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Agenda - 04-01-2014 - 5a
1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 1, 2014 Action Agenda Item No. 5-a SUBJECT: Solid Waste Service Tax District— Public Hearing DEPARTMENT: Solid Waste Management PUBLIC HEARING: (Y/N) Yes ATTACHMENT(S): INFORMATION CONTACT: Letter to Property Owners Michael Talbert, 919-245-2308 Report Filed in Clerk to Board's Office Gayle Wilson, 919-968-2885 Including Map John Roberts, 919-245-2318 Frequently Asked Questions — Updated March 7, 2013 BOCC Abstract— Manager Franchise Proposal PURPOSE: To conduct the second of two public hearings, pursuant to North Carolina General Statutes 153A-302, to receive comments with regard to the proposed establishment of a Solid Waste Service Tax District in unincorporated Orange County. BACKGROUND: In 2004 the Board of Commissioners approved a new method of funding for the every other week curbside/roadside recycling collection program for about 13,000 residences in unincorporated Orange County. At that time the Board adopted a fee to fund the program, called a Rural 3-R Fee, that all eligible residences were billed annually on their tax bills. The fee was assessed to all eligible for the service, regardless of whether or how often a resident used the service. In 2012 the County Manager and the County Attorney advised the Board that they had concerns regarding the statutory justification for assessing this fee and recommended that the Board eliminate the fee and consider other ways to fund that program. The 2012 tax bill was the last time the fee was assessed. The fee was $38/year. In 2013 the Board provided an interim funding for the program from landfill reserves. Over the next several months the Board discussed various options on how to address this funding problem. Elimination of the program was even considered, but unanimously abandoned due to measured participation of the rural community of about 57%. Some residents eligible for this service chose not to recycle, others delivered their recycling to convenience centers and a very few employed private haulers. It was also considered that the service was important in order to meet the County's aggressive waste reduction goal of 61%. 2 After considering and rejecting numerous funding alternatives, in December 2013, the Board indicated intent to implement a solid waste service district tax as the means to replace the funding lost when the fee was eliminated. One of the services discussed in March 2013 was a proposal to franchise waste and recyclables collection in unincorporated Orange County. The Board, following vigorous public opposition, eliminated the option from further consideration. The Board also recently discussed a subscription service option whereby those residents who wanted to retain the service could pay and those who wished not to pay could voluntarily opt- out. State statutes require a public hearing to be held prior to a Board adopting a service district, and the property owners of all parcels to be included in the district must be notified by letter of the hearing. The Board is conducting two public hearings: • The first public hearing occurred on March 18 at 6:00 PM at the Southern Human Services Center, 2501 Homestead Road in Chapel Hill; and • This second public hearing on April 1, 2014 at 6:00 PM at the Orange County Social Services Center, Hillsborough Commons, 113 Mayo Street in Hillsborough A funding decision with regard to the every other week curbside/roadside recycling collection program must be made and adopted prior to July 1, 2014 in order for this recycling service to continue. In order not to delay delivery of 2014 property tax notices the Board is advised to pursue a final decision at the April 15 regular meeting, or the earliest possible opportunity. FINANCIAL IMPACT: If the solid waste service district is ultimately adopted, it is estimated that the district tax rate would be about 1.5 cents per $100 dollars of assessed value of the property. For example, property with an assessed value of $100,000 would pay about $15/year in service district tax. A solid waste service district is similar to a fire service district. RECOMMENDATION(S): The Manager recommends that the Board receive comments and/or documentation with regard to the proposed Solid Waste Service Tax District and close the public hearing. 3 February 14, 2014 Fb: Public Hearing to discuss Solid Waste Service Tax District Dear Property Owner On February 4, 2014 the Orange County Board of Commissioners voted to hold two Public Hearings to consider the establishment of a Solid Waste Service Tax District effective July 1, 2014. You are receiving this letter because your property is located in the proposed Solid Waste Service Tax District. A Notice of the Public Hearing and a map of the proposed new Solid Waste Service Tax District are attached. The Solid Waste Service Tax District is being considered as a means to improve curbside recycling services in the county's unincorporated area. For those residents currently located within the rural curbside recycling service area and eligible for curbside recycling services, the tax district will replace the annual $38/household Floral 3-RFee,which was assessed on the property tax bill from 2004 to 2012. A report, as required by North Carolina General Statute 153A-302(b), containing additional information related to the proposed Solid Waste Service Tax District is available for public inspection in the office of the Oerk to the Board—200 SDuth Cameron Street, Hillsborough (open 8:OOAM to 5:OOPM), beginning February 14, 2014. The first Public Hearingwill take place on March 18, 2014 at 6:OOPM at the Southern Human Services Center, 2501 Homestead Fbad, Chapel Hill, 27516. Asecond Public Hearing will take place on April 1, 2014 at 6:OOPM at the Social Services Center, Hillsborough Commons, 113 Mayo Street, Hillsborough, 27278. A brief presentation will be made at 6:OOPM to be followed by public comments. Please feel free to contact Gayle Wilson in the Solid Waste Management Department Office if you need additional information at 919-968-2885 or gwilson _ rangecountync.gov 4 N0110E OF PUBU C HEART NGS ORANGE(BOUNTY BOARD OF(BOUNTY©OM M IS90NERS Pursuant to the requirement 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 at the Southern Human Services Center located at 2501 Homestead Road, Chapel Hill, North Carolina 27516, on Tuesday March 18, 2014 at 6:00 p.m.; and a second Public Hearing at the Social Services Center, Hillsborough Commons, 113 Mayo Street, Hillsborough, North Carolina, 27278, on Tuesday April 1, 2014 at 6:00 p.m. for the purpose of taking specific action on the following item: creation of a Solid Waste Service District 1. A report prepared on the proposed district as required by N.GG.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 Service District is attached. Questions regarding the proposed solid waste service district may be directed to the office of Gayle Wilson located in the Solid Waste Management Department administrative offices at 1207 Eubanks Road, Chapel Hill, North Carolina, 27516. Office hours are from 8:00 a.m. to 5:00 p.m., Monday through Friday. You may also call (919) 968-2885. 5 Solid Waste Service District Deport February 13,2014 Consistent with General Statute 153A-302 Orange County Commissioners provide this report regarding the proposed Solid Waste Service District that would be established to provide recycling services. 1) Map of proposed district—Attached 2) The Board of Commissioners will consider the following prior to mating a final decision with regard to the district: a. The resident population of the proposed district is estimated at 35,992. The estimated population density of the proposed district is211 people per square mile. b. The total appraised value of the properties subject to taxation in the proposed district is$4,478,900,424. a 2013 County Tax Rates are: Total RC Rate Combination 00 0.009316 County Tax+Orange Fire Tax 01 0.00946 County Tax+White Cross Fire 02 0.011544 County Tax+C.H. &h. Dst.+White Cross Fire Tax 03 0.00928 County Tax+Efland Fire Tax 04 0.011664 County Tax+C.H. Sch.Dst.+South Orange Fire Tax 06 0.00958 County Tax+South Orange Fire 07 0.011609 County Tax+C.H. &h. Dst.+New Hope Fire Tax 08 0.009525 County Tax+New Hope Fire Tax 09 0.009379 County Tax+Eno Fire Tax 10 0.00918 County Tax+Orange Grove Fire 11 0.011264 County Tax+C.H. &h. Dst.+Orange Grove Fire Tax 14 0.012164 County Tax+C.H. Sch. Dst. +Chapel Hill Fi re Tax 15 0.008986 County Tax+Little River Fire 16 0.009316 County Tax+Cedar Grove Fire 17 0.011544 County Tax+C.H. Sch. Dst. +Southern Triangle Fire Tax 19 0.011544 County Tax+C.H. &h. Dst.