2009-02-16 Work Session w/Solid Waste TF
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
SOLID WASTE WORK SESSION OF FEBRUARY 16, 2009 PAGE 552
ASSEMBLY
The New Hanover County Board of Commissioners held a Solid Waste Session on Monday, February 16,
2009, at 1:45 p.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street,
Wilmington, North Carolina.
Members present were Chairman Ted Davis, Jr.; Vice-Chairman Jason R. Thompson; Commissioner
Robert G. Greer; Commissioner William A. Caster; Commissioner Jonathan Barfield, Jr.; County Attorney Wanda
M. Copley; Deputy Clerk to the Board Kymberleigh G. Crowell; County Manager Bruce T. Shell; and
Environmental Management Director John Hubbard.
Solid Waste Advisory Board Members present were Chairman Claud Buck OShields; Vice-Chairman
Robert W. Mitchell; Board Members Martin J. Michaelson; John R. Newton; and David Sims.
Chairman Davis called the meeting to order and thanked everyone present and reviewed the agenda for the
meeting. He noted that although this work session was not a public hearing, public input will be allowed with each
person having 5 minutes to comment.
RESPONSES TO COMMISSIONER QUESTIONS BY SOLID WASTE ADVISORY BOARD AND STAFF
Chairman Davis asked each Commissioner to present their questions/concerns with the group. The
following topics were covered during the discussion between the Commissioners, Solid Waste Advisory Board and
Staff:
" Concerns about consistency of numbers used over the years regarding WASTEC
" Current land owned that is permitted/working and could be permitted:
Working area is approximately 60 acres, 115 acres unpermitted, respectively.
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Based on an average 3% growth, 24 years of landfill life remain, which includes the use of
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115 unpermitted acres to the south and if all the waste went to the landfill without the
incinerator.
" WASTEC Maintenance and Repair (M&R):
A Wheelabrator representative estimates a typical facility of this size should expect to
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spend $1.5 $2 million each year on routine equipment M&R and $6-7 million additional
dollars every 6 years on major projects such as turbine overhaul or re-tubing.
" Tipping Fees:
WASTEC does not work without New Hanover County having a control on the waste flow
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and flow control.
Unavailability of flow control due to legal challenges, haulers not being under a
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County franchise and there being no support to adjust the tip fees to needed levels
contributed to there not be enough funds to cover incinerator M&R.
Fees were not set at an appropriate level after flow control reestablishment to
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provide sufficient revenue for the Environmental Management Fund.
" Environmental Management Fund Subsidized by the taxpayers:
Failure to raise tipping fees to adequately reserve for new cell construction (cell 6C) and
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significant recent operating losses have required a total of ~$3.1 million interfund loans
from General Fund to Environmental Management. However, it is expected that
Environmental Management will fully repay those funds.
Solid Waste Advisory Board contends the fund is not subsidized by the taxpayers.
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" Discussion of Scenario 3 (Transfer Station) Benefits and Risks
" Renewable Energy Credits (REC) What Are They and How Do They Work?
The numbers in the SWAB models are basic fundamental numbers; REC revenues were
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not included in any of the calculations of tipping fee.
" Daily Cover for the Landfill:
Dirt Standard: six inches
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Ash Standard: three inches
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Use approximately 60% and have approximately 40% to dispose.
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Posi-shell Standard: one-quarter of an inch
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Department has to buy posi-shell; it cannot be used every day; once a week it has to
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be blended with dirt or ash. Example: This past month, WASTEC has been running
fairly well so no posi-shell has been used, only used dirt on the roads and rest of
cover has been done with ash. If running well, ash can be used for daily cover.
" Gas has to be bought to run the incinerator to burn waste. Only used to start the boilers and when
there is an environmental issue. The higher the efficiency, the less gas needed.
" According to Star-News article, WASTEC was not on the list as one of the top 10 polluters in the
County.
" SWAB vote was 4-1 in support of the Cascade Scenario (Scenario 2); David Sims was the
dissenting vote. Mr. Sims gave a brief overview of his history on the various task forces
concerning this issue. In working through all the information during while serving on this board,
primary objective to incineration, recycling, etc. is to preserve the landfill. He supports scenario 3
(Transfer Station) as the most cost effective way to preserve the landfill.
