Agenda - 02-17-2009 - 4l - Laserfiche WebLink

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 17, 2009 Action Agenda Item No. 4 - SUBJECT: UNC/Orange County Landfill Gas Agreement DEPARTMENT: Solid Waste Management PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Under Separate Cover 1. Agreement— (A — Final; B— Redlined) 2. Pro forma Prospectives Gwen Harvey, 245-2307 Gayle Wilson, 968-2885 Brian Ferrell, 732-2196 PURPOSE: Approval of the final agreement establishing the Orange County/University of North Carolina (UNC) Landfill Gas Recovery Project BACKGROUND: In January 2008 the BOCC authorized entering into a Memorandum of Understanding (MOU) with the University of North Carolina at Chapel Hill to ensure due diligence and anticipate effective implementation of a landfill gas recovery project. On April 15, 2008 the BOCC received a project update and request to proceed and authorized County staff to move forward with the development of a proposed final contract with UNC. County and UNC representatives used the ensuring period over a series of strategy sessions to define and make determinations on a large number of highly complex details pertaining to project development, ownership, operations, maintenance, financing, and compensation. In general terms, the Agreement the County will grant UNC the rights to the landfill gas ("LFG.") generated at the Eubanks Road Landfill. UNC will construct a system to collect, transport, and combust such LFG, initially through flaring and then through electricity generation. In exchange for the LFG rights, UNC will make monthly payments to the County based on a percentage of the heating energy value of LFG that UNC has flared and used to generate electricity. UNC is responsible for all costs and operating responsibilities associated with the LFG Project.