HomeMy WebLinkAboutAgenda - 10-08-2013 - 2ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 8, 2013
Action Agenda
Item No. 2
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SUBJECT: Review the Process of Creating a Solid Waste Collection and Disposal System
Service District
DEPARTMENT: Solid Waste /Recycling PUBLIC HEARING: (Y /N) No
ATTACHMENT(S): INFORMATION CONTACT:
A) Draft Notice of Public Hearing Gayle Wilson, 968 -2885
B) Draft Resolution Establishing a Solid John Roberts, 245 -2318
Waste Collection and Disposal System Michael Talbert, 245 -2308
Service District
PURPOSE: To review the process of creating a Solid Waste Collection and Disposal System
Service District and the possible inclusion of the Towns.
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 previously consisted 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 fees consisted of a Basic Fee
$37/ ear that was 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 /year) was assessed to improved residential properties within incorporated
municipalities and funded weekly curbside recycling service. A Rural Curbside Fee ($38 /year)
was 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) was charged
multi - family units throughout Orange County for multi - family recycling services.
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
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Fee is ($20 /year /Household); the Incorporated Areas Fee is ($10 /year /Household), and the
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 stated that where there was 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 recommended that the Board of County
Commissioners cease assessing the Urban, Rural and Multi- family recycling fees beginning
with Fiscal Year 2013/14 Annual Budget. The County Manager further recommended funding
these services for Fiscal Year 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. These services are provided by County Solid Waste staff.
Just 6,000 households lack access to rural curbside service at this time. 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 serves Chapel Hill, Carrboro and Hillsborough municipal
residents. 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 recycling serves multi - family establishments in both incorporated and
unincorporated Orange County. 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 held a public hearing on April 23, 2013 to receive 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. Those options are:
1) Create a County -Wide Solid Waste Management Authority,
2) Create a Solid Waste Tax Service District; and
3) Eliminate Rural Curbside Recycling.
The Board unanimously wished to maintain the current recycling program and
• Directed the Manager to meet with the Managers of Carrboro, Chapel Hill and
Hillsborough to determine their willingness to participate, to ascertain their needs and
concerns, and report back to the Board of Commissioners by the end of 2012 -13 fiscal
year so that the county may proceed with implementation,
• Directed the Chair to meet with the three Mayors for a similar, parallel discussion,
• Adopted an interim funding plan for 2013 -14 at the end of this fiscal year,
• Committed to further investigate both a Solid Waste Tax Service District and a Solid
Waste Authority.
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A county -wide Solid Waste Tax Service District approach is a more comprehensive and flexible
option that would include the Towns and the current Rural Curbside Service Area. A Tax
Service District can 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. The effective date
of a new Solid Waste Tax Service District would be July 1, 2014.
There is a process to create a Solid Waste Tax Service District that is identical to the process
used for the creation of Fire Service Districts completed in the spring of 2013.
Schedule and Publish a Notice of Public Hearing:
Prior to the Public Hearing, the County must prepare a Report on the district. A copy of the
report must be kept in the Clerk's office. The report must contain the following:
1. A map of the proposed district, showing its proposed boundaries,
2. A statement showing that the proposed district meets the standards set out in subsection
(a); and
3. A plan for providing one or more of the services listed in G.S. 153A -301 to the district.
The Report should also include:
1. The resident or seasonal population and population density of the proposed district.
2. The appraised value of property subject to taxation in the proposed district.
3. The present tax rates of the county and any cities or special districts in which the district
or any portion thereof is located.
4. The ability of the proposed district to sustain the additional taxes necessary to provide
the services planned for the district.
5. If it is proposed to furnish water, sewer, or solid waste collection services in the district,
the probable net revenues of the projects to be financed and the extent to which the
services will be self- supporting.
6. Any other matters that the commissioners believe to have a bearing on whether the
district should be established
Notice of Public Hearing must be mailed (first class prepaid is fine), at least 4 weeks prior to the
date of the public hearing, to the "owners as shown by the county tax records as of the
preceding January 1 (and at the address shown thereon) of all property located within the
proposed district." The preceding January 1 is the January 1 prior to the public hearing. The
commissioners designate who handles the mailing. If the towns choose to be included in the
district, the BOCC can designate the towns to conduct the mailing to all owners of district
properties located within town limits.
The Notice of Public Hearing must be published at least one week prior to the public hearing. A
map of the service district must be attached to the notice and the resolution.
If the Towns authorize the County to collect and charge a fee for recycling within their town
limits, as Chapel Hill recently did for areas within its limits located in Durham County, there
would be no need to include the towns in the service district. A fee structure similar to what the
county has always had could be implemented. Included in the Fiscal 2013 -2014 Annual
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Budget, Chapel Hill gave the County authorization to collect recycling and impose fees in its
Durham County jurisdiction. If this authorization was used by the towns it would be an easier
way to reach the same goal.
