TITLE: Title
Discussion and Update on Recycling Options for FY2014 and Beyond
PURPOSE: The purpose of this item is for the Board of Aldermen to receive an update on staff activities related to the ongoing provision of recycling services for Carrboro residents beginning in July 2014 and approve the Town's application for the NCDENR Curbside Recycling Roll-Out Cart Grant Program.
body
DEPARTMENT: Public Works, Town Manager
CONTACT INFORMATION: George Seiz (918-7427); Matt Efird (918-7314)
INFORMATION:
I. Update on recycling Services
The BOCC further discussed solid waste and recycling issues at their April 9th meeting and based on those discussions provided the Town with three options regarding recycling issues in an e-mail dated April 16, 2013 from the Orange County Manager. The Board of Aldermen discussed the options at the June 4, 2013 meeting and endorsed the concept of the creation of a limited County Solid Waste Tax District which would be designed to serve only those existing areas of unincorporated Orange County which currently have curb side recycling available, in which the Town could be included. (<https://carrboro.legistar.com/LegislationDetail.aspx?ID=1435443&GUID=A28CDC17-D1E4-4390-BAF8-CB109265F784>)
In addition to the Tax District discussion, Town staff participated in an RFP process with the Town of Chapel Hill that involved recycling services and a solid waste transfer station. Staff has reviewed the proposals with the Towns of Chapel Hill and Hillsborough and met with Orange County staff to further discuss recycling services over the past month. Concurrently, the Town Attorneys for Chapel Hill and Carrboro and the Orange County Attorney have discussed and reached consensus on the Towns' ability to authorize Orange County to collect a recycling "availability fee" within the Town to fund the Urban Curbside Recycling Program. The three attorneys have agreed that the Towns do have this legal authority. Authorizing the fee and allowing the County to assess the fee on property tax bills would follow the current 3-R fee model, and service would continue uninterrupted in FY2014 and beyond. If the Towns agree to levy the fee, Orange County Solid Waste would continue to manage the recycling program countywide, and will proceed with the transition to 95 gallon roll-out carts. (See Section III below for additional information on roll-out carts).
In reviewing the RFP results and discussing options with the County, there were three responses to the RFP that were considered "responsive". When comparing the three proposals to each other, Waste Management has the most competitive cost for comparable services, while Waste Industries' proposal would provide most continuity of service to residents and the least impact to County operations. In comparing the three proposals to the County's curbside program, the County's fees from FY 2012-13 are comparable to the private sector proposals. Staff is still working with Orange County staff to determine future costs. Preliminary review of cost information provided by the County for the first year of operations appears comparable to the bid responses. One additional benefit to a continuing partnership with Orange County is the administrative and technical staff currently in place to manage the recycling program. Town staff's administrative time was not factored in to the RFP responses, and there are likely cost savings in not providing duplicate administrative services in each Town. Additionally, the Town will be continuing to work with Orange County staff in other solid waste areas (yard waste, construction & demolition) which may be better managed as part of a comprehensive program.
The options for the Board of Aldermen to consider at this point are:
1) Agree to Orange County's fee proposal and authorize the Town Manager to negotiate a "letter of intent" to authorize the County to charge and collect a fee for urban curbside recycling within their town limits.
2) Direct Orange County to proceed with the limited Solid Waste Tax District as approved by the Board of Aldermen in June 2013.
3) Continue the RFP process in conjunction with the Towns of Chapel Hill and Hillsborough.
II. Items to be addressed with Inter-Local Agreement
The current interlocal agreement regarding solid waste services terminated with the closure of the Orange County Landfill. A new interlocal agreement is needed to cover the service areas of Recycling, Construction & Demolition (C&D) landfill and Yard Waste landfill. Other potential topics to include in a new interlocal agreement include:
· The potential re-establishment of the Solid Waste Advisory Board (SWAB)
· Issues of shared governance of the county solid waste program (process for fee increases, notification timelines for service changes, etc.)
· A five year term (similar to private sector bid proposals)
· Set fees with identified multipliers
· Performance measures
III. Curbside Recycling Grant Program for purchasing Roll-out Carts
The County is still planning to transition the curbside recycling program from using 18 gallon bins to 95 gallon roll-out carts with RIFD tags (Radio Frequency Identification). To help offset the purchase of the new carts the County has asked the towns to apply for grants thru the N. C. Department of Environment and Natural Resources (NCDENR) Curbside Recycling Roll-Out Cart Grant Program. The grant program is administered by the Division of Environmental Assistance and Customer Service (DEACS). The County proposes purchasing carts and requests the towns provide any grant proceeds back to the County. If approved by the Board, a letter of intent will be negotiated with the County to spell out the purchase/reimbursement process.
The purpose of this grant program is to assist local government with implementing curbside recycling programs using roll-out carts or with transitioning existing curbside recycling programs from bins to roll-out carts. One of the grant requirements is that RIFD tags must be embedded in carts at the time of manufacturing. According to NCDENR guidelines adding embedded RIFD tags increases the initial cost of a cart by roughly $1.00 whereas the cost of retrofitting carts with RIFD technology is on the order of $5.00/cart. The grant does not require the grantee to purchase RIFD reading equipment or data management systems. It is estimated that the cost per cart will be on the order of $52.50
Approximately 4,600 carts will be needed to serve the urban curbside program in Carrboro. 4,600 carts @$52.50/cart = $241,500. The grant program will reimburse grantees for the purchase of carts not to exceed a rate of $25.00 per roll-out cart, up to a maximum reimbursement of $75,000. Staff would apply for the maximum reimbursement amount. NCDENR has indicated that this grant program will cease operation at the end of Fiscal year 2013/14. Orange County staff has stated their intent to pursue the roll-out carts regardless of the receipt of grant proceeds, and the Town would not be expected to provide any financial contribution in either case. Staff recommends applying for the grant regardless of the Town's intent to proceed in working with Orange County or a private service provider, as the Town would likely want to purchase carts in either case.
FISCAL & STAFF IMPACT:
If the Town proceeds with authorizing a recycling availability fee in the FY14-15 budget, there is no fiscal impact to the Town. Orange County would be authorized to levy and collect the fee, resulting in no increased expense or staff time from the Town. If the Town proceeds with the tax district plan, some administrative time will be needed to continue working with Orange County to establish the district. The cost of the recycling service would be paid by taxes generated by the district, so the impact on the Town's budget would be minimal. If the Town continues in the RFP process and identifies a private sector service provider, Staff will work through the Town's budget process to identify the means to pay for the services after July 1, 2014.
Purchase of roll-out carts - There will be staff time involved with the application and administration of the NCDENR grant, estimated at 24 hours (grant application and final report). No local match is required for the grant, and the County is not seeking any contribution from the Towns towards the purchase of the roll-out carts regardless of the outcome of the grant application. If the Town does not continue to receive recycling service from Orange County, Staff will need to identify funding for the cost of 95 gallon carts (estimated at $241,500 +/- $75,000 grant proceeds).
Additional staff time is needed to pursue a new interlocal agreement, including expense for the Town Attorney's time.
RECOMMENDATION:r Staff recommends that the Board of Aldermen accept the update, provide Staff with any comments or direction on how to proceed, and consider the attached resolution authorizing Town Staff to pursue the submittal of a grant proposal up to a maximum amount of $75,000 to NCDENR for the purchase roll-out carts.