2008-10-22 SWAB MeetingNEW HANOVER COUNTY SOLID WASTE ADVISORY BOARD
OCTOBER 22, 2008 MEETING PAGE 1
ASSEMBLY
The New Hanover County Solid Waste Advisory Board met on Wednesday, October 22, 2008, at 4:10 p.m.
in the Lucie F. Harrell Conference Room, Room 601, at the New Hanover County Government Center, 230
Government Center Drive, Wilmington, North Carolina.
Members present were: Chairman Claud "Buck" O'Shields, Jr.; Vice-Chairman Robert W. Mitchell; Martin
J. Michaelson; John Richard Newton; David Sims; Deputy County Attorney Kemp P. Burpeau and Deputy Clerk to
the Board of Commissioners Kymberleigh G. Crowell.
Others present: Assistant County Manager David F. Weaver and Environmental Management Director
John Hubbard.
MEETING CALLED TO ORDER
Chairman O'Shields called the meeting to order and welcomed everyone to the meeting of the New
Hanover County Solid Waste Advisory Board.
APPROVAL OF MINUTES
Chairman O'Shields asked the members to review the drafr meeting minutes of October 15, 2008 for any
needed corrections and/or changes. Hearing no comments, Chairman O'Shields called for a motion to approve the
meeting minutes of October 15, 2008.
Motion: Mr. Michaelson MOVED, SECONDED by Mr. Newton, to approve the meeting minutes as presented.
Upon vote, the MOTION CARRIED UNANIMOUSLY.
RECYCLING SITE FOR PORTER'S NECK AREA HOMEOWNER'S ASSOCIATION
In response to questions, Director Hubbard reported that a meeting will be held with representatives from
the Porter's Neck Area Homeowner's Association in regard to a recycling drop-off site being established in the
Porter's Neck area. Chairman O'Shields asked that Director Hubbard notify Chairman Greer and Commissioner
Kopp about the meeting.
REVIEW OF INVISTA MEETING ON OCTOBER 15, 2008
Mr. Michaelson provided an overview of the October 15, 2008 meeting summary held with INVISTA
representatives, Director Hubbard, Mr. Mitchell and himself. In addition to providing the summary, Mr. Michaelson
reported that INVISTA:
• Impression is that most of their end-users are in industrial carpet and upholstery business;
• Ships polyester liquid in railcars and powder via trucks;
• If Landfill Gas RFP successful bidder, this would allow them to reduce their costs;
• Is not under corporate incentive/objective to use methane in order to reduce greenhouse
emissions; and
• Sees RFP key variables as being gas BTU value and market value of alternative fuels.
A copy of Mr. Michaelson's October 15, 2008 meeting summary is included as Attachment 1.
In response to questions about the next steps in the process to issue the Landfill Gas to Energy and
Greenhouse Gas Project RFP, Director Hubbard explained that once the RFP is approved as written or modified it
would be ready to send out. The only end-users that he knows are interested in bidding are GE-Hitachi and
INVISTA; there are several brokers interested in it and want to be included on the RFP mailing list. Discussion was
held on the RFP and it being structured by narrowing down the alternatives; stating specific objectives. Staff stated
that an option could be for members to provide suggestions about the RFP while it is in review phase; Mr. Mitchell
has already provided Director Hubbard with his suggestions.
Deputy County Attorney Burpeau reported that at the Board's request during the October 15, 2008 meeting,
he investigated the legality of using different approaches in order to receive bids from interested and qualified
bidders on the final RFP. In speaking with David Lawrence at the Institute of Government, Mr. Lawrence's opinion
is that it is comparable to arrangements that have been done by counties and municipalities for sludge projects and
could be structured in the manner suggested without limitations. If it were ever challenged/reviewed, Mr. Lawrence
thinks the courts would view it as primarily a service rather than a commodity to be sold and that would put it
NEW HANOVER COUNTY SOLID WASTE ADVISORY BOARD
OCTOBER 22, 2008 MEETING PAGE 2
outside the context of just submitting a bid. Essentially, bidders could be required to pay some costs in order to bid
and the issuing of refunds to non-winning bidder(s) is an option that is possible and have flexibility and maximize
the price.
Discussion was held that if this route was taken, this could minimize the County's dollar amount upfront to
install wells and flaring equipment by sharing the costs and then with the better data results could maximize the
revenue stream and know what is needed to satisfy the eventual end-user. If this is the case, instead of sending out
an RFP, a document would be sent out explaining what the County is looking to do and what the formal RFP would
be and inviting participants at this time. Staff explained what has been done to date for testing and information.