The Town of Chapel Hill is exploring alternative options for solid waste disposal, as well as
ways of increasing efficiency with solid waste collection. The Town contracted SCS Engineers
to provide a Comprehensive Review of Solid Waste Collection and Disposal Options (study).
The study examines the Town's current solid waste collections and disposal programs to
identify opportunities to enhance these services, improve efficiencies, and evaluate innovative
technologies in the solid waste industry. The Chapel Hill Town Council will begin discussion of
Solid Waste options in October 2013 and is not ready make a commitment to join a Solid Waste
Tax Service District.
Both the Town of Carrboro and the Town of Hillsborough have indicated an interest in being
part of a Solid Waste Tax Service District.
In Fiscal Year 2013 -14 the Basic 3R Fee of $37 /year was 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. The Urban Curbside Fee of $52 /year, the Rural Curbside Fee of
$38 /year and the Multi- family Fee of $19 /year were not billed in Fiscal Year 2013 -14. Solid
Waste Reserves were utilized to fund the County's Recycling Program in Fiscal Year 2013 -14
and is not an option for Fiscal Year 2014 -15.
FINANCIAL IMPACT: There is no financial impact to the County in discussing funding options
for the County's Recycling Programs.
RECOMMENDATION(S): The Interim Manager recommends that the Board discuss a Solid
Waste Tax Service District and provide guidance to staff.
/GUMITiL�i1iG1
NOTICE OF PUBLIC HEARING
ORANGE COUNTY BOARD OF COUNTY COMMISSIONERS
Pursuant to the requirements of the General Statutes of North Carolina, Chapter 153A-
302(c) notice is hereby given that the Board of County Commissioners will hold a Public
Hearing in the meeting room located at , on Tuesday
at 7:00 p.m. for the purpose taking specific action on the following item:
Creation of a solid waste collection and disposal system service district.
A report prepared on the proposed district as required by N.C.G.S. 153A-
302(b) may be inspected in the Office of the Clerk to the Board of County
Commissioners located in the John Link Government Services Building
located at 200 South Cameron Street, Hillsborough, North Carolina
between 8:00 a.m. and 5:00 p.m., Monday through Friday.
2. A map of the proposed solid waste collection and disposal system service
district is attached as Exhibit One.
Questions regarding the proposed solid waste collection and disposal system service
district may be directed to the office of located on the second floor
of the , Hillsborough, North Carolina, 27278. Office hours are
from 8:00 a.m. to 5:00 p.m., Monday through Friday. You may also call (919) 245 -XXXX
extension
PUBLISH:
NEWS OF ORANGE CHAPEL HILL HERALD
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RES- 2013 -073 DRAFT Attachment B
ORANGE COUNTY BOARD OF COMMISSIONERS
RESOLUTION ESTABLISHING A SOLID WASTE COLLECTION AND DISPOSAL
SYSTEM SERVICE DISTRICT
WHEREAS, the Orange County Board of County Commissioners ( "Board ") has determined
there is a need to establish a solid waste collection and disposal system service district in
order to provide for the health, safety, and general welfare of the residents of the area shown
on Attachment 1 hereto that being the solid waste collection and disposal system service
district ( "District "); and
WHEREAS, in accordance with Article 16 of Chapter 153A of the North Carolina General
Statutes the Board conducted a public hearing on the establishment of the District; and
WHEREAS, during the public hearing and in determining whether to establish the District the
Board considered the resident or seasonal population and population density of the proposed
District, the appraised value of property subject to taxation in the proposed District, the
present tax rates of the county and any cities or special districts in which the District or any
portion thereof is located, the ability of the proposed District to sustain the additional taxes
necessary to provide the services planned for the District, the probably net revenues of the
projects to be financed and the extent to which the services will be self- supporting, and the
overall need for solid waste collection, disposal, and recycling in the District.
NOW, THEREFORE, BE IT RESOLVED, the Board finds that there is a demonstrable need
for providing solid waste collection, disposal, and recycling in the District as authorized by
N.C.G.S. 153A- 301(a)(5), it is impossible or impracticable to provide those services on a
countywide basis, it is economically feasible to provide the proposed services in the District
without unreasonable or burdensome annual tax levies, and there is a demonstrable demand
for the proposed services by persons residing in the District.
BE IT FURTHER RESOLVED that for all the foregoing reasons the Orange County Board of
Commissioners hereby establishes a solid waste collection and disposal system service
district in the areas of Orange County shown on Attachment 1.
Passed the day of 201_ and having an effective date of July 1,
2014.
Barry Jacobs, Chair
Orange County Board of Commissioners
Attest:
Clerk to the Board of Commissioners