+Damascus Fire Tax 6 d. According to the U.S Census Bureau, median household income for the zip codes comprising the proposed district is as follows: zip code Income 27231 35,962 27278 61,654 27312 60,409 27510 38,576 27541 59,036 27572 68,610 27712 79,611 27514 54,759 27243 61,420 27516 72,171 27302 51,675 27517 83,619 27705 45,535 27707 45,538 The anticipated tax rate of 1.5 cents is equal to$37.50 for a residence with a value of $250,000. The recently eliminated Rural 3-R fee for FY-12113 was$38 per residential unit; 12,547 parcels that received that fee. Therefore, about 60% the 20,545 residential properties included in the proposed district were already paying a similar fee. Based on the median family income of the proposed district zip code areas and the comparability of the proposed tax rate of the previously paid recycling fee, it is believed that the majority of property ownerswithin the proposed district would have the ability to sustain the new district taxes. e. Current preliminary estimates of revenue generated to finance the recycling services are $630,000. It is intended that the proposed recycling services be fully funded through the service district. 3) The following summarizes the plan for providing recycl ing services within the district: The bi-weeldy (every other week) recyclables collection service for the proposed district will be provided by Orange County staff and equipment as is the current service. Roll carts and/or recycling bins will be distributed to all residences within the district, and those few smaller commercial establishments that generate residential quantities of recyclables, in two phases over the next approximately 18-20 months. The service is envisioned to be provided as a combination of automated with roll carts, semi-automated with roll carts or manual with recycling bins depending on specific service situations. Special services for the elderly or handicapped will continue to be provided. While the district tax would not be voluntary, participation in the recycling program is not mandatory. 8 Frequently Asked Questions Proposed Solid Waste Service Tax District M arch 27,2014 1. What is a SDI id Waste Service Tax District? It is a defined geographic area of a county where specific solid waste related services are provided and whose property owners fund the service through a tax that is set at a rate that will finance those defined services. 2. What isthe SDI id Waste Service Tax District that is being proposed by the Board of County Commissioners? The Board of Commissioners is proposing a service district that would provide for every other week curbside/roadside recycling collection. The proposed district does not include waste/trash collection,only recycling. This service was previously funded by a$38 annual RAral 3-R Fee that was billed on the annual tax bill, but that fee was eliminated following the 2012 Tax Billing. The service district is being proposed to replace the rural recycling program funding previously provided from that fee. The proposed service district will expand this recycling service to about 1,600 additional residents beyond the 13,750 householdswho are currently eligible for this service. The district would not include municipalities. 3. What if I don't recycle or take my materials to a,5bIid Waste Convenience Center? Isthere an option whereby a property owner can opt-out of this service? The SDlid Waste Service Tax District, aswith the previous RAral 3-RFee, does not provide an exemption or opt-out option for those residentswho choose not to use the service. Al taxable property that is included within the district would be assessed the district tax. Aswith property taxes in general,there would be no opt-out option. 4. 9nce I received a notice of a Public Hearing doesthis mean that my property will be included in the proposed district? Yes. If you received this notice your property, or if you own multiple properties, at least one property you own is proposed to be located within the district. If more than one property is owned only those located within the proposed district would be subject to the district tax. 5. How much will I have to pay through a district tax? The district tax rate will beset to generate funding for the every other week recycling service. It is currently estimated that the tax rate would beset at approximately 1.5 cents per$100 of assessed value. This would mean a property with an assessed value of$100,000 would pay$15 per year. 6. Why not continue charging the F Ural 3-RFee of$38/year? 1 9 The County Attorney and the County Manager recommended to the Board of County Commissioners last year that the Board abolish the RAral 3-RFee due to some uncertainty with regard to the fee being wholly consistent with state law authorizing counties to assessthese type of fees. Following that recommendation,the Board agreed it did not wish to risk continuing a practice that was not unmistakably consistent with state law,so the annual rural recycling fee was eliminated and consideration of alternative financing of the rural recycling service was initiated. After several months of examining numerous funding alternatives the Board is proposing the Slid Waste Service Tax District to generate the replacement program funding. About 13,750 residentswho were eligible for the service were previously assessed the fee. 7. Will the Solid Waste Service District apply to vacant (undeveloped)land? Yes,the district taxwould apply to all taxable property located within the proposed district without regard to whether structuresor homes exist on the property. 8. If the Board chooses not to adopt a Solid Waste Service District and wishes to establish a service opt-out program what would the estimated cost be for annual curbside recycling service? What is the scientific basisfor the 60 percent estimate of participants in an opt-out scenario?Isthere data or information relating to performance of opt-out programs? Are any of these participation assumptions based on fact? Key to estimation of the cost for opt-out service isthe assumption made regarding how many paying customers will remain in the program. If the assumption is that of the current approximate 13,750 customers only about 60%currently participate, and that of that 8,250 monthly users 20%(1,650)choose to opt-out as not wishing to pay a service fee,the estimated annual fee for service would be about$95.45(based on an estimated annual program cost of $630,000). And if, after a few months, due to the rather high cost of service(compared to the previous$38/year)another 10%of the 6,600 choose to cancel service,the estimated annual cost would increase to about$106.00 per year or almost$13/month. Of course there could be a small number of additional subscribersfrom current non-part icl pants that could moderate any fee increases.The 60%basis results from the current participation rate of 57%rounded. The assumption that 20%of the currently participating 7800 householdswill leave the system under voluntary subscription would seem to be an optimistic estimate of how many customers the program would lose once the fees increased and it was voluntary. When fees in Forsyth County's voluntary program rose from$2.65 a month to$8.65 a month the subscription declined by 11%from approximately 3,000 users out of 22,000 households(14%) to 2,700 (12%). Forsythe County most recently implemented a subscription type rural curbside/roadside recycling program and the Director of the County Office of Environmental Assistance and Protection stated"I would definitely expect and predict that if recycling collection service is made available on a voluntary subscription basis as a stand-alone service,you will be lucky to have a 25%participation rate." Experience in other governmental jurisdictions(states and NCcounty's)provides convincing evidence that many property ownerswill choose not to participate,which will result in increased costs for those who do participate. Economies of scale exist in recycling collection services like most other programs and services, meaning that the more property owners that join in funding a given service results in a reduced cost per each service unit. Alternatively, as 2 10 the number of fee payers is reduced, costs increase for each remaining participant. A NCDENR Environmental Specialist has spoken previously to the BOCC aswell as other recycling professionals,who have indicated the weaknesses of the so called"opt-out" or subscription (fee for service)type recycling program. According to the DENR Environmental 90ecialist the eight counties that operate a subscription-type curbside recycling program have an average partici pation rate of 14.8%. Rease note that it will take 5-6 monthsto establish an opt-out or subscription type service for rural curbside/roadside recycling. Therefore, some partial year(6 months)funding source may be required until the new subscription can be established and enrolling subscribers. Additionally, it will be necessary for county staff to evaluate the impact of a possible shift of recyclable materials from the existing curbside program to convenience centers as residentstry to avoid the subscription fee. The impact on the centers could be significant and additional resourceswill likely be necessary to collect and haul these additional materials. Staff has not conducted a detailed analysis of these additional costs. The current emphasis of staff on publiceducation programs may have to shift to a marketing effort to keep the subscription and participation level up rather than primarily provision of public outreach and education on the County'swide variety of public recycling and waste reduction programs. 