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HomeMy WebLinkAboutMINUTES - 06101986 - IO.4 I> 1�O. TO BOARD OF SUPERVISORS FROM: Contra INTERNAL OPERATIONS COMMITTEE % osta DATE: June 9, 1986 COAY SUBJECT: West County Waste-to-Energy Plant SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION: 1. Acknowledge receipt of the attached report from the Acting Director of Community Development. 2 . Remove this item as a referral to our Committee. BACKGROUND: On December 10, 1985, the Board referred to our Committee the responsibility to follow developments on the progress of the Joint Powers Agency' s deliberations on the West County Waste-to-Energy project. On June 9, 1986, our Committee met with Harvey Bragdon, Acting Director of the Community Development Department, and David Okita from the Environmental Control Division. We reviewed Mr. Bragdon' s report, a copy of which is attached to this report. The report summarizes the current status of activities surrounding the West County Waste-to-Energy plant and notes that there is no need at this time for any action by the Board of Supervisors. We are, therefore, recommending that the Board simply acknowledge receipt of this report and remove this item from our Committee. Staff are following developments on this project very closely and will advise the Board if any Board action is required in the future. CONTINUED ON ATTACHMENT: X YES ySIGNATURE: _ RECOMMENDATION OF COUNTY ADMINISTRATOR A RECOMMENDATION OFFj LBOARD COMMITTEE X APPROVE _ OTHER (VJ SIGNATURE s : Nancy C. anden Sunne W. McPeak ACTION OF BOARD ON June 10. 1986 APPROVED AS RECOMMENDED X _ OTHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT III ) AND CORRECT COPY OF AN ACTION TARN AYES; NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: . ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. cc: County Administrator ATTESTED _ June 10, 1986 Acting Director, CDD PHIL BATCHELOR, CLERK OF THE BOARD OF Dave Dklta , Env. Control Div. SUPERVISORS AND COUNTY ADMINISTRATOR M382/7-83 By� DEPUTY CONTRA COSTA COUNTY COMMUNITY DEVELOPMENT DEPARTMENT TO: Internal Operations Committee / DATE: June 5, 1986 Supervisor Nancy Fanden,Chair✓ File No. R-16 Supervisor Sunne McPeak FROM: Harvey E. BragdonSUBJECT: WEST COUNTY AGENCY Director of Communit vel en cting) WASTE TO ENERGY By: Paul E. Kilkenn PROJECT Assistant Direct r I 0 This memorandum is to update you on the status of the West County Agency Waste to Energy Project. This matter was referred to the 1986 Internal Operations Committee by the 1985 Internal Operations Committee to monitor the progress of the proposed project. There have been significant advances for the project, yet many questions remain to be answered. Staff has been attending all the meetings of the West Contra Costa Solid Waste Management Authority (WCCSWMA) where the project has been discussed. The WCCSWMA has been meetinq on a weekly basis and committees of the Authority also often meets weekly. The major recent change in the project has been that Richmond Sanitary Service has been designated by the WCCSWMA to take the lead on the Waste to Energy Project. Richmond Sanitary Service has been negotiating with full service (design, build, operate, and own) vendors of waste to energy equipment. The vendors are: Westinghouse-O'Connor, Dravo, and Ogden-Martin. Westinghouse-O'Connor has been recommended by Richmond Sanitary Service to develop the project. Richmond Sanitary Service will now enter detailed negotiations with Westinghouse-O'Connor to develop a joint business proposal for the waste to energy project to present to the WCCSWMA. If an agreement cannot be reached with Westinghouse-O'Connor, the other vendors could be asked to re-enter the negotiation process. The O'Connor rotary combuster was the technology selected several years ago by the West Contra Costa Sanitary District. The Westinghouse Corporation has attained full rights and ownership to the O'Conner rotary combustor and is marketing the process throughout the United States. Richmond Sanitary Service has proposed that recycling and vegetative waste composting be included as part of the waste to energy project. Richmond Sanitary Service has also provided costs for a transfer station which could be implemented if it was found that waste to energy is not feasible at this time and if the West Contra Costa Sanitary Landfill cannot be expanded. However, due to time constraints, the main emphasis is on waste to energy at this time. Several major issues still to be resolved are as follows: 1. The energy sales agreement with PGandE is in the possession of the West Contra Costa Sanitary District. The energy sales agreement is vital to the economic feasibility of the project. The project would not be cost-effective without the energy sales agree- ment, commonly known as Standard Offer No. 4. The District must assign the agreement to the project developers. The West Contra Costa Sanitary District has stated that they will assign the energy sales agreement to the selected project proponents subject to a list of conditions. The major condition is reimbursement of the $11.4 million spent to date on the project. The WCCSWMA is currently negotiating with the West Contra Costa Sanitary District about this reimbursement. To date, no progress has been made on these negotiations. The agreement on reimbursement is critical to the project because the $11.4 million could influence the cost-effectiveness of the waste to energy project when compared to other alternatives, such as, transfer stations. 