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HomeMy WebLinkAbout1991-12-13 Work Session .., 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. . 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. . 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. . -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. ~ ( I ~ MINUTES OF SPECIAL WORK SESSION, DECEMBER 13, 1991 .' 745 - . 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. () 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. () -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. () -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 ~ ':4 .., ;""- -c.. MINUTES OF SPECIAL WORK SESSION, DECEMBER 13, 1991 746 ownership, such as the County's ability to issue bonds at a lower interest rate. . 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. . 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: . 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, _ '<31~ L ie F. Harrell Clerk to the Board ~