1991-12-13 Work Session
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MINUTES OF SPECIAL WORK SESSION, DECEMBER 13, 1991
744
ASSEMBLY
The New Hanover County Board of Commissioners held a Work
Session with the Waste-to-Energy Advisory Committee on December 13,
1991, at 10:45 o'clock A.M. in the Assembly Room of the New Hanover
County Courthouse, 24 North Third Street, Wilmington, North
Carolina.
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Members present were: Commissioners Fred Retchin, William H.
Sutton; Vice-Chairman Robert G. Greer; Chairman E. L. Mathews, Jr.;
County Manager, Allen O'Neal; County Attorney, Robert W. Pope; and
Clerk to the Board, Lucie F. Harrell.
commissioner Jonathan Barfield, Sr. was absent due to being
out-of-town.
Waste-to-Energy Advisory Committee members present were:
Chairman Gene F. Renzalia, Plant Manager of Occidental Chemical;
Vice-Chairman Charles Agnoff, President, Interroll Corporation; Bob
Brown, Plant Manager of Corning, Inc.; Robert Pace, Program Manager
of Fuel Manufacturing, General Electric; Greg L. Pittillo, P. E.
District Manager of Carolina Power & Light Company; James B.
Wright, Retired Engineer, Westinghouse, Inc.; and Lib DeChesere,
Representative for the City of Wilmington.
Chairman Mathews called the meeting to order and expressed
appreciation to each member of the Waste-to-Energy Task Force for
the time and effort given in preparing an excellent report on
recommendations for the most effective method of management and
operation of the expanded Waste-to-Energy Facility.
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PRESENTATION OF ANALYSIS AND RECOMMENDATION FOR MANAGEMENT OF THE
NEW HANOVER COUNTY WASTE-TO-ENERGY FACILITY (WTE)
Mr. Gene F. Renazglia, Chairman of the Waste-to-Energy
Advisory Committee, commented on the fact that the burning of
refuse to produce energy is a relatively new industry and stated
there is limited data on the most efficient method of operation;
however, after thorough study and review of other plants, the WTE
Advisory Committee presents the following recommendations:
1. Require independent auditing of the WTE facility.
-Commission an initial independent engineering audit of the
WTE Facility to determine satisfactory completion of the WTE
Facility expansion.
-Performance of a full engineering/financial audit on an
annual basis.
2. Strengthen and expand the management of the WTE Facility.
-Establish a non-profit corporation governed by a board of
directors to contract with the County to operate the WTE
Facility.
-Develop more depth in upper management.
-Provide competitive salaries for WTE Facility employees.
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-Develop and maintain an adequate fund balance for capital
replacement and extraordinary repairs eventually equal to $5
million.
-continue and upgrade sound operational and maintenance
procedures.
-Continue and upgrade criteria for monitoring and evaluation
of facility performance.
3. Strengthen Community support and education for the WTE
Facility.
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MINUTES OF SPECIAL WORK SESSION, DECEMBER 13, 1991
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4. Increase efforts to attract customers for steam.
After a thorough study and review of establishing an
Authority; contracting out the entire operation of the WTE Facility
to a private contractor; contracting out parts of the operation or
maintenance to private contractors; or continuing the present
operation, the WTE Advisory Committee recommends establishment of
a non-profit corporation. This method of operation would provide
flexibility similar to that of private industry but guarantee
ultimate public control through public ownership and appointment by
the Board of County Commissioners of the non-profit corporation
board of directors. It is recommended that the non-profit board of
directors be established as soon as possible (early 1992) in order
to provide time for the board to hire a general manager and
establish procedures and policies so that the non-profit
corporation can assume operation of the WTE Facility by July 1,
1992.
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The framework for establishment of the non-profit corporation
would contain the following elements:
-The charter and amendments can be drafted by the County and
then approved by the Secretary of State; legislative approval
is not required.
-The non-profit corporation could be given the following
powers in the charter:
- To purchase, lease, and acquire.
- To use real or personal property.
- To make contracts & incur liabilities.
- To recommend fees for tippage and sell steam
and electricity.
- To produce other income.
- To borrow money.
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-Net earnings are returned to the non-profit corporation and
do not inure to the directors. Expenses of the board can be
paid.
-The non-profit corporation would have considerable
flexibility regarding personnel policies and purchasing
powers. Personnel powers include the right to hire and fire,
and establish salary levels.
-The recommended structure for the non-profit board of
directors (who would serve staggered three to five-year terms)
is as follows:
-One County Commissioner selected by the Board of County
Commissioners.
-One City Council Member selected by the wilmington City
Council.
-Three town council members, one each from wrightsville
Beach, Carolina Beach, and Kure Beach.
-Eight community representatives, selected by the Board
of County Commissioners, who have engineering expertise,
financial/accounting expertise, legal expertise, or
represent the public-at-Iarge.
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-One ex-officio, non-voting member representing County
management (the Director of the Department of
Environmental Management).
-The non-profit corporation would enter into an operating
contract with the County in order to take advantage of County
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MINUTES OF SPECIAL WORK SESSION, DECEMBER 13, 1991
746
ownership, such as the County's ability to issue bonds at a
lower interest rate.
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Discussion was held on the need to create a position of
General Manager with engineering and management skills. Emphasis
was place on offering a competitive salary in order to obtain the
expertise needed. Further discussion was held on strengthening the
level of management between line supervisors and the General
Manager with the addition of an Operations Manager, Project
Engineer, and Materials/Office Manager.
Chairman Mathews commented on the need to strengthen community
support and education on the Waste-to-Energy Facility and
encouraged promoting tours of the plant so that the citizenry can
see this environmentally sound facility which has the ability to
convert waste into valuable products.
Motion: After further discussion, Commissioner Retchin MOVED,
SECONDED by Commissioner Sutton to accept the plan as presented,
move forward with implementation of the plan, and request that the
present members of the WTE Advisory Committee continue to serve as
an advisory committee until the non-profit corporation is formed.
The floor was opened for discussion.
Mr. Renazglia complimented County Manager Allen O'Neal,
Assistant County Manager, Dave Weaver, and the Director of
Environmental Management, Ray Church, for excellent support during
the study.
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Mr. Agnoff complimented the current Staff and employees at the
WTE Facility stating they have performed extremely well in the
operation of the expanded facility without a separate department
created for operation of this complex plant. He also commented on
the fact that this facility was constructed at a very reasonable
price compared to other facilities throughout the country and
stated steam sales have already begun to increase.
commissioner Sutton, the County's representative on the WTE
Advisory Committee, stated the County is most fortunate to have a
group of community-spirited leaders who so willingly gave of their
time and effort to share their expertise in preparing a report to
assist the County in selecting the best method of operation for the
WTE Facility.
Upon vote, the MOTION CARRIED AS FOLLOWS:
Voting Aye: Commissioner Retchin
commissioner Sutton
Vice-Chairman Greer
Chairman Mathews
Absent: Commissioner Barfield
ADJOURNMENT
Motion: Commissioner Sutton MOVED, SECONDED by Vice-Chairman Greer
to adjourn. Upon vote, the MOTION CARRIED AS FOLLOWS:
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Voting Aye: Commissioner Retchin
commissioner Sutton
Vice-Chairman Greer
Chairman Mathews
Absent: Commissioner Barfield
Chairman Mathews adjourned the meeting at 11:10 o'clock A.M.
~es ectf:llY s"mitted,
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L ie F. Harrell
Clerk to the Board
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