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HomeMy WebLinkAboutMinutes-11-17-81-Adjourned Regular MeetingMINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY ADJOURNED REGULAR MEETING N0VEMBER 17, 1981 The City Council of the City of Downey held an adjourned regular meeting at 5:00 p.m., November 17, 1981, in the Council Chamber of the Downey City Hall, Mayor Milton R. Mackaig presiding. PRESENT: Council Members: Milton R. Mackaig Mayor Lyell W. Swearingen Mayor Pro Tem James T. Quinn Robert G. Cormack Theodore H. Jackman ALSO PRESENT: Dudley Lang, Assistant City Manager William A. Ralph, Director of Public Works Robert L. Shand, City Clerk -Treasurer Mayor Mackaig announced the purpose of the meeting is for a study session on Refuse Recovery, Mr. Ralph explained the following Refuse -to -Energy Projects have been discussed and reviewed: One is a project that could be done at North American Rockwell. The Sani- tation District has contacted NASA who owns the land asking whether they would be interested in participating by leasing land to the City. The City also sent a letter confirming its interest in the project to the extent of being the lead agency. A letter has been received from NASA, wherein they felt the project was favorable but had numerous issues that need to be addressed. This project would cost somewhere upward of $60-$300 million and handle somewhere between 600-2000 tons a day. The second project is under the name of Pyrogenics System, owned by Mr. Bob Prasser. The Council took action and requested a grant or to join Mr. Prasser in obtaining a grant. Had the grant been approved, the City would have been obligated to around $1 million. The third project is similar to the facility in Auburn, Maine. This would involve using a pre -manufactured modular unit. Mr. Ralph commented on the estimated costs in his report to the Council dated November 3, 1981, showing a total loss the first year for such a project of approxi- mately $200,000; the second year it would just about break even; and the third year it would start to make money. He stated the revenue costs are from the Edison Company in payment for electricity, and the PUC governs the prices charged for the electricity. When asked whether Block Grant Funds could be used for this, Mr. Lang said yes. When asked how the rest of the money would be provided, Mr. Ralph explained there are two possibilities for the financing, such as general obligation bonds or a revenue bond where the revenue is guaranteed by the City. He did mention there is another method of financing that includes private investments; however, there is a disadvantage to this because the City would get less profit since it is shar- ing in a risk. Mayor Mackaig inquired about getting State or Federal assistance. Mr. Ralph replied there does not appear to be any possibility on the Federal level. The only thing available through the State is possibly a $1 million one- time grant from the Solid Waste Board, which he feels should be addressed further. Councilman Cormack said Mr. Prasser has indicated he can build a unit for $100,000 and it seems like a small investment to build a facility. The City would not have to purchase land until the unit proved to be successful. During discussion, Mr. Ralph stated that after the Council approved a project, staff would develop specifications for bid, and then the bids would be analyzed. Councilman Cormack feels Alternate A could be a political football. Council Minutes 11/17/81 (adj.) -1- Mr. Ralph concurred and said he does not see how a project could be accom- plished in less than five -to -seven years, unless the City could finance the project. He then commented on systems that have failed throughout the Country, noting these failures have not been due to the burners but failures of the system before the furnace and the inability after the furnace to deliver the quantity of steam or electricity that was promised. He said he has reviewed the Prasser project, has spoken to several engineers, and he and the engineers do not see that the project offers any abnormal advantages as far as burning is concerned. Mr. Ralph pointed out that Mr. Prasser's unit has not proven that it has high efficiency, and he has asked to do some analyses in order to learn what the efficiencies were. Councilman Cormack said a thorough engineering study would be done during the time the unit is constructed. During further discussion, Mr. Ralph mentioned someone would have to design a front-end system and back -end system, which are where most failures have been. Councilman Jackman indicated he would like an evaluation of the unit made by an independent engineering firm to see if it will produce what the manufacturer says it will. Mr. Ralph agreed and suggested an additional study be made on an energy audit, which he said Mr. Prasser has been hesitant to have performed. He then commented on a unit in New York, similar to Mr. Prasser's, which has reached the 50 ton a day stage, and they are willing to build one in Downey at no cost to the City, but are only willing to share in the profit 30 percent net. Councilman Jackman suggested after an engineering evaluation, if the Council decides to go with the Prasser unit, that Mr. Prasser furnish working drawings for bid and that he be allowed to bid on it. Mr. Ralph added that today there was a hearing before the County Regional Planning Commission to extend the length of the dump site in Puente Hills, which is the only dump site open in Los Angeles County. I£ it is not extended, no one knows what will happen. It was moved by Councilman Jackman, seconded by Councilman Cormack, and passed by the following vote to instruct staff to obtain the costs for hiring a private consultant to conduct an energy audit, and to enter negotiations with Mr. Prasser. Mr. Ralph said he will bring the costs back to the Council for final approval. Councilman Jackman asked that the report include whether the unit will pass air pollution controls. Mr. Ralph explained it is required by the State and local air quality control authorities that any unit having under zero pollution must have the latest availa- ble smog control technology„ which includes a wet scrubber and bag house. Councilman Cormack said he was appointed to the Energy & Environmental Commission, and they are going to make changes in the controls. AYES: 5 Council Members: Swearingen, Quinn, Cormack, Jackman, Mackaig Mayor Mackaig commented on a request of the Recreation & Community Services Commission for a joint meeting with the City Council to discuss the Golf Course and Downey Theatre, and that it be held in the Green Room. Monday, November 30, 1981, at 5:00 p.m., was set for the joint meeting with the Recreation Commission. Staff will work out details on the meeting place. The meeting was adjourned at 6:01 p.m. Robert L. Shand, City Clerk -Treasurer Mi on R. Mackaaig, May Council Minutes 11/17/81 (adj.) -2-