Agenda - 09-16-2010 - 2 - Laserfiche WebLink

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. ' Draft Agenda Item 3.Franchise Commercial Waste Collection. The study from Jeremy O'Brien of Olver Incorporated, one of the County's technical advisors on solid waste, focuses on comparing the option of developing a franchise(s) for commerciaUnon-residential solid waste collection in Orange County to the current system for that sector, which varies among the jurisdictions. A franchise did not appear economically effective but it does have positive potential environmental effects.A summary of potential effects identified include: • reducing costs to customers(this turned out less cost effective than predicted), � reducing garbage truck traffic, • limiting competition, • controlling oversight and waste flow, • presumably directing waste to a County-operated facility. Recycling could be part of the franchise or not. The `fairness' issue of how to parcel out franchises to the current haulers active in the County will be one issue that helps determine the acceptability of franchising as a tool to manage solid waste locally. Last year, Jeremy presented results of research that demonstrated it is not cost-effective to provide franchised in only the unincorporated non-residential sub sector of Orange County. There are not enough potential collection stops to create an economy of scale that makes this more attractive than the current open market approach to waste collection. It could be included in a larger system of franchising,but would not stand alone. The Town of Hillsborough operates an exclusive franchise with a contractor for non-residential waste within Town limits;waste is directed to the Orange County landfill as part of their obligation under the interlocal agreement. The Town is currently evaluating its franchise arrangement and hauler. LTNC also maintains an exclusive MSW hauling contract for on-campus wastes. The evaluation also found UNC's waste contract is also cost-effective compared to study alternative costs. LTNC's waste is currently directed to the Orange County landfill as part of their contract. The current study evaluates the efficacy of franchising if some or all parts of the non-residential sector throughout the County participate and the franchise is divided between two franchisees. That approach may or may not be attractive to all potential users. Some combination of any or all of the three municipalities and the University may opt into a franchise,while the others may decide that their current system is suitable.A final system cost and environmental evaluation will depend partly on the number and proximity of potential customers;that will be determined by which jurisdictions opt in or not. We request that Work Group members express their preference for further development of the franchise concept, state if they are not interested in their government or entity pursuing this further andlor if they need further information to make a decision. Those preferences would give the staff and advisors more guidance on the scope of any future franchise analysis.A secondary set of issues involves the administration, level of centralized control and billing,types of services offered and whether or not recycling is included.Franchisee selection will be handled fairly and competitively to ensure the best pricing for the County and an equitable solution among haulers. 94