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HomeMy WebLinkAboutAgenda - 05-08-2014 - 7fORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 8, 2014 Action Agenda Item No. 7 -f SUBJECT: Issues and Funding Options for Orange County's Recycling Programs DEPARTMENT: Solid Waste /Recycling PUBLIC HEARING: (Y /N) No ATTACHMENT(S): 1) April 9, 2013 Abstract — Operational and Funding Options for Orange County's Solid Waste and Recycling Programs 2) April 23, 2013 Abstract - Public Hearing to Consider Operational and Funding Options for Orange County's Solid Waste and Recycling Programs 3) October 8, 2013 — Work Session to Review the Process of Creating a Solid Waste Collection and Disposal System Service District 4) November 19, 2013 Abstract — Urban Curbside & Multi- family Recycling Discussion 5) December 10, 2013 Abstract — Rural Curbside Recycling Options 6) January 23, 2014 Abstract - Rural Recycling Service District Implementation Planning 7) February 4, 2014 Abstract — Scheduling Public Hearings — Proposed Unincorporated County Recycling Service District 8) April 15, 2014 Abstract — Solid Waste Service Tax District for Recycling 9) Frequently Asked Questions — Proposed Solid Waste Service Tax District INFORMATION CONTACT: John Roberts, 245 -2318 Michael Talbert, 245 -2308 PURPOSE: To discuss issues and funding options for Orange County Recycling Programs. BACKGROUND: The County's Reduce, Reuse & Recycle (3 -R) Fees consists of one annual recycling fee that is billed in conjunction with the annual property tax. The fee is a Basic Availability Fee of ($47 /year) that is charged to all improved properties county -wide and funds various recycling operations such as the county Toxicity Reduction Improvement Program 2 (Household Hazardous Waste, batteries, waste oil, electronics, etc.), recycling drop -off sites, recycling at solid waste convenience centers, education and outreach, enforcement, planning, etc. It is anticipated that the Towns will levy an Urban Curbside Fee ($59 /year) and a Multi- family Fee ($19 /year) to improved residential properties within incorporated municipalities and funds weekly curbside recycling service. 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 Fee is ($40 /year /Household), Incorporated Areas Fee is ($20 /year /Household), and Multi- family Fee is ($4 /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. Timeline of Board Discussions regarding Orange County Recycling Programs: Attachment 1 is the Abstract from the April 9, 2013 regular BOCC meeting outlining the legal, operational and funding options first considered for Solid Waste and Rural Curbside Recycling in Orange County. At its April 23, 2013 regular meeting, the Board held a public hearing to discuss operational and funding options for Orange County's Solid Waste and Recycling Programs (see Attachment 2). The Board instructed the Manager to maintain the current recycling programs, meet with the Towns of Chapel Hill, Carrboro and Hillsborough to discuss options and formulate an interim funding plan for Fiscal 2013/2014 by June 30, 2013. There were no additional 3 -R Fee billings for urban or rural curbside, along multi - family recycling fees for Fiscal 2013/2014, which resulted in revenue loss of $1.1 million. At a BOCC work session on October 8, 2013 the Board reviewed the process of creating a Solid Waste Tax Service District (see Attachment 3). At that time the Town of Chapel Hill was still exploring alternative options for solid waste disposal, as well as ways of increasing efficiency with solid waste collection. The Board was not willing to move forward with any recycling options until the Chapel Hill Town Council determined the Town's direction on Solid Waste options. The Board authorized the Manager to draft a letter of intent to the Towns, outlining that Orange County was very interested in continuing the long and successful partnership with the Towns with regard to recycling and waste reduction. At the November 19, 2013 regular meeting, the Board authorized the Manager to execute the attached Letter of Intent with the Towns of Chapel Hill, Carrboro and Hillsborough (see Attachment 4). The County Attorney, working with the Town Attorneys, prepared an interim agreement that allowed the County to proceed to expedite implementation of the roll carts and new collection service for the Urban Curbside Program that will be fully operational by July 1, 2014. The Letters of Intent with the Towns of Chapel Hill, Carrboro and Hillsborough have been executed and the roll carts have been ordered. At the December 10, 2013 regular meeting, the Board reviewed three options to fund Rural Curbside Recycling. 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 (see Attachment 5). 3 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 The Board discussed the options and considered input from the public. After a lengthy discussion, the Board directed staff to come back with a plan on January 23, 2014 for public hearings with the intent to establish a Solid Waste Tax Service District for rural curbside recycling by July 1, 2014. At the January 23, 2014 regular Board meeting, the Board instructed staff to bring back to the Board a plan to schedule two public hearings, one in Hillsborough and one in Chapel Hill (see Attachment 6). At the February 4, 2014 regular meeting, the Board set the dates for two public hearings, with the first public hearing to be held on March 18, 2014 starting at 6:00 PM at the Southern Human Services Center in Chapel Hill and the second to be held on April 1, 2014 starting at 6:00 PM at the Department of Social Services in Hillsborough (see Attachment 7). After holding two public hearings on March 18, 2014 and April 1, 2014 to consider the establishment of a Solid Waste Tax Service District for rural curbside recycling, the Board discussed a possible Solid Waste Tax Service District at its April 15, 2014 regular meeting (see Attachment 8). The Board determined that neither a Solid Waste Tax Service District nor a Rural Curbside Subscription Service were viable options. The Board also expressed a desire to step back and review all options to fund the County's rural curbside recycling program. The Board noted that it was important to include the County's partners to find a comprehensive county -wide solution to recycling, which could be a component of a new Solid Waste Interlocal Agreement. A Work Group was discussed as a possible method to discuss this issue and formulate a county -wide recycling solution to be implemented by Fiscal 2015/2016. The Board requested the following information: 1. All available options to fund rural curbside recycling programs The Recycling Options that were available and discussed in 2013 have not changed. However; the Towns have agreed to levy both an Urban and Multifamily curbside recycling fee for Fiscal 2014/2015. Option 1 Create a County -Wide Solid Waste Management Authority. North Carolina General Statute 153A -421 (see Attachment 1) outlines how two or more units of local government may create a regional solid waste management authority by adopting substantially identical resolutions to that effect in accordance with the provisions of this Article. Option 2 Create a County -Wide Solid Waste Franchise Agreement that could cover all Municipal Solid Waste (MSW) Collections and Recycling in the unincorporated areas of Orange County. El Option 3 Create a Solid Waste Tax Service District for rural curbside recycling. The Towns have agreed to levy and authorize the County to collect a fee for recycling within their town limits for both an Urban and Multi- family curbside recycling for Fiscal 2014/2015. Option 4 Establish a Rural Curbside Subscription Service for existing customers. Customers would have the options to continue the rural recycling service or option out of the service. A rural Orange County recycling service could be operated by Solid Waste and serve only the individuals who want the service. The Board first discussed the establishment of a Rural Curbside Subscription service at the December 10, 2013 regular meeting (see Attachment 5). Option 5 Support rural curbside recycling with a contribution from the General Fund. 2. To discuss issues in front of the Board and decisions to be made by July 1, 2014. Issues to be discussed at May 13, 2014 Work Session • Discussion of Frequently Asked Questions from the Public Hearings (see Attachment 9) • Does the County want to continue Rural Curbside Recycling, and if so, what is the customer base - the existing rural district (13,700 customers) and /or additional customers • How does the County fund Rural Curbside Recycling for Fiscal 2014/2015 • Recycling and Solid Waste issues with the County's partners • Other ways to provide recycling services and look at options • New Solid Waste Interlocal Agreement • A stable funding source for recycling that is fair and equitable • Discuss different options for servicing high density rural residential clusters. including costs /benefit analysis Decisions by July 1, 2014: • Does the County want to continue Rural Curbside Recycling, and if so, what is the customer base, the existing rural district (13,700 customers) and /or additional customers • How does the County fund Rural Curbside Recycling for Fiscal 2014/2015 FINANCIAL IMPACT: There is no financial impact to the County in discussing funding options for the County's Recycling Programs. RECOMMENDATION(S): The Manager recommends that the Board receive the information and provide guidance to staff in preparation for the May 13, 2014 work session. (Note: Board members may find it beneficial to bring the materials for this agenda item to the May 13th work session as reference documents.) Attachment 1 5 COPY ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM_ ABSTRACT Meeting Date: ,April 9, 2013 Action Agenda Item No. 7 -b SUBJECT: Operational and Funding Options for Orange County's Solid Waste and Recycling Programs DEPARTMENT: Solid Waste /Recycling PUBLIC HEARING: (Y /N) No ATTACHMENT(S): 1) General Statutes 153A -136 Regulations of Solid Waste 2) General Statutes 160A -327 Displacement of Private Solid Waste Collection Services 3) General Statutes 153A -421 Regional Solid Waste Management Authorities 4) Solid Waste Recycling Division Schedule of Revenues and Expenses for Fiscal 2011/2012 5) April 3, 2013 Solid Waste Advisory Board Resolution 6) Summary of Solid Waste & Recycling Services INFORMATION CONTACT: Frank Clifton, 245 -2300 Gayle Wilson, 968 -2885 John Roberts, 245 -2318 Michael Talbert, 245 -2308 PURPOSE: To discuss operational and funding options for Orange County Solid Waste and Recycling Programs. BACKGROUND: Orange County is recognized as being number one in the state for waste reduction, reaching 59% of its 61% aggressive reduction goal. 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 at 37 %, and Alamance County at 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 continuous robust public education services and waste reduction programs regardless of the funding or operational program implemented by the Board. The County's Reduce, Reuse & Recycle (3 -R) Fees consists 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 fee consists of a Basic Fee ($37 /year) that is 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 N centers, education and outreach, enforcement, planning, etc. An Urban Curbside Fee $52/ ear is assessed to improved residential properties within incorporated municipalities and funds weekly curbside recycling service. A Rural Curbside Fee ($38 /year) is 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) is charged multi - family units throughout Orange County for multi - family recycling services. See the Attachment 4, Solid Waste Recycling Division Schedule of Revenues and Expenses for Fiscal 2011/2012. 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 Fee is ($20 /year /Household), Incorporated Areas Fee is ($10 /year /Household), and 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 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 of the Supreme Court. 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 will recommend that the Board of County Commissioners cease assessing the Urban, Rural and Multi- family recycling fees beginning with the Fiscal 2013/14 Annual Budget. The County Manager further recommends funding these services for Fiscal 2013/14 only with solid waste enterprise fund reserves to allow the County time to transition to an alternative solution. The Rural Curbside program currently is limited to 13,730 households eligible in the unincorporated area of the County. A rural curbside recycling fee is charged to those households where recycling services are made available. These services are provided by County Staff. Just 6,000 households lack access to rural curbside service at this time and are not charged the Rural Curbside Fee. Waste collections in unincorporated Orange County are provided by private haulers, without a County Franchise Agreement, on a voluntary basis to those using the services. The Urban Curbside recycling fee is charged to Chapel Hill, Carrboro and Hillsborough municipal residents by the County for urban curbside recycling services. 