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HomeMy WebLinkAboutResolutions - 1988.08.18 - 17378t NFa.ZEBY APPROVE THE fORMOING RESOLUTION f PLANNING AND BUDDING COMMITTEE August 18, 1938 MISCELLANEOUS RESOLUTION # 88213 BY: PLANNING AND BUILDING COMMITTEE IN RE: PUBLIC WORKS DEPARTMENT SOLID WASTE MANAGEMENT - 1933/1990 APPLICATION FOR MICHIGAN RESOURCE RECOVERY IMPLEMENTATION PROGRAM GRANT TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mt. Cnairperson, Ladies and Gentlemen: WHEREAS Miscellaneous Resolution 06186, Revised Federal and State Grant Application and Reimburseffent Contract Procedures, requires the Liaison Committee to Review said application; and WHEREAS Oakland County has contracted with the firm of Bishop, Cook, Purcell and Reynolds as consultants, project managers and coordinators for the implementation of a County-wide solid waste program; and WHEREAS the firms of Bishop, Cook, Purcell and Reynolds and Camp Dresser and McKee Inc., have prepared a grant application on behalf of the County requesting funds in the amount of $300,000 from the State of Michigan Department of Comuerce; and WHEREAS this grant of $300,000 will help offset the planned expenditures for technical assistance in the developnent of a resource recovery facility; and ,v1-.It''.;EAS funding in the amount of $150,000 for the required grant notch is available in the 1988 Solid Waste Unit Professional Services budget line item; and WHEREAS this is a one time grant and Oakland County will not be obligated for further matching funds. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes the application for such grant in the amount of $300,000. BE IT FURTHER RESOLVED that the Board of Commissioners has committed sufficient funds in the 1983/89 Budget to suet the $150,000 grant match requirement. BE IT FURTHER RESOLVED that the Chairperson of the Board of Commissioners is hereby authorized to execute the grant application on behalf of the County of Oakland. Mt. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. MICHIGAN DEPARTMENT OF COMMERCE Page of Financial Status Report and/or 1. Agency (Bureau, Commission or Authority) 2. Grant/Contract No. Payment Request Public Service Commission/Office of Energy Programs 89-36G _ ..._ _ 3. Name & Address of Vendor Organization 4. Federal I.D. No. or Social Security No. 5. Final Report 6. Request No. Oakland County Board of Commissioners 38-6004876 YES NO X I Oakland County 7. Project Title 1200 North Telegraph Road Michigan Resource Recovery Implementation Program Pontiac, Michigan 48053 8. Duration of Grant/Contract 9. Current Report Period 2/2/89 TO 2/2/91 FROM 2/2/89 TO FROM ......,_ _ 10 Cost Categories (Sajary, Fringes, Equip., etc.) Cons It IIIIIIMMIIIIIIIIIIIIMIIIIIIIIIIIII TOTAL a. Expenditures Previously Reported b, Expenditures This Report Period 111111111111110111111= 61111 1.1111111119=1111111111 c, Expenditures to Date (line a + line b) MIIIIIIIIIMIIII d. Non-State Share of Expenditures IIIIIIIIIIIIIIIIIII IIIIIIIIIMIIIIIIIII e. State Share of Expenditures (line e — line d) 11111111111111111111.11111111111.1111111111111111111111111.11 f Total State Funds Authorized 300,000 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIINI 300 000 Unexpended Balance of State Funds 11111111111111111111 • 1. Request for Reimbursement/Advance IIIIIIIIIIIIIIIIIIII 1111111111 75,000 h. State Share of Expenditures to Date (line e above) L Total Amount of State Reimbursements and/or Advances Previously Requested j. Advance Balance, if Applicable {line i — line h) k. Requested Advance for Period from to , or 75,000 I. Requested Reimbursement (line h — line i) 12. Commerce Financial Management Use Only— Holdback °/0 - Adjusted Payment 13. Program Income: Current Report Period — $ ; Total — $ 14. Remarks 15. Certification: I certify that to the best of my 16. Agency Approval knowledge and belief this report is correct and com- plete and that all expenditures are for the purposes set forth ijj.Jite grant award/contract documents. PROGRAM MANAGER DATE ...0-.............mi—Lel SIGNATURE FINANCE MANAGER DATE Roy Rewold, Chairperson 110-63-1057 759 DATE TYPED OR PRINTED NAME AND TITLE ACCOUNT NO. COST CENTER Form No. C-108 Completion Mandatory for Payment — Authorized by Appropriations Approved by the Legislature 19th 'day of 1 August 1988 LYNN" ALLEN, County Clerk/Register of August 18, 1988 RESOLUTION 88213 Moved by Hobart supported by Jensen the resolution be adopted. AYES: