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Rockland Council Weighs FMC Deal Seaweed Company Would Address Odor Problem, Pay Higher Landfill Fees

Posted on: Friday, 11 November 2005, 15:00 CST

By LEANNE M. ROBICHEAU; OF THE NEWS STAFF

ROCKLAND - A 10-year agreement allowing one of the city's largest taxpayers, FMC Corp., round-the-clock access to the city's landfill to dump its controversial waste would require the company to pay for an odor study and possible remedial action.

The City Council will vote Monday on the pact, which calls for FMC to pay $15.09 per cubic yard for disposal of its byproduct, as well as $2.05 per cubic yard toward landfill closure costs and $3.67 per cubic yard for perpetual post-closure maintenance costs. The seaweed processor now pays $3.50 per cubic yard for disposal only.

If the council approves the agreement, the tipping fees for the general public are expected to drop from $75 per cubic yard to roughly $30 per cubic yard, Hall said.

FMC processes seaweed into a food additive.

Its byproduct from extracting carrageenan from seaweed, which is called Algefiber, is disposed of at the city's landfill. It consists of seaweed particles, perlite, water, lime, salt, sand and rock.

When it is not spread promptly by landfill workers, it creates a widespread offensive odor that blankets the city and riles neighbors.

FMC is a major taxpayer in Rockland, paying roughly $400,000 per year in property taxes. The company employs 130 workers and pays half of the city's sewer revenues. It is the largest city water consumer for Aqua Maine, Hall said.

Some residents have complained at recent council meetings that a foul odor affects their health and well-being. Some residents have said they recognize the value of having the company in Rockland.

"We both have done a good job," FMC plant manager Mike Stumbo said Thursday of the proposed deal. Neither party is "totally satisfied," he said, "but it's something we can live with."

On Thursday, City Manager Tom Hall and City Engineer David Chittim echoed Stumbo's sentiments.

They said the goal of the agreement is to cover current as well as future costs and to have tipping fees for FMC and the general public pay for landfill operations. The annual landfill operation costs are approximately $600,000, which is separate from transfer station and recycling operation costs.

The agreement is designed to rectify the odor issues.

Within 90 days of the effective date of the pact, FMC and the city are to jointly hire an independent engineer to conduct an odor study at the landfill that will include odor attributable to FMC and other sources. FMC would pay for the study.

If the study recommends some sort of treatment at the plant to alleviate odor at the landfill, FMC is to pay those costs, Hall said. If some type of action is needed at the landfill, FMC will assist the city at the city's expense.

Hall said the odor study "establishes odor as an issue and a priority."

The city plans to establish an endowment for the landfill closure and for perpetual post-closure maintenance that will be funded by all users, including FMC.

"It's the first of its kind," Hall said of the endowment funds, at least for Maine municipalities. "I'm pleased that this [agreement] is accomplishing that."

Those closure-related costs for FMC would not be paid for until its relationship with the city is terminated, but it is secured by a letter of credit.

The terms of the contract provide for an annual adjustment in the tipping fee equal to the consumer price index and a one-time opportunity to align fees with actual costs, which Hall referred to as an "ace in hand."

The city has until July 1, 2010, to exercise the "optimal budget" hike, but the new fee may not exceed 20 percent of the previous year's figure. The city would likely make that adjustment in the third or fourth year of the contract when it has a better idea of what the actual costs are for handling FMC's waste, Hall said. After the optimal budget is established, that figure is also subject to annual CPI increases.

In the deal, the city would also be compensated for management, operation or maintenance of the landfill if there is any significant increase in volume or moisture content of the seaweed byproduct.

For the city's part, it will need contingency plans for handling FMC's waste when equipment is down or workers are on vacation to ensure the byproduct is promptly spread to avoid triggering odors.

"We'll have contractors for emergency response," which the city would pay for, Hall said.

Source: Bangor Daily News

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