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 Fee is charged to each multi - family establishment in both incorporated and unincorporated Orange County based on the number of residential units for collection of recyclable materials at each of these locations. The multi - family recycling services are provided by Orange County Solid Waste staff. North Carolina General Statute 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 7 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 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 is following 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. On March 7, 2013 the Board approved the scheduling of a public hearing on April 23, 2013 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 and directed staff to proceed with the various steps required in NC General Statutes. Both rural solid waste collections and rural curbside recycling could be included in a county -wide Franchise Agreement. Below is the anticipated timeline, if Orange County moves toward the Franchise of Curbside Solid Waste and Recycling Services in Unincorporated Area of Orange County: • March 15, 2013 — Notice to existing private solid waste collection services of the April 23, 2013 public hearing to discuss Franchise Agreement and displacement of private solid waste collection services • April 9, 2013 — Funding options for Orange County's Recycling Programs discussed by the Board • 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 The Board requested that staff present available options for Orange County to fund the County's Recycling Programs at a regular Board meeting on April 9, 2013. A county -wide Franchise agreement for curbside Solid Waste and Recycling Services in the unincorporated areas of Orange County is only one option being considered by the Board. Options 1 creates an Authority which would operate much like Orange Water and Sewer Authority (OWASA) as a standalone regional solution. This option would require the cooperation of two (2) or more local governments to form an Authority. An Authority would not be included in the County's General Fund Budget and would be governed by an independent board. M Options 2, 3, & 4 explore the creation of a Solid Waste Tax Service District which would function much like a Fire District. The size of the district and scope of services provided by the district would be determined by the Board. A Solid Waste Tax Service District would not impact the County General Fund but would be an independent special revenue fund. Options 5 & 6 propose to create a Solid Waste Franchise Agreement which could privatize rural curbside solid waste and /or rural curbside recycling. If Solid Waste collections are part of a comprehensive franchise agreement solution, unincorporated Orange County could be divided into districts which could be serviced by multiple private haulers. With either a county -wide franchise agreement or dividing the County into districts, a number of the existing twelve (12) private haulers may be displaced. Towns could opt in or opt out of a Franchise Agreement Option 7 is the only option that would impact the County's General Fund Budget, by financing recycling via the General Fund and would possibly have impact on the funding formula for Education, based on the 48.1 % of the County's General Fund commitment to Education. Option 8 could eliminate rural curbside recycling relying on Convenience Centers and Drop -off- sites. Urban and Multifamily Urban and Multifamily curbside recycling would be left up to the Towns. Municipal Solid Waste & Recycling Funding Options: 1) Eliminate all 3 -R Fees & Create a County -Wide Solid Waste Management Authority. North Carolina General Statute's 153A -421 (Attachment 3) outlines how two or more units of local government may create a regional solid waste management authority by adopting substantially identical resolutions to that effect in accordance with the provisions of this Article. The resolutions creating a regional solid waste management authority and any amendments thereto are referred to in this Article as the "charter" of the regional solid waste management authority. Units of local government which participate in the creation of a regional solid waste management authority are referred to in this Article as "members ". The purpose of a regional solid waste management authority is to provide environmentally sound, cost effective management of solid waste, including storage, collection, transporting, separation, processing, recycling, and disposal of solid waste in order to protect the public health, safety, and welfare. (The Basic 3 -R Fee could remain in place as part of decisions an Authority might make in determining revenue sources as services are extended county- wide.) 2) Keep only the Basic 3 -R Fee in place and supplement recycling with the creation of a County -Wide Solid Waste Tax Service District, to serve unincorporated areas of the County. Encourage the Towns to join the District, otherwise Urban and Multifamily curbside recycling would be left up to the Towns. 3) Eliminate all 3 -R Fees including the Basic 3 -R Fee & Create a County -Wide Solid Waste Tax Service District, to serve unincorporated areas of the County. Allow the Towns the option to join the District, otherwise Urban and Multifamily curbside recycling would be left up to the Towns. The new Solid Waste Tax Service District would fund the operation all five (5) Convenience Centers and recycling Drop -off Sites. 0 4) Keep the Basic 3 -R Fee and Create a Solid Waste Tax Service District for current Rural Curbside Routes serving 13,730 households. Urban and Multifamily curbside recycling would be left up to the Towns. A Solid Waste Tax Service District could be expanded to include all of the unincorporated areas of Orange County. 5) Keep only the Basic 3 -R Fee in place and create a County -Wide Solid Waste Franchise Agreement that could cover all Municipal Solid Waste (MSW) Collections and Recycling in the unincorporated areas of Orange County. Municipalities within the County could have the option to participate in the Franchise Agreement and negotiate a fee schedule that differs from the fees established by the County. An anticipated time line is discussed above. 6) Keep only the Basic 3 -R Fee in place and create a County -Wide Recycling Franchise Agreement that could cover all curbside recycling in the unincorporated areas of Orange County. Municipalities within the County could have the option to participate in the Franchise Agreement and negotiate a fee schedule that differs from the fees established by the County. Municipal Solid Waste (MSW) Collections by the Towns and private haulers in the unincorporated areas of the County would not change. 7) Keep only the Basic 3 -R Fee in place and supplement recycling with a contribution from the General Fund, estimated to be $1.7 million annually, to keep Urban, Rural and Multifamily curbside recycling in place. A contribution of $1.7 million from the General Fund to the Solid Waste Fund would equal 1.1 cents on the County Property tax rate. The funding formula for Schools sets a target of 48.1 % of General Fund Expenditures for Schools. This would add $1.6 million for a total cost to the County of $3.3 Million or 2.1 cents on the County Property Tax Rate to supplement recycling with a General Fund Contribution. 8) Keep the Basic 3 -R Fee, eliminate all other 3 -R Fees, and eliminate rural curbside recycling relying on Convenience Centers and Drop- off - sites. Urban and Multifamily curbside recycling would be left up to the Towns. The County could increase the number of Recycling Drop- off - sites, both urban & rural, and increase the Basic 3 -R fee to pay for the operation of the new Centers. FINANCIAL IMPACT: There is no financial impact to the County in discussing funding options for the County's Recycling Programs. There will be no impact on Solid Waste employees, with reductions to be managed through attrition, retirement and /or placement within Solid Waste. RECOMMENDATION(S): The Manager's prioritized recommendations are based upon suggested considerations that attempt a comprehensive solution approach to a much broader issue than just the impacts related to the "R Fees" created by the recent rulings of the North Carolina Supreme Court in the Lanvale decision. It is certain that the existing "R Fee" system for funding `curb -side' recycling within the Towns and portions of rural Orange County must change. The shift from a fee based recycling program to possible property tax based funding options will have an impact on all property owners and create the inequity of property owners paying for services that they may not utilize. Responding only to that need presents less than a comprehensive approach to the larger issue of solid waste management practices in Orange County going forward after June 30, 2013 when the Orange County Landfill closure occurs. 10 The listed recommendations come in order of preference based upon a comprehensive approach. They are based upon options that either include the Towns as `active - partners', as `consenting - partners' or accept the Towns will pursue a non - committal path that allows them the flexibility to do whatever is best for their needs individually versus a county -wide solution. Ultimately, a final best decision can be accomplished via a transition process that occurs over some period of time. At the moment, funding solutions for what is in place becomes the priority along with an equitable and equalized county -wide availability of service delivery options. 1. The optimal long -range solution for Orange County in this situation may be the formation of a Solid Waste Management Authority provided for within North Carolina General Statutes. The hurdle to this approach is that at least one of the three primary Towns within the county must also agree to the creation of the Authority. A comprehensive approach to both solid waste and recycling services can then be pursued that is functional and fundable via many various options. Services can be provided by County staff, contracted, franchised, optional or mandatory programs can be developed and /or otherwise formulated to compensate for a transitional process that ensures solid waste management and recycling remain an environmental priority in Orange County. (Consensus on this approach among the towns may evolve into a protracted process; a timely decision would be essential to success.) 2. If no Town is willing to work with the County on the Solid Waste Management Authority approach, then a county -wide Solid Waste Tax Service District approach is the more comprehensive and flexible option. It can provide services via County staffing, franchised, 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 once created. (This approach could include some combination of the Basic 3R Fees along with a county -wide tax.) 3. If either the Solid Waste Management Authority or the County -Wide Solid Waste Tax Service District approaches are not acceptable, then some configuration of a modified franchise approach to providing both solid waste and recycling services within the unincorporated areas of Orange County on a voluntary participation basis offers a solution. It allows existing participants in the unincorporated areas to gain the services (and pay for them directly) and does not require persons not using the services to pay for services they are not using (even though the services are available). Towns can pursue individual franchise agreements for services and /or be included in the County's efforts if they choose. (Again, the Basic 3R Fees could remain in place to support convenience center operations.) There are challenges and timelines that must be addressed with any of the options recommended or highlighted within this presentation. The notification to existing private solid waste haulers within Orange County and the scheduled public hearing related to the Franchising option must go forward to allow all options further consideration. Funding constraints do exist for continuation of existing programs beyond June 2014. As difficult as this decision may be, ultimately a change from existing circumstances is required. 11 Finally, while the other options outlined may work to some extent they do extend significant inequities and /or provide for a less `cost/service' focused approach to the issue and do not pursue actions that address solid waste management as a priority. In Orange County it is commendable that the County has the highest recycling rate in the State. There has been less significance placed a comprehensive approach to solid waste management practices. Outside of the Towns (which have assumed a role in solid waste collection), the County has focused on solid waste disposal (landfill operations) and recycling services. Both these roles are important environmental services. However, the landfill is closing June 30th, 2013; curbside recycling services must be funded via a different approach than the `R Fees'; and no organized approach exists for solid waste disposal in the unincorporated areas of the County except for county operated convenience centers (which may ultimately be deemed a sufficient solution). The recommendations above depart significantly from the County's historic approach to the issues of solid waste and recycling. They offer a more comprehensive and sustainable approach going forward. The Board of Commissioners has the prerogative to select from any of the other available options and they can expect County Staff will do its best to implement any decision made within parameters so established. GS 153A -136 ATTACHMENT 1 Page 1 of 2 12 § 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 GS 153A -136 Page 2 of 2 13 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 _ httn:/ /www.ncga.state.nc.us /gascriDts/ statutes /statutelookuD.Dl ?statute =153 a... 2/25/2013 Chapter 160a ATTACHMENT 2 Page 1 of 3 14 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 noticein 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 Chapter I60a Page 2 of 3 15 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 imminetit 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. C. 