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HomeMy WebLinkAboutAgenda 06-03-2025; 8-d - Approval of Interlocal Agreement with Durham County for Billing and Collection of Orange County Solid Waste Program Fees for Town of Chapel Hill Properties Located in Durham County 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 3, 2025 Action Agenda Item No. 8-d SUBJECT: Approval of Interlocal Agreement with Durham County for Billing and Collection of Orange County Solid Waste Program Fees for Town of Chapel Hill Properties Located in Durham County DEPARTMENT: Solid Waste and Tax Administration ATTACHMENT(S): INFORMATION CONTACT: Interlocal Agreement Robert Williams, Solid Waste Director, (919) 918-4904 Nancy Freeman, Tax Administrator, (919) 245-2735 PURPOSE: To approve an Interlocal Agreement (ILA) between Orange County and Durham County under which Durham County will administer billing and collection of Orange County's Solid Waste Program Fee for those properties that are located within the Town of Chapel Hill and also within the jurisdictional limits of Durham County. BACKGROUND: Discussions have occurred between Orange County staff and Durham County staff regarding a collaborative approach to supporting the Orange County Solid Waste Program Fee billing process. Historically, affected residents have received separate bills from multiple jurisdictions — Durham County for property taxes, the Town of Chapel Hill for stormwater fees, and Orange County for solid waste fees — leading to confusion and administrative inefficiencies. Under the terms of the proposed ILA, Durham County will include the Orange County Solid Waste Program Fee on its own annual property tax bills for applicable properties and will remit the collected fees to Orange County. Since Orange County and Durham County are public bodies, political and corporate, under the laws of the State of North Carolina, each is vested pursuant to Article 20 of North Carolina General Statutes with the authority to enter into an Interlocal Agreement as proposed. This change is expected to improve the customer experience by reducing the number of separate bills residents receive and clarifying the overall billing process. Additionally, Orange County anticipates a better collection rate because tax bills are often paid by mortgage lenders through escrow accounts, and taxpayers generally pay all assessed fees at the time of paying their annual tax bill. Consolidating the solid waste fee into Durham County's property tax bill should result in more timely and consistent payments compared to the current system of sending a separate invoice for only the Orange County Solid Waste Program Fee. The attached Interlocal Agreement document was approved by the Durham County Board of Commissioners on May 12, 2025. 2 FINANCIAL IMPACT: There is no significant financial impact to Orange County anticipated by entering into this agreement. Durham County will remit all collected fees to Orange County as outlined in the agreement. Orange County Solid Waste will pay Durham County a 3% administrative fee based on the total amount of Orange County Solid Waste Program Fees collected and remitted. This cost has been accounted for in the Orange County Solid Waste Division's FY 2025-26 budget. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 6: DIVERSE AND VIBRANT ECONOMY OBJECTIVE 3. Streamline and digitize business processes to facilitate efficient interactions between employers and County departments. OBJECTIVE 5. Increase access to and awareness of resources and assistance available to residents and businesses. RECOMMENDATION(S): The Manager recommends that the Board approve and authorize the Manager to sign the Interlocal Agreement (ILA) between Orange County and Durham County for Durham County to administer the billing and collection for Orange County's Solid Waste Program Fee for those properties located in the Town of Chapel Hill and within the jurisdictional limits of Durham County. 3 INTERLOCAL AGREEMENT BY AND BETWEEN ORANGE COUNTY, DEPARTMENT OF SOLID WASTE MANAGEMENT AND DURHAM COUNTY, REGARDING THE ADMINISTRATION OF ORANGE COUNTY SOLID WASTE PROGRAMS FEE BILLING AND COLLECTION THIS AGREEMENT made and entered into this 12th day of May, 2025, between Orange County, North Carolina, a North Carolina municipal corporation, and Durham County, a North Carolina municipal corporation of the State of North Carolina for the administration of Orange County Solid Waste Program Fee Billing and Collection (the "SWPF"). WHEREAS, Orange County and Durham County are public bodies, politic and corporate, under the laws of the State of North Carolina and are vested pursuant to Article 20 of North Carolina General Statutes Chapter 160A with the power and authority to enter into this Interlocal Agreement (hereinafter referred to as the "Agreement"); and WHEREAS, Orange County is authorized and empowered by Article 16 of Chapter 160A- 313/314 (a2) of the North Carolina General Statutes to establish and operate a " public enterprise", and to establish, fix and enforce rates, fees, charges and penalties for Solid Waste; and WHEREAS, Orange County has established a Solid Waste Program Fee ("SWPF") applicable to all improved properties within the County and within the municipalities in the County, including properties located within the Town of Chapel Hill lying within Durham County limits; and WHEREAS, Orange County Board of Commissioners, at their meeting dated April 13, 2004, set up the Orange County Solid Waste Programs Fees specifically under NCGS 153A-102. The County Attorney at that time provided an opinion with detailed information about the set up and collection of the fees. Orange County has not adopted an ordinance allowing for the attachment of a lien with respect to Solid Wase Program fees; and