9. Would a Slid Waste Service District funding option or an opt-out (or subscription)fee for service option result in the most recyclable materials being recovered and move Orange County the furthest toward its 61%waste reduction goal? Which would cost the least per unit served? Based on evidence from other jurisdictions(both North Carolina and out of state)asubscription fee for service option of funding the recycling collection service would yield the least quantity of recovered recyclables and result in the greatest unit cost for users of the program.The SDlid Waste Service District would be the least costly per parcel served. 10. What does it mean that handicap service will continue? Both the Urban and Raral Curbside Ibcycling programs maintain a special services option for handicapped and elderly residents.This service requires the collector to go to the resident's home at an agreed upon location and collect their receptacle,empty it into the truck and return the empty container to the home. 11. Hasthe value of the property within the proposed district been analyzed? The total valuation of the district is located at the bottom of the map and is calculated at $4,478,900,424. 12. Is the current participation rate for the rural program 57 0/8? If so, how many are estimated as not using the service? Yes, according to the latest survey of four rural routes. About 5,800 are estimated to be using the convenience centers, not recycling or recycling through alternative means. 3 11 13. How many parcels in the proposed district are not going to be paying the tax(are tax exempt) but will be receiving the service? There are 694 tax exempt properties located in the proposed district that will not be paying the district tax. It is understood that any of those parcelsthat contain buildingsthat generate recycableswe would be required by statute to provide the service. We estimate that less than half of these properties contain structures that could utilize the service. 14. If the RAral Program participation rate is 57%,what would be the participation rate in the Urban Program for comparison? The participation rate in the Urban Program is estimated to be 90%. Utilization of the new roll carts fitted with WDtagswilI allow much more accurate calculations of set out and participation rates. 15. When roll carts are implemented will people be required to use them? Due to the variability in the county such asgeography and other differences consistent with rural living, accommodations will have to be made. When a resident expresses a desire to continue using a bin and does not wish to use a roll cart,they will be allowed to use what they think best suits their situation. They will be allowed to choose,although in many instances they will be encouraged to try a roll cart. 16. If residentswill be allowed to continue to use bins if they choose rather than be required to use roll carts, and if only 57%of residentswill be participating, how many roll cartswill be purchased? It is estimated that 7,000 carts would be purchased initially. Prior to implementation a more thorough assessment will be performed to match the type of recycling receptacle with resident needs and requests. 17. Do residents owning property valued at $250,000 pay the same as a resident owning property valued at$500,000 for the same service? Can the property tax amount be capped? Atax rate of$.015 per$100 on a$500,000 valued house versus a$250,000 valued house will yield different amounts to be paid.According to the County Attorney,assigning different tax rates based on property value is not legal. For example,this is also true for two property owners of differently valued property who use the local county library about the same amount. Astatutory cap is provided in NCGeneral Statutes 153A-149(c): Each county may levy property taxes for one or more of the purposes listed in this subsection up to a combined rate of one dollar and fifty cents($1.50)on the one hundred dollars($100.00) appraised value of property subject to taxation. 18. What isthe percentage of the county's total recycl ing is recovered by the roadside pickup in rural areas? RAral CUrbside represent s about 13%of dry recycl ing tonnage(excl uding Haz Waste,waste oil, anti-freeze,filters,etc. and food waste). 4 12 19. What is the average Property tax value in the proposed district? Including vacant property, exempt, improved, commercial, etc.,the average total property value within the district is$218,404. 20. How did we come up with the proposed tax rate? The tax rate was calculated by dividing the estimated total cost of the rural curbside/roadside recycling program by the total assessed value of properties within the proposed service district to arrive at the suggested tax rate of 1.5 cents per$100 assessed value. 21. What is the average tax value of property with homes in the proposed district? Average total property value of the parcelswith homes is$290,314. 22. Is there an education element in subscription service provided across the state? Educational elementsfrom the various subscription programs acrossthe state vary considerably from county to county.We have requested information from several countiesthat have a subscription type recycling collection service, and of the three responseswe received to date, there is a variation from some County involvement to almost none. In all cases,the contractor seems to be the lead agency. Staff may be able to report with more information in the near future pending responses from other communities. 23. Was every property notified of the public hearings and of the pending consideration by the Board of a solid waste service tax district? Yes, notice of the public hearing was mailed to all property ownerswhose property is incorporated into the proposed service district. 24. Could we reduce the size of the proposed tax district? The proposed district boundary could be reduced as long as no parcels that were not notified as part of the public hearing process are included. Additionally, properties within a service district must be contiguous. 25. What was the result of the Board of Commissioners adopted language that was conveyed to the NClegislature requesting to be given the authority to impose a fee like the previous RAral 3-R Fee? The local bill was submitted to the Orange County legislative delegation last year. It was sponsored and introduced by Fop. Fbushee and was co-sponsored by a number of other representatives. However,the bill died in committee and is no longer eligible for consideration. 26. Are some convenience center costs paid from the general fund/property tax revenue? Funding to operate convenience centers is provided from both a Convenience Center Fee charged annually on the tax bill to only residential property owners, and represents about 25% 5 13 of costs. The remainder of the funding is provided by the General Fund supported by all County taxpayers, both municipal and rural, regardless of jurisdiction,type of property or whether they use the centers. 27. What is the total tax value of tax exempt properties within the proposed service district? Total value of exempt properties including building and land is$224,559,229. 28. Why did the Commissioners abolish the previous RAral 3-R Fee without first determining where the replacement funding would come from? What was the urgency? The Board of Commissioners received a recommendation from the County Manager and the County Attorney that recent actions by the legislature and courts raised questions as to the County's legal authority in imposing the RAral 3-R Fee and that the Board should consider eliminating that Fee. The Board responded to that recommendation. 