Council Agrees to Pursue Building ORS “Exchange” on Transfer Site

— by Margie Doyle —

County Council members agreed unanimously to work with Orcas Recycling Services (ORS) to move forward to building the basic structure for a new Exchange building and looking at lease agreements to recoup the costs of basic structure, according to a motion passed unanimously today, April 5  at the Council meeting on Orcas Island on April 5, 2016.

Council member Rick Hughes, who brought up the concept of a county-financed building at the Orcas Transfer Station at the council’s January retreat, thanked the ORS board and executive committee  in moving forward with the plan. He also said,  that it’s important that the public understand that the capital campaign to build a new exchange and make it fully operational continues.  “This is still a private-public partnership, and the leasehold improvements still need to be worked out and paid for.”

ORS Board President Tim Blanchard said, “I am very pleased that the County Council has authorized Mike Thomas to work with ORS to negotiate a long term lease approach for the new Exchange building that can be proposed for approval through a public process.”

Orcas Recycling Services/The Exchange, an island non-profit, secured the lease to operate the Orcas Transfer Station on county lands in 2013, in an agreement with San Juan County and its Solid Waste District. The 2013 agreement Identifies capital projects to be undertaken during the term of the lease. ORS has built a road at the site as required, and are in the midst of a capital campaign to “bring back” the Exchange recycling building at the site.

County Manager Mike Thomas  presented the council and the public in attendance with the issues that such a proposal would entail. He:noted that ORS has made substantive improvements in the access road, septic system, utilities and design of a new Exchange building that is now in permit review. He said such a building is needed by Orcas residents and “The County has a compelling interest to see something on their site.”

In his presentation, Thomas covered the following points and timeline:

• the 2013 agreement whereby ORS assumed operations of the transfer station would need to be reviewed and amended. Thomas noted that county “property is subject to competitive bidding requirements.. and the county would have to [construct] the building.”;
• public hearings of those amendments would be held;
• the design provided by ORS, and now in the permitting process, would be used;
• costs for shell will be determined;
• report back to council for financing and approval;
• request bids for construction.

The “onus of construction” would change from ORS/The Exchange to the County, Thomas said.

He proposed that the County move forward  with ORS in a partnership that he described as a “landlord- tenant” relationship. The county would construct the “shell” of the building and ORS would develop the interior and improvements. All would become the property of the county except for ORS proprietary items.

One significant issue in the development is the lack of a potable water source. “It’s vital to figure that out,” said Thomas. ORS Executive Director Pete Moe presented possible solutions to the problem, including a pipeline to water across the road to the south, or acquiring water through private property to the south and east of the site. Moe said the best proposition for potable water may be digging a well on county-owned property north of the site, but such a solution would entail “thousands of feet’ of pipeline,” due in part to restrictions on digging a well within 1,500 feet of a landfill.

Costs

Thomas said staff had considered that the county would absorb the costs of the building exterior; and it would charge ORS “rent.” He reviewed possible funding sources such as REET and the Public Facilities (.09) Funds. Another option would be bonding, with the debt serviced by the county.

Council members were united in their conviction that the county should be able to recoup the costs of constructing the new building. Council member Jarman brought up that Lautenbach is required to pay for the costs of the new tipping floor on the San Juan Island transfer station, and Lopez is required to pay for the county building on its recycling site. Council member Jamie Stephens said, “We were clear that Lautenbach and Lopez absorb the costs of building; we’re trying to be fair across the board.”

Council member Rick Hughes suggested that a 30 –year repayment cycle might be the best way to for ORS to pay back the debt over time.

Following the meeting, Moe said,”This exciting partnership with the county allows us to get started on the new exchange building right away. But it’s important to note that ORS will still bear a significant portion of the build-out costs–so we still need everyone’s support in terms of fundraising and volunteering as we go forward.”