WHEREAS, Orange County desires that Durham County administer the billing and collection of the SWPF from property located within the Town of Chapel Hill but lying within the limits of Durham County; and WHEREAS, Durham County has broad tax collection and administration authority and staff in place to carry out that authority and is willing, subject to certain conditions, to provide administration and collection of SWPF, and acknowledges that the fees may not be collected as a lien on real property; and NOW, THEREFORE, in consideration of the foregoing and on mutual promises and obligations set forth herein, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 4 1. TERM a. This Agreement shall commence June 30, 2025 and shall continue each fiscal year thereafter through June 30, 2035, unless sooner terminated or further extended as set forth herein. b. This Agreement may be renewed beyond June 30, 2035, upon written agreement of the Parties. 2. DEFINITIONS a. "Direct collection costs" means costs borne by Durham County in the collection of SWPF fees, such as the cost of changing any forms or documents, mailing costs, costs associated with processing and remitting fees, and costs associated with preparing and submitting the quarterly invoice. 3. COSTS a. Other than direct collection costs, any and all costs, fees, and expenses related to the administration of the Solid Waste Program Fee shall be borne by Orange County. b. On or before the 15th day of each month of each year during the term of this Agreement, the County of Durham shall transmit to Orange County all Solid Waste Program fees collected during the preceding month. C. Durham County will invoice Orange County quarterly on or before the 15th day of January, April, July, and October an amount equal to 3% of the fees collected during that three-month period for costs of administration and collection. Orange County shall pay Durham County within 30 days of billing. d. Upon a failure by Orange County to remit payment when due, Durham County shall provide Orange County with written notice of such default in payment. Orange County shall have ten days following receipt of the written notice to cure the default. Should Orange County fail to cure the default within ten days of receipt of notice, Durham County may withhold the provision of services as contemplated herein. Durham County shall incur no fault or liability for any failure to provide services pursuant to the terms of this paragraph. 5 4. COUNTY ADMINISTRATION a. Orange County agrees to, and hereby does, appoint, designate, and empower Durham County with the authority to bill and collect the Solid Waste Program Fee for properties located within the Town of Chapel Hill lying within the County of Durham. b. Durham County shall perform the above services through its Tax Administration Office and shall include these fees on the annual property tax bill for affected properties, or any successor division as may be designated by the Durham County Manager. C. It is understood and agreed that Orange County shall provide Durham County any and all information, records, or materials needed by Durham County for the effective and accurate collection of such fees and charges, as identified by Orange County in the County Code, including but not necessarily limited to the Fee Structure and data set compatible with the Durham County Tax Administration Office billing data set. Non-Matches will be resolved by the Orange County staff. d. Partial payments will be applied first to a property owner's outstanding Durham County property tax liability until the property tax has been fully paid. Once the property tax has been fully paid, partial payments will be applied to any outstanding SWPF fees. 5. ENFORCEMENT a. The Parties agree Durham County has limited responsibility to collect unpaid or delinquent fees and only by means that do not require that the fee is a lien on real property. b. Orange County has the sole responsibility at Orange County's cost to collect unpaid or delinquent fees and charges. C. Durham County shall provide Orange County annually any and all records related to unpaid and/or delinquent Solid Waste Program Fee accounts. 6. REVIEW OF AGREEMENT During the initial term of this Agreement, the Agreement shall be reviewed by staff of Orange County and Durham County each year beginning no later than October 15, of each year in order to determine: the cost/benefit of the County's administration of the collection of SWPF for the portion of residents located within the Town of Chapel Hill lying within Durham County, any difficulties encountered implementing the terms of this Agreement and any other issues that need to be examined. Should the review demonstrate a need to adjust the fees to adequately compensate Durham County for administration of collection of the SWPF, the parties shall work together to determine the appropriate fee to be paid for year three and forward. 6 7. AMENDMENTS This Agreement may be amended by mutual written consent of the Parties. 8. TERMINATION This Agreement may be terminated by either Party upon 120-days advance written notice to the other Party at any time by mutual written agreement of the Parties. 9. NOTICE Any notice required by this Agreement shall be in writing and delivered by certified or registered mail, return receipt requested to the following: To the COUNTY OF DURHAM County of Durham 201 East Main Street V Floor Durham, NC 27701 To the COUNTY OF ORANGE COUNTY County of Orange County Gateway Center Building 228 South Churton Street Suite 200 Hillsborough, NC 27278 7 ENTIRE AGREEMENT This Agreement constitutes the entire Agreement of the parties hereto and is effective the date first above recorded. Manager, Durham County Manager, Orange County ATTEST Clerk of the Board Clerk of the Board