REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  August  22, 2017
CATEGORY:  Consent - Public Works-17.

SUBJECT:

West Central Landfill Gas-To-Energy Site Lease Bid Acceptance

Supervisorial District No. :  2

DEPARTMENT CONTACT:  Pat Minturn, Public Works Director, (530) 225-5661

STAFF REPORT APPROVED BY:  Pat Minturn, Public Works Director

RECOMMENDATION

Adopt a resolution which: (1) Accepts the high bid of $1,000 per year from Shasta Renewables, LLC, for the lease of property at West Central Landfill for purposes of siting a gas-to-energy facility; (2) directs staff to finalize the terms of the agreements associated with the gas-to-energy project (project agreements); (3) sets a deadline of September 22, 2017, after which the Public Works Director may cease negotiations with the successful bidder if the terms of the project agreements have not yet been finalized; (4) authorizes the Chairman to execute the final project agreements; and (5) authorizes the Public Works Director to execute minor amendments to the executed project agreements.

SUMMARY

Shasta Renewables, LLC is the highest bidder to lease property at West Central Landfill for a gas-to-energy project.

DISCUSSION

Landfills generate landfill gas which can be used to generate electricity.  On August 15, 2017, the Board received a single bid of $1000 per year from Shasta Renewables, LLC to lease property at West Central Landfill to site a gas-to-energy project. Staff has reviewed the bid and considers it to be in conformance with the bid requirements.

The Site Lease Agreement is one of three inter-related agreements associated with the gas-to-energy project.  The other two are: (1) Gas Energy Agreement defining the terms of gas utilization and associated electricity sales dividends, and (2) agreement for Gas Collection And Control System Operation and Maintenance Services outlining the developers responsibility to operate the landfill’s existing gas collection and control system. Negotiations are ongoing.  It is recommended that the Board authorize the Public Works Director to cease negotiations any time after September 22, 2017, in the event that progress stalls.

The final agreements will be executed by the Chairman. Minor amendments which don’t change the original intent of the agreements may be executed by the Public Works Director.

ALTERNATIVES

The Board may decline to accept the high bid. The lease process would be terminated and the development of gas-to-energy project would not occur at this time.

OTHER AGENCY INVOLVEMENT

County Counsel has approved the resolution as to form. County Counsel is also involved in negotiating the final terms of the project agreements. The County Administrative Office has reviewed this recommendation.

FINANCING

Landfill administration is fee-supported. Sufficient funds have been included in the Adopted FY 2017-18 Solid Waste Budget to operate the landfill and pursue gas-to-energy proposals. There is no General Fund impact.