Agenda - 04-15-2014 - 7b - Laserfiche WebLink

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2 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.