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HomeMy WebLinkAboutAgenda - 12-10-2013 - 7b 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 10, 2013 Action Agenda Item No. 7-b SUBJECT: Rural Curbside Recycling Options DEPARTMENT: Solid Waste/Recycling PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: 1. October 8, 2013 Abstract — Review Gayle Wilson, 968-2885 Process for Creating a Solid Waste John Roberts, 245-2318 Collection and Disposal District Michael Talbert, 245-2308 2. Rural Curbside Recycling Options Advantages & Disadvantages 3. Map - Orange County Rural Curbside Recycling PURPOSE: To review funding options for Rural Curbside Recycling in Orange County and provide direction to staff. BACKGROUND: 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 Board of County Commissioners ceased assessing the Urban, Rural and Multi-family recycling fees beginning with the Fiscal 2013/14 Annual Budget. These services for Fiscal 2013/14 were funded 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 approximately 13,700 households eligible in the unincorporated area of the County. The rural curbside recycling fee was $38 in fiscal 2012/2013. (See the Rural Curbside Recycling Map at Attachment 3 with rural curbside service area in yellow and existing customers in blue.) 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. After a public hearing held on April 23, 2013 to take public comments on the top three (3) options, the Board unanimously directed staff to maintain the current recycling program and; 2 • 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; • Adopt an interim funding plan for 2013-14; • Committed to further investigate both a Solid Waste Tax Service District and a Solid Waste Authority At a Work Session on October 8, 2013, the Board reviewed the process for creating a Solid Waste and Disposal Service District (see Attachment 1). Options: There are three options to fund Rural Curbside Recycling and all three options can be for either the approximately 13,700 households currently receiving rural curbside recycling services or expanded to the entire unincorporated area of Orange County. The advantages and disadvantages of each option are outlined in Attachment 2. 1. Create a Solid Waste and Disposal Service District (Rural Curbside Recycling Only) 2. Establish a Rural Curbside Recycling Subscription Service (Operated by the County Solid Waste) 3. Fund Existing Rural Curbside Recycling Services from General Fund Revenues FINANCIAL IMPACT: The Rural Curbside 3-R fee was $38 in fiscal 2012/2013. The County has moved to single stream recycling and needs to purchase up to 13,700 roll carts (estimated at $53.50 each), two new recycling trucks (estimated at $289,000 each), to fully implement the Rural Curbside Recycling program. Staff estimates that it will cost $630,000 to fund the program in fiscal 2014/2015, and with improved efficiency, the program could expand and serve new customers in future years. The rural curbside recycling fees for Fiscal 2015/16 will be determined by the number of customers that sign up for the subscription service, the personnel and equipment necessary to provide the service and the size of the service area. The lead time necessary for new equipment and roll carts make it impossible to establish a Rural Curbside Recycling Subscription Service by July 1, 2014. Also, Solid Waste staff is engaged to insure that the Urban Curbside Recycling Services are implemented no later than July 1, 2014. New roll carts and trucks could be ordered and in place by no later than January 17 2015 and staff will work on expanding the customer base in anticipation of establishing a Rural Curbside Recycling Subscription Service in Fiscal 2014/15. A defined service area, customer base, and fee structure will be part of an implementation plan. RECOMMENDATION(S): The Manager recommends that the Board move forward to establish a Rural Curbside Recycling Subscription Service in Fiscal 2014/15 for approximately 13,700 households currently receiving rural curbside recycling services; and direct staff to proceed with the Recommended Implementation Plan which includes one half of the first year's funding coming from the General Fund Fund Balance ($315,000) and one half year's funding from billing customers that option to keep the rural curbside recycling subscription service. 3 Recommended Implementation Plan: 1. December 10, 2013 — Board Approves the concept of a Rural Curbside Recycling Subscription Service A. Estimated Cost to provide the service to 13,700 households currently receiving rural curbside recycling services is $630,000. B. Customers opting out of the Rural Curbside Recycling Subscription Service are estimated to be 20%, which would leave a remaining customer base of 11,000. An annual subscription rate of $58.00 is estimated to fund the households projected to receive rural curbside recycling services. 2. January 23, 2014 — Board approve the purchase of 2 new recycling trucks, up to 11,000 roll carts, and a budget amendment to fund one half of the first year's operations. New trucks and roll carts will be placed in service as soon as the trucks are available to be placed in service but no later than January 1, 2015. 3. No later than March 1, 2014, letters would be sent to the 13,700 households currently receiving rural curbside recycling services, describing the new subscription service and the first year's cost of the new service. Existing customers will be given the option of canceling the service by written notice to Solid Waste within 45 days. 4. July 2014 — The first annual billing for rural curbside recycling subscription service, $29 for 6 months of service from January 1, 2015 through June 30, 2015. 5. January 1, 2015 — After new trucks and roll carts are in service, Solid Waste will begin pursuing new customers in rural Orange County. 6. Rural curbside recycling subscription service will be evaluated as part of the Fiscal 2015/2016 Budget. ATTACHMENT 1 4 ORANGE COUNTY BOARD OF COMMISSIONERS C0 Py ACTION AGENDA ITEM AB_ STRACT ( Meeting Date: October 8, 2013; Action Agenda Item No. 2 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 5 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. 6 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 7 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. 8 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. 1. 