(Editor: The below is from Jim Warner in response to article “Does the proposed LCSWMA purchase of plagued Harrisburg incinerator make sense?”)
Since spring 2011, LCSWMA has endeavored to acquire the Harrisburg MERRF (Materials Energy Recycling Recovery Facility) in a very public, transparent manner. We submitted two initial proposals, in March and May of 2011, with wide distribution to Harrisburg and Lancaster officials; as well as posted the proposals on our website for public access. Our interest in acquiring the HMERRF is two-fold: 1) additional waste-to-energy (WTE) capacity for future Lancaster growth, and 2) less risk and expense than expanding our (Lancaster) WTE Facility.
Embarking on this regional initiative requires extensive due-diligence, as well as intensive operational and financial risk assessment—which LCSWMA has aggressively executed. We have performed a detailed financial analysis with independent, expert review; which will forge the contractual agreements that precede LCSWMA’s purchase of the HMERRF. These contractual conditions assure the HMERRF will pay for itself through revenues generated from this arrangement. Included in the issuance of new debt to fund the purchase of the HMERRF, LCSWMA will hire an expert firm to perform an Independent Engineering and Financial Analysis to verify pant conditions and the business plan assumptions that have been developed by LCSWMA .
Most importantly, LCSWMA predicts no situation where Lancaster funds will be utilized to pay for operations or debt associated with the HMERRF. In fact, the HMERRF will provide a positive, annual cash flow. This positive business model assures stable tipping fees for Lancaster County and eliminates an increase in the foreseeable future.
Finally, LCSWMA has a long history of stability and excellence in executing its operational and financial plans, exemplified by the fact that tipping fees in Lancaster County are less today than they were 20 years ago. Moreover, LCSWMA’s nine-member governing Board of Directors and expert management team continue their vigilance in evaluating this acquisition, and remain confident this initiative will benefit all Lancaster County residents for the next several decades.
I still don’t see how Lancaster county taxpayers are held harmless by LCSWMA venture into Harrisburg’s white elephant incinerator?
I suggest a lease/purchase OPTION.
AND let’s make it a county wide referendum vote