Transcript Chemung County-Casella Presentation to Legislature

Overview 2005 - 2010
• Operation and Management Lease Agreement started
September 19, 2005.
• County has received approximately $9.5 M in revenue:
– $7.4 M in lease payments
– $1.6 M in advance payments
– $250 K for community projects
– $125 K for the Academic and Workforce Development
Center
– $40 K in engineering
– $110 K for the Scholarship Fund
Agencies supported with Community Projects funds include: the
SPCA, Friends of the Catherine Trail, Wings of Eagles, Arts of
the Southern Tier, YMCA, Tanglewood Nature Center, Junior
Achievement, Chemung ARC as well as various municipalities.
• County has received approximately $9.4 M to cover expenses:
– $5.11 M in payroll reimbursement
– $4.2 M in other expense reimbursement
– County has avoided millions in landfill expense related to cell
development, equipment purchases and
consulting/engineering expenses.
• County debt related to solid waste operations has almost been
eliminated. $839,301 in 2005
• Solid waste tax levy was eliminated. $1,257,000 in 2005.
• Casella has purchased several properties around the landfill
under the property protection program and have maintained and
preserved these properties.
• Improved and built positive relationship with DEC.
No violations since agreement and weekly site visit reports that
are vastly improved since inception of the management lease.
• Management lease provided for a host community agreement
with the Town of Chemung where the
town receives $400,000 per year. Town also received $489,000
to retire the debt of the Chemung Fire District. There are
various other compensation considerations aligned with the
County/Casella management lease.
County entered negotiations with two
fundamental principles that would remain
unchanged:
– Current boundaries or footprint of the landfill
would not be changed.
– Current tonnage levels outlined in the OML would
not be increased.
Negotiation Issues
• Future Project Development
• Success Payment/Permitting
• Housekeeping Matters
Future Project Development
•
•
•
•
Sewer Line - Section 6.2
Water Line - Section 6.3
Hydroponics Greenhouse - Section 6.4
Enhanced Construction/Demolition
Recycling Facility - Section 6.5
• Environmental Stewardship
Education Center – Section 6.6
• Energy Projects – Section 7.2 a) & b)
-Landfill gas transmission line
-Gas to Energy Facility
• Career Development Center – Section 7.11
$2.8 M
$2.3 M
$2.5 M
$1.631 M
$.5 M
$1.4 M
$2.5 M
$.5 M
Future Projects That Will
Remain Unchanged
• Career Development Center: Will continue
to receive $25,000 per year.
Future Projects That Will
Be Modified
• Enhanced C&D Recycling: Lake Street facility will not become
enhanced facility. Upgrades to current facility exceed $1.6
million. Additional information will be covered in housekeeping.
• Environmental Stewardship Education Center: Casella purchased
Hoffman House near landfill for $308,000 to use as center.
Balance of funds will be contributed to Friends of the Chemung
River Watershed - $20,000 per year.
• Landfill Gas to Energy Project: Plant will be located at landfill
and will be constructed within two years after issuance of
permit.
Future Projects That Will
Be Eliminated
• Sewer/Water: Alternate infrastructure source
• Landfill Gas Transmission Line: Relocation of
gas to energy facility makes line unnecessary.
• Hydroponics Greenhouse
Cash Payments to County for Future
Project Elimination and Advance
Payment Forgiveness
Total payment - $11.1 million
• First payment of $5 M to the County by April 30, 2010
• Second payment of $1 M to the County on or before May 15,
2011
• Third payment of $1 M to the County on or before May 15,
2012
• Fourth payment of $1 M to the County on or before May 15,
2013
• Payment Advances: Section 7.1 d)
The County exercised it rights pursuant to this section to
receive an advance payment of $400,000 in calendar year
2006 and $1.2 M in calendar year 2007. Upon execution
of the modified OML such advance shall be considered to
be satisfied.
• Community Development Payment: Upon issuance of
permit the County shall receive $100,000 a year for a 15
year period for a total payment of $1.5 million.
Permit Success Payments Modifications
• Section 4.1: County will fully cooperate with NEWSNY efforts to
obtain an operating permit allowing an annual capacity of 417,000
tons effectively merging the OML provision that contemplated
this as a two-step process. However, this provision shall not
impact Section 7.1 b) of the OML.
• The parties further agree to modify Section 7.1 c) to provide for
the following:
– During the calendar year, of the issuance of the operating
permit for 417,000 tons, NEWSNY shall pay the County an
additional $630,000 (it’s contemplated that such issuance shall
occur in calendar year 2013, no later that 2014).
– During the second year, after issuance of such permit,
NEWSNY shall pay the County no less than an additional
$900,000 or up to $1,260,000 based on a $9.00 per ton
calculating for every ton over 180,000 tons.
– During the third year, after issuance of such permit,
NEWSNY shall pay the County no less than the previous
years additional payment or up to $2,133,000 based on a
$9.00 per ton calculation for every ton over 180,000 tons.
– Parties agree to freeze for this 3 year period the tipping fee
rate outlined in Section 8.1 a) of the OML.
– During the fourth year, after issuance of such permit,
NEWSNY agrees to payment consistent with Section 7.1 c)
of the OML.
– It is agreed that these payments shall not impact any other
payments in the OML except as otherwise agreed to by the
parties.
Housekeeping Matters
• Development of Advanced Recycling Program: Campaign roll
out that will have at least a 20% recycling goal. Casella will retain
County current share of recycling royalty and seek NYSERDA
grants to implement.
• Parties agree to meet to discuss Drop-off Station Operation
hours consistent with usage. The County reserves the right to
maintain current hours of operation at its sole discretion.
• Parties agree to incorporate Advisory Committee payments into
administrative payments.
• Modifications of OML must be completed and executed by
April 30, 2010.