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 9 RES-2013-073 DRAFT 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 10 Attachment 2 Rural Curbside Recycling Options Advantages & Disadvantages 1. Create a Solid Waste and Disposal Service District (Rural Curbside Recycling Only): A. A defined Solid Waste and Disposal Service District containing only parcels previously billed the Rural 3-11 Fee -Deal Property Values;Total Deal Property Valuation=$3,270,682,457 Advantages: • Impacts only those parcels previously paying for the service • Initially does not include new parcels but maintains current customer base and can allow expansion of approximately 2,000 new service pointswithin the new district. • Tax exempt parcels in the tax District will not pay a property tax but could receive the services • Astable and predictable source of funding • Property Tax qualifies as an income tax deduction • F;bnters&Tenantswould automatically receive service rather than a separate billing • Services existing stable program and customer base,operationally changeswill be minimal • The Tax service District could be expanded in the future Disadvantages: • Will require the creation of a 9Dlid Waste and Disposal Service District, including notification of property owners, public hearing(s), and setting a tax rate. • Future Expansion of the District would involve the same process used to establish the District • Not an equitable way to fund rural curbside recycling, the District tax will apply to all real & personal property whether or not the property receives rural curbside recycling services or not • Tax exempt parcels in the tax District will not pay a property tax but could receive the services • Taxes farmland and vacant property • Not everyone in the district will want or use the service • Could compete with private haulers providing rural curbside recycling services B. County Wide Solid Waste and Disposal Service District for the entire unincorporated area of the County —total Faeal Property Valuation$5,564,081,997 Advantages: • Will result in more residents participating • Potential for the greatest quantity of recycled materials being recycled and significantly increase waste reduction/recycling • Cost of F;Ural CUrbside Fbcycling would be proportional for all unincorporated property owners • F;bnters&Tenantswould automatically receive service • Astable and predictable funding source 11 Disadvantages: • Will require the creation of a 9Dlid Waste and Disposal SBrvice District, including notification of property owners, public hearing(s), and setting a tax rate. • Not everyone in the district will not want or use the service • Would necessitate phasing in RAral GArbside Fbcycling service multiyear period • Could bring service to least dense rural areas of the County and raise incremental cost per unit of service • Taxes farmland and vacant property 2. Establish a Rural Curbside Recycling Subscription Service (Operated by the County Solid Waste): A. Convert eAsting rural curbside service area(area previously billed as Rural 3-111 Fee) to a subscription service Advantages: • Would not require creation of a 9Dlid Waste Tax SBrvice District • No County-Wide Property Tax, only usersof the service would pay • Tax exempt properties could be served as any other subscriber • Could include non-residential • Equitable, each user pays the same for the same level of service Disadvantages: • Likely less participation and reduced quantities of recovered materials • Difficult to establish rates and predict revenues • Fbduced participation may require a general fund contribution • Fbduced participation could alter existing routes and could increase cost per household • Create or expand existing landfill billing system and initiate/maintain a detailed recordkeeping database for rural curbside program • Additional administrative costs with regard to periodic billing, customer service changes and cart pickup and deliveries • F;bnters&Tenantswould be required to subscribe B. Offer rural curbside service to the entire unincorporated areas of the County Advantages: • Would not require creation of a gDlid Waste Tax SBrvice District • No County-Wide Property Tax,only users of the service would pay • Tax exempt properties could be served as any other subscriber • Could include non-residential • Equitable, each user pays the same for the same level of service • RAral Curbside Fbcycling could be offered to everyone in the County 2 12 Disadvantages: • Likely less participation and reduced quantities of recovered materials • Difficult to establish rates and predict revenues • Fbduced participation may require a general fund contribution • Fbduced participation could alter existing routes and could increase cost per household • Create or expand existing landfill billing system and initiate/maintain a detailed recordkeeping database for rural curbside program • Additional administrative costswith regard to periodic billing, customer service changes and cart pickup and deliveries • F;bnters&Tenants would be required to subscribe • Would necessitate phasing in service over a multi-year period • Most difficult options to execute and service • Would create a larger carbon food print - less efficient routing of collection vehicles with significant increase in fuel usage to provide service to what could be highly dispersed service area 3. Fund Rural Curbside Recycling Services from General Fund Revenues: A. Convert eAsting rural curbside service area(area previously billed as Rural 3-111 Fee) to the new rural curbside service area Advantages: • Likely to increase participation and increase quantities of recovered materials • Would not require creation of a Solid Waste Tax SBrvice District Disadvantages: • County-Wide Property Tax all real & personal property ownerswould pay for RAral Ojrbside FL—cycling • Tax exempt propertieswould be served and not pay for the service • Inequitable all real & personal property owners would pay for RAral Ojrbside F"cling including Town residents already paying a Urban Curbside F"cling Fee B. Offer rural curbside service to the entire unincorporated areas of the County Advantages: • Likely to increase participation and increase quantities of recovered materials • Would not require creation of a Solid Waste Tax SBrvice District • RAral Curbside F"cling could be offered to everyone in the County Disadvantages: • County-Wide Property Tax all real & personal property ownerswould pay for RAral OJrbdde PEcyding • Tax exempt propertieswould be served and not pay for the service • Would necessitate phasing in service over a multi-year period • Would alter existing routes and could increase cost per household • Inequitable all real & personal property owners would pay for RAral Curbside F"cling, including Town residents already paying a Urban Curbside F"cling Fee 3 •'�.�Illl/icy'���•:�� a Irk , ti 1Vr �i1 ►alll�`V►�M 1 •��II p, ��lir�r .. r7� r.w �•.�,����'� rw�.= {•1►j:��iilirr_ Ir;:"nl�+ 'ICI WE �..ue�a�� ��� •1+rA�_�F• �%III ir■_ / �y �►,a ®.1.11 I!3z1�i•'Itl► If'� ■` . ■ ��1►■l4 1 I�U.:,1►'#r �'1r�.. �T rl' ,f. rfl�`f- _M.y����� y.���lM ���� '�/•i��'�1 Illlp li v/_rw�r1� r.a►/ EMMA / +1�• ���� Ill�w r�, :y/y �,i,a•��l 41 1'�' •% "4� ` c•AS �l,1!:�r.r�''-;'4 RAM S;'` r I o``tea. 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