Bishop, Caddell, Calandro, Crake, Doyon, Gosling, Hobart, Jensen, R. Kuhn, S. Kuhn, Lanni, McConnell, McDonald, R. McPherson, Moffitt, Oaks, Page, Pernick, Skarritt, Wilcox, Aaron. (21) NAYS: Price. (1) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) 1, Lynn D. Allen, Clerk of the County of Oakland and having a seal, do hereby certify that I have compared the annexed copy of the attached Miscellaneous Resolution wihich was adopted by the Oakland County Board of Commissioners at their meeting held on August 18, 1988 with the original record thereof now remaining in my office, and that it is a true and correct transcript therefrom, and of the whole thereof, In Testimony Whereof, I have hereunto set my hand and affixed the seal of said County at Pontiac, Michigan this OAKLAND COUNTY, MICHIGAN PROPOSAL FOR THE MICHIGAN RESOURCE RECOVERY IMPLEMENTATION PROGRAM Oakland County logo August 1988 121/2BLE OF CaNTENTS I. Governmental Unit Organization 2. Statement of Problem 3. Management Summary 4. Work Plan 5. Authorized Negotiators 6. Prior Experience Disclosure • 7. Personnel 8: Time Frame 9. Budget Considerations 10. Additional Information and Comments I GONEONMENTAL UNIT ORGANIZATION This Proposal is submitted by: Oakland County, Michigan 1200 N. Telegraph Road Pontiac, Michigan 48053 The project is undertaken by the Oakland County Board of Commissioners and the Oakland County Executive pursuant to the Act 641 Solid Waste Management Plan for Oakland County, Michigan. A County-wide authority will be established to carry out implementation and operation of the project. 2 STATEMENT OF PROBLEM Oakland County has engaged in extensive studies and planning for over 12 years to establish a solid waste disposal system in the County. It has now reached the point of implementing the program. The program will be compre- hensive, including waste reduction through recycling, composting and resource recovery in addition to landfilling. The plan calls for three resource recovery plants, recycling centers and landfills. As one of the first steps in implementing this system, Oakland County is focusing on bringing its first resource recovery plant on-line by mid-1992. The implementation of this facility is an expensive and difficult process, and the County is applying for this grant to obtain a portion of the money required to arrange all of the complex contracts and agreements necessary for successful project completion. .1:112Lryligl liaLl2ili.ty Requirements The Oakland County Waste-To-Energy Facility project meets the minimum eligibility requirements described in Section V-1 of the RFP. Specific documentation follows: A. The applicant is a county. B. The project is located in Pontiac, Michigan, which has a population of approximately 75,000. C. Oakland County is participating in one waste management project (as described earlier) and is applying for only one grant. D. See attached letter of commitment from the Chairman of the Board of County Commissioners. E,F. Oakland County completed a feasibility study for the proposed project as part of the November. 1981 Act 641 Solid Waste Management Plan, which was approved by the Michigan Department of Natural Resources (MDNR) in July, 1983. The information specified as minimum content requirements for this feasibility study is found in the following sections: 1. Waste stream identification including quantity, composition, average heat value, and seasonal variations: see Chapter III, Part B - Solid Waste Quantities and Characteristics. -3- 2. Description of existing transportation, collection, recycling, composting, and disposal systems. Identification of participants or key persons in the waste hauling and disposal services: see Chapter III, Part A - Inventory; and Chapter III, Part B, Section 5.0 - Current Disposal Practices. 3. Flow control of waste stream including any existing contracts: see Chapter III, Part B, Section 5.0 - Current Disposal Practices. 4. Potential markets for energy and/Or recycled material including organization, contact person, and energy or material requirements: see Chapter IV, Part B, Section 1.0 - Waste Incineration Alternatives. 5. Impact of resource recovery facility on other solid waste management alternatives: see Chapter V, Part A - Evaluation. 6. Site availability and permit requirements: see Chapter TV, Part B - Alternative Systems; and Chapter IV, Part A, Section 17 - Environmental Permitting Review Procedures. 