HomeMy WebLinkAboutResolutions - 1991.09.26 - 18845Miscellaneous Resolution # 91188 September 12, 1991
BY: Planning and Building Committee
RE: Solid Waste - Power Purchase Agreement by Detroit Edison
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, the Oakland County Board of Commissioners has approved a
comprehensive solid waste system which includes a materials resource
recovery facility, waste to energy facility, landfill capacities,
composting facility and other supplemental programs; and
WHEREAS, the County has developed and adopted the various
necessary legal contractual components to implement the system; and
WHEREAS, a power purchase agreement with Detroit Edison for
electric energy produced by the waste to energy facility is a necessary
component to the total system; and
WHEREAS, such an agreement has been negotiated with Detroit
Edison.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners hereby authorizes and directs the Chairperson of the Oakland
County Board of Commissioners and the County Executive to execute the
attached agreement with Detroit Edison for their purchase of electric
energy from Oakland County.
BE IT FURTHER RESOLVED that such contract shall not be submitted
to the Michigan Public Services Commission for approval, nor shall costs of
the approval process be incurred, until after November 5, 1991.
Mr. Chairperson, on behalf of the Planning and Building
Committee, I move adoption of the foregoing resolution.
' Planning and Building Committee
OAKLAND COUNTY BOARD OF COMMISSIONERS
1200 NORTH TELEGRAPH ROAD - PONTIAC, MICHIGAN 48341-1043 (313) 858-0100
FAX: (313) 858-1572
DETROIT EDISON CONTRACT
Exhibits A, G, & N were included with the original contract when
presented to Planning & Building. Item N is now finalized.
Exhibit 9,, was included by the Finance Committee.
Exhibits, B through F, G through Mf Of andQ, are included but have
not been reviewed by any committee. Exhibit P is not available.
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September 26, 1991
FISCAL NOTE
BY:
IN RE:
FINANCE COMMITTEE, DR. G. WILLIAM CADDELL, CHAIRPERSON
SOLID WASTE - POWER PURCHASE AGREEMENT BY DETROIT EDISON - MISCELLANEOUS
RESOLUTION # 91188
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
Pursuant to Rule XI-G of this Board, the Finance Committee has reviewed
Miscellaneous Resolution #91188 and finds:
1) The 35 year agreement pays the County at least $0.0575 per kilowatthour
generated by the County's proposed Waste-to-Energy facility, provided
certain minimum operating conditions are met;
The rate consists of two parts: a Capacity payment and Electric Energy
payment;
The Capacity payment has two components as follows:
A) A Levelized Capacity Component which is $0.0354 per kilowatthour
for energy delivered up to the Maximum Net Electric Capacity
provided the county meets certain minimum operating conditions;
B) An operations and maintenance component which is the average non-
fuel O&M cost per net electric generation at Detroit Edison's Belle
River Units 1 & 2 which is calculated annually;
The Electric Energy payment for all energy provided shall be the average
annual cost of fuel burned per kilowatthour on net electric generation
at Detroit Edison's Belle River Units 1 & 2 and shall be adjusted
annually;
The County will deposit $0.005 per kilowatthour into an escrow account
for the first 20 years of the contract to cover any potential claim
because of payments made by Detroit Edison to the County and these funds
with all interest shall be returned to the County during the 26 through
35 years of the contract;
6) The County shall pay Detroit Edison an administrative charge of $0.001
per kilowatthour but not less than $150,000 and not more than $250,000
annually (the minimum and maximum amounts shall be adjusted annually);
7) There are no financial implications at this time therefore no budget
amendments are required;
8) The Finance Committee recommends the resolution and the contract with the
following contract change:
A) Add Exhibit R as attached which shall serve to clarify the
liability limit as stated in Section 7.4.1.
This contract shall not be submitted to the Michigan Public Service
Commission unless there is an affirmative vote by the people on the Solid
Waste Bond Referendum on November 5, 1991.
Fixianc Committee
Resolution # 91188 SEPTEMBER 26, 1991
Moved by Crake supported by Palmer the resolution be adopted.
Discussion followed.
Vote on resolution:
AYES: McPherson, Millard, Moffitt, Oaks, Palmer, Pappageorge, Rewold,
Schmid, Serra, Skarritt, Aaron, Caddell, Crake, Ferrens, Gosling, Nuntoon;
Johnson, Krause, Law, McConnell, McCulloch. (21)
NAYS: Bishop. (1)
ABSTAIN: Wolf. (1)
A sufficient majority having voted therefor, the resolution was
adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND
I, Lynn D. Allen, Clerk of the County of Oakland, do hereby certify that the foregoing
resolution is a true and accurate copy of a resolution adopted by the Oakland County
,Board of Commissioners on September 26, 1991
with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County
of Oakland at Pontiac, Michigan this 26th . day of—) September ..2.; 1991
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Lynn/J. Allen, County Clerk