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HomeMy WebLinkAbout1984-03-05 Board of Public Works MinutesI . 1 Board of Public Works Meeting of March 5, 1984 Page 1 A meeting of the Board of Public Works convened in Room 16, Municipal Building at 7:35 P.M. Present were Chairman Wood, Secretary Barker, Board Members Polychrones, Griffin and Hampson and Superintendent Anthony U. Fletcher. The Board met with representatives of RESCO in Saugus at 7:40 P. M. Mr. Ken Batten, Plant Superintendent, gave a presentation to the Board. He stated RESCO is now a division of Signal-Resco, all five of the plants are now called RESCO plants. He explained the plant construction started in April 1973, and the plant went into operation in October 1975. The tipping fee then was $13.00, in 1984 the tipping fee is $19.05. The average escalation has been 4.3% over the years. We offer the Town of Reading the "standard" RESCO contract. We have a fixed formula based on the machine trades labor rates with an equation tied directly to taxes in the Town of Saugus. He stated if you review this you will find it to be about 1/2 the normal GPI. He stated he thought one of the things to be concerned with is the reliability of the operation. RESCO has never turned away a ton of contract refuse. RESCO in 1983 operated at 88.6% availability. The norm in the power industry is as low as 63%, and the only time we consider a boiler available is if it is on the line and selling steam. He stated we merged with UOP, but will continue to promote our technology. Since the merger, we now have five 151 plants either in the construction phase or operation. We are approximately 20-25% complete in North Andover. He stated the plant in Saugus has a better track record and more to offer the Town of Reading. Board of Public Works Meeting of March 5, 1984 Page 2 The original partners in Saugus were DeMatteo Construction and Wheelabrator-Frye, this was always a joint venture. In 1982 the two companies merged. The fact that Signal merged with Wheelabrator-Frye had nothing to do with the refuse business. It is still the Wheelabrator-Frye technology. This will be the first real plant UOP will design, construct and operate. We feel from an engineering and construction standpoint, our technology may be applied to North Andover. Mr. Griffin stated it seems to me you are presently burning at capacity. Mr. Batten replied we are burning almost at capacity. Mr. Griffin asked what flexibility do you have to take on new sources? Mr. Batten replied we are taking on some new and dropping some old sources. We have a 20-25% buffering capacity. If we could sign the Town of Reading, we would be happy to tell commercial haulers they would have to dump elsewhere. Mr. Griffin stated the plant you have on line was built in the mid 70's, do you have any plans for restructuring? Mr. Batten replied this technology is so maintenance-intense, you are almost consistently rebuilding it completely. In essence, over 30 years we will probably replace the plant three times, a piece at a time. Mr. Griffin asked have you ever experienced a shut-down? Mr. Batten replied the only trash I have ever diverted because of a shut down has been commercial trash. Mr. Griffin stated many of these plants are reaching capacity. Can you project a time when you can expect to meet the designed capacity. Board of Public Works Meeting of March 5, 1984 Page 3 Mr. Batten replied I hope within the next year. The one thing I will always attempt to do is leave a 10% buffer. Mr. Griffin asked have you had any difficulty selling your energy? Mr. Batten replied no, REBCO has supplied G.E. with 75% of its total energy demand. Mr. Griffin stated in the event you have a down period with maximum supply, do you still maintain the percent of burn? At what point do you reach a zero backlog? Mr. Batten replied that has never happened. G.E. always takes 2/3 of its demands. Mr. Batten stated he is looking for a 20 year contract, but is willing to offer Reading a short-term contract of five years at the going rates with no penalties attached. I feel that if we give you a five year deal you will end up settling for the 20. Our best advertisement is our customers, feel free to discuss the situation with them. Mr. Barker stated I have heard there is a backlog for haulers over there. Mr. Batten replied occasionally there is a backlog. I have to overhaul boilers by law once a year. This will cause a