1994-01-06 Work Session
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
WORK SESSION, JANUARY 6, 1994
BOOK 23
PAGE 889
ASSEMBLY
The New Hanover County Board of Commissioners held a Work
Session on Thursday, January 6, 1994, at 10:00 A.M. in Room 501 of
the New Hanover County Administration Building, 320 Chestnut
Street, Wilmington, North Carolina.
Members present were: Commissioners Sandra Barone; WilliamA.
Caster; William E. Sisson, Jr.; vice-Chairman E. L. Mathews, Jr.;
Chairman Robert G. Greer; County Manager, Allen 0' Neal; County
Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F.
Harrell.
Chairman Greer called the meeting to order.
AUTHORIZATION FOR THE CHAIRMAN TO WRITE A LETTER OF ENDORSEMENT FOR
THE "GUN BUY-BACK" PROGRAM BEING SPONSORED BY THE WILMINGTON
DISTRICT OF THE COUNCIL ON MINISTRIES OF THE UNITED METHODIST
CHURCH
Chairman Greer reported on a letter received from Reverend
Samuel A. Williams, Jr., Minister of the Fifth Avenue United
Methodist Church, requesting endorsement of the "Gun Buy-Back"
Program being supported by the Council on Ministries and requested
direction from the Board.
Commissioner Sisson reported eventually the Commissioners will
have to take a stand on control of the instruments of crime as well
as crimes themselves. The Board should work with the local law
enforcement officials to discuss their needs and ways to help them
to reduce violent crimes in our community.
Chairman Greer agreed, but stated he believes that people kill
people, not guns.
Consensus: After further discussion, it was the consensus of the
Board to authorize the Chairman to write a letter of endorsement
for the "Gun Buy-Back" Program.
REPORT ON THE SALE OF REFUNDING BONDS
Deputy County Manager, Andrew J. Atkinson, reported the County
sold refunding bonds on January 5, 1994, and received exceptionally
good interest rates as follows:
Solid Waste Refunding Bonds
Governmental Refunding Bonds
W&S District Refunding Bonds
4.5946%
4.5553%
4.7045%
$1,827,152
$ 796,136
$ 576,695
This sale completes the refunding process for all presently
issued bonds. The County's outstanding debt is now under 5%.
The Commissioners congratulated staff for an outstanding job
with the refunding bond process.
REPORT ON CRIMINAL JUSTICE SEMINARS
County Manager O'Neal announced a Criminal Justice Seminar
will be held on Friday, January 21, 1994, at Craven Community
College in New Bern, North Carolina. Due to attending the FEMA
Work Shop in Emitsburg, Maryland, he will not be able to attend;
however, if any Commissioner wishes to attend, please let him know.
If not, he will assign a staff member to attend the seminar.
DISCUSSION OF RESIDENTIAL COLLECTION SYSTEM
County Manager O'Neal complimented staff for an excellent job
in preparing the options for developing residential and commercial
collection systems in the unincorporated county. Due to time
constraints with implementation of a program by July 1, 1994, staff
would appreciate the selection of an option or combination of
options so a plan can be developed in a timely manner.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
WORK SESSION, JANUARY 6, 1994
BOOK 23
PAGE 890
Director of Environmental Management, Ray Church, reported New
Hanover County has become an urban county with a continuing demand
for more services. with passage of Senate Bill 111, Subtitle B,
the Clean Air Act, and other rules and regulations, the mechanisms
to address solid waste management have become more complicated with
no simple solutions. Also, effective July 1, 1994, by State law,
aluminum and metals cans will have to be removed from the waste
stream prior to incineration. In order to address this new
regulation, a curbside recycling program should be implemented.
Staff feels a collection system can be developed to allow the
residents in the unincorporated county to receive the same level of
services as received in the municipalities. The following facts
were presented on the current collection system:
This is a private, free competition voluntary system with
citizens subscribing for service by contracting with a hauler. The
advantages of this system are as follows:
(1) Competition should keep fees down.
(2) No government bureaucracy.
(3) Only those who want service receive service.
