1995-02-09 Special Meeting
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M:I'NUTES OF SPECIAL MEETING, FEBRUARY 9, 1995
PAGE 53'2
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ASSEMBLY
_ The New Hanover County Board of Commissioners met in Special
Session on Thursday, February 9, 1995, at 6:00 P.M. in the First
Floor Assembly Room of the New Hanover County Administration
Building, 32? Ch~stnut street, Wilmington, North Carolina.
Members present were: William A. Caster; william E. Sisson,
Jr.; Vice-Chairman E. L. Mathews, Jr.; Chairman Robert G. Greer;
County Manager, Allen O'Neal; County Attorney, Wanda M. Copley; and
Clerk to the Board, Lucie F. Harrell.
commissioner Sandra Barone was absent.
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Chairman Greer called the meeting to order and welcomed
everyone present. He presented a brief report on the history of
incineration and reported when the County's landfill space was
exhausted ten years ago, no suitable landfill space could be found
in New Hanover County. Surrounding counties were not interested in
developing landfills and fuel prices had escalated. At that time,
the Board of County Commissioners decided to construct an
incinerator to burn waste with the sale of steam and electricity as
the revenue source for funding the cost of incineration. As time
passed, fuel prices dropped with no shortage of supply, and
surrounding counties opened landfills offering a lower tip fee than
being offered by New Hanover County. Haulers began to carry trash
out of the county, and in order to compete, the tip fee at the
County Landfill had to be drastically reduced. This reduction has
created a revenue shortfall that does not cover the cost of
incineration; therefore, the County has been in the process of
studying and reviewing options to address the shortfall. Also,
during the past year, the federal courts rendered a decision that
prohibited local governments from adopting flow control ordinances
to keep trash from going out of their counties.
Chairman Greer requested the Assistant County Manager, Dave
Weaver, to present .options to be considered by the Board.
The following options were presented:
1. Availability Fee: A flat fee would be imposed on improved
parcels, such as housing, and included as part of the annual tax
bill. The tip fee for residential solid waste would be eliminated.
A tip fee would be charged at $30 per ton for other solid waste
including commercial waste.
The following figures were presented:
Projected shortfall in FY 1995-96
Elimination of residential tip fee in FY 1995-96
Total Projected shortfall for FY 1995-96
$6,123,266
1. 500.000
$7,623,266
Assume that Waste Management returns waste to NHC
Assume the County attracts additional solid waste
Reduction in'short
$1,804,000
$1.125.000
$2,929,000
Remaining shortfall to be covered by Availability Fee
$4.694.266
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In order to
Availability Fee,
established:
recover the $4,694,266 shortfall through
the following charges would have to
an
be
Housinq Type
Number of Units
Single Family
Duplex
Manufactured Housing
MUlti-Family
40,468
3,563
6,974
16;294
Fee Per Unit
$77
$77
$77
$53
TOTAL
Total
$3,116,036
$ 274,351
$ 536,998
$ 863.582
$4.790.967
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MINUTES OF SPECIAL MEETING, FEBRUARY 9, 1995
PAGE !!3J.
Assistant County Manager Weaver reported the annual disposal
cost would be $77 per resident plus the monthly collection cost
charged by the private hauler. Hopefully, the private haulers
would reduce the collection fee under this option.
Chairman Greer expressed concern for commercial customers
receiving a benefit because the cost for disposal of commercial
waste is more than $30 per ton.
2. General Fund Transfer: A tip fee of $30 per ton would be
charged for all customers using the facility, both residential and
commercial. The tax rate would be increased by 3.5 cents, and the
County would aggressively attract solid waste at $30 per ton
outside the County.
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The following figures were presented:
Projected shortfall in FY 1995-96 (same as FY 1994-95)
$6,123,26~
Assum~ Waste Management returns waste to NHC
Assume the County attracts additional solid waste
Reduction in shortfall
2,145,000
1.125.000
$3,270,000
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Remaining shortfall to be transferred from general fund $2.853.266
Discussion was held on the projected cost to the homeowner
with the proposed tax increase. Assistant County Manager Weaver
reported a homeowner with a house valued at $100,000 would pay
approximately $35 more per year in property taxes.
Chairman Greer commented on the need to be prepared for future
problems with incineration, such as the ash becoming a hazardous
waste or more stringent EPA air emission regulations, and reported
the Commissioners must decide between the following actions:
1. Close WASTEC: Since WASTEC is operating near its capacity
level for the first time in ten years, it would be unfortunate to
close the facility with a Staff that has worked so hard to improve
the quality of the plant. Also, the debt service would still have
to be paid from the general fund.
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2. Charqe an Availabilitv Fee: Under this option, residential
accounts would be carrying the burden of commercial accounts which
is unfair.
