A small increase in Boothbay Region Refuse Disposal District’s fiscal year 2019 operating budget likely will still have a big impact on its four member towns.

Directors unanimously approved the $1,669,260 FY 19 budget Dec. 11. It includes an $893 spending increase. But members Boothbay, Boothbay Harbor, Southport and Edgecomb will likely pay substantially more because district revenue is down by approximately $87,000.

The district is ending its 30-year association with Penobscot Energy Recovery Company (PERC) in Orrington for municipal solid waste disposal. Last year, the district earned nearly $60,000 in performance credits. But PERC no longer benefits from a long-term energy contract enabling it to pass on savings to customers. 

So the district and over 100 other former PERC partners will leave PERC when a three-decade association ends this spring. These Municipal Review Committee (MRC) members sought a better deal for disposing of municipal solid waste. Operating Manager Steve Lewis reported during the Dec. 11 directors meeting that the four towns will be responsible for the lost revenue.

“Our operating budget is up less than $1,000, but the towns will pay more because we no longer have that performance credit,” Lewis said.

A nearly $60,000 loss in performance credits is the largest factor in an $87,000 increase to BRDD member towns for FY 19, according to Lewis. Members are looking at about a seven percent payment increase.

The district was a founding member of PERC in 1988 and owns a small portion of the company. Once the contract expires, PERC will pay the district approximately $40,000 in a buyout of its company shares. Refuse district directors are considering using the settlement on a final $26,000 payment for a trailer next year and use remaining funds to offset other operating costs.

If directors adopt this plan, it would result in an increase of about four percent to members, according to Lewis.

In other action, directors discussed the current lack of a market for recyclables. In the past six months, the district has accumulated about 50 tons of No. 1 and numbers 3-7 plastics. The district can’t find a buyer for these low-level plastics. No. 2 plastics (milk jugs, detergent bottles, etc.) remain marketable. The district separates No. 2 plastics from other recyclables and sells them for a small fee.

Lewis has been looking for a buyer for low-quality plastics, but has found only companies willing to charge for accepting low-grade plastic recyclables. “The likely scenario is sending them to PERC because we have no other choice,” he said.

District options include paying $120 per ton plus transportation expenses in sending low-quality plastics to a recycling center or paying PERC about $58 per ton for incineration.

Once the PERC contract ends, the district has contracted to send its municipal solid waste to Hampden. The new Fiberight plant is slated to open May 1, but the plant won’t be fully operational for several months. Fiberight will accept solid waste from only local MRC members at first, and once the plant is fully operational, it will accept refuse from all members. In the interim, district refuse will be transported to a Norridgewock landfill.

Lewis reported a lawsuit filed by PERC delayed Fiberight’s opening because potential investors became leery about committing financially to the venture. “They (Fiberight) will be taking on more towns probably in July or early August so we will be sending ours to a landfill. The good part is it will be a little cheaper for us. Norridgewock is $60 per ton and Fiberight is about $80.”

The directors also unanimously approved purchasing a new sander for the transfer station. The sander is a Fischer Poly stainless steel model. Directors approved $5,600 for the purchase. Lewis reported the previous sander was a seven-year-old plastic sander and it “just gave out.”

The directors meet next at 5 p.m. Thursday, Feb. 8 in the business office.