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 Chapter 160a Page 3 of 3 16 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.) Chapter 153A ATTACHMENT 3 Pagel of 67 Article 22. Regional Solid Waste Management Authorities. § 153A -421. Definitions; applicability; creation of authorities. (a) Unless a different meaning is required by the context, terms relating to the management of solid waste used in this Article have the same meaning as in G.S. 130A -2 and in G.S. 130A -290. As used in this Article, the term "solid waste" means nonhazardous solid waste, that is, solid waste as defined in G.S. 130A -290 but not including hazardous waste. In addition to the meaning set out in G.S. 130A -290, the term "unit of local government" means the Eastern Band of the Cherokee Indians in North Carolina. (b) This Article shall not be construed to authorize any authority created pursuant to this Article to regulate or manage hazardous waste. An authority created under this Article may manage sludges, other than a sludge that is a hazardous waste, under rules of the Commission for Public Health and criteria established by the Department of Environment and Natural Resources for the management of sludge. (c) Any two or more units of local government may create a regional solid waste management authority by adopting substantially identical resolutions to that effect in accordance with the provisions of this Article. The resolutions creating a regional solid waste management authority and any amendments thereto are referred to in this Article as the "charter" of the regional solid waste management authority. Units of local government which participate in the creation of a regional solid waste management authority are referred to in this Article as "members ". (d) As used in G.S. 153A- 427(a)(24), the term "transferred" means placed at or delivered to any (i) place normally and customarily used by the authority for the collection of solid waste, (ii) other place agreed upon by the generator or owner of recyclable materials and the authority, or (iii) facility owned, operated, or designated by the authority. (1989 (Reg. Sess., 1990), c. 888, s. 1; 1991, c. 580, s. 2; 1991 (Reg. Sess., 1992), c. 932, s. 4; c. 948, s. 1; 1997 -443, s. 11A.123; 2007 -182, s. 2.) § 153A -422. Purposes of an authority. The purpose of a regional solid waste management authority is to provide environmentally sound, cost effective management of solid waste, including storage, collection, transporting, separation, processing, recycling, and disposal of solid waste in order to protect the public health, safety, and welfare; enhance the environment for the people of this State; and recover resources and energy which have the potential for further use and to encourage, implement and promote the purposes set forth in Part 2A of Article 9 of Chapter 130A of the General Statutes. (1989 (Reg. Sess., 1990), c. 888, s. 1.) § 153A -423. Membership; board; delegates. (a) Each unit of local government initially adopting a resolution under G.S. 153A -421 shall become a member of the regional solid waste management authority. Thereafter, any unit of local government may join the authority by ratifying its charter and by being admitted by a unanimous vote of the existing members. All of the rights and privileges of membership in a regional solid waste management authority shall be exercised on behalf of the member units of local government by a board composed of delegates to the authority who shall be appointed by and shall serve at the pleasure of the governing boards of their respective units of local government. A vacancy on the board shall be filled by appointment by the governing board of the unit of local government having the original appointment. (b) Any delegate appointed by a member unit of local government to an authority created pursuant to this Article who is a county commissioner or city or town alderman or commissioner serves on the board of the authority in an ex officio capacity and such service shall not constitute the holding of an office for the purpose of determining dual office holding under Section 9 of Article VI of the http: / /www.ncga. state. nc. us /gascripts /statutes /statutelookup.pl ?statute = l 5 3 a 3/26/2013 Chapter 153A Page 2 of P8 Constitution of North Carolina or of Article 1 of Chapter 128 of the General Statutes. (1989 (Reg. Sess., 1990), c. 888, s. l.) § 153A -424. Contents of charter. (a) The charter of a regional solid waste management authority shall: (1) Specify the name of the authority; (2) Establish the powers, duties and functions that the authority may exercise and perform; (3) Establish the number of delegates to represent the member units of local government and prescribe the compensation and allowances, if any, to be paid to delegates; (4) Set out the method of determining the financial support that will be given to the authority by each member unit of local government; and (5) Establish a method for amending the charter, and for dissolving the authority and liquidating its assets and liabilities. (b) The charter of a regional solid waste management authority may, but need not, contain rules for the conduct of authority business and any other matter pertaining to the organization, powers, and functioning of the authority that the member units of local government deem appropriate. (1989 (Reg. Sess., 1990), c. 888, s. 1.) § 153A -425. Organization of authorities. The governing board of a regional solid waste management authority shall hold an initial organizational meeting at such time and place as is agreed upon by its member units of local government and shall elect a chairman and any other officers that the charter may specify or the delegates may deem advisable. The authority shall then adopt bylaws for the conduct of its business. All meetings of regional solid waste management authorities shall be subject to the provisions of Article 33C of Chapter 143 of the General Statutes. (1989 (Reg. Sess., 1990), c. 888, s. 1.) § 153A -426. Withdrawal from an authority. If the authority has no outstanding indebtedness, any member may withdraw from a regional solid waste management authority effective at the end of the current fiscal year by giving at least six months notice in writing to each of the other members. Withdrawal of a member shall not dissolve the authority if at least two members remain. (1989 (Reg. Sess., 1990), c. 888, s. 1.) § 153A -427. Powers of an authority. (a) The charter may confer on the regional solid waste management authority any or all of the following powers: (1) To apply for, accept, receive, and disburse funds and grants made available to it by the State or any agency thereof, the United States of America or any agency thereof, any unit of local government whether or not a member of the authority, any private or civic agency, and any persons, firms, or corporations; (2) To employ personnel; (3) To contract with consultants; (4) To contract with the United States of America or any agency or instrumentality thereof, the State or any agency, instrumentality, political subdivision, or municipality thereof, or any private corporation, partnership, association, or individual, providing for the acquisition, construction, improvement, enlargement, operation or maintenance of any solid waste management facility, or providing for any solid waste management services; (5) To adopt bylaws for the regulation of its affairs and the conduct of its business and to Chapter 153A Page 3 of 9 prescribe rules and policies in connection with the performance of its functions and duties, not inconsistent with this Article; (6) To adopt an official seal and alter the same; (7) To establish and maintain suitable administrative buildings or offices at such place or places as it may determine by purchase, construction, lease, or other arrangements either by the authority alone or through appropriate cost - sharing arrangements with any unit of local government or other person; (8) To sue and be sued in its own name, and to plead and be impleaded; (9) To receive, administer, and comply with the conditions and requirements respecting any gift, grant, or donation of any property or money; (10) To acquire by purchase, lease, gift, or otherwise, or to obtain options for the acquisition of any property, real or personal, improved or unimproved, including an interest in land less than the fee thereof, (11) To sell, lease, exchange, transfer, or otherwise dispose of, or to grant options for any such purposes with respect to any real or personal property or interest therein; (12) To pledge, assign, mortgage, or otherwise grant a security interest in any real or personal property or interest therein, including the right and power to pledge, assign, or otherwise grant a security interest in any money, rents, charges, or other revenues and any proceeds derived by an authority from any and all sources; (13) To issue revenue bonds of the authority and enter into other financial arrangements including those permitted by this Chapter and Chapters 159, 159I, and 160A of the General Statutes to finance solid waste management activities, including but not limited to systems and facilities for waste reduction, materials recovery, recycling, resource recovery, landfilling, ash management, and disposal and for related support facilities, to refund any revenue bonds or notes issued by the authority, whether or not in advance of their maturity or earliest redemption date, or to provide funds for other corporate purposes of the authority; (14) With the approval of any unit of local government, to use officers, employees, agents, and facilities of the unit of local government for such purposes and upon such terms as may be mutually agreeable; (15) To develop and make data, plans, information, surveys, and studies of solid waste management facilities within the territorial jurisdiction of the members of the authority, to prepare and make recommendations in regard thereto; (16) To study, plan, design, construct, operate, acquire, lease, and improve systems and facilities, including systems and facilities for waste reduction, materials recovery, recycling, resource recovery, landfilling, ash management, household hazardous waste management, transportation, disposal, and public education regarding solid waste management, in order to provide environmentally sound, cost - effective management of solid waste including storage, collection, transporting, separation, processing, recycling, and disposal of solid waste in order to protect the public health, safety, and welfare; to enhance the environment for the people of this State; recover resources and energy which have the potential for further use, and to promote and implement the purposes set forth in Part 2A of Article 9 of Chapter 130A of the General Statutes; (17) To locate solid waste facilities, including ancillary support facilities, as the authority may see fit; (18) To assume any responsibility for disposal and management of solid waste imposed by law on any member unit of local government; (19) To operate such facilities together with any person, firm, corporation, the State, any entity of the State, or any unit of local government as appropriate and otherwise Chapter 153A Page 4 of 90 permitted by its charter and the laws of this State; (20) To set and collect such fees and charges as is reasonable to offset operating costs, debt service, and capital reserve requirements of the authority; (21) To apply to the appropriate agencies of the State, the United States of America or any state thereof, and to any other appropriate agency for such permits, licenses, certificates, or approvals as may be necessary, and to construct, maintain, and operate projects in accordance with such permits, licenses, certificates, or approvals in the same manner as any other person or operating unit of any other person; (22) To employ engineers, architects, attorneys, real estate counselors, appraisers, financial advisors, and such other consultants and employees as may be required in the judgment of the authority, to fix and pay their compensation from funds available to the authority therefor, to select and retain, subject to approval of the Local Government Commission, the financial consultants, underwriters, and bond attorneys to be associated with the issuance of any revenue bonds, and to pay for services rendered by financial consultants, underwriters, or bond attorneys from funds available to the authority including the proceeds of any revenue bond issue with regard to which the services were performed; (23) To acquire property located within the territorial jurisdiction of any member unit of local government by eminent domain pursuant to authority granted to counties; (24) To require that any and all (i) solid waste generated within the authority's service area and (ii) recyclable materials generated within the authority's service area and transferred to the authority be separated and delivered to specific locations and facilities provided that if a private landfill shall be substantially affected by such requirement then the regional solid waste management authority shall be required to give the operator of the affected landfill at least two years written notice prior to the effective date of the requirement; and (25) To do all things necessary, convenient, or desirable to carry out the purposes and to exercise the powers granted to an authority under its charter. (b) The acquisition and disposal of real and personal property by an authority created under this Article shall be governed by those provisions of the