Berkeley County Committee On Water And Sanitation Minutes
A meeting of the COMMITTEE ON WATER AND SANITATION, Standing Committee of Berkeley County Council, was held on Monday, November 9, 2009, in the Assembly Room of the Berkeley County Administration Building, 1003 Highway 52, Moncks Corner, South Carolina, at 7:16 p.m.
PRESENT: Chairman Timothy J. Callanan, Council District No. 2; Committee Member Phillip Farley, Council District No. 1; Committee Member Robert O. Call, Jr., Council District No. 3; Committee Member Cathy S. Davis, Council District No. 4; Committee Member Dennis L. Fish, Council District No. 5; Committee Member Jack H. Schurlknight, Council District No. 6; Committee Member Caldwell Pinckney, Jr., Council District No. 7; Committee Member Steve C. Davis, Council District No. 8; Supervisor Daniel W. Davis, ex officio; Ms. Nicole Scott Ewing, County Attorney; and Ms. Barbara B. Austin, Clerk of County Council.
A. Consideration of an Agreement between Berkeley County and Carolina Renewable Energy, LLC.
Mr. Steve Hively, Director of Operations, Berkeley County Water and Sanitation (BCWS), stated that Carolina Renewable Energy, LLC proposes to construct a facility to receive fats, oils & grease (FOG) from grease traps from restaurants and turn it into a renewable fuel. The facility would be constructed on property currently owned by the County and adjacent to an area that was a pre 1971 landfill. They would lease the property and BCWS would agree to stop receiving FOG at the Lower Berkeley Wastewater Treatment Plant. They would pay BCWS for not receiving the waste, based on the volume. Currently, BCWS is the only facility in the Lowcountry that receives FOG for processing. The material causes many problems at the treatment plant. This agreement would be a win-win situation for the County and Carolina Renewable Energy and it is recommended to enter into this agreement. There is no out-of¬pocket cost to the County for the facility. At this time, BCWS is receiving in excess of 2 million gallons of FOG at the treatment plant at a rate of 12-1/2 cents per gallon. This rate barely offsets the added expense of disposal.
Committee Member S. Davis inquired as to the current disposal of the FOG.
Mr. Hively responded that the FOG is discharged into a screen device into the digesters. It is treated and the liquid goes into the system. The FOG creates many maintenance issues.
Committee Member S. Davis inquired if the cost will out-weigh the benefit.
Mr. Hively responded that the agreement with Carolina Renewable Energy would provide an income and would reduce the problems at the wastewater treatment plant.
Committee Member Fish inquired as the other companies that collect the FOG.
Mr. Hively responded there are no companies in the region that collect the FOG. BCWS is the only company in South Carolina that currently receives FOG. Other wastewater treatment facilities have outlawed the disposal of FOG because of the maintenance issues. This agreement would remove the FOG from the wastewater treatment facility and provides a legal alternative to disposal of the FOG.
Committee Member Fish stated that there is a company that is paying the restaurants for their FOG.
Mr. Hively responded there are companies that retrieve waste oils. There is a market for waste oils. The FOG is wastes that are discharged into the sewer lines from a grease trap. The grease trap waste is contaminated and cannot be reused.
Committee Member Fish stated the agreement is a favorable deal for Carolina Renewable Energy. If the company should cease, then the County would have to purchase the facility at fair market value and pay a $5,000 per month fee to reclaim the process. The company is offering the County 1 cent in excess of 6 million gallons. The property is leased to the company for $1 per year.
Mr. Hively responded the agreement is good for the company and the County. The County has the option and is not guaranteeing to take over the operation. If the County decides to take over the facility, then the County would owe the company the cost of the franchise for their process.
Committee Member Fish stated the agreement states that the County will agree to forbearance of the collection of FOG for five years.
Mr. Hively replied that is only valid while the company is operational. If the company should fail, the County would be able to dispose of FOG without returning them to the wastewater treatment facility.
Committee Member Fish expressed agreement with the most of the language, but requested removal of the $5,000 per month payment.
Mr. Hively stated the $5,000 per month payment was a negotiated from $20,000 per month.
