Tag: material recovery facility

HCSWA Losing Money on Charleston Recyclables

Four months into a contract to process Charleston County recyclables at its material recovery facility, the Horry County Solid Waste Authority is losing money.

When the contract was being negotiated back in the summer and when it was presented to Horry County Council, the Charleston County deal was estimated to bring in $1 million per year in profits to the HCSWA.

Instead, the HCSWA is on track to lose at least that much by the end of the fiscal year.

Over the last two months (October and November) when all costs including trucking are reported, the HCSWA is losing approximately $125,000 per month.

The major reason appears to be false assumptions on how much of the incoming tonnage of recyclables would be sold.

In October and November, the total amount of recyclables arriving at the MRF was 4,386 and 4,238 respectively. The tons sold in those months were 2801 in October and 2,430 in November.

This left unsold recyclable tonnage of 3,383 (39% of the total) over the two months. The assumptions during the summer were that approximately 14.5% of incoming tonnage would be unsold residuals.

Horry County Council told the HCSWA it didn’t want any Charleston County trash to go into the HCSWA landfill. The HCSWA told council it would send an equivalent amount of construction and demolition debris (equal to the Charleston residual amount) out of the county.

According to sources familiar with the processing, approximately 700 total tons of C&D debris was sent to a landfill in Marion County in October and November. This leaves approximately 2,683 tons of residuals unaccounted for.

It is impossible to tell just how much residual tonnage is attributable to Charleston because Charleston County and Horry County recyclables are mixed when they arrive at the MRF.

I&R Recommends HCSWA Contract

The Horry County Infrastructure and Regulation Committee voted Thursday to recommend passage of third reading of the budget amendment for the HCSWA recycling contract.

That recommendation will go forward to full council at its October 6, 2015 regular meeting.

If this recommendation is acted upon by full council with a favorable super majority vote, as it is expected to at this time, the recycling contract between the HCSWA and Charleston County will move forward without any further clouds over its head at present.

Part of that budget amendment requires HCSWA officials to come before the I&R Committee monthly with reports on recycling tonnage received, percentage of rejects in that waste stream, income received from sales of the recyclables and expenses associated with the running of the HCSWA material recovery facility among other items.

An additional requirement associated with the contract was a requirement by members of Horry County Council that any rejects or unsold recyclables that were taken to the HCSWA landfill for disposal were not to displace any available airspace for normal county uses.

As a result, the HCSWA entered into a contract to ship out of the county at least an amount of construction and demolition debris tonnage equal to the tonnage of recycling rejects and unsellable items taken to the HCSWA landfill for disposal.