(4) The citizens are allowed to select the hauler.
of their choice.
The disadvantages of this system are as follows:
(1) Overlapping routes increase the collection costs.
(2) Uneven and inadequate levels of serVlce.
(3) Some bad debt.
(4) No minimum equipment requirement for haulers.
(5) No bulky item collections.
(6) Absence of mandatory subscription despite urban
character.
(7) No minimum issuance requirements for haulers.
In summary, the current system provides inadequate levels of
service, does not address the collection of bulky items, and
increases the collection costs because of overlapping routes. The
purpose of establishing a residential county collection system in
the unincorporated county is to accomplish flow control.
Chairman Greer reported the following issues will have to be
addressed in preparlng a residential collection system:
(1) The 25% reduction of the waste stream must be met as mandated
by State Law.
(2) Effective July 1, 1994, aluminum and metals cans must be
removed from the waste stream before incineration as mandated by
State Law.
(3) Yard waste cannot be burned ln the incinerator as mandated by
the State Law.
(4) The trash flow must remaln ln New Hanover County.
Chairman Greer expressed opposition to a mandatory residential
collection system and stated, in his opinion, a voluntary system
can be established to provide garbage collection; curb-side
recycling; yard waste collection; and bulky item collection at a
reasonable rate.
Discussion was held on the number of persons who do not
subscribe voluntarily for garbage collection with a private hauler.
Recycling Manager, Tim Cole, reported after performing a survey in
1990, only 10% of the persons in the unincorporated county do not
subscribe for garbage collection.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
WORK SESSION, JANUARY 6, 1994
BOOK 23
PAGE 891
Assistant County Manager Weaver commented on establishment of
a voluntary system and stated the Board will have to decide if the
County wants to rely on user fees, the tip fee, or property taxes
for disposal costs. In his opinion, if the County relies on taxes,
a voluntary subscription system will probably work. If the County
relies heavily on user fees and tip fees, the rates billed with a
voluntary collections system will become closer to what another
company might charge and that company might carry the trash outside
of the County with a loss of trash in terms of the environmental
liability concerns and the user and tips fees associated with that
trash.
Commissioner Barone expressed concern for using property
taxes, which in her oplnlon, is just another way to establish a
mandatory system.
The following options were presented:
Option #1: The County awards an exclusive contract or contracts
through bids to one or more private haulers with a voluntary
subscription and the County performing the billing.
Option #2: The County awards an exclusive contract or contracts
through bids to one or more private haulers with a mandatory
subscription and revenue collected from property taxes.
Option #3: The County awards an exclusive contract or contracts
through bids to one or more private haulers with either mandatory
or voluntary subscription with revenue received from user fees.
Option #4 Recommended by the Legal Department: The County would
award contracts to the haulers to provide the services for
residential collections with no disposal charge and provide
commercial collections at the market rate and tip fee. The
accounts would be billed through the property taxes. The
advantages would be as follows: (a) a uniform, universal service;
(b) minimal bad debt; (c) the contracts with municipalities can
refund a portion of taxes in return for the municipality collecting
its own solid waste; (d) costs could be deducted on income tax
returns; (e) commercial haulers would be free to contract with
businesses needing service in excess of standard service.
A lengthy discussion was held on the options presented and the
method of billing. If a voluntary system is established with user
fees as the revenue source, a billing mechanism will have to be
established to recover the costs. Currently, this is being done
through the haulers by a resident subscribing to a private hauler
with the private hauler billing the customer. The haulers have
experienced bad debt; however, the County could be in a better
position to collect those revenues through imposing liens and other
legal procedures. For the County to perform the billing, staff has
estimated the annual cost would be $150,000 with an additional
$30,000 to $50,000 needed for start-up costs to purchase additional
equipment.
Commissioner Barone inquired as to whether the County has
considered asking the City of Wilmington to perform the billing?
Commissioner Sisson supported the possibility of contracting
with the City for billing and recommended discussing the
possibility of asking the City to expand some of its specialty
services, such as providing recycling for restaurants. If the
billing cannot be worked out with the City, he feels the billing
should occur through the ad valorem property taxes, which in his
opinion, is the most direct efficient method of billing and will
avoid a complicated costly billing service.