29. Is it true that Catawba County leads the state in recycling? I thought Orange County was the state's leader? The Nate of North Carolina General Statutes requires measurement of the rate of waste landfilled per person in each county annually and there is a statewide goal of 40% waste reduction that was to have been achieved by 2001. It was 12%statewide last year. That rate of landfilling per person is then compared to an established base year of 1991-92 and the difference is that County's waste reduction rate. By this statutorily required metric, Orange County led the Mate of North Carolina with a 58%waste reduction rate in FY2012-13. Orange County also had the highest waste reduction rate for the preceding four years. For comparison, Catawba County's waste reduction rate was 27%in FY2012/13. Catawba County had the Mate's highest rate of recycling per person in FY 12-13 as calculated separately by the NC DENR Division of Environmental Assistance and Customer Service from annual local government reports. Orange County was sixth last year by that measure and has generally been in the top ten since the metric was established. That metric was independently established by the NC DENR Division of Environmental Assistance and Outreach in the early 2000s as an alternative means of evaluating progress in SDIid Waste Management. It is also believed that this alternative "unofficial" means of presenting recycling was developed due to the overall poor progress state-wide with regard to waste reduction per capita performance and that this alternative method would shed a more positive light on state performance. It is not statutorily required but measures recycling progress County by County. In Counties with large industrial and commercial recycling programs that are connected to local government operationsthe recycling per person may be reported as higher than thosewith less industry. Eg. UNCChapel Hill reports its 4,400 tons of recycling separately from Orange County. In the original omnibus State SDlid Waste Bill in 1989, the State did establish recycling goals at rates of 25% and 40% but in 1991 revised that metric to be a waste reduction rate. The rationale for using a waste reduction measure is that it is calculated by the State, independently from what is reported by each County as recycled in its programs. Further, the waste reduction rate more holistically reflectsthe means other than recycling of reducing waste such as backyard composting, `smart shopping', encouragement of reuse and repair asalternativesto disposal. 6 14 30. What is fair about having people who don't use the curbside recyding service having to pay for it? Those that use it should pay for it. There are many government services, if not most, whose use by any specific taxpayer and that taxpayer's financial contribution are not proportional. Not all taxpayers use the public library, but all contribute to its funding. In Orange County not all tax payers use convenience centers but all taxpayers(induding municipal residents) contribute to its funding, induding those non- residential property owners who are prohibited from using it. The question of fairness with regard to public funding and utilization of service is inherent in government services and benefits. It is the nature of public funding and a matter of perception. Like the funding for libraries or convenience centers, the service district tax is a way to offer a needed or desired service to a large group of residents without making the cost prohibitively expensive. 31. How many residents in Orange County contract for garbage service? This number is not known because private haulers are not required to report it and can be reluctant to reveal their proprietary business data. In the late 1990s, phone interviews by Orange County Public Works recorded about 5,000 reported private waste customers in the unincorporated area of the county. Another informal phone survey about five years ago by the Solid Waste Department came to a similar number, but those were based on non-binding responses from the private haulers of a range and remain only estimates of use of private waste hauling services. 32. How will the cost of the opt-out service be kept at a reasonable fee? The cost of the opt-out or subscription service option would presumably be fully funded by the subscribers, regardless of the level of the fee. Unfortunately, if the cost becomes too expensive some subscribers may cancel their service and/or new residents may choose not to enroll. If this happens the service fee would continue to escalate in order to achieve necessary levels of funding to operate the program, and the number of subscribers would continue to dedine. Alternatively, the Board could agree to supplement this program from the general fund when the service fee reached a certain level or the number subscribers become insufficient to sustain the recycling service. In that instance, municipal residents would then be subsidizing a rural service that they are not eligible to receive. 33. How long will it take to get ready for the opt-out subscription service? Will it cost more, less or about the same as the tax district?Sounds like more trouble. The County Manager has previously indicated that at least six months would be required to establish the opt-out service option. Given the Board's December 2013 declaration of intent to establish a service district (among other Board solid waste/recycling related priorities that are consuming staff resources) no preparatory work has been performed with regard to an opt-out option. There is still some uncertainty with regard to some of the details of implementation of an opt-out type service that would have to be resolved by the Board through discussions with staff and the approval of an implementation plan and subscription fee schedule. 7 15 Additionally, if quantities of recyclable material shift from the curbside program to the convenience centers due to the increasing cost of the opt-out (subscription)service,the impact on the centers could be substantial and additional resourceswill likely be necessary to collect and haul these additional materials. Staff has not conducted a detailed analysis of these additional costs. 34. Is there any other county that charges for convenience centers aswell as for the cost of recycling? Based upon a lessthan comprehensive research due to the large number of questions involved, and the limited timeframe in which to respond we have found that, according to NCDENRState recordsfrom County reporting on the annual report,the following communities appear to meet those criteria of charging for convenience centers and charging for recycling collection: Caldwell County,Carteret County, aeveland County, Hertford County, Nash County, and Fender County. Given more time staff might be able to identify others. 35. Has orange County examined Catawba County, NCand their incentive program? Grange County staff has investigated Catawba Gounty's approach to unincorporated area curbside recycling and is reasonably familiar with their program. We have the following observations: Catawba has a single exclusive franchised waste and recycling hauler with a ten year contract serving the whole County with residential trash and recycling collection, commercial waste collection and Construction and Demolition waste collection. Of the 33,600 residences in unincorporated County,about 14,000 or 42%subscribe to waste collection and 97%of those are reported to use the recycling program at least monthly which isthe minimum to be considered a recycler.Those using recycling get the lower monthly trash collection rate of$18.88 including the cart.Setting out the recycling cart at least once a month constitutes program use, irrespective of contents.Those who don't recycle at the curb pay$24.33 per month for trash collection including a cart. Catawba County contracts Solid Waste Convenience Center operationsto F;bpublicwho charges a fee of$1.75 per bag of residential waste delivered to their Convenience Gentersthat provides partial support to the system and they also charge for bulky items at $17.50 per small pick up or $26.25 per large pickup truck. During conversion to recycling carts last year,the County in conjunction with F;bpublic provided abroad variety of outreach including electronic media, presentations,web page and PSAs in local papers. F;bpublic put out their educational materials when they converted to carts for the schedule changes and information about what to recycle. They achieved a recycling rate at the curb of 239 pounds per eligible household last year. Grange County unincorporated area curbside recycling rate was about 250 pounds per household among all households, not just those calculated as participating. If only the 7,800 households considered as participating were counted,the rate is440 pounds per household. 