Page 6 THE SAUGUS ADVOCATE – FriDAy, April 7, 2023 (Editor’s Note: The following is the modifi ed version of the Host Community Agreement (HCA) that WIN Waste Innovations presented to the Saugus Board of Selectmen on Tuesday (April 4). Selectmen voted 3-2 to accept the revised proposed HCA, with Board of Selectmen Chair Anthony Cogliano and Selectmen Jeff rey Cicolini and Corinne Riley voting for it. Board of Selectmen Vice Chair Debra Panetta and Michael Serino voted against it.) Dear Board Members: At the Saugus Board of Selectmen Meeting held on January 17, 2023, WIN Waste Innovations (WIN Waste) presented a revised Host Community Agreement (HCA) to the Board. The revised HCA included the originally proposed environmental benefi ts to the Town as described in Attachment 1 that will comWIN Waste Innovations’ proposed Modifi ed Host Community Agreement -Initial Year Incremental Tax mence upon WIN Waste obtaining all approvals necessary to operate the landfi ll beyond the currently approved Valley Fill project. WIN Waste proposed to modify the economic considerations of the HCA terms as approved by the Board of Selectmen on September 24, 2022, to include the items described below, including the acceptance of a 20-year agreement term rather than the 25 years originally proposed and the modifi cation to the fi nancial terms as depicted below: Scenario A: Capital requirement of WIN for the monofi ll that is less than $5 million: - A $1 million payment to the Town within 30 days of obtaining fi nal approvals to continue operating the monofi ll. - No cost to the Town for MSW disposal for the life of the project (~$900,000 annually and increasing by the market rate for disposal fees). - $125,000 per year in annual payments for the life of the operation (escalated by CPI) - Total annual revenue to Saugus of $1.025 million (escalated by CPI). Scenario B: Capital requirement of WIN for the monofi ll that is more than $5 million: - A $1 million payment to the Town within 30 days of obtaining fi nal approvals to continue operating the monofi l. - WIN will pay the Town of Saugus at a rate of $2.50 per ton over the life of the operation (escalated by CPI) (~$275,000 per year starting in 2026). - Additional tax revenue per Everett, MA 617-202-8259 * We work with most Fuel Assistance programs “We’re accepting new customers, no experience necessary” “Aceptamos Nuevos clientes no se necesita experiencia.” ~ Hablamos Española ~ 50 Gallon Minimum (Surcharge Applys) Major Credit Cards Accepted Scan our QR Code J& • Reliable Mowing Service • Spring & Fall Cleanups • Mulch & Edging • Sod or Seed Lawns • Shrub Planting & Trimming • Water & Sewer Repairs Joe Pierotti, Jr. year based on an assumed capital investment of $28 million beyond the life of the project. At the January 17, 2023, meeting members of the Board of Selectmen asked for a comparison of the fi nancial benefi ts to the Town from the two alternatives. They are summarized in the Table below, with Scenario B updated since that meeting. Comparison of Estimated Payments to the Town under the HCA Scenarios Scenario A – Project Permitted with no additional liner required -Initial Payment upon receipt of fi nal permits to operate beyond the Valley Fill: $ 1,000,000 -HCA Payment* $ 125,000* -Free tipping** $ 900,000** S LANDSCAPE & MASONRY CO. Masonry - Asphalt • Brick or Block Steps • Brick or Block Walls • Concrete or Brick Paver Patios & Walkways • Brick Re-Pointing • Asphalt Paving www.JandSlandscape-masonry.com • Senior Discount • Free Estimates • Licensed & Insured 617-389-1490 Designing and Constructing Ideas that are “Grounds for Success” Landscaping Payment*** $0 -Year 20 (Total Payout year 1-20) $34.1 million -Year 40 (Total Payout year 1-40) $34.1 million Scenario B – Project Permitted with an additional liner required; minimum $20 million capital expense -Initial Payment upon receipt of fi nal permits to operate beyond the Valley Fill: $1,000,000 -HCA Payment* $409,500 -Free tipping** $0 -Initial Year Incremental Tax Payment*** $137,000 -$183,741 -Annual Tax Payment once full capital is expended: $602,000 -- $993,543 -Year 20 (Total Payout year 1-20) $23.1 - $27.4 million -Year 40 (Total Payout year 1-40) $41.0 - $49.3 million *HCA Payment is $125,000 in the fi rst year and escalates each year by CPI. **Free Tipping fees are escalated by projected market rates. ***Incremental tax payments increase with capital invested in the landfi ll based on completion of capital spend. This amount assumes $20 - $28 million investment with approximately 25% in the fi rst year. Incremental tax revenue continues after the project is complete. In addition to asking for a written comparison of the two scenarios, at the January 17 meeting the feedback from the Board was that they wanted the maximum possible benefits to the Town. In response to that, and based on subsequent discussions, WIN Waste has revised our offer, specifi cally the Scenario B Contingency scenario. Should WIN Waste be required to install an additional liner (greater than $20 million capital expense) to satisfy a permitting requirement, WIN Waste will pay the Town $1 million upon the permits being fi nal, $3.50 per ton escalating by CPI over the 20-year life of the project, and incremental taxes under the existing tax agreement with the Town. An estimate of the fi nancial benefi ts to the town of this revised scenario are presented in the table above. Also, at the January 17, 2023, Board of Selectmen meeting there were a number of questions raised about the Tax Agreement (Agreement Clarifying the meaning and eff ect of the agreement of the Town of Saugus and RESCO and DeMatteo dated June 4, 1984) executed on July 28, 1994. We have reviewed the tax agreement and confi rmed that the capital investments made at the monofill in connection with the project are fully taxable and pursuant to the terms of the Tax Agreement. The Agreement remains in effect between the Town and the successor company – WIN Waste Innovations. During the Selectmen’s Meeting on January 17, 2023, some aspects of the Agreement were signifi - cantly mischaracterized, and I have attached a second addendum to this letter with the clarifi cations. We look forward to discussing this revised off er with the Board of Selectmen. Sincerely, James J. Connolly VP Environmental Compliance WIN Waste Innovations Attachment 1 – Environmental Benefi ts Proposed in the Host Community Agreement Environmental Considerations WIN Waste will voluntarily reduce our permitted NOx emissions to 175 ppm (30 day rolling average) below the current permitted limit of 185 ppm and will conduct an optimization study to identify potential further reductions in the permitted level. WIN Waste will voluntarily reduce permitted emissions levels of lead (Pb), Cadmium (Cd), Dioxin and particulate to levels required of new waste to energy units under the Federal Clean Air sub part Eb regulations. See Table below: NOx New Limit: 175 (30day rolling average) Current Limit: 185 Cadmium (Cd) New Limit: 10 Current Limit: 35 Lead (Pb) New Limit: 140 Current Limit: 400 Particulate New Limit: 20 Current Limit: 25 Dioxin New Limit: 13 Current Limit: 30 Compliance with these reduced limits will be by methods described in the DEP permit. WIN Waste is working with the DEP to incorporate these limits into the permit. WIN Waste will fund the installation of an ambient monitoring station to measure and record levels of NOx in the ambient air in the Town of Saugus. The instrument will be equivalent in quality to ambient monitors used in the Massachusetts DEP’s monitoring network. The specifi c location WIN WASTE | SEE PAGE 8
7 Publizr Home