Tag: recyclables

Charleston Contract Costing HCSWA

The contract between Charleston County and the Horry County Solid Waste Authority for the HCSWA to process Charleston County recyclables is costing Horry County money.

With five months (Aug thru Dec) of solid numbers behind us, the HCSWA has lost approximately $130,000 processing Charleston County recyclables.

When the HCSWA entered into the contract with Charleston County, it was estimated the contract would bring a profit of approximately $1 million per year. That certainly does not seem to be the case with revenues from sale of recyclables over those five months totaling approximately $1.860 million and expenses totaling approximately $1.990 million.

The only thing saving the HCSWA from even greater losses was a three month amendment to the contract, which allows Horry County to not pay Charleston County for transportation costs related to bringing the Charleston County recyclables to Horry County.

The contract calls for Horry County to pay Charleston County $425 per truckload of recyclables shipped from Charleston County. These payments have been suspended for December through February. The suspension allowed the HCSWA to realize a modest $20,000 profit in December.

Several other line items are puzzling from the HCSWA’s latest report. Expenses associated with Charleston recyclables are less than expenses associated with Horry County recyclables. However, Charleston County recyclables are approximately double the amount of Horry County recyclables.

Additionally, a total of 21,382 tons of recyclables have been processed in the five months while only 13,192 tons have been sold. This leaves 8,190 tons of recyclables unsold.

Continue Reading →

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.

Continue Reading →

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.

Continue Reading →

HCSWA Recycling Contract Hits Bumps

Questions arose about the recycling contract the HCSWA has signed with Charleston County during the regular meeting of Horry County Council Tuesday.

Council was considering first reading of a budget amendment ordinance to provide a means to amend the budget for recycling contracts entered into by the HCSWA. A budget amendment ordinance requires a super majority of nine “Yes” votes to pass, according to council rules.

The first reading passed with the minimum of nine “Yes” votes, but not before being subjected to some tough questioning especially by council member Al Allen.

Allen’s major concerns were in two areas – why council had not been provided with a copy of the HCSWA/Charleston County contract prior to first reading of the ordinance and why the HCSWA was flip-flopping on the issue of bringing waste into the county.

“I don’t want to have to vote for a contract in order to find out what’s in it,” Allen said. “I want to be able to read and study the contract before I vote on it.”

Council members received a copy of the HCSWA/Charleston County contract during the first reading discussion from county attorney Arrigo Carotti.

Allen referred back to the county’s flow control ordinance and discussed how, in his opinion, the HCSWA has switched positions on taking garbage in from out of county sources.

Continue Reading →

Committee Disappoints on HCSWA Contract

The Horry County Administration Committee’s requests Thursday regarding a potential contract between the HCSWA and Charleston County were disappointing.

The Horry County Solid Waste Authority has been in negotiations with Charleston County to take its recyclables while a new material recycling facility is constructed in Charleston County.

One reason Charleston County approached Horry County is they stepped up to help the HCSWA when the old HCSWA MRF on Hwy 701 North burned some years ago.

But, the Administration Committee seemed to forget that when discussing potential contract terms with HCSWA officials at its meeting Thursday.

Horry County Council Chairman Mark Lazarus was reasonable in his initial comments, “I don’t want residuals to go in our landfill. I don’t have any problem doing it (taking Charleston County recyclables.) We need to be very careful in the final document that we don’t lose any money and it is not at the detriment of our landfill or at the detriment of the flow control ordinance.”

However, after an executive session regarding contract terms, Lazarus made a motion that “this body tell the HCSWA to move forward under the conditions that provisions stricken (from the original contract proposal) by Charleston County be put back in plus the contract have a 30 day opt out clause.”

Continue Reading →

HCSWA Board Gives Go to Contract Talks

The HCSWA board gave solid waste authority staff approval yesterday afternoon to negotiate a recycling contract with Charleston County.

HCSWA board members heard a short presentation on the proposed contract from authority staff, then, asked questions about the proposal for over an hour before voting 7-0 to move forward.

Contract negotiations between HCSWA staff and Charleston County staff will go forward based on the projections presented during the presentation with key items requested by HCSWA board members included.

The contract will only be for recyclable materials generated in Charleston County, basically from its curbside pickup operations.

Key elements that board members requested to be included in the contract were a 90 day notice termination clause by either party for any reason, arrangements with Charleston County for removal of any residual waste from recycling operations so residual waste will not be buried in the HCSWA landfill and do everything possible to make sure the HCSWA will not lose money on the deal.

According to the staff presentation, a base market value per ton will be negotiated for the sale of the recycled material. If the revenue falls more than 10% below the BMV, Charleston County will make up the difference to get back to the 10% margin. If the revenue exceeds the BMV by more than 10%, revenue above that threshold will be shared according to a negotiated percentage between Horry and Charleston counties.

Continue Reading →