New Hanover County’s control over the flow of solid waste in its jurisdiction will probably remain intact, staffers say, meaning it will continue to be able to direct all trash to its landfill, where tipping fees are charged.
And that may ensure enough revenue to cover a proposed $32.6 million refurbishment of its defunct incinerator.
But the county can’t be sure, which is why staff has worked to write flow-control protections into the new draft of a contract with Covanta Energy, the company eyed to conduct the incinerator’s work and subsequent operation.
Officials will present details about the proposed contract to the county commission during its regular meeting 9 a.m. Monday in the old courthouse at 24 North Third St., downtown Wilmington.
With a reactivated incinerator, the county could burn off a substantial portion of its waste stream and save space at its near-capacity landfill off U.S. 421—and possibly double the life of a proposed expansion to that landfill. Elevated tipping fees, potentially in the $90-range per ton of trash brought there, would ideally cover the incinerator’s refurbishment.
County commissioners including Rick Catlin have said they wouldn’t be able to support a deal without flow-control safeties.
The last time the Covanta contract came up for a vote, in September, the county commission turned it down on a 3-2 vote with commissioners arguing that flow-control protections were lacking. If the county, through court action perhaps, does lose its ability to maintain flow control, then a competing dumpsite with cheaper tipping fees could lure business away and affect the county’s plan to pay for the incinerator with tip-fee revenue. Commissioners, notably now-resigned member Ted Davis, said that could expose tax dollars to cover the losses.
“County staff, inside and outside counsel, and Covanta feel confident in the county’s ability to maintain/enforce solid waste flow control based on the strength of the existing case law and (New Hanover County) franchise agreement system,” said a county memo to the commissioners on Friday.
However, the memo continued, the county can’t know with full certainty that the courts won’t strike down flow control, the county’s ability to ensure the waste stream goes to its landfill or incinerator as opposed to another party’s. So, the new contract with Covanta will include safeguards.
Among them is a stipulation that trash would go exclusively to the county landfill, and the staffers there would remove from loads all “non-processible” waste, like wood, concrete, household appliances—called “white goods”—and scrap metal. The workers would transport the remaining waste to the incinerator, more formally called a “sustainable energy facility” as it would create sellable electricity from the waste.
“In addition to the operational changes noted above, staff has also negotiated a new ‘Loss of Flow Control’ termination provision that limits the county’s exposure and will not impact the tip fee,” the county memo said. It would allow the county to terminate the contract if flow control is abolished via a trial court.
The county commission, which may be in three-member form Monday, is not expected to approve the new Covanta contract at that time. But it may give staff direction on what to formally present at the board’s Nov. 13 meeting.
Monday’s agenda, as uploaded to the county’s website, also includes a public hearing and consideration of an assessment resolution related to a water line project in the Bald Eagle Lane area of Porter’s Neck. (See related story.)
Click here for the full agenda packet.
Contact Ben Brown at [email protected] or (910) 772-6335. On Twitter: @benbrownmedia