36. Is there research on what the cost per household will be for an opt-out type service? R ease see#8 above. 8 16 37. How many people use the convenience centers for recycling versus using the existing curbside recycl ing service? There are approximately 20,000 households in the unincorporated area and they represent almost all users for conventional recycling of paper, cans, bottles and cardboard.The number of urban single family or apartment dwellers using the SNM for recycling is assumed around 10% in this estimate as they have access to curbside or on-site recycling and more convenient 24 hour unstaffed drop-off sites. Thus: of those 13,700 residences(at the time of the survey was conducted)that have access to curbside recycling an estimated 57%or 7,800 use the service at least once a month. If 90%of all the remaining households eligible recycle instead at convenience centers,that means 5,300 of those and if 50%of the remaining householdsthat do not have accessto curbside recycling recycle at the SNM,then another 3,200 households recycle at the SNM. Urban users are more difficult to estimate. This information and estimates are summarized in the table below Funded to nearest 100: Type household Number Percent recycling Number Tons recycled Comments recycling RAral with curbside 13,700 57%recycle 7,800. SDme 1700 at the curb in %using at least recycl ing access curbside of these use rural program once/month based S/VMto on route survey of recycle too. 1400 units in January 2013 RAral with curbside 5,800 90%estimated 5,300 TOTAL ATBJVM access who don't use as recycl ing at from all users the system BJVM 3,390 RAral with no access to 6,300 50%estimated 3,200 curbside recycling as recycl ing at 9JVM RAral with contract 200(1% 100% 200 curbside recycling of all rural residents) Urban users of sites for 10%est. of tons recycling recycled at 8JVM 38. Can we work with the townsto get similar service that they receive from the contractor? The Urban 0 irbside and Fral Curbside program are two distinct programs and it is our understanding that the Towns prefer a distinct program within the municipalities with no comingling of finances. The municipal service isweekly,the rural service is bi-weekly.The Urban program contractor is under contract to Orange County to provide that service. Orange County is the provider of all public recycling serviceswithin the county either directly, or indirectly through a contractor. We work closely with the towns with regard to all county recycling serviceswithin their jurisdiction. 9 17 For several years the RAral program was also contracted to private companies by Orange County. After the first company was unable to provide quality service and meet service schedules a competitive request for proposals resulted in a second private company being selected. After a few years that company too was unable to provide acceptable service (resident complaints and rising costs)so eventually the county assumed service responsibility and has provided high quality service for less cost than a private contractor. 39. How did you get to the conclusion of the tax district? Following the elimination of the RAral 3-RFeethe Board evaluated and considered numerous funding and service alternatives. These alternatives included elimination of the rural program, privatization,franchising, combining variouswaste fees,funding all or various combinations of services through property taxes, eliminating convenience centers, providing only convenience centers,creating an single all-encompassing solid waste district including the towns, and various other service and fee permutations. Ultimately these were rejected,some due to vigorous resident objections,and last December the majority of the Board indicated a preference for,and an intent to establish a rural service tax district for recycling. 40. Will the tax district increase/encourage participation as compared to the previous RAral 3-RFee funded service?Ote research that county-wide taxation will increase participation. Based on our own long-term experience and our inquirieswith knowledgeable recycling professionals, participation is more determined by how each citizen interfaceswith the program,the choices available to the citizen, community incentives or disincentives of convenience or cost, a community's motivation/enthusiasm/knowledge through the supporting programmatic education and outreach,the local environmental culture, etc. that impacts participation than whether the service is funded by taxes or fees. However, regardless of funding source,there is general agreement that the need to opt-in or subscribe is dearly a barrier to participation. According to staff in the Mate's Fbcyding office in the Department of Environment and Natural Iesources(DENR, regardless of how a curbside recycling program is paid for, if recycling service is automatically available(meaning that the household does not need to subscribe or opt-in)then participation is stronger than if the household is simply offered the service and all they need to do is put a bin or cart at the street or road. 41. How will the district tax impact properties on Fbsemary and Graham streets in Chapel Hill? The proposed solid waste service district does not apply to properties located within corporate municipal limits. 42. Why are some properties exempt from property taxes? Some property is exempt from property taxes by state law(General Statutes 105-125). The following is an excerpt from this statue that comprises most of the tax exempt properties in Orange County: 10 18 Exemptions - The following corporations are exempt from the taxes levied by this Article. Upon request of the Secretary, an exempt corporation must establish its daim for exemption in writing: (1) A charitable, religious, fraternal, benevolent, sdentific, or educational corporation not operated for profit. 43. Why not include the entire unincorporated area for recyding service? Thiswas previously considered by the Board and could certainly be an option. Thiswould require a significant expansion of the rural program into the less densely populated portions of the county. The proposed district area was created in part by what area can be serviced with existing resources(collection vehicles and drivers). There was also an interest in not increasing expenses in a period of financial uncertainty(loss of Kral 3-RFee and landfill closure). Certainly services could be expanded to include the entire unincorporated area, phased in over a two to three year period. It is unlikely that an opt-out (subscription)service could adequately fund such an expansion. 44. All discussion of thistax has been focused on providing bi-weekly curbside recycling services. Given the taxis being referred to as"SDI id Waste Tax District" rather than"Fbcyd ing Tax District," what assurances do citizens have that, once in place,the tax district will not be used for other solid waste purposes? It is correct that all focus is currently on the bi-weekly curbside recycling service and staff has not recently been directed to evaluate other service option for the proposed district. Given the critical decision timeline necessary with regard to the rural curbside service, it is not likely that other services will be considered at this time. However,this Board or any future Board,at its discretion, may consider any number of programmatic variations of a service district in the future. Staff is not aware of any longer term plans for other purposes. 45. Who determines the tax rate and when it may be raised? If it is the commissioners, is there a requirement for public hearing prior to such action? Only the Board of Commissioners has the authority to set a tax rate. The tax rate is set annually as part of the budget process. Public hearings are held each year during the budget process to provide opportunity for public input, including input with regard to the tax rate. 46. Why can't the county request an RFPfrom Waste Industries for outsourcing collection in the rural area prior to the April 1 meeting? Couldn't we loosely tie the RFPto town proposals in order to benefit from scales of economy? Any RFPprocess is required to be a competitive process open to all qualified recycling collection contractors and only negotiatingwith a single company would be contrary to state purchasing law, absent an emergency situation. Such a process could not have been conducted in such a short time frame as to have been ready by April 1. Furthermore,the RFP process conducted by the Towns last summer resulted in several proposals being received, has led the Towns to pursue an agreement with the county for providing the urban curbside services. So apparently the Towns have determined that the county service, integrated as it can be with other county 11 19 services, induding integration of the public education and outreach function,was cost competitive with proposals received from the private sector. The county maintains a considerable economy of scale with its county-wide compliment of services and programs. 