" Amount of waste generated over the past 2 -3 years was 289,931 (FY05-06), 265,342(FY06-07)
and 249,565 (FY07-08); tonnage excludes ash and recyclables collected at the drop-off sites.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
SOLID WASTE WORK SESSION OF FEBRUARY 16, 2009 PAGE 553
Director Hubbard gave a brief overview about the methane gas project and how carbon credits are available
until new performance standards are in place. Amount of potential revenue depends on the handling of gas: if it is
flared, sold to end user or send to generators for electricity generation. Draft Request for Proposal (RFP) is in place
but on hold due to being unsure of Boards direction and for project funding.
COUNTY MANAGERS PRESENTATION OF OPTIONS
County Manager Shell covered the following points is his presentation of options regarding a strategy for
solid waste management:
Brief History:
" Landfill crisis
" 1980 Legislation prohibiting County from citing landfills in neighboring counties
" First lined landfill in North Carolina
" WASTEC constructed @ 200 T/D in 1984
" WASTEC expanded to 450 T/D in 1991
Current Status:
" WASTEC: Availability - 65%
" Green Energy designation (requested) Goal of Increased Revenue
" Debt service continues to drop
" Recycling revenues down
" Trash volume down
Review of Options
" County Operation
" Invest in WASTEC - (NHC )
" Close or sell WASTEC, NHC operates Landfill
" Hybrid Partial Privatization
" Cascade : Invest in WASTEC, NHC runs existing facilities, and transfers some
waste out (SWAB recommendation)
" Privatize WASTEC Transfer Trash NHC operates Landfill
" Privatization
" Close or sell WASTEC, Transfer trash (WI proposal) NHC operates Landfill
" Privatize Landfill, WASTEC, Recycling (WM proposal)
Factors for Consideration
" Tip Fee
" Green Community
" Life of NHC Landfill
" Long Term Flexibility
PUBLIC COMMENTS
Nancy Pritchett stated her concerns about the Countys solid waste issue as a whole, the need to improve
recycling, WASTEC not being funded sufficiently to operate at peak efficiency, and the need to move forward with
better funding and recycling programs.
David Pepper, Waste Industries, provided a brief company history and a synopsis of their solid waste
management proposal for the County. A brief discussion was held about the cost of mothballing, cost of restarting
the facility and what level of waste is required to maintain permits.
David A. Spetrino, Jr., Chamber of Commerce/Infrastructure Committee, stated that recycling and
alternative methods should be part of the consideration process; expressed concerns about trash being sent to
Sampson County facility; supports good environmental benefits/considerations.
Doug Springer, Cape Fear River Watch, thanked the Board for taking the time to investigate this matter;
Board needs to look at the environmental issues/numbers of the WASTEC discharge and ensure best technology
being used.
Kevin Bartlett, NHC WASTEC, stated that he does not feel the Board is looking at the true economic
impact of the facility and that citizens will benefit from investment in WASTEC.
Audrey Albrecht, League of Women Voters, thanked the Board and SWAB for their time and effort.
Stated Leagues support for WASTEC and that it should be properly funded for maintenance and repair.
David Pyle commented on recycling effort in his neighborhood; expressed support for hiring a reliable
contractor with knowledge of incineration, such as Wheelabrator; supports SWABs recommendation of increasing
tipping fees; opposes hauling to Sampson County; and supports a C&D facility is an urgent need in the County.
Marty Pridgen expressed her support for WASTEC.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 31
SOLID WASTE WORK SESSION OF FEBRUARY 16, 2009 PAGE 554
COMMISSIONER DISCUSSION
Discussion was held about the discrepancies of landfill life due to tonnage differences being used in
calculations and available options in developing a draft model RFP for solid waste management. It is important to
make the RFP as specific as possible in order to receive the most informative proposals available. It was noted that
in moving forward with this process, it would be very important that all parties base their information on the same
tonnage number(s) which would need to be established by the County.
Consensus
: The Board agreed to direct County Manager Shell to work with the Board, Solid Waste Advisory
Board members and staff to develop a draft model RFP for solid waste management. The draft model RFP is to be
placed on the March 2, 2009 agenda, presented during the Thursday, February 26, 2009 agenda review for review
and discussion by the Board. The County Manager will provide a draft to the Board prior to the February 26, 2009
agenda review in an effort to prepare for that meeting. If the Board deems it necessary, it will be pulled from the
March 2, 2009 agenda and delayed until the March 16, 2009 meeting in order to allow the County Manager time to
make any requested adjustments.
The Board thanked everyone for their effort regarding this matter.
ADJOURNMENT
There being no further business, Chairman Davis adjourned the meeting at 5:07 p.m.
Respectfully submitted,
Kymberleigh G. Crowell
Deputy Clerk to the Board