General Statutes which govern the acquisition and disposal of real and personal property by counties, except that Article 8 of Chapter 143 of the General Statutes and Part 3 of Article 8 of Chapter 153A of the General Statutes do not apply. No authority created pursuant to this Article shall exercise any power of eminent domain with respect to any property located outside the territorial jurisdiction of the members of such authority. (c) Each authority's plan shall take into consideration facilities and other resources for management of solid waste which may be available through private enterprise. This Article shall be construed to encourage the involvement and participation of private enterprise in solid waste management. An authority created pursuant to this Article shall establish goals for the procurement of goods and services from minority and historically underutilized businesses. (1989 (Reg. Sess., 1990), c. 888, s. 1; 1991, c. 580, s. 1; 2007 -131, ss. 1, 2.) § 153A -428. Fiscal accountability; support from other governments. (a) A regional solid waste management authority is a public authority subject to the provisions of Chapter 159 of the General Statutes. (b) The establishment and operation of an authority as herein authorized are governmental functions and constitute a public purpose, and the State and any unit of local government may appropriate funds to support the establishment and operation of an authority. (c) The State and any unit of local government may also dedicate, sell, convey, donate, or lease any of their interests in any property to an authority. (1989 (Reg. Sess., 1990), c. 888, s. 1.) Chapter 153A Page 5 of 2 § 153A -429. Long -term contract permitted by and with an authority. (a) To the extent authorized by its charter, an authority may enter into long -term and continuing contracts, not to exceed a term of 60 years, with member or other units of local government for the acquisition, construction, improvement, enlargement, operation, or maintenance of any solid waste management facility or for solid waste management services with respect to solid waste generated within their geographic boundaries or brought into their geographic boundaries. (b) Contracts entered into by an authority may include, but are not limited to, provisions for: (1) Payment by the members of the authority and other units of local government of a fee or other charge by the authority to accept and dispose of solid waste; (2) Periodic adjustments to the fee or other charges to be paid by each member of the authority and such other units of local government; (3) Warranties from the members of the authority and such other units of local government with respect to the quantity of the solid waste which will be delivered to the authority and warranties relating to the content or quality of the solid waste; and (4) Legal and equitable title to the solid waste passing to the authority upon delivery of the solid waste to the authority. (1989 (Reg. Sess., 1990), c. 888, s. 1.) § 153A -430. Compliance with other law. (a) Repealed by Session Laws 1989 (Regular Session, 1990), C. 1004, s. 47, effective July 20, 1990. (b) An authority created pursuant to this Article shall comply with all applicable federal and State laws, regulations, and rules, including specifically those enacted or adopted for the management of solid waste or for the protection of the environment or public health. (c) Except as provided by subsection (d) of this section, a unit of local government that is exempt from compliance with State laws or rules enacted or adopted for the management of solid waste or for the protection of the environment shall, by becoming a member of a regional solid waste management authority created under this Article and as a condition of such membership, agree to comply with and to be bound by all applicable federal and State laws, regulations, and rules enacted or adopted for the management of solid waste and for the protection of the environment with respect to all solid waste management activities of the authority within the territorial jurisdiction of the unit of local government and with respect to all solid waste management activities performed by the unit of local government in connection with membership in the authority. (d) A unit of local government that is exempt from compliance with State laws or rules enacted or adopted for the management of solid waste shall obtain all permits that may be necessary for the conduct of solid waste management activities within the territorial jurisdiction of the unit of local government as provided by federal law and regulations. Responsibility for the enforcement of laws, regulations, and rules enacted or adopted for the management of solid waste within the territorial jurisdiction of a unit of local government that is exempt from compliance with State laws or rules enacted or adopted for the management of solid waste shall be as provided by federal law and regulations. (1989 (Reg. Sess., 1990), c. 888, s. 1; c. 1004, s. 47; c. 1075, s. 5; 1991 (Reg. Sess., 1992), c. 948, s. 2.) § 153A -431. Issuance of revenue bonds and notes. The State and Local Government Revenue Bond Act, Article 5 of Chapter 159 of the General Statutes, governs the issuance of revenue bonds by an authority. Article 9 of Chapter 159 of the General Statutes governs the issuance of notes in anticipation of the sale of revenue bonds. (1989 (Reg. Sess., 1990), c. 888, s. 1.) § 153A -432. Advances. : / /www state.nc.us /, 153a 3/26/2013 Chapter 153A Page 6 of 6 Any member or other units of local government may make advances from any monies that may be available for such purpose, in connection with the creation of an authority and to provide for the preliminary expenses of an authority. Any such advances may be repaid to such member or other units of local government from the proceeds of the revenue bonds or anticipation notes issued by such authority or from funds otherwise available to the authority. (1989 (Reg. Sess., 1990), c. 888, s. 1.) §§ 153A -433 through 153A -434: Reserved for future codification purposes. • • •L��• M 1161M " • •. • . �. ••�l_ �_ • ATTACHMENT 4 Solid Waste Recycling Division Schedule of Revenues and Expenses Fiscal 2011/2012 Revenues: Fee per Unit Households /units billed Number of parcels Revenues 3 -R Fee Recycling Division Cost Recycling Division Capital Requests - Purchased from Equip. Reserve* Indirect Costs Total Estimated Expenditure Basic $ 37.00 58,909 41,210 $ 2,114,244 Rural $ 38.00 13,730 12,497 $ 506,088 Urban $ 52.00 17,998 15,531 $ 907,819 Multi- family $ 19.00 15,850 4,605 $ 292,116 Total $ 303,108 $ (16,336) 1 1 $ 3,820,267 Materials Revenue $ 757,755 (Miscellaneous Revenue $ 141,056 Total Revenues $ 4,719,078 Allocated County Expenses: Fee Type Recycling Division Cost Recycling Division Capital Requests - Purchased from Equip. Reserve* Indirect Costs Total Estimated Expenditure Solid Waste Convenience Center Contribution Environmental Support /Overhead Basic $ 1,789,457 $ (127,836) $ 332,806 $ 345,846 $ 2,340,273 Rural $ 477,981 $ (21,336) $ 93,667 $ 550,312 Urban $ 1,190,832 $ (35,784) $ 208,948 $ 1,363,996 Multi- family $ 303,108 $ (16,336) $ 72,051 $ 358,823 Total $ 3,761,378 $ (201,292) $ 332,806 $ 720,512 $ 4,613,404 Total Expenses $ 4,613,404 3/28/2013 23 Attachment 5 ORANGE COUNTY SOLID WASTE ADVISORY BOARD Preserve Orange County's Integrated Recycling Program Resolution WHEREAS, the Board of Orange County Commissioners and staff have determined that portions of the present 3 -R Fee, which serve to finance some services associated with recycling in Orange County may not be authorized under present state legislation; and WHEREAS, the SWAB finds that a primary goal for Orange County is to maintain the high level of recycling services afforded the residents of Orange County and maximize the volumes of material diverted from landfilling towards achieving the County's stated 61 percent diversion goal; and WHEREAS, this goal cannot be achieved, nor can the current rate of diversion be maintained, let alone increased, with a franchise subscription -based recycling program; and WHEREAS, the present solid waste system is a system that is highly integrated among the county and the towns of Chapel Hill, Carrboro, and Hillsborough. Now, therefore be it RESOLVED by the Orange County Solid Waste Advisory Board that the Board of Orange County Commissioners make every reasonable attempt to achieve a financing option that preserves the present integrated recycling system and associated solid waste disposal systems among all of the jurisdictions in Orange County, and to particularly consider the option of a creating a single solid waste collection and disposal district (in accord with NC GS § 153A- 301(a)(5)) as the mechanism to continue financing this effort. Be it further RESOLVED that the Solid Waste Advisory Board recommends revisions to the existing Interlocal Agreement that would consider a District Interlocal Agreement for Solid Waste that would preserve the interests of, and continuity for, all of the participating jurisdictions while maintaining the administrative, operational, and fiscal leadership of Orange County for recycling operations. This the/t'�t'dayWApriV, 013. r SassdnaKChftir lid WgAe Advisory Board ^ A �#.AA� 4. Remus Smith, Hillsborough F2111 25 Attachment 6 Summary of Solid Waste and Recycling Services rml rizaictien -id —ml Multi- Fatuity /Apa I-- m cial a uildingz &Parkz ** Public Yheelz K -12 —lb,o avid- OF by Contact orldar Staff &Equip orldar CSbaff &Equip (or Haul.,*) and P —I. FF..(IfFpevab. s.,v,,.) —car O Staff &Equip B 3 R F.. i r OCSt.ff &Equip .. for S.,mc. Coht t between School, &OC aap.I H,II OF by Contact Staff &Equip CStaff &Equip (or Hauler*) and P -I. FF..(IfFpevab. service) OF Staff &Equip B 3 R F.. OF Staff &Equip .. for Service Contact betweenS,hoo1,- Recycling H,Ilsborou OF by Contact Staff &Eq uip OF staff &Equip (o, Hler *) au F .and Pm. F „v F.. (,f p„vab. service) OF Staff &Equip B 3 R F.. OF Staff &Equip Fee for service contact Ebbw ben SCb oo is &OC CC -b „d. Recycling Areas Staff &Equip Staff &Equip CStaff &Equip (or Hauler*) and P -I. FSee(IfFprivate service) IOCSt,ff &Equip IB I R IOCSt,ff &Equip .. for Service Contact between School, &Oc CLrb „d. Recycling Areas Self -Haul N/A N/A e - Self Haul bo p -Off sties and Prlva[e FF.e(IfFp evabe service) O Staff &Equip Staff &Equip eefor Service COnbai between School, &OF arrbo,o OC by Contact eOr Self Haulbo p -Off saes v ..(,f private alc.)F& .o, Self Haul to p -Off sites v ..(,f private ec.)& B 3 R F.. OCSt.ff &Equip B 3 R F.. OCSt.ff &Equip .. for Service Contact between School, &OF aap.I Hlll OF by Contact e-Self Haulbo p -Off saes v ..(,f private alc.)F& a. o, Self Haul to p -Off sites v ..(,f pnv.. cite)& B 3 R F.. OF Staff &Equip B 3 R F.. OCSt.ff &Equip .. for Service Contact between School, — Cardboard H,II,bo,oug, OF by Contact a. o,S.If Haulm p -Off saes v ..(,f p„vat. s v,,.) F& B .o,S.If Haulm p -Off saes v ..(,f privat. s va,,.)F& B 3 R F.. OF Staff &Equip B 3 R F.. OCSt.ff &Equip .. for S.,v,c. Contact between School, — CLrb „d. 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".) n of aap.I Hiu aap.I Hiu GF n of aap.I roll F.. tore.,mc. Garbage u,boaug, not Hill,boaugh Hill,boaugh GF rich,,. Hauler * ** .. for s.rv,c.m aul.r ncbise Haul., .. for aul., ncbise Haw., Hill,boaug,G .. to,s.,v,c. a,ESd.Area, S.If -Haul to SWCCo, aul., ../ OCGF, v .., p„vat. ac.7 .. to, s.,v,c.to aul., ..fo, S.rv,c.m aul., tabs- 0,s.If- aula oth., .. to, S.,v,c. u,b,id.A,.a, S.If -Haul m SWCCo, aul., ../ OCGF, v ..(f p „ vat. ac.) .e to,s.,v,c.m aul., Fee to, Se-,em aide, k.S—t.b- o,se lf- othe, �Fee to, Se,v,c. UrliVer501 Recycling Services AlI nclude. recycling dmp- off s,te,, hazardous waste colle,boh,el.ctron,csrecycl,ng, enforcem ant, and puboc eduanonand Outreach. Services pov,ded County -wide to busneses,,esidentsand obhersbhroughoub Oange County. Funded Ey the B S -R F.e and supplemented by SW CCFee and OF Gen.al Fund. .,,dent, may use SW— to, the,, household waste A esfor waste disposal. Kcvr d ueban arb,me Recyd,ng Fee cu,,.ndy $52/ ye.,/—t o,ESde Reycyl,ng Fee c —fly 558 /yea, /un,t u ngfee cu,renblv$19 /yea,/un,t B.— ngfee to, all mproved prope,t, cu„ent,y$57 /yea, /un,t OC SWCC Fee Ooldwaaste C— ven,ence Center Fee to, all re,,dennal —Ac — fly$20 /Year /un abed arena F$10/ yea„ n corpoated areas —t un,t hge COPY- ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: `April 23, 2013 Attachment 2 1 26 Action Agenda Item No. 6 -a SUBJECT: Public Hearing to Consider Operational and Funding Options for Orange County's Solid Waste and Recycling Programs DEPARTMENT: Solid Waste /Recycling PUBLIC HEARING: (Y /N) Yes ATTACHMENT(S): 1) General Statutes 153A -421 Regional Solid Waste Management Authorities 2) Analysis of Operational and Funding Options for Solid Waste and Recycling Programs INFORMATION CONTACT: Frank Clifton, 245 -2300 Gayle Wilson, 968 -2885 John Roberts, 245 -2318 Michael Talbert, 245 -2308 PURPOSE: To hold a public hearing to consider operational and funding options for Orange County's Solid Waste and Recycling Programs. 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 consists 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 fee consists of a Basic Fee ($37 /year) that is 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/ ear is assessed to improved residential properties within incorporated municipalities and funds weekly curbside recycling service. A Rural Curbside Fee ($38 /year) is 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) is charged multi - family units throughout Orange County for multi - family recycling services. See the Attachment 4, Solid Waste Recycling Division Schedule of Revenues and Expenses for Fiscal 2011/2012. 