3. General Fund Transfer: Approximately a year ago, discussion
was held on having to increase the tax rate by 8 cents; however,
due to improvements at WASTEC more steam and electricity has been
sold which has increased revenues and reduced the tax increase to
3.5 cents.
commissioner sisson commented on the cost of disposal being
expensive and reported in order to be fair to all parties, he would
be in favor of the general fund transfer. -
Vice-Chairman Mathews expressed support for the general fund
transfer and stated, in his opinion, the WASTEC Facility will begin
to generate more revenue with the many improvements made during the
past three years.
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Chairman Greer reported incineration is the best method of
disposal because the waste is burned. Also, there could be future
environmental problems with landfills; therefore, he is in favor of
the general fund transfer.
Commissioner Caster reported after figuring the proposed tax
increase on his home, the property tax would not greatly increase.
If this is true for most property owners, he would not be opposed
to increasing the tax rate by 3.5 cents; however, the general
public must be educated and well informed on the proposed tax
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MINUTES OF SPECIAL MEETING, FEBRUARY 9, 1995.
PAGE 534
increase. Also, if the County attracts waste from other counties,
WASTEC must operate at full capacity without three or four months
of.a boiler being off line, and the County must have some alternate
method of disposal if too much waste is received at one time.
Environmental Management Director, Ray Church, reported the
opening of the Construction and Demolition Processing Facility
(C&D) will assist WASTEC to level out the low volume.. periods of
waste received. During the summer months, wood from the C&D
Processing Facility can be stored and used as fuel during the low
volume months of the winter. As to handling the volume of waste
received from other sources, the County can apply to the state for
the Landfill to become a subtitle B Landfill as outlined under
Federal Law. This issue has not been addressed by the state, but
Staff is actively.pursuing the matter. A cell could be constructed
as a Subtitle B cell with a clay liner for the placement of out~of-
county waste. Another alternative would be to contract out the
handling of excessive waste.
Mr. Gene F.. Renzaglia, a member of the WASTEC Commission,
reported with the incinerator operating at an 85% capacity, with a
$30 tip fee, the sale of steam and electricity should generate
revenue in the amount of $7.6 million per year, particularly if the
County commits to a long-term tip fee of $30 per ton. In his
opinion, a long-term tip fee woulq bring the waste back into New
Hanover County.
Chairman Greer expressed opposition to establishing a long-
term tip fee with the uncertainties about EPA regulations that
could greatly impact the cost of operating the incinerator.
Mr. Renzaglia reported no one in the industry can predict
changes in EPA requirements, and if regulations should dramatically
change, the County may have no choice but to close the WASTEC
FaciH ty.
Mr. Peter Pattinson reported that two-thirds
orders are now for preventative maintenance and, in
this means the 15% down time is much more realistic.
steam and electricity shouid greatly increase.
of the work
his opinion,
The sale of
Chairman Greer reported the tip fee should always remain at a
competitive rate, but he could not support establishing a long-term
tip fee. .
Consensus: After a lengthy discussion of the options, it was the
consensus of the Board to procee~ with the general fund transfer,
and direct Staff to seek additional solid waste from surrounding
counties.
Environmental Management Director, Ray Church, reported the
original plan presented by Staff included trash, curbside
recycling, yar.d waste, and the collection of white goods at a fair
and reasonable price. He inquired as to whether the Board would
like to consider providing these services in the collection system.
Emphasis was placed on the fact that County residents pay an
extremely high rate for trash collection without the provision of
other collection services.
Further discussion was held on collections and enforcement of
the New Hanover County Litter Ordinance. Chairman Greer reported,
in his opinion, less government is better government. Speaki~g for
himself, he was not ready to bid the entire contract to one hauler
or divide the County into zones because this was not the.way free
enterprise should work. The residents of the County should have a
choice to select any hauler they so desire, and if enough residents
want yard waste pick-up, the hauler will provide the service at an
additional cost. As to litter, the County should become involved
with educating people about litter through the Keep America
Beautiful Program, the Sheriff's Department, and news media.
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MINUTES OF SPECIAL MEETING, FEBRUARY 9, 1995.
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PAGE 53~
Commissioner sisson reported the current Litter Enforcement
Officer desperately needs another deputy to help him enforce the
Litter Ordinance. County Manager O'Neal responded that Staff was
in the process of addressing this issue.
Mr. Ed Fare, Director of Solid Waste Management for the City
of Wilmington, expressed concern for using the general fund
transfer option because local residents will be charged a higher
disposal fee than people living outside the county.
WORK SESSION SCHEDULED WITH NEW HANOVER COUNTY AIRPORT AUTHORITY
Clerk to the Board, Lucie F. Harrell, reported the Airport
Authority would like to schedule an early morning meeting with the
Board of County Commissioners to present a status report on Airport
activities.
Consensus: After discussion, it was the consensus of the Board to
schedule a Breakfast Work Session on Friday, February 24, 1995, at
7:30 A.M. in the Airport Conference Room.
ADJOURNMENT
Chairman Greer adjourned the meeting at 9:35 P.M.
submitted,
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F. Harrell
to the Board
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