47. What are the costs of opening the five convenience centers 7 days/week? A brief evaluation of the cost to extend the hours of convenience centers to seven days/week has resulted in an estimated cost of$400,000 to$440,000 per year increase over current operating costs. Amore thorough and detailed analysis should be conducted to develop budget level cost estimates. The above estimate assumes 362 days per year operation,from 7am to 6pm. It should be noted that the convenience centers have never been open seven daysiweek since their creation in the early 1090's. They have always been dosed on Wednesdays for employee training and site maintenance purposes. There are a number of issues and assumptions that would have to be tested to confirm any cost proposal, including garbage/trash service and storage capacity given our dependence on distant waste transfer station disposal. Currently,with the available transfer station operations dosing at noon on Saturday until Monday,the waste collected at the centers Saturday afternoon and Sunday afternoon must be stored until Monday disposal. Our storage capacity used is typically at a maximum until we can dispose of the waste Monday morning. Opening Sunday morning would require additional storage capacity that has not been incorporated into the above estimates. There are certainly other, less extensive schedule of operation expansions that could be considered. Staff would suggest a comprehensive analysis of such a major expansion of hours at convenience centers prior to any serious discussion of such a decision. It should also be noted that previous Board of Commissioners' have made a commitment to a concept of Neighborhood/District Convenience Centers. This concept presumes that the District centers would have more expansive hours of operation and that Neighborhood Centers would have less expansive hours of operation. Part of the basis for this concept was to balance hours of operation with level of use, resulting in a less costly program; a balance of cost with convenience. 48. What reason does the county have to believe that the 1,650"new" households being added to the taxdistrict (those which have not been included in curbside recycling to date)intend to use the service if provided? What reason isthereto believe that adding these householdswill increase the total amount of recycling in the county,given that the program already has 55-60% participation levels? The majority of the residences included in the proposed expansion area of the district beyond the current service area include more dense neighborhoods that were identified in field surveys conducted 2-3 years ago for the purpose of identifying priority areasfor program expansion. For some of these areaswe have received resident requests or inquirieswith regard to expanding services. We feel confident that the proposed expansion areaswill meet or exceed the 57%participation rate of the existing area. There are some less dense areas also included either due to statutory contiguity requirements for service districts or as a result of routing connectivity reasons. It is our expectation, based on similar areas currently serviced,that we can expect participation rates at or beyond the current program-wide average 57%rate. 12 20 49. 1 have been paying the Solid Waste Convenience Center Fee for three years and it has increased to$40/year in that period. Included among the tax bill explanationsfor this fee is"The cost of expanding the hours of operation for the solid waste convenience centers". Why hasthere not been any expansion of hours in that three year period? The hours of operation at the Eubanks Fbad and Walnut Grove Church Fbad Centerswere increased by opening on Thursdays from 7 am to 6 pm effective September 5,2013. 50. How many exempt properties are there in the proposed district? There a total of 694 tax exempt properties in the proposed service district. 51. How many vacant properties(no homes or other structures)are in the proposed district? The total number of vacant properties within the district is approximately 5,469. 52. What isthe average home value and the average assessment throughout the county? Average total property value throughout the county is$290,545. 53. If a homeowner does land/house improvements,will this change the cost of the tax on the property? Anything that changes the property tax assessment would change their property tax bill. 13 21 ORANGE COUNTY C 0 Py BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: `March 7, 2013 Action Agenda Item No. 7-d SUBJECT: Proposal to Move Toward A Franchise to Privatize Curbside Solid Waste and Recycling Services in Unincorporated Area of Orange County DEPARTMENT: Solid Waste/Recycling PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: 1) General Statutes 153A-136 Regulations Frank Clifton, 245-2300 of Solid Waste Gayle Wilson, 968-2885 2) General Statutes 160A-327 John Roberts, 245-2318 Displacement of Private Solid Waste Michael Talbert, 245-2308 Collection Services PURPOSE: To discuss a proposal to move toward a county-wide franchise agreement that would privatize curbside Solid Waste and Recycling Services in the unincorporated areas of Orange County. BACKGROUND: The Solid Waste Mission Statement is to operate public facilities receiving and processing various types of Municipal Solid Waste and Construction and Demolition Waste in such a way as to provide a high quality, reliable, cost effective environmental safe containment of these wastes ensuring the protection of the environment, health and safety of the citizens of Orange County. The BOCC has authorized a major modernization/upgrade of the Walnut Grove Solid Waste Convenience Center as a first step in eventual improvements to all five solid waste convenience centers. These improvements conceive creating two centrally located District Centers (Walnut Grove and Eubanks) which would have extended hours of operation and a wide range of services to include Household Hazardous Waste, expanded salvage sheds, food waste/cooking oil recycling and various other new and improved recycling opportunities. The other three Neighborhood Centers would have slightly reduced hours of operation and more limited services. All would utilize compaction for more efficient hauling and be paved for a more sanitary and aesthetic resident experience with more user friendly and safer waste/recycling receptacles. The Orange County Municipal Solid Waste Landfill, located on Eubanks Road, will close on June 30, 2013. The Construction and Demolition landfill will continue to operate for the next 17 to 18 years. White goods, scrap tires, scrap metal, mattresses, and yard waste will become part of the recycling division beginning July 1, 2013. These significant changes in the operation of 22 the Solid Waste, and recent North Carolina court decisions limiting County authority, caused Orange County to investigate curbside Solid Waste alternatives. Curbside household solid waste collections in the unincorporated areas of the County are provided by private haulers (without a franchise agreement). The Towns collect household solid waste within their town limits. Curbside recycling, provided by the County, is limited to 13,730 households in the unincorporated area of the County. A rural curbside recycling fee is charged to those households where recycling services are made available. An urban curbside recycling fee is charged to Chapel Hill, Carrboro and Hillsborough residents by the County for urban curbside recycling services. North Carolina General Statute's 153A-136 (Attachment 1) Regulation of Solid Waste, gives Counties the authority to grant a franchise for the exclusive right to collect or dispose of solid waste within all or a defined portion of the county and prohibit others from collecting or disposing of solid wastes in that area. The County is exploring a franchise agreement process for the unincorporated areas of the County which would include the privatization of curbside household solid waste and recycling. The County may by resolution permit a Solid Waste Ordinance to be adopted by the Towns and applicable within the Town limits. The Towns may negotiate a fee schedule that differs from the fees established by the County for privatized curbside solid waste or recycling services. North Carolina General Statute's 160A-327 (Attachment 2) provides that a unit of local government may displace