27 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 Fee is ($20 /year /Household), Incorporated Areas Fee is ($10 /year /Household), and 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 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 County Manager will recommend that the Board of County Commissioners cease assessing the Urban, Rural and Multi- family recycling fees beginning with the Fiscal 2013/14 Annual Budget. The County Manager further recommends funding these services for Fiscal 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. A rural curbside recycling fee is charged to those households where recycling services are made available. These services are provided by County Solid Waste staff. Just 6,000 households lack access to rural curbside service at this time and are not charged the Rural Curbside Fee. 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 fee is charged to Chapel Hill, Carrboro and Hillsborough municipal residents by the County for urban curbside recycling services. 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 Fee is charged to each multi - family establishment in both incorporated and unincorporated Orange County based on the number of residential units for collection of recyclable materials at each of these locations. 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 instructed staff to repurpose the public hearing scheduled for April 23, 2013 to take 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. Listed below are the (3) options identified by the Board: 1. County -Wide Solid Waste Management Authority Eliminate all 3 -R Fees & Create a County -Wide Solid Waste Management Authority. North Carolina General Statute's 153A -421 (Attachment 1) outlines how two or more units of local government may create a regional solid waste management authority by adopting substantially identical resolutions to that effect in accordance with the provisions of this Article. The W resolutions creating a regional solid waste management authority and any amendments thereto are referred to in this Article as the "charter" of the regional solid waste management authority. Units of local government which participate in the creation of a regional solid waste management authority are referred to in this Article as "members ". The purpose of a regional solid waste management authority is to provide environmentally sound, cost effective management of solid waste, including storage, collection, transporting, separation, processing, recycling, and disposal of solid waste in order to protect the public health, safety, and welfare. 2. (Options 2,3 & 4) Solid Waste Tax Service District Keep the Basic 3 -R Fee and Create a single Solid Waste Tax Service District that would include the Towns (who would be encouraged to join) and the current Rural Curbside Service Area serving 13,730 households. In addition, approximately 2,300 additional rural households (Map Attachment) could be added relatively quickly, without additional resources, due to recently gained single stream efficiencies (leaving only approximately 3,700 rural households outside of the district). Towns that choose not to join would become responsible for their own curbside and multi - family recycling services. Effective date of Tax District would be July 1, 2014. 3. Eliminate Rural Curbside Recycling Keep the Basic 3 -R Fee, eliminate all other 3 -R Fees, and eliminate rural curbside recycling relying on Convenience Centers and Drop- off - sites. Urban and Multifamily curbside recycling would be left up to the Towns. The County could increase the number of Recycling Drop -off- sites, both urban & rural, and increase the Basic 3 -R fee to pay for the operation of the new facilities. FINANCIAL IMPACT: There is no financial impact to the County in discussing funding options for the County's Recycling Programs. There will not be an impact on Solid Waste employees, any reductions in allocated positions to be managed through attrition, retirement and /or placement within Solid Waste. RECOMMENDATION(S): The Manager recommends that the Board hold the public hearing to consider operational and funding options for Orange County's Solid Waste and Recycling Programs and provide guidance to staff for a short -term solution for the next fiscal year and a comprehensive long -term solution for solid waste management practices in Orange County going forward after June 30, 2014. 1. The optimal long -range solution for Orange County in this situation may be the formation of a Solid Waste Management Authority provided for within North Carolina General Statutes. The hurdle to this approach is that at least one of the three primary Towns within the county must also agree to the creation of the Authority. A comprehensive approach to both solid waste and recycling services can then be pursued that is functional and fundable via many various options. Services can be provided by County staff, contracted, franchised, optional or mandatory programs can be developed and /or otherwise formulated to compensate for a transitional process that ensures solid waste management and recycling remain an environmental priority in Orange County. 2. A county -wide Solid Waste Tax Service District approach is the more comprehensive and flexible option if a Solid Waste Management Authority is not considered. It can 29 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. There are challenges and timelines that must be addressed with any of the options considered. Funding constraints do exist for continuation of existing programs beyond June 2014. As difficult as this decision may be, ultimately a change from existing circumstances is required. If any of the variances outlined above under Item #2 (options 2, 3 and 4) Tax Service Districts is pursued, it is recommended that the Board move forward immediately to authorize the creation of the selected tax district approach. The Tax District if created now would not levy the actual tax until FY 2014 -15. Variations of a mix of fees (Basic R Fees) and property taxes within the Tax District could be evaluated over the next twelve months before final decisions are made. 30 ORANGE COUNTY Attachment 3 COPYBOARD OF COMMISSIONERS ACTION AGENDA IT ABSTRACT 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 31 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. 32 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 33 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. COPY- ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM_ ABSTRACT Meeting Date: i November 19, 2013 SUBJECT: Urban Curbside & Multi - familv Re DEPARTMENT: Solid Waste Management ATTACHMENT(S): Draft Letter of Intent Draft Interlocal Agreement (Staff Outline) November 6, 2013 Presentation to the Chapel Hill Town Council Summary of Solid Waste and Recycling Services — April 2013 Attachment 4 Action Agenda Item No. 7 -b ng Discussion PUBLIC HEARING: (Y /N) No INFORMATION CONTACT: Michael Talbert, 919 - 245 -2308 Gayle Wilson, 919 - 968 -2885 John Roberts, 919 - 245 -2318 34 PURPOSE: To update the Board of Commissioners on progress between the Towns and County regarding urban curbside and multi - family recycling services. BACKGROUND: Over the past several months, the Towns and County have been considering various options with regard to the future of the long term recycling and waste reduction partnership and how Urban Curbside and Multi- family services would be funded. Previous 3 -R Fee funding for those municipal services, along with the Rural Curbside program, were determined on the advice of legal counsel to not to be consistent with recent state court legal opinions. The Towns, facing potential loss of County funding and management of these programs, elected to evaluate other options for obtaining these recycling services through the issuance of a Request for Proposals. The Towns' Managers and staffs have been evaluating the proposals received, had reached preliminary conclusions and wished to discuss and clarify various service and cost issues with County staff. On November 1, 2013 the County and Towns Managers and their respective staffs met. There was the following consensus from the meeting: • The County cost for providing the urban curbside recycling services was competitive with the proposals received from private haulers and that there may be some additional advantages for the County to continue managing this service; • County staff will proceed immediately with the Request for Proposals (RFP) process for collection services and cart acquisition by December 31, 2013. County staff has 35 estimated an implementation process of six months to complete the conversion to roll carts, including the bidding of the collection service and possible installation of a new service provider, and to execute a comprehensive community education and outreach program. A draft letter of intent is attached to move urban curbside recycling forward, including the purchase of roll carts, while an Interlocal Agreement is crafted. • The multi - family recycling collection service is proposed to be provided at the existing rate of $19 /year /household with services provided by County staff and equipment. • Each Town will apply for the state roll cart grants that could total up to $214,000 of the expected $1,043,000 cart purchase expense. The County will assist the Towns with the grant applications, but the Towns will be the applicants for their respective grants A procedure will be developed to allow the County to purchase the carts using any grant proceeds and County funds. The County will own, distribute, and maintain the roll carts for the Towns. • The County Attorney will draft the interim agreement in cooperation with each Town Attorney and each Manager to approve prior to holiday break. • The County and the Towns will proceed to finalize a new Interlocal Agreement (staff outline attached) as soon as possible in early 2014. The Chapel Hill Town Council conducted a work session on November 6, 2014 to discuss the recycling proposals received in response to its Request for Proposals for Recycling and Request for Proposals for Development of a Transfer Station. A power point of the presentation to the Town Council is attached. County and Town Managers is eager to solve the urban curbside recycling issue and to more forward again with county wide recycling and waste reduction programs and services. FINANCIAL IMPACT: Full financial impact of a new comprehensive Interlocal Agreement is not clear at this time and will depend on final decisions of the various Boards involved. The roll carts are expected to cost approximately $1,043,250, minus about $214,000 in municipal roll cart grants, plus debt service paid over 60 months. The cost of a newly bid weekly collection service is estimated at about $682,000 annually. The estimated annual fee for weekly curbside recycling per household is about $60 (or $5 /month). The Multi- family program is estimated at this time to remain at about $19 /year /unit (or $1.58 /month). The estimated annual fee for bi- weekly curbside recycling per household is about $50 (or $4.17 /month). RECOMMENDATION(S): The Manager recommends that the Board authorize: 1. The Manager to execute the attached Letter of Intent with the Towns of Chapel Hill, Carrboro and Hillsborough when approved by the Towns; 2. The County Attorney, working with the Town Attorneys, to prepare an interim agreement that would allow the County to proceed to expedite implementation of the roll carts and new collection service for the Urban Curbside Program with the objective being full implementation by July 1, 2014 and authorize the Manager to execute the agreement; and 3. The Manager to award the bid for the roll carts not to exceed $1,100,000. 