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HomeMy WebLinkAboutAgenda - 06-30-1997 - 8q { • 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 30, 1997 Action Agenda Item No. SUBJECT: Amendments to Orange Regional Landfill Tipping Fee Schedule DEPARTMENT: Public Works PUBLIC HEARING: (Y/1S) 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 6/23/97 Memo from CH Town Manager 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: At their June 5, 1997 work session, the Board discussed, but elected to postpone action on, proposed amendments to the landfill tipping fee schedule for FY 1997-98. The rationales for the Landfill Owners' Group's and Chapel Hill Town Manager's tipping fee recommendations are laid out in May 15 and May 30 memos from the LOG Chair. Since that time, the attorneys for the Towns and County have identified potential problems with the proposed imposition of a surcharge on building permit fees to raise revenue to pay for construction and demolition(C & D)waste reduction efforts. The Chapel Hill Town Manager has recommended that the revenue needed to implement the C & D reduction efforts be derived from increasing the C & D tipping fee from $33 per ton to $35 per ton,effective July 1, 1997. The rationale for this is fizrther explained in a June 23 memo to the Chapel Hill Town Council from the Town Manager. The other proposed fee increases for 1997-98 (to $35 per ton for mixed solid waste and $12 per ton for yard waste and clean wood waste) are unchanged from what the Board of Commissioners considered at their June 5 work session. 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. RECOMMENDATION(S): The Manager recommends that the Board approve tipping fees of $35.00 per ton for mixed solid waste, $35.00 per ton for construction and demolition materials, and $12.00 per ton for yard waste and clean wood waste,with all fee changes to take effect July 1, 1997. 2 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 1997-98 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% of total construction and demolition wood and metal now discarded. Chapel Hill has already adopted such an ordinance, however, 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 programs ($72 , 000) by each governing body assessing a $0 . 07/$100 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 3 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 Prop, Owners GrUm 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 y 4 , memorandum -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: Update on 1997-98 Landfill Fund Budget Recommendation Date: May 30, 1997 Landfill Owners Group; met on May 8 and finalized the LOG budget recomamendations :lor 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 & #2 is .recommended to be provided by a surcharge on building perm, its. . Funding gor i#3 is proposed to come from an increase to the Chapel° Hill 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 = $ 41600 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 constriction projects (other that South Eubanks Construction) and can lbe 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 5 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. Ii3at arial aria RXl stZng Fee Ma�mr'B Pray, CRUM Gram Mixed Waste $33/ton $35/ton $36/tan 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 6 MEMORANDUM TO: Mayor and Council FROM: W.Calvin Horton,Town Manager SUBJECT: Funding of Consftetion and Demolition waste Reduction programs with An Increase in Construction and Demolition waste Landfill Tipping Fee DATE: June 23, 1997 This memorandum proposes that the Council, with the concurrence of Orange County and the Town of Cacrboro, increase the proposed tipping fee for construction and demolition wastes at the Orange Regional Landfill from its current level of $33 per ton to S35 per ton.The additionai revenues%vuld support programs to enforce regulation of the solid waste plan ordinance and to salvage reusable and recyclable construction and demolition waste at the landfill. The attached resolution would authorize the Manager to begin to implement these progruns. BACKGROUND On June 9, the Chapel MR Town Council adopted a goal of reducing the total amount of solid waste landfillak • by 45%per pawn in Orange County by 2001 (compared to 1991-92)and • by 61%by 2006 compared to 1991-92,(see attachment 1). The programs described in this memorandum for reducing construction and demolition waste would assist in meeting those overall goals. As part of the overall waste reduction goals, reduction of construction and demolition waste could be wlwvcd through a combo ttion of regulating construction waste,salvaging usable materials fiom the landfill and using landfill fees to create economic-ineentivesto separate mataEials.The Owners Group endorsed this approach at their May 23 meeting (see attachment). They also endorsed funding these programs through a construction and demolition waste reduction fee attached to the building permits issued throughout the County. The I ed programs would • salvage reusable or recyclable materials from the construction and demolition materials section of the landfill and 7 enforce requirements for separation of recyclable construction materials on-site at most Construction sites. These programs are recommended by the Manager for implementation in 1997-98 (Mcmordndum to Council of May 16, 1997). It is the opinion of the Town Attorney that this proposed method of funding this program is not lawful. We, therefore. have revised our recommendation so that the source of finnding would be from an increase in landfill tipping fees on construction and demolition wastes. This fee was recommended by the Landfill Owners Group to remain at$33 per ton in 1997-98. We project that the construction and demolition waste am of the landfill will be full in one-and- one-half years. Using the fined, southern,portion of the Eubanks landfill for construction waste as well as the mixed solid waste now buried there could reduce its capacity as much as two years. 