7. Options and recommendations for facility configuration including waste volume to be processed, technologies, sizes, and location: see Chapter IV - Alternative Systems. 8. Cost estimates including capital, operating, and maintenance costs, along with revenue (tipping fees, and/or energy/material charges): see Chapter IV, Part B Alternative Systems. 9. Options and recommendations of ownership structure and financing: see Chapter VI - Management Component. G. See attached letter from Oakland County confirming the project's consistency with the November 1981 Act 641 Solid Waste Management Plan. H. See Sections 4 and 9 of this proposal for documentation of commitment of matching local funds. 1. vaximum amount of total grant request does not exceed $300,000. Additionally, requests for each task do not exceed the amounts described under Section 11-5 of the RFP. J. See Section 4 of this proposal for a description of the four resource recovery components: waste reduction, recycling, composting, and waste-to-energy , en The lead agency is the Board of County Commissioners and the County Executive, Proiect Coordinator The project coordinator will be the County Executive. In addition to his staff, he will be assisted on a consulting basis by Bishop, Cook, Purcell & Reynolds. Letter of Commitment See attached letter of commitment from the Chairman of the Board of County Commissioners. Advisory Board A waste management authority and appropriate advisory boards are currently being formed by the County Executive and Board of County Commissioners. -5- Project Responsibilities Implementation of the project will be the responsibility of the County Executive. The following team of consultants has been selected to assist in implementation: Project Coordinator and contract negotiations and implementation Bishop, Cook, Purcell & Reynolds (Bishop, Cook, Purcell & Reynolds is a law firm located in Washington, D.C. specializing in solid waste procurements. This firm has represented numerous communities coast-to-coast, including Kent County, Michigan). Consulting Engineer Camp Dresser & McKee Inc. (A nationally known consulting engineering firm headquartered in Boston, with an office in Detroit. It has acted as consulting engineer for numerous communities implementing resource recovery projects, including Kent County, Michigan). Fiscal Advisor Public Financial Management, Inc. (PFM) (PFM is headquartered in Philadelphia, Pennsylvania and has represented numerous communities on solid waste transactions, including Kent County, Michigan). Local Counsel Kohl, Secrest, Wandle, Lynch, Clark and Hampton (Kohl, Secrest, Wandle, Lynch, Clark and Hampton represents the Board of.County Commissioners and is located in Farmington Hills, Michigan). Bond Counsel Dickenson, Wright, Moon, Van Dusen and Freeman and Miller, Canfield, Paddock and Stone (Both firms are located in Detroit, Michigan). Landfill Expert Rogers, Golden & Halpern (A nationally known firm located in Philadelphia, Pennsylvania). Recycling Resource Recycling Systems (Resource Recycling Systems is located in Ann Arbor, Michigan and soecializes in the development and implementation of waste reduction and recycling programs). Contact Person H. Lawrence Fox of Bishop, Cook, Purcell & Reynolds will be the contact person for the project. 4 WORK PLAN The project for which this proposal is submitted is a mass burn resource recovery plant located on county-owned property adjacent to existing County facilities in Pontiac, Michigan. Oakland County is requesting financial assistance for each of the five tasks to complete the activities described below. Substantial effort will be devoted to each task by the project team. Each step is interrelated and must be properly coordinated with the different expertise required to achieve a successful conclusion of the process. This will require a substantial commitment by County personnel, consultants and policy makers. The County is committed to provide all personnel required to achieve the desired result. All consultants will have a contract with the County based on time and effort. The overall cost will exceed one million dollars. The project timeline is discussed in Section 8 of this proposal. Details of the estimated project costs are provided in Section 9 of this proposal. Task l: Pre-Procurement Planning Thus far in the project, pre-procurement planning has determined location, size, technology, energy production, and ownership for the project. The County's ongoing recycling and waste reduction plans were considered in this planning