36 Letter of Intent between Orange County and the Town of , approved this day of , 2013. Orange County is very interested in continuing our long and successful partnership with the Town with regard to recycling and waste reduction. Our state - leading programs are the model for success in reducing local government waste disposal and our longstanding local recycling partnership is a model of intergovernmental cooperation and effectiveness. The Town wishes to continue participation in the recycling program. The most timely and least complicated manner in which to proceed would be for the Town to authorize the County to charge and collect a fee for urban curbside recycling within their town limits. The County would provide turnkey urban curbside recycling services including new roll carts for all Town residents. The Town Attorney has agreed that municipalities have the authority charge for the urban curbside recycling services and authorize the County to provide the services. Orange County Intends to: • Immediately proceed with an Requests for Proposals (RFP) for Collection Services and Roll Cart acquisition (carts may be available by piggybacking) • Immediately assist the Towns with applications for DENR Roll Carts Grants Draft an interim agreement for the Purchase of Roll Carts using grant funds with each Town whereby o The County will pay the Town an amount equal to the invoice received by the Town for the roll carts purchased by the County for the Town solely for use in the Urban Curbside Recycling Program, and o Expect to receive the funds resulting from a grant awarded to the Town for the purpose of implementation of curbside recyclable collection to offset the County expenditure on roll carts Negotiate in good faith with the Towns to finalize a new comprehensive Solid Waste Interlocal Agreement as soon as possible but no later than June 30, 2014 • Implement the conversion to roll carts for the urban curbside recycling programs as soon as contracts have been approved or purchase authority provided, but no later than July 1, 2014 The Town Intends to: • Immediately apply for DENR Roll Carts Grants with the County's Assistance as needed Negotiate in good faith with the County to execute an interim agreement for the Purchase of Roll Carts for each Town whereby • The Town will notify the County of its receipt of an invoice for roll carts that were bid and ordered by the County for use in the Town's curbside recycling program • Receive payment from the County for the invoiced amount and then pay the invoice, submitting proof of payment to the County • Remit any funds received by the Town as a result of a roll cart grant award to the County within 30 days of receipt of the grant funds. Negotiate in good faith with the County to finalize a new comprehensive Solid Waste Interlocal Agreement as soon as possible but no later than June 30, 2014 • Assist the County with the implementation of a conversion to roll carts for the urban curbside recycling programs as soon as contracts have been approved but no later than July 1, 2014 not sure the meaning here • Include in the Town's 2014/2015 Budget Ordinance a section authorizing the County to charge and collect a fee for urban curbside and multi - family recycling within their town limits and provide urban curbside and multi- family recycling services including new roll carts for all Town residents County Manager Town Manager 37 COPY- ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT__ Meeting Date: December 10, 2013 SUBJECT: Rural Curbside Recycling Options Attachment 5 Action Agenda Item No. 7 -b DEPARTMENT: Solid Waste /Recycling PUBLIC HEARING: (Y /N) No ATTACHMENT(S): 1. October 8, 2013 Abstract — Review Process for Creating a Solid Waste Collection and Disposal District 2. Rural Curbside Recycling Options Advantages & Disadvantages 3. Map - Orange County Rural Curbside Recycling INFORMATION CONTACT: Gayle Wilson, 968 -2885 John Roberts, 245 -2318 Michael Talbert, 245 -2308 38 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; 39 • 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 1, 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. MN 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. COPY ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM. ABSTRACT Meeting Date: (January 23, 2014 Attachment 6 Action Agenda Item No. 7 -b SUBJECT: Rural Recycling Service District Implementation Planning DEPARTMENT: Solid Waste Management PUBLIC HEARING: (Y /N) No ATTACHMENT(S): 1. October 8, 2013 Abstract — Review Process for Creating a Solid Waste Collection and Disposal District 2. Proposed Service District Implementation Plan 3. Revised Draft Orange County Rural Curbside Recycling Map INFORMATION CONTACT: Michael Talbert, 245 -2308 John Roberts, 245 -2318 Gayle Wilson, 968 -2885 41 PURPOSE: To review and consider authorizing a plan for creation and implementation of a Solid Waste Collection and Disposal District for recycling in unincorporated Orange County and provide direction to staff. BACKGROUND: A recent court decision, Lanvale v Cabarrus County, essentially stated 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 staff has been engaged in discussions regarding how, going forward, the County can best address the issues created by this action by the NC 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 Recycling Program currently is limited to approximately about 13,750 households eligible in the unincorporated area of the County. A Rural Curbside Recycling Map is provided at Attachment 3 with existing rural curbside (and previous 3 -R Fee) customers in blue and an added area in yellow to combine with the blue to represent a proposed solid waste tax district. The proposed District includes additional parcels from the existing service area so that it more clearly meets statutory requirements that require parcels within the District be contiguous and represents a more compact and defined area that eliminates isolated pockets of parcels. Furthermore, last year's switch to single stream coupled with the upcoming acquisition of new compacting collection trucks provide efficiencies that permit the addition of up to about 2,000 additional services points without requiring additional resources and will maximize the efficiency 42 of the two route trucks. Future district expansions will require repeating the process of notice and public hearings and consideration of additional staff /equipment resources. The bi- weekly (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 will be distributed to all residences within the district and to those few, smaller commercial establishments that generate residential quantities of recyclables. The service is envisioned to be provided as automated to the extent possible and semi - automated or even manual in certain service situations. Special services for the elderly or disabled will continue to be provided. 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; • 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 the 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 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). On December 10, 2013 the Board evaluated three options for continuation of rural curbside recycling services, including the advantages and disadvantages. The Board requested that staff prepare a Solid Waste Disposal Service District (Rural Curbside Recycling Only) implementation plan for consideration. A draft implementation and timeline is presented as Attachment 2. The lead time necessary to establish the Solid Waste Collection and Disposal District for July 1, 2014 implementation will require timely decision making by the Board in order to complete- 1 ) the process of scheduling and publishing a Notice of Public Hearing(s); 2) preparation of a report on the district; 3) conducting the hearing(s); 4) making a decision to create a district; 5) incorporating the necessary budget numbers into the Fiscal 2014/15 recommended budget; and 6) making the necessary tax database adjustments to meet annual tax billing deadlines. A projected property tax rate of 1.5 cents per 100 dollars of property value is estimated to support the Rural Recycling Service District. A typical homeowner located within the proposed district would pay an additional $37.50 in property taxes annually if the property tax rate is set at 1.5 cents and the residence is valued at $250,000. For every $50,000 of property value, with a 1.5 cent property tax rate, $7.50 of property tax revenue would be generated for the proposed 43 district. This is compared to the old 3 -R Fee of $38 per year for Rural Curbside Recycling last approved by the Board for Fiscal 2011/2012. FINANCIAL IMPACT: The Rural Curbside 3 -R fee was $38 in Fiscal 2011/2012 and generated about $506,000 in revenues. The County has already moved to single stream recycling and needs to purchase: 1) up to 14,000 roll carts (estimated at $53.50 each) in Fiscal 2014/15; and 2) two new recycling trucks (estimated at $290,000 each) in current Fiscal Year (due to necessary lead time to acquire) to fully implement the Rural Curbside Recycling program. Staff preliminary budget estimates indicate that it will cost about $630,000 to fund the program in Fiscal 2014/2015, although these estimates will be refined and detailed during the FY 2014/15 budget process. The new District Tax rate will be determined by the total valuation of the proposed district divided by the proposed Fiscal 2014/15 rural curbside recycling budget, currently estimated at 1.5 cents /hundred dollars value. RECOMMENDATION(S): The Manager recommends that the Board move forward with considering the establishment of a Solid Waste and Disposal Service District for Fiscal 2014/15 based on the proposed district delineation (Attachment 3) that includes approximately 15,500 households (including the approximately 13,750 households currently eligible for rural curbside recycling services) by: 1. Discussing potential public hearing(s) on the proposed District establishment and, if inclined, determining the number and locations of public hearing(s) the Board would like staff to pursue scheduling, including whether the public hearings should be separate meetings or occur as part of regular Board meetings (Note — Based on statutory requirements and time constraints associated with a July 1, 2014 implementation, staff believes public hearing(s) will need to occur in late March and early April); 2. Pending outcomes from #1 above, directing staff to bring back proposed public hearing dates, times, and locations to the February 4, 2014 regular Board meeting for approval; 3. Directing staff to move forward with the development of draft Notices of Public Hearing to be finalized after the Board's February 4, 2014 actions and to prepare to mail those Notices to Property Owners within the proposed District by February 14, 2014; 4. Directing staff to complete the required District Report based on the attached Orange County Rural Curbside Recycling Map and place the Report in the Clerk to the Board's office by February 14, 2014; and 5. Planning to make a final decision on the establishment of a proposed District after the potential public hearing(s) and no later than April 15, 2014. ORANGE COUNTY Attachment 7 C 0 Py BOARD OF COMMISSIONERS ACTION AGENDA - IT - EM ABSTRACT Meeting Date: Fbruary 4, 2014' Action Agenda Item No. 7 -b SUBJECT: Scheduling Public Hearings - Proposed Unincorporated County Recycling ,PrvicP_ District DEPARTMENT: Solid Waste Management PUBLIC HEARING: (Y /N) No ATTACHMENT(S): 1) Rural Curbside Recycling Impacts of Four Recycling Options 2) Summary of Funding Alternatives for Rural Curbside Recycling Services 3) Draft Rural Tax District Public Hearing Letter and Draft Notice of Public Hearing with Map INFORMATION CONTACT: Michael Talbert, 919 - 245 -2308 John Roberts, 919 - 245 -2318 Gayle Wilson, 919 - 968 -2885 44 PURPOSE: To suggest dates and locations for two public hearings on the proposed Recycling Service District for unincorporated Orange County and provide a summary of possible financing alternatives for rural area recycling. BACKGROUND: At the January 23, 2014 regular meeting, the BOCC directed the County Manager to return at the February 4 meeting with suggestions for public hearing dates, times and locations. The BOCC agreed that there would be two public hearings - one in the southern part of the County and one in the Town of Hillsborough area. A public hearing is required by statute. The proposed hearings are recommended as follows: March 18, 2014 — 6:OOPM — Southern Human Services Center, Chapel Hill April 1, 2014 — 6:OOPM — Department of Social Services, Hillsborough Additionally, upon the BOCC establishing the public hearings, staff has been directed to proceed with mailing the statutorily required notices of the public hearings to the owners of property located in the proposed district by February 14, 2014 and to complete and file the required District Report (including a map of the proposed district) in the office of the Clerk to the Board by February 14, 2014. 45 As part of both public hearings, the Board will also take comments regarding consideration of: the elimination of rural curbside recycling; a subscription service for rural curbside recycling; and supporting rural curbside recycling with the County's General Fund revenues. At the January 23 Board meeting, the BOCC also suggested that four funding alternatives for Rural Curbside Recycling be considered (including the Solid Waste Service District). These alternatives are outlined in an attachment. FINANCIAL IMPACT: The financial impact for first class mailing and printing of notices for the public hearings is estimated at $13,000. RECOMMENDATION(S): The Manager recommends that the Board establish public hearings as follows: Public Hearing #1 Public Hearing #2 Date: March 18, 2014 Date: April 1, 2014 Time: 6:00 PM Time: 6:OOPM Location: Southern Human Services Location: OC Department of Social Services, Center, Chapel Hill Hillsborough The Manager further recommends that the Board direct staff as to which Recycling options staff should include within the Public Hearing advertisement. ORANGE COUNTY [Attachment 8 46 COPY BOARD OF COMMISSIONERS ACTION AGENDA ITEM-- ABSTRACT Meeting Date: April-15,-2014 Action Agenda Item No. 7 -b SUBJECT: Solid Waste Service Tax District for Recycling DEPARTMENT: Solid Waste Management PUBLIC HEARING: (Y /N) No ATTACHMENT(S): Letter to Property Owners Report Filed in Clerk to Board's Office Including Map Frequently Asked Questions — Revised April 4, 2014 Resolution to Establish a Solid Waste Service District INFORMATION CONTACT: Michael Talbert, 919 - 245 -2308 Gayle Wilson, 919 - 968 -2885 John Roberts, 919 - 245 -2318 PURPOSE: To discuss issues surrounding the establishment of a Solid Waste Service Tax District to fund the rural curbside /roadside recycling collection service, including information received during two Public Hearings, and to decide the method of funding for this County - provided program. 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 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 %. 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 47 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 that 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. This opt -out or subscription based service is also still under consideration. 