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~~ <br />Page 7 <br />February 7, 2003 <br />control problems, And, they would provide significant incentive <br />to the use of the County's solid. waste system, Also, presumably, <br />any service district tax in the towns would be accompanied by a <br />reduction in the landfill tip fee charges to the towns, Without <br />those reductions the towns would, in all likelihood, not agree <br />to being a part of the service district system, <br />V. Franchising. <br />Creating a franchise system whereby all solid waste has to <br />be collected and/or hauled by franchisees is not a direct <br />alternative financing method, Fees can be charged in the <br />franchising process but they are minor in amount and would be <br />imposed mainly to cover the administration of the franchising <br />process. On the other hand, requiring in a franchise system the <br />solid waste hauler to deliver all of the solid waste collected <br />and hauled to the Orange County solid waste facilities puts off <br />for the foreseeable future Orange County's need for alternative <br />financing for its solid waste system, <br />Hillsborough successfully used a franchise system when it <br />got out of the commercial collection business, Pursuant to the <br />Hillsborough franchise ordinance and the franchise granted by <br />Hillsborough, all commercial solid waste collected in <br />Hillsborough must be delivered to Orange County solid waste <br />facilities. This is the method elected by New Hanover County. <br />That is, Dtew Hanover County's franchising system requires that <br />all the waste in New Hanover County be delivered to its <br />incinerator. Interestingly, there is a local bill applicable to <br />Dfew Hanover County which allows its solid waste franchising <br />authority to include the City of Wilmington. Thus, New Hanover <br />County has completely addressed its solid waste financing <br />through the franchising process. <br />Although Hillsborough has successfully implemented a <br />franchising system for its commercial solid waste collection <br />activities and although New Hanover County has also implemented <br />a franchising system, franchising squarely puts at issue federal <br />flow control law. A franchise which requires the waste to be <br />delivered to the Orange County facilities would prohibit out of <br />County disposal of County solid waste altogether. Hillsborough <br />implemented its franchising system without flow control <br />complaint from the franchise bidders, and the bidders included <br />