Mr. McKeithan reported a monthly billing will cost the County
$1.50 to $2.00 per customer. If the County bills on a quarterly
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
WORK SESSION, JANUARY 6, 1994
BOOK 23
PAGE 892
basis, collection problems could be incurred; however, if the
County bills on an annual basis through the tax bill, collection
problems will probably be reduced and a costly billing system will
be eliminated.
Chairman Greer expressed opposition to billing through the
property tax. He recommended contracting with haulers and
negotiating a price for garbage collection, curbside recycling,
yard waste pick-up, and bulky item pick-up under a voluntary system
with the County performing the billing. The County should perform
the billing on a bi-monthly or quarterly basis and bill in advance
to allow time for collecting revenue.
County Manager 0' Neal reported he will be glad to fully
investigate the possibility of the County contracting with the City
to perform the billing; however, the County is already in the
billing business. The major issue is whether the County creates a
tax district or bills monthly. The most efficient and convenient
method of billing is through the tax bill, which provides an income
tax deduction for the residents.
A lengthy discussion was held on user and availability fees
for solid waste collection and disposal. Assistant County
Attorney, Andrew W. Olsen, commented on limitations under NCGS
153A-292 pertaining to an availability fee and recommended that the
Board not attempt to utilize the availability fee option as a
substitute for an ad valorem tax on real and personal property.
Chairman Greer recommended hearing from the haulers.
Mr. Chris McKeithan, President of Waste Management, Inc.,
reported the haulers do not have a problem with dividing the County
into districts and negotiating contracts with the existing haulers
according to the number of customers currently being served by each
hauler. As to recycling, Waste Management has three-fourths of a
millon dollars invested in a recycling center and is ready to begin
curbside pick-up. The City is providing recycling; however,
several of the haulers have superior equipment compared to the
City's equipment. After discussion at the meeting held in August
at the Airport, the haulers would like to sit down and discuss a
plan that would be acceptable to all parties involved.
Chairman Greer emphasized the importance of all persons
working together. A major concern is how the taxpayer can receive
the best rate, if different haulers will be handling certain areas.
Mr. McKeithan reported the haulers would have to establish a
rate for the provision of trash collection, curbside recycling,
bulky item pick-up and yard waste pick-up, which would be the same
for all customers. The haulers are willing to work with the County
in developing this type of system.
LUNCH
Chairman Greer recessed the meeting for lunch from 11:15 A.M.
until 12:45 P.M.
After a lengthy discussion of the options presented, it was
generally agreed to direct staff to prepare recommendations for
establishing a residential collection system as follows:
(1) Participation by residents would remain voluntary.
(2) The haulers would collect garbage in assigned zones and
dispose of the garbage in the County's incinerator. The
haulers would provide garbage collection, curbside recycling,
yard waste pickup and bulky item pickup.
(3) The County would negotiate the cost with the haulers and
bill the customers.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
WORK SESSION, JANUARY 6, 1994
BOOK 23
PAGE 893
(4) The County would use the money to pay the haulers, debt
on the incinerator and other waste disposal expenses.
DISCUSSION OF COMMERCIAL COLLECTIONS
Director of Environmental Management, Ray Church, presented
the following options:
Option #1: Indirect Approach - The County Facilitates Flow Control
by Lowering Tipping Fees, not by Direct Regulation of Collections:
Under this option the WASTEC facilities would be cost competitive
and the flow control problem would be managed. The debt service on
the facility and operating costs would be paid. The sources of
revenue would be the tip fee, taxes, and user fees. In order to
keep a lower tip fee, enough garbage would have to be burned to
fuel the boilers in order to generate steam and electric sales.
The County may have to consider looking outside of New Hanover
County for additional garbage to burn in order to maintain this
volume. The system would voluntary.
ADVANTAGES:
(1) A carrot rather than a stick approach.
(2) A simple solution to the flow control problem.
