HomeMy WebLinkAboutOTHER-2025-047- Approval of Interlocal Agreement with Durham County for Billing and Collection of Orange County Solid Waste Program Fees for Town of Chapel Hill Properties in Durham county 505
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 160X
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 :
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 151" 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 .
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 .
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
31 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
1
ENTIRE AGREEMENT
This Agreement constitutes the entire Agreement of the parties hereto and is effective
the date first above recorded .
Manager, Durham County Tanager, Ora e County
ATTEST
Clerk of the Board Clerk of the Board