Tag: recycling

HCSWA Moves to Cut Charleston Losses

The Finance Committee of the Horry County Solid Waste Authority board heard Thursday of moves to cut the losses the authority has sustained from its deal to process Charleston County recyclables.

According to HCSWA staff, Charleston County will pay the cost of transportation of its recyclables to Horry County for November, December and January in an attempt to allow the HCSWA to recoup its current losses.

In addition, any amount above 14.5% of residuals will be shipped back to Charleston for disposal.

But, even if the excess of 14.5% is shipped back to Charleston, that won’t solve the other key assumption in the contract that must be met if the HCSWA is ever going to turn a profit from the deal.

Every ton of recyclables above the 14.5% residual threshold means lost revenue that is needed for a profit to be realized.

The estimated profit of $1 million per year is based on a residual rate of not more than 14.5% and the ability to realize an average of $135 per ton revenue from the remaining 85.5% of recyclables processed.

One other problem is the amount of recyclable waste going to the HCSWA landfill.

Horry County Council made it specifically clear that it did not want any Charleston recyclables going into the HCSWA landfill. That space must be saved for Horry County trash and extended as much as possible.

The HCSWA told council it had an arrangement to send C&D waste out of the county in an amount equal to the excess recyclable residual amount realized. This was an airspace neutral arrangement.

The HCSWA claims a historic 14.5% residual rate for recyclables from Horry County.

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HCSWA Recycling Contract

The details of the HCSWA recycling contract with Charleston County should become clearer before this week is over.

The HCSWA board will meet this afternoon. Included on the board agenda is a timeline discussion by executive director Danny Knight to answer questions about why the process took so long from first discussions with Charleston County to reach the HCSWA board and Horry County Council.

The Horry County Infrastructure and Regulation Committee will meet Thursday. The I&R agenda includes a discussion about the contract between the HCSWA and Charleston County, including the assumptions that go into the calculation of profit for the HCSWA.

According to reports from Charleston County, the county spent $8 million on recycling at its Romney Street facility last fiscal year and recyclables sold garnered $1.7 million.

There are some questions among committee members and others interested in the project why the same recyclables, with the added cost of trucking, can be processed at a profit in Horry County.

Additionally, sources familiar with the contract approval process say the Charleston County has purchased (or is in the process of purchasing) equipment to repair its Romney Street facililty in order to process recyclables in county in the near future.

Those sources predict the contract between Charleston County and the HCSWA will be cancelled within 90-120 days regardless of what happens with third reading of the budget amendment ordinance by Horry County Council.

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HCSWA Info to Council Faulty

Horry County Council received faulty information about the HCSWA dealings with Charleston County during its regular meeting last week.

I do not believe the intent was to provide false information. Rather, I believe it was the result of information being provided sparingly when it should have been discussed openly and shared from a much earlier date.

Several council members were very upset about being asked to quickly consider a budget amendment for the HCSWA budget after a contract was signed and Charleston County trash was already making its way to Horry County.

Council member Johnny Vaught asked when the first contact was made between Charleston County and the HCSWA board. Authority board chairman Lance Thompson said HCSWA staff was first contacted May 28, 2015.

Vaught asked when the HCSWA board became involved in the contract decision. Thompson said a couple weeks later the board was notified, then, at a board meeting the board voted to allow staff to negotiate.

Vaught said, “Essentially negotiations had not begun until you (HCSWA board) were contacted and you guys voted to go ahead.” Thompson agreed that was correct.

Council member Gary Loftus stated he understood Sonoco, the company that was running the Charleston County material recycling facility, had given notice in December 2014 that it was considering terminating its contract with Charleston County.

A representative from Sonoco said the company informed Charleston County that it was unable to operate the Charleston County MRF economically and notified the county it would cease operations July 31, 2015 under the termination clause. In addition, Sonoco took the decision because of the limited progress made toward Charleston County’s commitment to build a new, more efficient MRF.

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Saving HCSWA Recycling Deal?

As expected, a full court press was applied yesterday to try and save the HCSWA – Charleston County recycling deal.

Unfortunately, this appears to be a full court press applied at the wrong time, in the wrong place for the wrong reasons.

The press is being applied to the council members who voted “No” on second reading of a budget amendment needed to allow the recycling deal to continue. With enough pressure, it is hoped that at least two will change their minds and vote to pass second reading after a reconsideration motion.

In other words, the press is strictly in the political arena while the problems are in the institutional oversight of solid waste matters within Horry County.

These are exactly the same types of problems that led Horry County Council to pass a flow control ordinance governing all solid waste in the county only to realize five years later that the ordinance was flawed in concept and needed to be amended.

The debate was fully political, not about policy. A few members of HCSWA staff combined with a few members of county staff to make dire predictions about what would happen to solid waste handling within the county if flow control was not enacted.

None of the dire predictions were true, as experience has taught us since 2009.

The HCSWA fought against amending the flow control ordinance, including spending over $1 million with a lobbyist, again with dire predictions that were just as false.

In fact, the amendment, which allows construction and demolition debris to be taken to any approved landfill, works in favor of the citizens of Horry County be reducing the amount of space used in the landfill thereby extending its life.

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Waste Stream Diversion and the HCSWA

The HCSWA (Horry County Solid Waste Authority) will begin an intensified study of diversion of its waste stream in the upcoming fiscal year.

The first step in this study will be the inclusion of $50,000 in the HCSWA budget for a detailed study of the components of Horry County’s municipal solid waste (MSW) stream.

When that study is completed, it is anticipated the HCSWA will issue some type of request for companies interested in being involved in this diversion process to respond.

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Local Officials Look at HCSWA Waste Diversion

Recent discussions about waste stream diversion at the Horry County Solid Waste Authority (HCSWA) have spurred some local officials to look into the process.

One example is Aynor mayor Keb Johnson, who is also serving as chairman of the League of Cities this year.

The League of Cities membership is composed of the mayors from the eight incorporated municipalities in Horry County. The League of Cities nominates three members to the HCSWA board and is kept apprised of policies and other decisions of the HCSWA.

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