along with the utilization of present landfills and the need for future landfills. Additional resource recovery facilities that are planned in other areas of the County were also considered to insure that the project fostered an integrated County-wide system covering all aspects of solid waste management. The Pontiac site was chosen because it is located on County land adjacent to the County Service Center, which will use steam in its existing steam loop. Mass burn was selected as the most appropriate technology for the facility for several reasons: o It is a proven technology operating extensively in Europe, Japan, and the United States. o The efficiency of energy recovery is the highest for waste-to-energy recovery systems. o The system can produce hot water, steam, or electricity, on any combination of these. o Many experienced, qualified vendors offer systems that use this technology. The facility will be designed to handle 1,500 to 1,800 tons per day of processible waste. This represents approximately one-third of the solid waste generated in the County. Remaining waste will be handled by the other components of the proposed system including recycling, composting, waste reduction, and two additional waste-to-energy plants. The County has set the goal of recycling 20 percent of the waste stream by 1993. Specific waste reduction, recycling, and composting opportunities are being explored as part of the County's ongoing development of its County-wide recycling program. Implementation strategies of these opportunities will be included in the County's Update of the Act 641 Plan. -9- The County has elected to own the facility. In view of recent changes in federal tax law, including tax-exempt financing requirements, the County feels this is the most beneficial option. However, due to the complexity of the facility and its operation, the County has elected to have the vendor operate the facility for an initial 20-year period. The facility will produce steam which will be sold to the County and electricity which will be sold to Detroit Edison or another utility. There will also be ferrous metal recovery at the facility. Markets for ferrous metals are being explored as a part of recycling planning in the County. The County Executive and Board of County Commissioners are now establishing an authority and advisory boards for the project. At this time, the project is managed by the County Executive and his staff with assistance from Bishop, Cook, Purcell and Reynolds. Additional personnel will be retained on an as-needed basis. The County is also exploring financing options for the project and has retained a financial advisor (Public Financial Management) to assist in the selection of a financing alternative. One or more investment bankers will be added to the project team to assist with financing. The County has recently begun exploring potential flow control agreements between the County and local municipalities. The issue of flow control will continue to be developed as the project proceeds. The County has begun a public information program through its recycling program to educate the communities on solid waste disposal issues and problems and will continue to foster this exchange of information. As part of this education process, a number of community and County officials have visited various resource recovery facility sites, and future visits will be arranged as appropriate. As the project develops further, relevant information will be diseminated to all communities within the County to encourage the exchange of local concerns and viewpoints. Grant money received for this task of the project will he used to finance the legal and management responsibilities that accompany establishing the structure of the County authority that will -run the project and the advisory boards that will help to direct the project. The money will also fund the continuing review of financing options and waste flow control policies, and the County's public relations efforts. Task 2: Siting Oakland County currently owns the project site. However easements and right-of-ways may be required for the steam line, lay down area, and other associated purposes which would necessitate additional technical support from the project coordinator and consulting engineer, Grant money received for this task will be used for these activities. Task 3 and 4: Procurement and Contract Ne+otiations The procurement process will be initiated through a Request for Qualifications