Here is just one of the unanswered questions about the cost of the regional trash incinerator, "Why will Frederick and Carroll Counties be obligated to pay for a $73,000,000 Capital Contribution, even if all of that money is not used for the project?"
We've now heard the trash incinerator is not going to cost as much as originally forecasted, but the repayment of this Capital Contribution is in FIXED annual payments of $3,530,338.00 (plus a 3% annual escalation) for 20 years for a total repayment of $94.8M. (This payment is called the 2nd operating fee.)
It's now been suggested these funds shouldn't be needed at all. And although any money not used will be returned to Wheelabrator, "Upon Final Completion, the Authority shall return or release any unused portion of the Company Construction Commitment to [Wheelabrator]...," I cannot find any language which lowers the annual $3.5M payment. Therefore, Sections 6.3 and 15.1 of the service contract should be amended to provide for lower payments if any part of the $73M is not used for construction costs.
Perhaps the 2nd operating fee should be struck from the service contract all together?
To put this into perspective, $3.5M per year is the equivalent of 70 full-time LOCAL jobs per year. (Paying ~$50K each.)
Posts