11w landfill would then be foil by 2003 ratba that the currently projected 2005, creating an impetus to provide immediate waste reduction in this sector. -• DISCUSSION We project overall first year combined program costs at$82,000. The proposed,construction and demolition waste reduucdw prams could be fiu>ded from a combination of a S2.00 increase in the tipping fee on the projected 32,000 tons of construction and demolition wastes, $8,000 from undesignated reserves and a $10,000 grant from the North Carolina Office of Pollution Prevention and Eavrromaent1 Assistance. The grant has been awarded specifically to buy storage containers for safvageablex recovered at the landfill. landfill SW_VPALe h2grAM Using landfill tipping fees for the salvage program would enable implementation of that program in October 1997. Coordinated implemation of the construction and demolition waste-related solid waste plan ordinances in all Orange County jurisdictions would require significant cooperation aanong the jurisdictions. We project that ordinances in all jurisdictions would not be in place until early 1998 and that the reduction program would not take effect until February 1998. This timetable would enable several months for education of the construction community about the requirements of the ordinance before field enforcemeat begins. We would propose that enforcement begin-in July, 1998. Solid Wad DMvelo M Drdinaum a 4 EA&St t_tMgM In August 1996 we held discussions with the various planning and inspections department personnel and conducted a work session with builders on solid waste planning and landfill regulations. There was consensus that enforcement of solid waste regulations on construction and demolition wastes would best be handled for all Jurisdictions, as recycling collections arc 8 a now,by the staff of the Solid Waste Management Deparunent of the Town of Chapel Hill(or the successor agency upon re tgaumdon of the solid waste management function.) The salvage program could operate somewhat independently of the solid waste plan ordinance since salvage would take place at the landfill. The solid waste plans could be enforced only after they were adopted by each government. The two programs would operate more effectively together since the solid waste plans would probably require, at a minimum, separation of recyclable construction wastes; the salvage operator-at the landfill would then inspect the recyclable loads for compliance with the separation requirements when those loads were delivered to the landfill. Without implemamatian of some measures designed to reduce the eoasnuetion and demolition waste stream, the govemm nts of Orange County may not otherwise meet their adopted solid waste reduction goals. We would take the following steps if funding were provided: • Hire.stall purchase supplies and equipment. aml initiate the ladfiill salvage program beginning in October 1997.The solid waste plan compliance inspection program could begin in February 1998. a Work with other Town staff to develop changes to the existing development ordinance that would reread solid waste planning requirem=ts to all conswiction projects with a value of over S50,W0.The current ordinance covets only those project requiring a special use permit or a zoning compliance permit. These conditions exclude individual residential units, demolition project and renovations within the existing perimeter of sa building, all of which generate significant anan wets of waste and represeat over 8V/.of permit value in Chapel MR. Recommend than the Manager and staff work with the staff of other local governments as requested to prepare similar ordinances requiring solid waste plan development. The proposed tip fee u=tmse for consuucb n and demolition waste reduction is calculated to cover the full costs of the two progtamL in the second year,no new vehicles or other equipment would be required,but a hall year of salaries for both positions would keep the cost level similar to the first year. RECOMAW"ATiONS We recommend that 1. Council adopt the S35 per ton tipping fete for construction and demolition waste as part of the 1997-98 fee schedule. This fee is included.in the recomin- ded fee policies in agenda item #8e, and the revenue is included in the recommended budget. Commence by the County and Carrboro is nexssary for any landfill tipping fees to become effective. 9 t 2. The Council adopt the following resolution that would authorize the Manager to develop changes to the existing development ordinance that would extend the solid waste plan requirement to all eonsauetion projects valued at over 550,000, and authorize the Manager and staff to work with other jurisdictions in Orange County to develop solid wash plan ordinances that are similar to that adopted by the Town of Chapel Hill to enable ease of enforcement and consistency for builders and regulators. A RESOLUTION AUTHORIMNG THE MANAGER TO START THE PROCESS TO AMEND CHAPEL Hu.L•S SOLID WASTE PLAN REQUIRES AND TO WORK WITH OTHER JURISDICTIONS TO ESTABLISH SIN GLAR REGULATIONS (97-&23/R-16) WHEREAS,the construction and demolition disposal area of the Orange Regional Landfill will be full within one and one-half years,and WHEREAS, the Council of the Town of Chapel M11 has adopted ambitious waste reductions gam, 1. NOW BE IT HEREBY RESOLVED by the Council of the Town of Chapel Hill that the Manager is authorized to develop changes to the existing development ordinance that would extend the solid waste plan requirement to all construction projects valued at over$50,000, and to work with other jurisdictions in Orange County to develop solid waste plan ordinances that are similar to-that adopted by the Town of Chapel Hill to enable can of enforcement and consistency for builders and regulators. This is the 23"day of June, 1997. r