2. The energy sales agreement with PGandE states that the project must supply energy by December 31, 1988. If the project is not ready to produce energy by that date, , some of the payments made for energy could be substantially reduced or deleted. This would have a major financial effect on the waste to energy project. If construction does not start before the end of 1986, it will be unlikely that the project could be completed and in operation by the deadline. Even if construction started now, there would be substantial risk to any project developer to completing the project on time. 3. The governmental agencies in West County will have to negotiate with the project proponents concerning assignment of risks for the project. The project owners may not be willing to accept all the risks of the project and may ask the cities and sanitary districts to accept some of the risks and financial consequences. The WCCSWMA is seeking expert legal advice to assist them in these negotiations. 4. The operating permit from the Bay Area Air Ouality Management District has not been issued pending completion of a health risk assessment concerning toxic emissions from the waste to energy project. An initial health risk assessment was completed but is currently being revised based on requests for additional information from the State Department of Health Services. Toxic air pollution emissions from the waste to energy project have been a major concern. of West County officials and residents, however, the scientific literature seems to indicate that the overall risks are very low. 5. The cost estimates and other data presented by Richmond Sanitary Service need to be reviewed by an independent consultant. The financial impacts on West County garbage rate payers could be significant. The source of all the information presented to the WCCSWMA has been from Richmond Sanitary Service. In order to verify this data, to assure West County decision-makers that the project is (or is not) in the best interest of the West County communities, the WCCSWMA has requested proposals from engineering firms to advise and consult the WCCSWMA. The proposals are due to be received on June 4, 1986. Staff from the County Community Development Department has been working with a committee of the WCCSWMA to verify some of the data presented by Richmond Sanitary Service concerning transfer stations, recycling, composting, and landfill disposal . Attached is the most recent schedule for completing certain tasks for the waste to energy project. The County Solid Waste Commission has been kept informed of the progress of the WCCSWMA on waste to energy and other solid waste matters in the West County. The Community Development Department staff has been monitoring meetings of the WCCSWMA and has participated in several of the WCCSWMA's committees. There does not appear to be a need for any action by the Board of Supervisors at this time. If the project does proceed to implementation, the Board of Supervisors will need to make a consistency determination for the County Solid Waste Management Plan. The Plan supports the construction and operation of the West County Agency waste to energy project providing the project is economically feasible and able to meet pollution control requirements. The Board will have to make a determination of economic-feasibility and ability to meet pollution control reouirements. The County Department of Health Services will also need to issue a Solid Waste Facilities Permit for the project. If you have any ouestions, please contact Dave Okita at 372-2071. DBOcl wcnty.m.io:t6 Enclo Page 3 Tentative Schedule — Integrated Resource Recovery Facility Jum 2 - Concur in further pursuit of the Integrated RR Facility June 9 - Organize Project Team June 9 - Cmmel= Project Engineering activities June 16 - Coplete Tentative Business Plan June 16 - Submit revised Air Permit Application (initial information) June 16 - Circulate initial draft of Waste Supply Agreement June 16 - RSS Presentation on Landfill Expansion Proposal Mid June - Complete County/SFZ% review of RSS Cost Estimates Mid June - Complete Revised Health Risk Assessment June 30 - Determine Fixed Maxim= Construction & Operation Price for WPEP July 7 - Confirm Econcmic Feasibility of Project July 7 - SPM & Member agencies Register Intent to Participate in Project Mid July - Finalize Waste Supply Agreements August - Receive BAA= staff report on Air Permit Cmditi.ons