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.
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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.