DISADVANTAGES:
(1) Taxes would lncrease to make up for lost revenue.
(2) The incentive for waste reduction would diminish.
(3) The taxpayers would subsidize the disposal of waste which
they did not cause.
The County has been contacted by some outside sources to
accept garbage; however, the State has not replied to this request
and at the present time the County does not know if the State will
look favorably upon this matter. Also, at the present tip fee,
these outside sources are interested, but if the tip fee increases,
these sources will go elsewhere.
Director Church inquired as to whether the Board would like
for staff to continue to pursue allowing outside sources to bring
garbage to the incinerator, if this is favorable with the State?
Director Church was directed to proceed to pursue accepting
garbage from outside sources.
Option #2 for County-Regulated Refuse Collections Service County-
Wide: The County would award non-exclusive contracts to all
haulers that meet pre-established parameters. The haulers would
receive a fee for acting as the County Agent and would negotiate
fees which would be billed by the County. This system would be by
voluntary subscription.
ADVANTAGES:
(1) Better rates would be produced than under the current
system.
(2) Only those who want serVlce would recelve serVlce.
DISADVANTAGES:
(1) A bureaucracy would be necessary to collect fees.
(2) Some bad debt.
(3) Problems with illegal dumping would continue.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
WORK SESSION, JANUARY 6, 1994
BOOK 23
PAGE 894
(4) Haulers who do not fall within required contractor
parameters may be forced out of business.
Option #3: County-Regulated Refuse Collections Service County-Wide
- Commercial: The County would bid out exclusive contracts to one
or more private haulers. The haulers would negotiate fees with the
County performing the billing. The system would be by voluntary
subscription.
ADVANTAGES:
(1) Better rates would be produced than under the current
system.
(2) Elimination of overlapping routes.
(3) Only those who want service will receive serVlce.
DISADVANTAGES:
(1) A bureaucracy would be necessary to collect fees.
(2) Some bad debt.
(3) Problems with illegal dumping would continue.
(4) Some haulers may go out of business.
One of the haulers present reported the commercial system is
presently working well; therefore, he would recommend a system
where cardboard would be removed from the waste stream;
construction debris removed from the incinerator; allow the haulers
to continue to bill commercial customers; and the County would open
the Construction and Debris Center as soon as possible.
Commissioner Sisson inquired as to how the County would ensure
recyclables are collected and all materials are delivered to WASTEC
without a contract?
Mr. McKeithan reported if the County is divided into districts
for residential collections, the haulers can pick-up recyclable
bins and cardboard in shopping centers located in these areas. He
recommended banning cardboard from the incinerator and banning
construction materials from going into front loader types of
containers, which will allow the County to meet its 25% reduction
of the waste stream.
A lengthy discussion was held on the billing, particularly
with the burdensome method being proposed, which would exchange
bills between the County and haulers with the customers remitting
two bills, one for collection and one for disposal costs.
After further discussion, staff was directed to prepare
figures on the various options for commercial collections based on
disposal costs.
DISCUSSION OF PROBLEMS EXPERIENCED WITH HUNTING DOGS IN THE PORTERS
NECK ROAD AREA
Commissioner Sisson commented on the unpleasant incident that
occurred at Porters Neck with the hunting dogs and requested the
Chairman to see if Board of Health through the Animal Control
Ordinance has some way to control hunting dogs from running through
residential neighborhoods. Chairman Greer responded that he would
be glad to check with the Board of Health about this matter.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
WORK SESSION, JANUARY 6, 1994
BOOK 23
PAGE 895
WORK SESSION SCHEDULED FOR THURSDAY, JANUARY 13, 1994
Consensus: It was the consensus of the Board to hold a Work
Session on January 13, 1994, at 10:00 A.M. in Room 501 of the New
Hanover County Administration Building, 320 Chestnut Street,
Wilmington, North Carolina, to further discuss refuse collections.
Chairman Greer adjourned the Work Session at 3:30 P.M.
Respectfully submitted,
Lucie F. Harrell
Clerk to the Board