Questions and Concerns About the Incinerator
That Have Been Brought to County and State Officials
Costs
No guarantees
Mr. Skaggs and Ms. Davidov, As you can read here, Mr. O'Connell asked the incinerator industry to guarantee their claims. Why are there no guarantees in the numbers and figures the NMWDA provides for our community? Why is that the contracts for Frederick and Carroll counties are the equivalent of writing a blank check? Again, Mr. Skaggs, why would you not answer audience questions about the contracts if this facility is the best choice for Frederick citizens Any clarity to your lack of "response to our local concerns" would be appreciated.
Explain the increase in Wheelabrator's base operation fee from a starting point of $19,211,455/year to $19,878,455/year in the final contract? (page 171, Article XV Service Fee and Other Payments).
Since this fee escalates at 3% per year ("Operation Fee Adjustment Factor"), how does this change the calculations on slides #128-130, which show Frederick County's portion of the Base Operation Fee go from $17,613,000.00/year to $33,055,000.00/year in 20 years?
You may not be concerned about the public health, environmental, hallowed ground, traffic congestion and outdated technology arguments, but for anyone who has been attentive to this issue the "fiscally responsible argument" is one of the strongest reasons against siting a trash incinerator in Frederick County. Have you read the contract which you voted to sign?
Within months of receiving the proposal for the trash incinerator for Frederick County the annual operating cost rose from $19,211,455.00 to $19,878,455.00, a bump of $667,000. And this operating fee will increase by 3%/year for the life of the contract. (Money which goes to N.H. instead of staying in the local economy.) And of course the "passthrough costs" of the contract are essentially the same as signing a blank check to the NMWDA and Wheelabrator.
Even in the biased Beck Report it states the cost of long-hauling "follows closely" to the cost of a trash incineration, and that was based upon the assumptions of increased population and the resulting increase in trash generation. Trash generation has decreased, not increased.
If you are concerned about reducing the annual cost of long-hauling our trash out of state, then I hope you will go back and please review my emails titled "What's our trash diet?" and look to implement some of the strategies suggested in order to save this County millions of dollars every year.
Could Frederick County be obligated for $3 million instead of $1.5 million prior to the financing if there are problems that would prevent Frederick from being the regional trash host (such as lawsuits, wetland issues, health impact study, air quality issues, problems with the FAA, etc.)?
In the original memorandum of understanding (MOU) between Frederick and Carroll counties, it stated Frederick's maximum obligation if the contract was cancelled was $1.5M:
"Should the Counties elect not to go forward with the Project prior to financing, the [Authority] will stop work on the Project, and the Counties will reimburse the [Authority] for actual design, engineering and permitting work performed by the [Authority] but each County's obligation will not exceed $1.5 million."
Now the MOU it states....
"Should the both Counties elect not to go forward with the Project prior to financing, the [Authority] will stop work on the Project, and the Counties will reimburse the [Authority] for actual design, engineering and permitting work performed by the [Authority] but each County’s obligation will not exceed $1.5 million. Should Frederick County elect not to go forward with the Project, before Carroll County elects not to go forward with the Project, Frederick Country will be responsible for reimbursing the project costs. If Carroll County elects not to go forward, and Frederick County cannot find a substitute equity partner, Carroll County shall pay the project costs."
And from page 50 of the Service Agreement with Wheelabrator:
Convenience Termination Option Prior to Construction Commencement Date. The Authority shall have the right any time prior to the Construction Commencement Date, exercisable in its sole discretion for any reason upon seven days’ written notice to the Company, to terminate this Service Contract. Upon any such termination, the Authority shall reimburse the Company for 100% of its CostSubstantiated costs incurred directly to third parties from the Contract Date to the Termination Date hereunder, which are directly related to the performance of the Company’s obligations, and which are necessary to be performed prior to the Construction Commencement Date, and, except as set forth in subsection 5.3(E), subject to a maximum amount of Three Million Dollars ($3,000,000.00) (Discussion Regarding WTE (Jan. 29, 2009).)
How can someone justify comparing the costs of the capital investment, collection, transportation and "disposal" of single-stream recyclables in Frederick county with only the disposal of trash, so that they can state that recycling is more expensive than wasting?
