2 . Construction Waste Reduction Program
The construction waste reduction program assumes that the
governments will adopt and enforce planning ordinances,
which would result in the increased diversion of recyclable
clean wood, metal and other reusable materials, estimated at
10-11!k of total construction and demolition wood and metal now
discarded. Chapel Hill has already adopted such an ordinance,
howeuer, we would anticipate suggesting some modification of
this existing ordinance. This program would enforce these
plan requirements in all jurisdictions if the governing bodies
adopt the necessary ordinances . This program represents one
full-time compliance officer and is estimated to cost $32 . 500
assuming a February 1, 1998 implementation.
The Owners Group has recommended funding of the these two prcgrams
($72, 000) by each governing body assessing a $0 . 07/$1.00 surcharge
to building permits for projects costing over $50, 000, in all four
jurisdictions . Such 'a surcharge would realize about $76, 000 in
revenue, based on county-wide building permit revenue equal to
_995-96 .
3 . Integrated Plan First Year Implementation
This item represents the key initial step in implementing the
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plan and represents the cost of hiring a consultant to develop
and issue a request for proposals, evaluate the proposals
received and develop a contract with a firm that will
ultimately be responsible for design, construction and
operation of the facility. The Owners Group is proposing that
the facility be privately designed, constructed, --,and operated.
' (The actual design and construction will be funded-. in Fiscal
1998-99 . 1 This item assumes that all governments adopt the
concept of a Material Recovery Facility (MRF) , as proposed by
the Owners Group as an element in the proposed Solid Waste
Management Plan. A MRF was a component of all waste
management options considered. The cost is estimated at
$95, 000 .
Funding for this item is proposed to come from an increase to the
Chapel Hill Town Managers ' proposed tipping fee of $1 .00 for mixed
solid waste and $1.25 for Construction & Demolition. The impact on
local government general fund budgets is estimated to be:
Carrboro = $10, 600
Chapel Hill = $24, 000
Hillsborough = $ 4, 600
Orange County = $18, 500
Material Existing Fee Manager's Prolp. Owners Grotm
Mixed Waste $33/ton $35/ton $36/ton
Const . & Demo $33/ton $33/ton $34 .25/ton
Yard/Clean Wood . $.10/ton $12/ton $12/ton . ,
Tires $100/ton $100/ton $100/ton
w
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Memorandum
-To: Carrboro Hoard of Alderman
Chapel Hill- Town Council
Hillsboroug.1 Board of Commissioners
Orange County Board of Commissioners
From; Richard Franck, Chair
Landfill Owners Group
Subject: Update on 1997-98 Landfill Fund Budget Recommendation
Date: May 30, 1997
Landfill Owners Group: met on May 8 and finalized the LOG budget
recommendations.-for the 1997-98 Fiscal Year. The Owners Group
considered several potential additions to the Chapel Hill Town
Managers' proposed budget that would result, if approved by all
three member governments, in a tipping fee increase in excess of
that proposed by the Chapel Hill Town Manager. These
recommendations were presented to all elected officials in a
memorandum from me, dated May 15. The three recommended additions
are:
1. Construction & Demolition Manual Separation Program $39,500
2 . Construction Waste Reduction Program $32, 500
3 . Request for Proposals to design, build and operate $95,000
a Materials Recovery Facility
Funding for #1 a #2 is recommended to be provided by a surcharge on
building permits. Funding for #3 is proposed to come from an
increase to the ChapelHill Town Managers' proposed tipping fee of
$1.00 for mused solid waste and $1.25 for Construction &
Demolition. The impact on local government general fund budgets is
estimated to be:
Carrboro = $10, 600
Chapel Hill = $24, 000
Hillsborough $ 4,600
Orange County $18,500
At the Chapel Hill Budget Work Session of May 21, the Town Manager
proposed adoption of the Owners Group additions, however, instead
of raising the tipping fee as the Owners Group 'proposes, he
suggests using an existing landfill fund reserve account to fund
the $95, 000 add item: #3. The Reserve for Acquisitions and
Construction, has an estimated June 30, 1997 balance of $837,550.
This fund was expressly created for the purpose of funding future
land acquisitions and; future construction projects (other that
South Bubanks Construction) and can be properly utilized for an
activity directly related to the design and construction of such a
major solid waste facility. It appears that the Chapel Hill Town
t
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Council was favorably disposed to this recommendation.
The Owners Group was apprised of this recommendation at its May 28
meeting and took no formal action. Please keep this alternative in
mind as your respective boards proceed to discuss and approve the
Landfill Budget.
Mixed waste $33/ton $35/ton $36/ton
Const. & Demo $33/ton $33/ton $34.25/ton
Yard/Clean Wood $10/Gan $12/ton $12/ton
Tires $100/ton $100/ton $100/ton
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