Public /private partnership increases revenue and assures stability for Atlantic County
Atlantic County Utilities Authority’s Board of Directors approved a contract Thursday, November 18 for Hudson Baylor Corporation to design, build and operate a single stream Recycling Facility at the ACUA’s current Recycling Center in Egg Harbor Township.
With the adoption of single stream recycling collection in January of 2008, the Atlantic County Utilities Authority (ACUA) stopped sorting recyclables at its Egg Harbor Township facility, which was not equipped to separate the new mix of materials. The move to single stream enabled the ACUA to increase efficiencies on the collection side while increasing the types of materials accepted and the ease of recycling for residents and businesses, but required materials to be processed at another private facility.
“We’ve been investigating the best way to retrofit the existing recycling center over the past year and are pleased with the proposal Hudson Baylor has presented,” Rick Dovey, ACUA President noted. “This partnership gives us stability for market pricing, protecting us and our customers, but doesn’t require the ACUA to pay the cost of purchasing the equipment or operating the facility.”
Hudson Baylor Corporation, which operates 12 processing facilities in the US (including a dual stream facility in Cape May County and 4 other single stream plants), will design, retrofit and operate the facility. “Hudson Baylor is pleased to partner with the Atlantic County Utility Authority” says Scott Tenney, President of Hudson Baylor Corporation. “Our company’s reliability and ethics have made us the waste diversion partner of choice to the communities we serve and we look forward to providing our service to the residents, businesses and visitors of Atlantic County”. The cost to Hudson Baylor to outfit the existing structure with conveyors and sorting stations to handle the anticipated annual volume of 34,000 tons of single stream recycling is estimated to be $5.5 million. The agreement includes leasing the ACUA’s Recycling Center to Hudson Baylor for an initial ten year period. Lease payment, avoided costs and a revenue sharing plan are anticipated to provide the ACUA with an annual benefit of over $1.5 million. The new processing facility is anticipated to be up and running in six to eight months and visitors will be able to tour the facility once it opens. “Being able to see how this works and the scale of things helps people understand the importance of recycling. It’s an easy way for people to make a big impact by keeping these materials out of the landfill,” said Dovey.
Currently, the average commodity rate for the mixed recyclable materials that are collected in Atlantic County is approximately $135/ton. The value of materials, driven by global demand, has risen from its low point following the market’s crash in 2008. ACUA President Rick Dovey notes “when the recycling markets dropped we had to determine how to uphold our commitment to insure the material collected would be recycled without hurting ourselves financially. We had to stockpile over 13,000 tons of material until a financially viable option for recycling was available.” The arrangement with Hudson Baylor will insure that the remaining stored material will be processed onsite, with revenue going to ACUA, and will significantly reduce the risk of being left with material again.” Private companies currently operate single stream facilities in Camden and Gloucester County. Atlantic County’s agreement is unique in that it brings public and private entities in partnership to enhance recycling.
About Hudson Baylor Corporation http://www.hudsonbaylor.com
A growing organization with a 27 year history of success exclusively in the recycling industry, Hudson Baylor Corporation (HBC) specializes in providing recycling diversion services as a partner to the municipalities we serve. HBC was recognized in the 2010 Inc. Magazine 5000 list issue; an exclusive ranking of the nation's fastest-growing private companies, ranking No. 4,199 overall and No. 63 in the Environmental Sector. In 2009 and 2010, Waste & Recycling News and Waste Age each recognized Hudson Baylor as an industry leader. Hudson Baylor is headquartered in Newburgh, NY, with a western regional office in Phoenix, AZ.
For more information on ACUA: http://www.acua.com