As noted in the Hernando Sun previously, negotiations between Hernando County and Freedom Energy Hernando, LLC have been not concluded. The company has been in business for less than a year but was selected over two other established businesses.
Jake Varn, attorney for Freedom Energy Hernando, LLC, stated he met with Assistant County Administrator Brian Malmberg on 11/03/16 to discuss “the financial analysis that had been performed relative to the savings the County can incur.” Initial figures put the County at a loss of more than $1 million; new figures show a profit of more than $1 million for the County in just the first year.
Varn stated that Malmberg’s assessment was based on the County losing money from recycling. Varn believes those figures are still incorrect. If the landfill situation does not change, Varn said, the County will end up spending $5.2 million when Cell 3 is closed. With Freedom Energy Hernando, Varn believes that could be put off until 2044, a savings of $400,000+ annually for 17 years.
Closing Cell 3 will cost $5.2 million, with an additional $4.3 million for what Varn calls “long-term care” of the closed section. Varn states that delaying the $9.5 million for 17 years is not reflected in Malmberg’s analysis. Construction of Cell 4 will cost the County an additional $9.2 million. “What is the time value of that $9.2 million?” Varn asked, and said the County would see at least a $5 million savings.
Chairman Jim Adkins asked Varn if a contract could be prepared in time for the next BOCC meeting on 11/15/16. According to Varn, it could, as he has already been in discussions with Assistant County Attorney Randall Griffiths, who has rewritten the contract. The 80-page exhibit will be submitted for the BOCC to review prior to the next meeting.
Commissioner Nick Nicholson stated that his experience as an engineer led him to believe that the figures being used were incorrect at the beginning. “I think that now… Mr. Varn and Mr. Malmberg have worked together to come up with what I think is a much closer number to reality.” Nicholson believes the annual savings may exceed the $1 million Varn suggested.
In Adkins’ opinion, “We need a financial analysis from an independent firm…to overlook our numbers, your numbers…to where I would honestly feel comfortable.”
Hernando County resident Richard Ross is firmly opposed to the project and feels that County should “dump it” without any further negotiations. “It’s going to make the dredge look like CandyLand,” Ross said. Ross’s concern seems to be mainly over the County choosing an untested company, a large contract for a product the owner has no market for, and using Hernando County as “guinea pigs.”
He would like Freedom Energy Hernando, LLC to bring three things to the County: (1) a performance bond guaranteeing the money, (2) a company that commits to receiving the product that Freedom Energy Hernando, LLC would create, and (3) assume operations at waste transfer stations and make a profit.
Discussion of the contract is already on the agenda for 11/15/16.
Related Articles:
http://hernandosun.com/freedom_energy_20161104
http://hernandosun.com/alt_waste_proj_20161028