a private company that is providing collection services for household solid waste or recovered material. The County will follow the procedure outlined in GS 160A- 327. The earliest possible date for the Board to hold a hearing to consider implementing provisions of the statue is April 23, 2013. An anticipated timeline, if Orange County moves toward the Franchise of Curbside Solid Waste and Recycling Services in Unincorporated Area of Orange County is: • March 15, 2013 — Notice to existing private solid waste collection services of the April 23, 2013 meeting to discuss Franchise Agreement and displacement of private solid waste collection services • April 23, 2013 Public Hearing to discuss Franchise Agreement and displacement of private solid waste collection services implementing the 15 month public notice requirement • April 23, 2013 — June 15, 2013 Create Request for Proposals (RFP) - Franchise Agreement • June 15, 2013 —August 15, 2013 RFP available for vendors to responses • August 15, 2013 — September 30, 2013 Staff evaluation of proposals and negotiations with vendors • October 8, 2013 Work Session discussion of Franchise Agreement • November 5, 2013 Public Hearing to consider Franchise Agreement • November 19, 2013 Board Approval of Franchise Agreement • July 1, 2014 — December 31, 2015 - Phased Implementation of Franchise Agreement FINANCIAL IMPACT: There is no financial impact to the County in discussing this proposal to move toward a county-wide franchise agreement for privatized curbside Solid Waste and Recycling Services in the unincorporated areas of Orange County. 23 RECOMMENDATION(S): The Manager recommends that the Board approve the scheduling of a public hearing to discuss a proposal to move toward a county-wide Franchise agreement for curbside Solid Waste and Recycling Services in the unincorporated areas of Orange County for April 23, 2013 and direct staff to proceed with the various steps required in NC General Statutes. NOTE: There are several elements to this process that will require coordination with Town governments, the existing recycling contractor, existing private waste collection in rural Orange County and others. If the process ends in a decision to move forward to `privatize ` curbside collection services, the existing fees charged by the County for these services will be eliminated and residents will voluntarily participate in curbside solid waste and recycling services provided by a private contractor on an individual fee basis established via the franchise agreement process. GS_153A-136 Page 1 of 2 24 § 153A-136. Regulation of solid wastes. (a) A county may by ordinance regulate the storage, collection,transportation, use, disposal, and other disposition of solid wastes. Such an ordinance may: (1) Regulate the activities of persons, firms, and corporations, both public and private. (2) Require each person wishing to commercially collect or dispose of solid wastes to secure a license from the county and prohibit any person from commercially collecting or disposing of solid wastes without a license. A fee may be charged for a license. (3) Grant a franchise to one or more persons for the exclusive right to commercially collect or dispose of solid wastes within all or a defined portion of the county and prohibit any other person from commercially collecting or disposing of solid wastes in that area. The board of commissioners may set the terms of any franchise, except that no franchise may be granted for a period exceeding 30 years, nor may any franchise by its terms impair the authority of the board of commissioners to regulate fees as authorized by this section. (4) Regulate the fees, if any, that may be charged by licensed or franchised persons for collecting or disposing of solid wastes. (5) Require the source separation of materials prior to collection of solid waste for disposal. (6) Require participation in a recycling program by requiring separation of designated materials by the owner or occupant of the property prior to disposal. An owner of recovered materials as defined by G.S. 130A-290(a)(24) retains ownership of the recovered materials until the owner conveys, sells, donates, or otherwise transfers the recovered materials to a person, firm, company, corporation, or unit of local government. A county may not require an owner to convey, sell, donate, or otherwise transfer recovered materials to the county or its designee. If an owner places recovered materials in receptacles or delivers recovered materials to specific locations, receptacles, and facilities that are owned or operated by the county or its designee, then ownership of these materials is transferred to the county or its designee. (6a) Regulate the illegal disposal of solid waste, including littering on public and private property, provide for enforcement by civil penalties as well as other remedies, and provide that such regulations may be enforced by county employees specially appointed as environmental enforcement officers. (7) Include any other proper matter. (b) Any ordinance adopted pursuant to this section shall be consistent with and supplementary to any rules adopted by the Commission for Public Health or the Department of Environment and Natural Resources. (c) The board of commissioners of a county shall consider alternative sites and socioeconomic and demographic data and shall hold a public hearing prior to selecting or approving a site for a new sanitary landfill that receives residential solid waste that is located within one mile of an existing sanitary landfill within the State. The distance between an existing and a proposed site shall be determined by measurement between the closest points on the outer boundary of each site. The definitions set out in G.S. 130A-290 apply to this subsection. As used in this subsection: (1) "Approving a site" refers to prior approval of a site under G.S. 130A-294(a)(4). (2) "Existing sanitary landfill" means a sanitary landfill that is in operation or that has been in operation within the five—year period immediately prior to the date on which an application for a permit is submitted. (3) "New sanitary landfill" means a sanitary landfill that includes areas not within the http://ww w.nega.state.nc.us/gaseripts/statutes/statutelookup.pl?statute=153 a... 2/25/2013 GS_153A-136 Page 2 of 2 25 legal description of an existing sanitary landfill as set out in the permit for the existing sanitary landfill. (4) "Socioeconomic and demographic data" means the most recent socioeconomic and demographic data compiled by the United States Bureau of the Census and any additional socioeconomic and demographic data submitted at the public hearing. (d) As used in this section, "solid waste" means nonhazardous solid waste, that is, solid waste as defined in G.S. 130A-290 but not including hazardous waste. (e) A county that has planning jurisdiction over any portion of the site of a sanitary landfill may employ a local government landfill liaison. No person who is responsible for any aspect of the management or operation of the landfill may serve as a local government landfill liaison. A local government landfill liaison shall have a right to enter public or private lands on which the landfill facility is located at reasonable times to inspect the landfill operation in order to: (1) Ensure that the facility meets all local requirements. (2) Identify and notify the Department of suspected violations of applicable federal or State laws,regulations, or rules. (3) Identify and notify the Department of potentially hazardous conditions at the facility. (f) Entry pursuant to subsection (e) of this section shall not constitute a trespass or taking of property. (1955, c. 1050; 1957, cc. 120, 376; 1961, c. 40; c. 514, s. 1; cc. 711, 803; c. 806, s. 1; 1965, c. 452; 1967, cc. 34, 90; c. 183, s. 1; cc. 304, 339; c. 495, s. 4; 1969, cc. 79, 155, 176; c. 234, s. 1; c. 452; c. 1003, s. 4; 1973, c. 476, s. 128; c. 822, s. 1; 1989 (Reg. Sess., 1990), c. 1009, s. 1; 1991 (Reg. Sess., 1992), c. 1013, s. 1; 1993, c. 165, s. 1; 1997-443, s. 11A.123; 2001-512 http://www.nega.state.ne.us/gascripts/statutes/statatelookup.pl?statute=153 a... 2/25/2013 Chapter 160a Page 1 of 3 26 160A-327. Displacement of private solid waste collection services. (a) A unit of local government shall not displace a private company that is providing collection services for municipal solid waste or recovered materials, or both, except as provided for in this section. (b) Before a local government may displace a private company that is providing collection services for municipal solid waste or recovered materials, or both, the unit of local government shall publish notice of the first meeting where the proposed change in