by which vendors will be qualified by the County and its consultants on the basis of economic strength, technical experience and operating history, The County will select qualified vendors to enter into simultaneous negotiations to develop contracts and selection criteria for bid purposes. Negotiations will be based on draft contracts developed by the County. Following negotiations a Request for Proposals will be issued containing the negotiated contracts, and bids will be solicited from the qualified vendors. A contract that is acceptable to the County Executive and the Board of County Commissioners will be executed with the winning vendor. The procurement process willproceed on the basis of full contracts rather than a Memorandum of Understanding (MOU). The County believes that this will avoid disputes resulting from moving from MOU to contract language. -11- Flow control and energy contracts are currently being developed for consideration by the County Executive and the Board of County Commissioners. During the same time frame as the project procurement, the County will be exploring siting, planning, permitting and construction of one or more landfills for disposal of residue and nonprocessible waste. The potential for utilization of existing landfills will also be explored. Sites selected for disposal of residue and unprocessible waste from the facility also will be used as sites for County-wide composting facilities and recycled materials collection and processing centers. Grant money requested for Tasks 3 and 4 will be used to complete all of the activities required to negotiate flow control and energy contracts and to negotiate a contract for construction and operation of the resource recovery facility. Task 5: Financing Project financing will be initiated following vendor selection. Financing options range from a general obligation pledge by the County to a revenue pledge from the project or the County solid waste disposal system All options are being explored with Public Financial Management, the County's fiscal advisor. A comprehensive report will be prepared for securing financing, as appropriate. Grant money received for this task will be used to fund the activities required to complete project financing. 5 AUTHORIZED NEGOTIATORS The authorized negotiators for the proposed grant agreement between Oakland County and the State are: IL Lawrence Fox Bishop, Cook, Purcell & Reynolds (202) 371-5727 James Jackson Bishop, Cook, Purcell & Reynolds (202) 371-5727 Walter R. Niessen Camp Dresser & McKee (617) 742-5151 6 PRIOR EXPERIENCE DISCLOSURE Although Oakland County has taken an active role in planning and funding the planning of County-wide solid waste management (through Act 641), the County has not undertaken implementation of a County-wide solution to solid waste in the past. Solid waste disposal has been handled by local communities and authorities. For this reason, the County has retained the team of consultants listed in Section 3 of this proposal with national and Michigan experience in solid waste disposal. The credentials of various consultants and key management and technical personnel are attached hereto. The County will supplement these experts with its own personnel to ensure that the project is adequately staffed and the County's interests are served. The personnel and qualifications of the project team are discussed in Section 6 of this proposal. Each consultant is committed to provide experienced personnel on an as-needed priority basis to the County. The organization chart on the following page illustrates the responsibilities of each project team member, The County and its policy makers are committed to provide the time and manpower to achieve a successful project. Additional County staff will be added to carry out the County's solid waste plans on an as-needed basis. H,4 ELSSAL.A1.1Li.S_Qa Public Financial Management ESL D_CJIILli Dickenson, Wright Moon, Van Dusen & Freeman and Miller, Canfield Paddock and Stone L4NDFILL EXPERT Rogers, Golden Halpern BLJJtLfa Resource Recycling Systems VLLLLQ Etat/UE.13 Camp, Dresser & McKee Inc. IOOAL LDA.t_Lqai Kohl, Secrest, Wandle, Lynch Clark & Hampton PROJECT TEAM ENCY OAKLAND COUNTY BOARD OF COUNTY COMMISSIONERS AND COUNTY EXECUTIVE COUNTY EXECUTIVE (Bishop, Cook, Purcell, Reynolds) 8 MIE FRAME The County has developed an aggressive schedule to complete the resource recovery facility project as soon as possible. The chart provided on the following page presents