Burner expansion an issue with board

By Tom Hintgen (Contact) | The Daily Journal

Published Wednesday, October 22, 2008

Establishment of a joint powers board for governance of the Perham Resource Recovery Facility (refuse burner) in Perham may or may not be closer to reality. At issue is whether or not to expand the refuse burner at this time.

The City of Perham seeks an expansion, while Otter Tail County has voted not to support the expansion.

“Perham’s willingness to participate in a joint powers board is premised on an agreement by the counties to a facility expansion,” said county Solid Waste Director Mike Hanan who serves in an advisory capacity with the County Coordinating Committee. Otter Tail’s representative on the panel is Commissioner Roger Froemming.

Hanan addressed the five-person county board on this subject Tuesday morning and said the County Coordinating Committee received a proposal from a private law firm.

“The question now,” said Hanan, “is whether to approve the expenditure. Otter Tail County's position is no.”

That’s because the City of Perham has stated — from their perspective — that the only way they will approve the formation of a joint powers board is if there is also an approval for a facility expansion.

Hanan said the approval of a joint powers board would have to be unanimous between the parties.

“However, since we (Otter Tail County) do not support a facility expansion, we do not desire to spend money to proceed with contracting for development of joint powers governance documents.”

The proposal to develop these documents is estimated between $7,000 and $10,000. The coordinating committee is meeting again, today, in Perham at which time this topic will again be addressed.

Steam heat from the refuse center in Perham is sold to Tuffy’s, a pet food manufacturer, and Bongards Creameries. An expansion of the refuse center, according to Perham officials, would be needed in order to successfully meet future contractual obligations to the steam heat customers.

Hanan, however, said the steam needs of both customers can be met without a facility expansion, just as they are being met today.

“The expansion would allow a greater volume of the steam sold to the steam customers to be generated using the waste heat recovery (garbage) boiler,” he said, “rather than the auxiliary boiler (natural gas fired boiler).”

A major question from Otter Tail County's perspective is the expense ($9 to $10 million).

“Another question,” said Hanan, “is to ask if it’s justifiable and does it (an expansion) provide a sustainable and substantial long-term benefit to Otter Tail County?”

County board Chairperson Sydney Nelson supports a go-slow approach on expansion.

“We as a county board have to look at the ramifications of incurring more debt,” Nelson said.

During Tuesday’s county board meeting, Hanan also updated the board on progress of the solid waste transfer station under construction west of Fergus Falls, near highway 210.

The county, according to Hanan, has informed Breitbach Construction, the general contractor, that it (Otter Tail County) wants Breitbach to show good faith and meet or exceed a Dec. 4 completion date.