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 conducted two public hearings: March 18 at 6:00 PM at the Southern Human Services Center, 2501 Homestead Road in Chapel Hill; and 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 has been advised to pursue a final decision at the April 15 regular meeting, or the earliest possible opportunity. Considerable input has been received by the Board and the distinctions (advantages and disadvantages) between a Solid Waste Service District and an opt -out type service have been provided. The key elements from a staff perspective, including those gleaned from public input and Board discussions, include: • Stable, predictable and sufficient source of funding to support a quality, high performing rural recycling program • Fairness and equity • Ability to maintain or advance county environmental and waste reduction goals • Administrative and operational efficiency of program A service district could be implemented by July 2014, with the expanded 1,650 residences and the distribution of roll carts to those who request them could be implemented in November /December of 2014. The opt -out funding option would require about six months of administrative and operational planning and resident communication to establish, requiring an interim funding source of about $350,000. FINANCIAL IMPACT: If the solid waste service district is 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. An opt -out (subscription) program is less predictable and could be expected to initially result in a fee of between $90 -$100 /year per subscriber, but it is likely that this rate would increase over time if participation approaches that experienced elsewhere in North Carolina. RECOMMENDATION(S): The Manager recommends that the Board consider approving and authorizing the Chair to sign the attached resolution to establish a Solid Waste Service Tax District and direct staff to proceed with implementation of the district, or provide alternative direction to staff on next steps and funding options. 48 Attachment 9 Frequently Asked Questions Proposed Solid Waste Service Tax District Revised April 4, 2014 1. What is a Solid 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 is the Solid 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 Rural 3 -11 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 households who 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 Solid Waste Convenience Center? Is there an option whereby a property owner can opt -out of this service? The Solid Waste Service Tax District, as with the previous Rural 3 -R Fee, does not provide an exemption or opt -out option for those residents who choose not to use the service. All taxable property that is included within the district would be assessed the district tax. As with property taxes in general, there would be no opt -out option. 4. Since I received a notice of a Public Hearing does this 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 be set 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 Rural 3 -11 Fee of $38 /year? The County Attorney and the County Manager recommended to the Board of County Commissioners last year that the Board abolish the Rural 3 -11 Fee due to some uncertainty with regard to the fee being wholly consistent with state law authorizing counties to assess these 49 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 Solid Waste Service Tax District to generate the replacement program funding. About 13,750 residents who 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 tax would apply to all taxable property located within the proposed district without regard to whether structures or 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 basis for the 60 percent estimate of participants in an opt -out scenario? Is there 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 is the 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 subscribers from current non - participants 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 households will 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 NC county's) provides convincing evidence that many property owners will 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 the number of fee payers is reduced, costs increase for each remaining participant. A NCDENR Environmental Specialist has spoken previously to the BOCC, as well 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 Specialist the eight 50 counties that operate a subscription -type curbside recycling program have an average participation rate of 14.8 %. Please note that it will take 5 -6 months to 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 residents try to avoid the subscription fee. The impact on the centers could be significant and additional resources will 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 public education 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's wide variety of public recycling and waste reduction programs. 9. Would a Solid 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) a subscription 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 Solid 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 Rural Curbside Recycling 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. Has the 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%? 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. 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 parcels that contain buildings that generate recyclables we 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 Rural 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 RFID tags will 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 as geography 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 residents will be allowed to continue to use bins if they choose rather than be required to use roll carts, and if only 57% of residents will be participating, how many roll carts will 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? A tax 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. A statutory cap is provided in NC General 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 is the percentage of the county's total recycling is recovered by the roadside pickup in ruralareas? Rural Curbside represents about 13% of dry recycling tonnage (excluding Haz Waste, waste oil, anti - freeze, filters, etc. and food waste). 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? 4 51 52 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 parcels with homes is $290,314. 22. Is there an education element in subscription service provided across the state? Educational elements from the various subscription programs across the state vary considerably from county to county. We have requested information from several counties that have a subscription type recycling collection service, and of the three responses we 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 owners whose 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 NC legislature requesting to be given the authority to impose a fee like the previous Rural 3 -11 Fee? The local bill was submitted to the Orange County legislative delegation last year. It was sponsored and introduced by Rep. Foushee 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% 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 Rural 3 -13 Fee without first determining where the replacement funding would come from? What was the urgency? 5 53 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 Rural 3 -11 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 State 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 State of North Carolina with a 58% waste reduction rate in FY 2012 -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 FY 2012/13. Catawba County had the State'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 Solid 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 operations the recycling per person may be reported as higher than those with less industry. E.g. UNC Chapel Hill reports its 4,400 tons of recycling separately from Orange County. In the original omnibus State Solid 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 reflects the means other than recycling of reducing waste such as backyard composting, 'smart shopping', encouragement of reuse and repair as alternatives to disposal. 30. What is fair about having people who don't use the curbside recycling 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 (including municipal residents) contribute to its funding, including 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. 11 54 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 decline. 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. 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 resources will 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 as well as for the cost of recycling' Based upon a less than comprehensive research due to the large number of questions involved, and the limited timeframe in which to respond we have found that, according to NCDENR State records from 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 55 County, Carteret County, Cleveland County, Hertford County, Nash County, and Pender County. Given more time staff might be able to identify others. 35. Has Orange County examined Catawba County, NC and their incentive program? Orange County staff has investigated Catawba County'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 is the 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 operations to Republic who charges a fee of $1.75 per bag of residential waste delivered to their Convenience Centers that 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 Republic provided a broad variety of outreach including electronic media, presentations, web page and PSAs in local papers. Republic 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. Orange 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 is 440 pounds per household. 36. Is there research on what the cost per household will be for an opt -out type service? Please see #8 above. 37. How many people use the convenience centers for recycling versus using the existing curbside recycling 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 SWCCs 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 households that do not have access to curbside recycling recycle at the SWCCs, then another 3,200 households recycle at the SWCCs. Urban users are more difficult to estimate. 56 This information and estimates are summarized in the table below Rounded to nearest 100: Type household Number Percent recycling Number Tons recycled Comments recycling Rural with curbside 13,700 57% recycle 7,800. Some 1700 at the curb in % using at least recycling access curbside of these use rural program once /month based on SWCCs to route survey of 1400 recycle too. units in January 2013 Rural with curbside 5,800 90% estimated 5,300 TOTAL AT SWCCs access who don't use as recycling at from all users the system SWCCs —3,390 Rural with no access 6,300 50% estimated 3,200 to curbside recycling as recycling at SWCCs Rural with contract 200(1% 100% 200 curbside recycling of all rural residents) Urban users of sites 10% est. of tons for recycling recycled at S W CCs 38. Can we work with the towns to get similar service that they receive from the contractor? The Urban Curbside and Rural 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 is weekly, 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 services within the county either directly, or indirectly through a contractor. We work closely with the towns with regard to all county recycling services within their jurisdiction. For several years the Rural 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 Rural 3 -11 Fee the Board evaluated and considered numerous funding and service alternatives. These alternatives included elimination of the rural program, privatization, franchising, combining various waste 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. 57 40. Will the tax district increase /encourage participation as compared to the previous Rural 3 -11 Fee funded service? Cite research that county -wide taxation will increase participation. Based on our own long -term experience and our inquiries with knowledgeable recycling professionals, participation is more determined by how each citizen interfaces with 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 clearly a barrier to participation. According to staff in the State's Recycling office in the Department of Environment and Natural Resources (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 Rosemary 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: Exemptions. - The following corporations are exempt from the taxes levied by this Article. Upon request of the Secretary, an exempt corporation must establish its claim for exemption in writing: (1) A charitable, religious, fraternal, benevolent, scientific, or educational corporation not operated for profit. 43. Why not include the entire unincorporated area for recycling service? This was previously considered by the Board and could certainly be an option. This would 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 Rural 3 -11 Fee 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 this tax has been focused on providing bi- weekly curbside recycling services. Given the tax is being referred to as "Solid Waste Tax District" rather than "Recycling Tax District," what assurances do citizens have that, once in place, the tax district will not be used for other solid waste purposes? 