They further explained that with the County's budget constraints, a gas collection system is not able to be installed
at this time at County's cost.
After discussion about various amendments that could be made to the draft RFP, Chairman O'Shields
called for a motion to approve staff moving forward with preparing the draft Request for Proposals for Development
of a Landfill Gas to Energy and Greenhouse Gas Project at the New Hanover County Landfill as presented with the
inclusion of criteria of the bidder providing BTU quality pricing in connection with revenues and surety information.
Motion: Mr. Sims MOVED, SECONDED by Mr. Newton, to approve staff moving forward with preparing the draft
Request for Proposals for Development of a Landfill Gas to Energy and Greenhouse Gas Project at the New
Hanover County Landfill as presented with the inclusion of criteria of the bidder providing BTU quality pricing in
connection with revenues and surety information. Upon vote, the MOTION CARRIED UNANIMOUSLY.
Staff will provide a revised draft RFP to the Advisory Board for further review and possible action
REVIEW AND DISCUSSION OF FACTS/CONCLUSIONS DRAFT SUMMARY OF NEW HANOVER
COUNTY LANDFILL, WASTEC, RECYCLING, AND METHANE GAS PROJECT
Mr. Mitchell asked members to continue to view this as a working document. In response to questions,
Director Hubbard responded that a daily average of 600 tons is received at the landfill, depending on the season, and
there is a 500 ton capacity at WASTEC. He further explained that the average of what is received, on an annual
basis, at WASTEC and landfill combined can vary based on year and season. In 2007, 245,000 tons were received
with approximately 95,000 tons going to WASTEC and approximately 150,000 tons going to the landfill.
Discussion was held on the updated draft summary. Chairman O'Shields reviewed his conclusions which
will be included under a general conclusion section of the working document. In response to questions, Director
Hubbard confirmed that his staff reviewed the metric information and had only one correction which has been
included in the document. In response to Mr. Mitchell's questions, the general consensus is that the conclusions are
fine and reflect that the essence is preservation of landfill life. Discussion held that while looking at the economic
and fmancial information provided to date, there is a need to begin developing estimated numbers on the value of
saving "x" cubic yards of landfill as all divisions (incinerator, recycling, etc.) contribute to it.
DISCUSSION OF QUESTIONS FOR OCTOBER 29, 2008 PRESENTATIONS
Mr. Sims clarified that his proposed questions were not limited to only Waste Industries but for all
presenters; some members noted they are still in the process of developing questions. All organizations have agreed
to make presentations on October 29, 2008. Discussion was held on the presentation order and Assistant County
Manager Weaver stated that the presentation by Environmental Management would take about ten minutes.
Presenters will be notified of the updated time frame. Further discussion was held that the Board would like for
County staff to prepare a response on their view of the proposals for presentation during the November 5, 2008
meeting. Outside organizations were requested to provide soft copies of their presentations prior to October 29,
2008 as well as providing hard copies for the Board.
ADJOURNMENT
There being no further business, Chairman O'Shields adjourned the meeting at 5:10 p.m.
Respectfully submitted,
,~~~ • ~.
Kymberleigh G. rowell
Deputy Clerk to the Board
NEW HANOVER COUNTY 50LH) WASTE ADVISORY BOARD
OCTOBER 22, 2008 MEETING PAGE 3
ATTACHMENT 1
Meeting, October 15, 2008
INVISTA Representatives Re: Methane Gas Recovery Project
SWAB Sub-Committee Meeting with INVISTA division of Koch Corp., a privately held corporation.
Present, John Hubbard, Bob Mitchell, Martin Michaelson - NHC -SWAB
Present, Donna Lazzari, William E. Rush, XYZ - INVISTA
INVISTA is a producer of polyester liquid and powder for industrial users.
The methane produced by the NHC landfill would be used for cost avoidance; replacing natural gas
and/or #6 fuel oil.
INVISTA/Koch would not want to own the methane collection system, but would take ownership of the
methane as it enters their property. Koch maybe prepared to finance the collection system; in exchange
for a discount on the price of the methane gas.
The key variables as expressed by the INVISTA representative are the BTU value of the gas and market
value of their alternative fuels. There are no corporate objectives for green energy initiatives.
An additional consideration would be the value of the "RFC's" and the value of the "greenhouse gas"
credits.
Respectfully submitted,
M.IM/