solid waste collection service will be discussed. Notice shall be published once a week for at least four consecutive weeks in at least one newspaper of general circulation in the area in which the unit of local government and the proposed displacement area are located. The first public notice shall be given no less than 30 days but no more than 60 days prior to the displacement issue being placed on the agenda for discussion or action at an official meeting of the governing body of the unit of local government. The notice shall specify the date and place of the meeting, the geographic location in which solid waste collection services are proposed to be changed, and the types of solid waste collection services that may be affected. In addition, the unit of local government shall send written notice by certified mail,return receipt requested,to all companies that have filed notice with the unit of local government clerk pursuant to the provisions of subsection(f) of this section. The unit of local government shall deposit notice in the U.S.mail at least 30 days prior to the displacement issues being placed on the agenda for discussion or action at an official meeting of the governing body of the unit of local government. (c) Following the public notice required by subsection (b) of this section, but in no event later than six months after the date of the first meeting pursuant to subsection (b) of this section, the unit of local government may proceed to take formal action to displace a private company. The unit of local government or other public or private entity selected by the unit of local government may not commence the actual provision of these services for a period of 15 months from the date of the first publication of notice, unless the unit of local government provides compensation to the displaced private company as follows: (1) Subject to subdivision (3) of this subsection, if the private company has provided collection services in the displacement area prior to announcement of the displacement action, the unit of local government shall provide compensation to the displaced private company in an amount equal to the total gross revenues for collection services provided in the displacement area for the six months prior to the first publication of notice required under subsection(b) of this section. (2) Subject to subdivision (3) of this subsection, if the displaced private company has provided collection services in the displacement area for less than six months prior to the first publication of notice required under subsection (b) of this section, the unit of local government shall provide compensation to the displaced private company in an amount equal to the total gross revenues for the period of time that the private company provided such services in the displacement area. (3) If the displaced private company purchased an existing operation of another private company providing such services, compensation shall be for six months based on the monthly average total gross revenues for three months the immediate preceding the first publication of notice required under subsection(b) of this section. (d) If the local government elects to provide compensation pursuant to subsection (c) of this section, the amount due from the unit of local government to the displaced company shall be paid as follows: one-third of the compensation to be paid within 30 days of the displacement and the balance paid in six equal monthly installments during the next succeeding six months. (e) If the unit of local government fails to change the provision of solid waste services as described in the notices required under subsection(b) of this section within six months of the date of the first meeting pursuant to subsection (b) of this section,the unit of local government shall not take action to displace without complying again with the provisions of subsection(b) of this section. (f) Notice of the provision of solid waste collection service shall be filed with the unit of local htt D://www.ncfza.state.nc.us/aascriDtS/statutes/statatelookuD.Dl?statute=160a 2/25/2013 Chapter 160a Page 2 of 3 27 government clerk of all cities and counties located in the private company's collection area or within five miles thereof. (g) This section shall not apply when a private company is displaced as the result of an annexation under Article 4A of Chapter 160A of the General Statutes or an annexation by an act of the General Assembly. The provisions of G.S. 160A-37.3, 160-49.3, or 160A-324 shall apply. (h) If a unit of local government intends to provide compensation under subsection (c) of this section to a private company that has given notice under subsection (f) of this section, the private company shall make available to the unit of local government not later than 30 days following a written request of the unit of local government, sent by certified mail,return receipt requested, all information in its possession or control, including operational, financial, and budgetary information necessary for the unit of local government to determine if the private company qualifies for compensation. The private company forfeits its rights under this section if it fails to make a good faith response within 30 days following receipt of the written request for information from the unit of local government provided that the unit of local government's written request so states by specific reference to this section. (i) Nothing in this section shall affect the authority of a city or county to establish recycling service where recycling service is not currently being offered. (j) As used in this section, the following terms mean: (1) Collection. - The gathering of municipal solid waste, recovered materials, or recyclables from residential, commercial, industrial, governmental, or institutional customers and transporting it to a sanitary landfill or other disposal facility. Collection does not include transport from a transfer station or processing point to a disposal facility. (2) Displacement. - Any formal action by a unit of local government that prohibits a private company from providing all or a portion of the collection services for municipal solid waste, recovered materials, or recyclables that the company is providing in the affected area at least 90 days prior to the date of the first publication of notice required by subsection (b) of this section. Displacement also means an action by a unit of local government to use an availability fee, nonoptional fee, or taxes to fund competing collection services for municipal solid waste, recovered materials, or recyclables that the private company is providing in the affected areas at least 90 days prior to the date of the first publication of notice required under subsection (b) of this section is given. Displacement does not include any of the following actions: a. Failure to renew a franchise agreement or contract with a private company. b. Taking action that results in a change in solid waste collection services because the private company's operations present an imminent and substantial threat to human health or safety or are causing a substantial public nuisance. C. Taking action that results in a change in solid waste collection services because the private company has materially breached its franchise agreement or the terms of a contract with the local government, or the company has notified the local government that it no longer intends to honor the terms of the franchise agreement or contract. Notice of breach must be delivered in writing, delivered by certified mail to the firm in question with 30 days to cure the violation of the contract. d. Terminating an existing contract or franchise in accordance with the provisions of the contract or franchise agreement. e. Providing temporary collection services under a declared state of emergency. f. Taking action that results in a change in solid waste collection services due to the existing providers' felony conviction of a violation in the State of federal or State law governing the solid waste collection or disposal. g. Contracting with a private company to continue its existing services or http://v- w.neRa.state.nc.us/�ascripts/statutes/statutelooku-D.-Pl?statute=160a 2/25/2013 Chapter 160a Page 3 of 3 28 provide a different level of service at a negotiated price on terms agreeable to the parties. (3) Municipal solid waste. -As defined in G.S. 130A-290(18a). (4) Unit of local government - A county, municipality, authority, or political subdivision that is authorized by law to provide for collection of solid waste or recovered materials, or both. (2006-193, s. 4.) httn•//www_ncPFa._state.ne.us/gaserints/statutes/statutelookup.pl?statute=160a 2/25/2013