the anticipated effort required for each task, highlighting decision points and the expected completion dates of specific deliverables. Selection of Qualified Vendors/ Commence Negotiations Request Final Select Facility Bids Pursuant to RFP Contractor Issue F1FP Issue RFQ SITING PROCUREMENT CONTRACT NEGOTIATIONS Prepare Bid Evaluation Report Finalize Energy Sales Contract Complete Arrangements for Residue Disposal Site FINANCING Finalize Financing Documents issue Bonds TIME FRAME FOR OAKLAND COUNTY, MICHIGAN PROJECT TASK 1 9 8 8 1 9 8 9 SEPT OCT NOV DEC JAN FEB MARCH APRIL I Establish County Authority Recycling Consultant and Advisory Board Report PRE-PROCUREMENT PLANNING A Letter of Intent for Energy Contract A Finalize Flow Control Agreements 9 BUDGET CONSIDERATICNS The budget for this project includes time and cost of County personnel and consultant costs. Since the County is relying on the expertise of consultants, a large portion of the cost will he for consultant contracts (anticipated to exceed one million dollars). The County also plans to use existing staff personnel and to hire additional staff with expertise in procuring and administering solid waste projects on an as-needed basis. The County developed the information in the budget forms on the basis of utilization of consultants but did not include the utilization of its existing staff. • Budget Forms A and B follow. The County's expenditures are expected to exceed the 50 percent provided in each case. The source of local matching funds will he County revenues. SIV1OL zolaroaa 000' C < NO' 00C quvaD 4firabou lafipou wintooda HOLLMARIMildWI miamozu 113t:mos:1a 5/E03Iiii #.41 rn*RIPORtmepote... '7"275711r- >22,500 estemanssaa*i.ear 93ncs...somewww. > > 7,000 >77107--‘ 0:MaggeMmp"eau.rme. > 67,500 feamenteena*/(19.:Feaftbm IPmesehm.soganoMMZP > ...422m5 > 22,500 Fittlige.:611Xli...118921WS, 410.1,1...17.31..121.1039,:mes 1:10M.ItuaNIROMEDimom .6191.1dWarammimormammew. ..s...........n..o.,..snr.wpwsse. ........e........ggo... .4001.0.*.659ENTEIT, 421WOMB.P.....mm-whwmaym ..........2269.W.M........ XXX XXX -47700- 45,000 XXX XXX 737rOr PMhavagswa 15,000 eisMillmee..meanspeopx. XXX eliatteiernarn.Wanarea. 000 >30,000 IIMM.4,7,•••••••••••n—• 90,000 Matinaelginser.11.1903.... XXX mMR...Mwtartsmammr. XXX .pw.nvemeem* wxmi namona=. momustsg...mm M375757 > 60,000 >30,000 VRISEIFIENRIMVIMIrepilp,15. ° 300,000 >150,000 esra........trisneemax.21139 iftrtaMirox61hRe > 770= > > 450,000 -------- xxt ClIspyislamemasee**014. 120,000 ......Ampwassake.tee. eisasseoso veresseMb > 70"0*M' >60,000 .......mmormomoommen.m.m. > -T'Srrj777""6" FORME MICHIGAN RESOURCE RECOVERY IMPLEMENTATION PROGRAM Budvet Individual Tasks Grant ecusst 50i Local Match 7r1-7±71 Totals 11 Pre-Procuremtnt Salary Pringes Travel Material* & Supplies Consultant Total ta-EIVal Salary Fringes Travel Material* & Supplies Consultant Total ja2nli3tTERat Salary Fringes Travel Materials 4 Supplies Consultant Total #4 Contract Vetotiation _ Salary Fringe* Travel Materials & Supplies Consultant Total - #5 Financi12 Salary Princes TraVel Materials & Suppliee Consultant . Total PROJECT TOTALS XXX (Not eligible lor grant =lies) 10 ADDITICKAL INFORMATION AND Ca"VENTS The County has a growing solid waste problem as existing landfill capacity is rapidly being utilized. At current waste disposal rates, permitted landfill volume in the County will be filled in mid-1993. Oakland County is beginning to implement an economically responsible and environmentally sound County-wide comprehensive solid waste management plan to solve this problem. The County plan will maximize waste reduction, recyc]ing, composting and resource recovery before landfilling. The County's initial waste-to-energy facility project is aggressive in recognition of the solid waste problem and the increasing cost of projects over time due to inflation and other factors. An aggressive schedule has been developed to complete this project at the earliest time practicable to avoid a solid waste disposal crisis in the County. In addition to this resource recovery facility, the County is pursuing recycling, composting, landfill planning, and two additional resource recovery facilities to complete its comprehensive solid waste disposal system. The County is quickly developing more extensive data for the resource recovery facility project and will be pleased to present more detailed responses on areas such as budget and plans for additional facilities as they are developed.