Committee Member Fish stated the amount should be zero. If the company should fail, the County should not have to make payments as an alternative to discharging the waste into the treatment facility.
Chairman Callanan stated the payment is only if the County should take over the facility. If the County did not claim the facility, would the FOG revert back to the wastewater facility?
Mr. Hively responded there would be an ethical and moral obligation to find a solution for the FOG.
Chairman Callanan inquired as to the market volume of the pellets.
Mr. Hively responded that the market will be either Santee Cooper or SCE&G. The pellets have a BTU value of coal.
Committee Member C. Davis inquired if a similar agreement with another company had been considered in the past.
Mr. Hively responded the company was EcoPlus and Carolina Renewable Energy, LLC is a subsidiary for this project. The agreement last year was to begin negotiations.
Committee Member Farley stated that the company may collect FOG outside of the Charleston area. Will the County receive any funds from FOG transported from other areas?
Mr. Hively replied that no funds would be received from FOG that are contracted specifically out of the area. Currently, FOG is received from Florida to West Virginia. Some of the larger facilities will contract haulers to transport the FOG to Berkeley County.
Committee Member Fish inquired as to the definition of the Charleston market.
Mr. Hively responded that BCWS is the only wastewater treatment facility in the tri¬county area that will accept FOG. There is no legislation to limit the FOG to the tri-county area. A manifest and a point-of-origin are required for FOG.
Committee Member Fish stated the contract should not limit the FOG to the tri-county area. The market area has already been established from Florida to West Virginia.
Mr. Hively stated BCWS has been established as a discharge point for several long haulers.
Committee Member Fish stated the contract excludes any FOG outside of the Charleston area. The County is already receiving FOG outside that area and should be compensated.
Mr. Hively stated that any contracts are excluded that are created with any out-of-area haulers other than those already established. If Carolina Renewable Energy enters into a contract with other out of area haulers, then the County would not be compensated.
Committee Member Fish stated that the haulers that transport to BCWS at this time need to be identified in the contract.
Mr. Hively stated in the past, there have been moratoriums put on FOG because of problems at the treatment facility. The haulers were notified of the limits that could be received. The volume is increasing and other alternatives need to be found.
Committee Member S. Davis stated that existing areas need to be explicitly identified so as the County can be compensated. It would be detrimental to the County to leave the contract open ended and the current haulers need to be designated.
Mr. Hively stated the records indicate the current haulers.
Chairman Callanan stated there is no contract with the current haulers. A contract would have to be proactively sought with the haulers and it would not be subject to the Carolina Renewable Energy contract.
Mr. Hively stated that the out of state haulers submit less than 10% of the FOG. According to the number of restaurants in the tri-county area, BCWS should be getting 5 million gallons of FOG per year. The current volume is 2 million. The remaining FOG is being released into sewer lines by improperly maintained grease traps. The grease trap ordinances need to be enforced in the tri-county area. Instead of inspecting the thousands of grease traps in the area, the haulers could be certified. The haulers would then dispose of the FOG at this facility. A restaurant would have a contract with a hauler to pump the FOG on a routine basis and would not be subject to a monthly inspection. This would solve a tri-county problem of FOG in the sewer lines.
Committee Member Fish stated that contract would need to be executed correctly to avoid lost compensation to the County as with the C&D landfill in Charleston.
Mr. Hively stated it would not be a inter-municipal agreement but all the counties would change their ordinances in the same manner to restrict the disposal of FOG to BCWS.
Committee Member S. Davis made the motion to hold the agreement in Committee until the appropriate language can be drafted.
Mr. Hively stated that Carolina Renewable Energy needs a basic intent to enter into a agreement to secure the funding.
Chairman Callanan stated the agreement would have to be approved by Council.
Mr. Hively stated the contract with the revised language would be available before the next Council meeting.
Committee Member S. Davis retracted his motion and moved for approval on the condition that the revised language be presented to County Council before final approval. It was seconded by Committee Member Fish. The motion passed by unanimous voice vote of the Committee.
It was moved by Committee Member Schurlknight and seconded by Committee Member C. Davis to adjourn the Committee on Water and Sanitation meeting. The motion passed by unanimous voice vote of the Committee.
The meeting ended at 7:41 pm.
