• It isn’t really a sale of property, Waste Management says
By NICOLE CARTRETTE
Staff Writer
Columbus County’s negotiations with Waste Management appeared to be close to settled at a Dec. 17 meeting.
In a 6-1 vote, the Board of Commissioners verbally agreed to sell a three-sided metal waste transfer station and lease the land the building sits on to Waste Management in exchange for certain incentives.
Putting the agreement in black and white was all that was left to do.
Commissioner Ricky Bullard, who opposed the sale, said after the meeting that he didn’t think the sale was legal.
According to state law, county real property and property valued in excess of $30,000 can’t be privately sold unless it is going to a non-profit and meets certain state requirements for historical or other value.
It had to be done through a bidding process, Bullard said.
Now, Waste Management, in a letter from corporate legal counsel, is saying the letter presented to the board in December “mischaracterizes the payment of the $325,000 by Waste Management to the county as a payment for the purchase of the transfer station building.
“In fact, the proposed $325,000 payment to the county is to compensate the county for waiving its option to purchase the transfer station building under the current agreement, in conjunction with the extension of the agreement,” Janne C. Foster wrote in a letter to Interim County Manager Leo Hunt dated Dec. 27.
The letter explains that Peverall “was clear in his statements to the county about the ownership of the transfer station building,” but adds that “the transfer station has been owned by Waste Management since it was constructed pursuant to the June 25, 1997 Transfer Station and Disposal Service Agreement.
“Waste Management built the building at its expense and holds the permit for operation of the transfer station,” the letter reads.
“I’m still against selling the transfer station,” Bullard said Friday. “I think when Waste Management owns the transfer station it is going to be hard to get a fair bid.
“I don’t think any contractor should have a hard contract to where we have no way to negotiate and bid out a contract,” Bullard said.
Bullard said news that the details of the $325,000 payment had changed it “stunned him.”
“I haven’t seen anything that shows me they own the building in black and white,” Bullard insisted. “If they built it and paid the contractor for it it’s probably a situation where they own it,” Bullard added.
Bullard said according to the terms of the old contract the county would own the building in five years with no cost. Under the new proposal Bullard said the county would be stuck either renewing a contract or paying more than what the building is worth to buy it back.
“The building will be 15 years old,” Bullard said.
Bullard said clarification of what the payment is for is a way around the law. He said previously the sale did not follow the law.
“I think all they are doing is changing the verbiage to make it legal,” Bullard said. “Well, that’s my opinion – that’s a way around it.”
It is noted on the upcoming commissioner’s agenda that the issue of selling the building was “tabled.”
“The issue was not tabled – the issue was voted on,” Bullard said.
Bullard said the contract on leasing the land, the trash pick up contract and transfer station agreement should all expire at the same time.
Chairman James Prevatte and Commissioner Bill Memory said at a previous meeting they had worked that out with Waste Management.
The latest proposal from the company is a little unclear.
While the proposal specifically states that the transfer station agreement and waste disposal service contract run until Dec. 31, 2012, a notice of the intent to buy the transfer station is required months in advance.
In addition, the proposal does not specify that the lease of the land is until Dec. 31, 2012. It states the lease is for five years but indicates no start or end date.
“Everything should expire at the same time,” Bullard said.
That permit is not in the county’s possession.
County administration staff said Friday they did not have a copy of the permit in question.
A call to Peverall was not returned.
The county building inspections department has been unable to locate any permit issued to the company 10 years ago.
Discussion of the agreement began in November when the county received a letter from Waste Management. No one was aware that the agreement was up for renewal and the board was crunched for time and did not want service interrupted.
Bullard has called the situation confusing because of a series of changes in the negotiation.
First, the Columbus County Board of Commissioners had two choices: pay Waste Management $325,000 for the metal building located at the closed New Hope landfill (owned by the county) or renew the company’s exclusive multimillion dollar agreement with the county and get a break on consumer price index increases for a year.
The company had never paid taxes on the building and some commissioners thought the price was excessive.
Then, things changed.
A few commissioners met privately with the company and Waste Management came back with an apology stating a clerical error resulted in the price error of $325,000 that should have been $171,000.
Greg Peverall, an executive with Waste Management, said in a “good faith effort” the company wanted to pay the county $325,000 for the station and pay the county to lease the land the building is located on.
Peverall maintained that the company owned the building but was offering to pay the county for it, plus give the county a break on consumer price index increases in the countywide curbside pick-up and transfer station agreement.