10 58 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 RFP from Waste Industries for outsourcing collection in the rural area prior to the April 1 meeting? Couldn't we loosely tie the RFP to town proposals in order to benefit from scales of economy? Any RFP process is required to be a competitive process open to all qualified recycling collection contractors and only negotiating with 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 services, including 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. A more 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 days /week since their creation in the early 1090's. They have always been closed 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 closing 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. 11 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 tax district (those which have not been included in curbside recycling to date) intend to use the service if provided? What reason is there to believe that adding these households will 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 areas for program expansion. For some of these areas we have received resident requests or inquiries with regard to expanding services. We feel confident that the proposed expansion areas will 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. 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 explanations for this fee is "The cost of expanding the hours of operation for the solid waste convenience centers ". Why has there not been any expansion of hours in that three year period? The hours of operation at the Eubanks Road and Walnut Grove Church Road Centers were 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 is the 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. 54. If you implement the service district tax will it be tax - deductible on state and federal taxes? 12 59 11- It is possible that this property tax would be deductible; however you should consult an accountant or other tax professional to obtain a definitive answer in your specific situation. 55. Would it be possible to hold a referendum on the service district tax? The Board of Commissioners could voluntarily conduct a referendum on whether to establish a service district tax; however, the results of such a referendum would not be binding. 56. Would a resident have the option of requesting monthly pickup service under either the service district or opt -out (subscription) option? Customized service schedules would not be offered under either service option. While it's certainly physically possible to vary collection frequency per household it is not a practical approach to residential collection as the cost per customer compared to the cost of varying the service is too high to be financially practical. Collection routing would also become complicated by having the collector maintain awareness of the varying service frequency among hundreds of residences along a given route. 57. Would creation of the service district tax actually increase production of recyclables over what we're doing now or over the opt -out (subscription) option? There is no evidence that funding the rural curbside program through creation of a service district tax would necessarily increase the quantity of recyclables generated as compared with the previous annual fee. There is considerable evidence and experience within North Carolina that opt -out (subscription fee for service) funded programs generate considerably less recyclables (and participation) than non - subscription type curbside recycling programs. 58. Is the 61% our waste reduction goal or the percentage of program participation we wish to achieve? Orange County, along with the Towns of Carrboro, Chapel Hill and Hillsborough, has adopted a goal of 61% waste reduction of the quantity of originating from Orange County that was landfilled as compared to the base year of 1991/92. The governments have not established program participation goals. 59. Will recycling rate decline if curbside is eliminated in the rural area, because convenience centers are so successful and can compensate for the elimination? There is little evidence available in North Carolina with regard to the impact on the quantity of recyclables recovered when rural curbside programs are eliminated in locations where a network of convenience centers are available. It is the county's professional staff opinion that all currently participating unincorporated area curbside residents would not shift their recycling to convenience centers and that a net reduction in the quantity of recyclables recovered from this action. 60. Can the Rural 3 -11 Fee be reinstated? The County Manager recommended, and the Board of County Commissioners agreed, that the County cease assessing the Urban, Rural and Multi- family recycling fees beginning with the Fiscal 2013/14 Annual Budget. 13 61 61. Won't there at some point have to be a transfer station for waste and recyclables located within the county (as part of a comprehensive plan)? At some point in the future it is likely that the governments in Orange County will be compelled to again consider the issue of a local transfer station. There will almost certainly be mounting financial and environmental motivations to do so. A recycling center (recyclable materials transfer facility) already exists on Eubanks Road at present, although it will at some point in the near future have to be improved /enlarged. Development of a comprehensive solid waste management plan could address these and other longer term waste management and recycling issues, including creation of an overall waste management strategy that maximizes cost efficiencies, identifies and locates necessary facilities, minimizes disposal, provides for a broad - based series of waste and recycling services and programs and explores proven technological innovation opportunities. 62. Why did we close the landfill and then have to dispose of Orange County trash in another county? What if other counties decide not to take our trash any longer? The Board of Commissioners elected to close the Eubanks Road landfill due to various social justice related issues perceived to have unfavorably impacted the Rogers Road area neighborhood over the past 42 years. Among the consequences of closing the landfill was that waste generated within Orange County would necessarily be required to be delivered to out -of- county disposal facilities. If Orange County is prepared to pay for transportation to and tipping fees at out -of- county disposal facilities it is unlikely in the near future that such facilities would not be available or willing to accept Orange County waste. It is unclear what the long -term implications might be. It is primarily because of the cost and environmental impacts of having to use out -of- county disposal facilities that effective and broad -based recycling programs should be maximized; inherent resource savings from recycling are also a factor. Additionally, Orange County could exert some environmental and fiscal control over our solid waste situation by use of a local waste transfer station even if the disposal dilemma suggested remains without a local landfill. 63. As an owner of multiple properties I only receive one envelope with all my tax bills, so why are so many notices sent (and postage money wasted) about the tax district public hearing? North Carolina General Statute 153A -302 is unclear in that it requires an individual notice be sent to the owner "as shown by the county tax records" "and at the address shown thereon," of each parcel proposed to be included within the service district. Given that it is unclear the county has determined it would minimize its risk at the lack of clarity by mailing notices to each individually. 64. With the Urban curbside program going well, and the more suburban (but unincorporated) type areas also wanting the curbside service, why is this service being forced on the truly rural part? The Board of Commissioners is responsible for and has authority in the unincorporated portion of Orange County only with regard to recyclables collection. The urban curbside recycling programs are politically, operationally and legally distinct from the rural curbside recycling program. In accordance with state statutes the flat annual recycling fees are deemed permissible within the urban area and can be used to fund the urban recycling program. Even though some suburban areas are municipal -like in character and density, these areas are outside the urban municipal boundaries making the legality of a mandatory recycling fee in those areas questionable. Likewise, a service district tax would not allow services to be offered to only the 14 62 more suburban -like neighborhoods within unincorporated areas of the county due to the requirement that such a district must be contiguous, and all of the suburban rural neighborhoods are not contiguous. An opt -out (subscription fee for service) type service could be provided within these areas but would involve passing by many non - suburban type residences who would also want the service. 65. Only 1/3 of the rural area use curbside so why doesn't the BOCC step back and relook at program? Of the current 13,750 residences eligible for rural curbside /roadside recycling it has been established that the participation rate is 57 %. Since the residents outside the current service area are not eligible no participation rate exists county -wide. The county did evaluate the program in 1993 when it was implemented and again in 2004 when alternative funding was considered and the previous Rural 3 -13 Fee established and decided that in order to achieve aggressive waste reduction objectives that services must be provided outside of the municipalities. 66. What is the revenue received for the sale of recyclable materials? How does this revenue affect what we are paying? The total rural recycling program cost used for establishing the fee or tax rates is calculated based on expenses net of revenue. While markets fluctuate monthly on the price received for the sale of recyclables, in FY 12/13 approximately $58,000 in revenue was generated from the sale of recyclables from the rural program, which covers approximately 9% of all the program costs (direct and indirect expenditures). 67. Could the service district tax be implemented temporarily until the county can get legislative authority to go back to the flat fee method? The Board of Commissioners, consistent with state law, may establish a service district or abolish a tax district as they wish. 68. Why don't we consider a flat service fee? 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 a flat fee for recycling services that required non -users of the service to pay the fee. The Board responded to that recommendation. 69. Why is the service district just for a part of the county and not the whole county? Don't you have to offer the program to all residences? A service district may be developed for all or any part of a county. If a proposed district includes all or part of a municipality, that municipality must formally consent to being included. All residences included within a district would have to be offered the service. 70. Can we adopt a short term way to fund the program and then do a study for the best long term funding option? The Board of Commissioners could consider and adopt a short -term way to fund the rural recycling program until a more formal or systematic investigation is conducted to identify a 15 1:193 more permanent funding source. The Board could also adopt of the two current options to function as a short term funding mechanism. 71. Most rural residents use convenience centers so why not let rural residents use them rather than the curbside program? Many rural residents do use convenience centers, which were originally created primarily for unincorporated area residents' use. The geographical distribution of the five centers however, is not equally convenient to all residents. Some residents contract for curbside /roadside garbage service and need /desire the curbside /roadside recycling service to complement that service. And while all residents must disposal of their garbage somehow (public health and local ordinance imperatives), recycling is optional /voluntary and some residents only recycle because it is extraordinarily convenient, which roadside /curbside recycling is for some residents. 72. We are doing a good job on recycling now so why do we need a new tax? Orange County does an excellent job recycling and part of the reason for this good job is the network of complementary and overlapping recycling programs and services provided that maximizes recycling opportunities. Funding for this corresponding network is provided by a network of fees, taxes, material revenues and avoided tipping fees, etc. Consideration of the new tax is necessitated by the elimination of the Rural 3 -11 Fee for previously stated reasons. 73. Wouldn't curbside service be a preferable option for those residents who do not live near a convenience center? Not all residents live near one of the five convenience centers and need or appreciate the curbside /roadside service. Even some residents who live in reasonable proximity to convenience centers prefer the curbside /roadside service. 74. In the unincorporated area subdivisions with high participation, is there not a concern that recycling would be placed in the trash because all of these residents who now recycle curbside would not go to the convenience centers, especially those that have private garbage service? It is possible that those residents would choose not to recycle as faithfully if the curbside /roadside service is eliminated. It would be a mistake to assume that everyone currently participating in the curbside /roadside recycling program would begin using convenience centers if that program was eliminated or made prohibitively expensive. 16