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2 <br /> AGENDA #3b <br /> MEMORANDUM <br /> TO: Landfill Owners' Group <br /> FROM: Bruce A. Heflin, Chapel Hill Public Works Director <br /> SUBJECT: Scrap Tire Disposal <br /> DATE: April 6, 1995 <br /> This memorandum provides information on establishing a fee for the disposal of tires not <br /> eligible, under state regulations, for free disposal. <br /> Background <br /> Beginning in January, 1994, state regulations prohibited the charging of a fee for disposal <br /> of most scrap tires. As a result of this policy change, the Orange Regional Landfill has <br /> experienced an increase of over 700% in the disposal of scrap tires (July - December, 1993 <br /> versus July - December, 1994). The state tire tax reimbursement has not increased at a rate <br /> sufficient to cover the costs associated with disposal of the increased tire volumes. For the <br /> period July through December, 1994,tire tax reimbursements totaled$42,456 while disposal <br /> costs alone totaled $57,612 for over 800 tons of tires. Additional costs of tire disposal <br /> include staff time, maintaining a disposal area, equipment maintenance, fuel and capital <br /> costs. <br /> Discussion <br /> Based on discussions with state regulators and the experience of other counties, it is <br /> possible that some unknown quantities of scrap tires are entering from outside of the <br /> state. While State law prohibits us from assessing a fee for the disposal of scrap tires, <br /> there are exceptions when: <br /> - tires originate from out-of-state <br /> - tires originate from nuisance tire dumps and other cleanup projects <br /> - tires are from junkyard stockpiles <br /> - tires are from retailer or other business stockpiles that exceed 500 tires <br /> Only tires resulting from the normal course of business conducted in North Carolina are <br /> eligible for free disposal. Therefore,we propose establishing a fee that will recover the costs <br /> of contract hauling and disposal for non-eligible tires; contract costs are currently $72 per <br /> ton. <br /> Recommendation: That the Owners' Group include in their 1995-96 recommended budget <br /> a tire disposal fee of $0.75 per tire or $75 per ton for tires not eligible for free disposal. <br />