backup. I therefore run on one boiler 6-8 weeks a year. I would venture to say there will never be a plant built that will not suffer a backup. Chairman Wood asked what about the third boiler? Mr. Batten replied a new boiler would cost $50 - $55,000,000. My feeling is that we have been there for ten years and have a good track record. I feel pretty confident we will put a third boiler in when the time is right. Board of Public Works Meeting of March 5, 1984 Rage 4 Mr. Starker stated the "Standard Contract" runs on a calendar year, where we are typically on a fiscal year basis. Could this be changed? Mr. Batten replied I would have to talk to our Attorney about this. It has never been done before. We typically tell you of the indicator of price increases in December. Mr. Polychrones asked when you do get overloaded, what do you do with the excess? Mr. Batten replied I have arrangements with CFI and other commercial companies. I have two or three options available to me. I do not hesitate to try and have an arrangement with other refuse recovery plants. Chairman Wood asked is there a maximum tonnage from any community that you allow? Mr. Batten replied no, there is a plus or minus of 5% that we agree to after one year. Mr. Barker asked would you be prepared to take on the Town of Reading on July 1st? Mr. Batten replied yes. Chairman Wood stated I would ask you to please look into the fiscal year vs. calendar year contract. Mr. Batten replied I will look into this, but I honestly can not be optimistic about it. Mr. Batten stated if any members of the Board would like to tour the facility, I would be happy to take you through. Chairman Wood thanked him for coming. Board of Public Works Meeting of March 5, 1984 Page 5 The Board reviewed the Safety Report from Jack Fenton. Mr. Griffin stated I have serious reservations about holding a Safety Training Meeting after a long shift. It seems to me the scheduling should be made more flexible. The Board requested Superintendent Fletcher discuss with Mr. Fenton the entire snow and ice program and report back to the Board with their recommendations. It was moved, seconded and voted 5:0 the Board grant approval to the petitioners at 30 Federal Street to install a sidewalk. The Department should ask the petitioners to resubmit the petition on the new f orm. It was moved, seconded and voted 5:0 to accept the letter from the Board of Health regarding the septic system failure at b Lakeview Avenue as a point of information. It was moved, seconded and voted 5;0 to extend the sewer on Lakeview Avenue from John Street to Creech Street as per the prior request. It was moved, seconded and voted 5:0 to accept the letter from the Commonwealth of Massachusetts regarding Chapter 90 Funds as a point of information. The Board reviewed the letter from Ray MacDonald, Town Accountant, regarding Chapter 90 Funds. It was moved, seconded and voted 5:0 to apprise Mr. MacDonald the funds must be used as they have always been used in the past. The Board next reviewed the request from Mr. Agnew for a portion of the 8PW Chapter 90 Funds to be used for traffic lights in Reading Square. Board of Public Works Meeting of March 5, 1984 Page b Mr. Hampson moved to instruct the Chair to send a letter to the Selectmen saying we will set aside Chapter 90 funds for their study for the traffic lights. The motion was seconded and defeated 0:5 (all opposed). Superintendent Fletcher recommended the Board read the communication from the Mass. Municipal Association regarding Chapter 90 Funding. Chairman Wood informed the Board that Alan Swan is leaving the Department for a new job for the State of New Hampshire. Mr. Griffin moved that a letter from the Board to Mr. Swan would be appropriate. Chairman Wood suggested the Board instruct Superintendent Fletcher evaluate the Engineering Department and see what he would consider necessary as a replacement for Mr.. Swan. Superintendent Fletcher stated I am in the process of doing an overview of the entire structure. The Board signed the Payroll and the Billroll for the period ending 3/2/84. Mr. Griffin moved and it was seconded, that the Board go into Executive Session for the purposes of discussing personnel, not to reconvene in open session and the Chairman polled the Board as follows: Mr. Hampson - aye Mr. Griffin - aye Mr. Polychrones - aye Mr. Barker - aye Mrs. Wood aye The meeting adjourned at 10:05 P.M. Respectfully submitted, Secretary