Agenda - 12-03-2007-6c - Laserfiche WebLink

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2 The County Manager has considered three current options for development of an LFG project for the Orange County Landfill: • Option 1: Negotiate Exclusively With the University of North Carolina UNC officials expressed a renewed interest in exploration of a LFG project in March of 2006. Those officials have recently reiterated that interest and have met with County staff three times this year. UNC has recently provided a Memorandum of Understanding (attached) requesting that the County enter into an exclusive agreement with the University to discuss and develop a LFG project. It is staff's understanding that UNC wishes to install a gas collection system and flare the gas to obtain the carbon credits initially, and then over time examine a potential gas utilization project. UNC has expressed a desire for a breakeven project, with little or no opportunity for Orange County to receive revenue. It is believed that it could take between 3 and 6 months for UNC to conduct additional feasibility analysis and possible testing and for preliminary negotiations to conclude. It would be critical under this option for both parties to commit and adhere to a precise and expeditious schedule of active negotiations, although it is somewhat uncertain as to the ultimate duration of these negotiations or whether discussions would ultimately be successful. Under Option 1, the BOCC would direct staff to negotiate and execute a Memorandum of Understanding that would provide an exclusive period of time for Orange County and UNC to attempt to develop a more detailed LFG recovery project agreement that would include technical and economic parameters/standards and a timeline. • Option 2: Develop and Issue a Request for Proposals (RFP) Over the past several months, County staff and the County's consultant have been contacted by various firms expressing interest in developing a LFG project at the landfill. The County's consultant has recommended that the County issue a Request for Proposals to determine more specifically the potential for a local LFG project that could possibly provide the County Solid Waste Enterprise Fund with an additional source of revenue and a more immediate gas utilization project that would minimize flaring. UNC would be urged to submit a proposal so that the BOCC could evaluate all substantive development options simultaneously. The County's consultant has indicated that it could have a draft RFP ready for issuance in approximately one-two weeks. Under Option 2, the BOCC would direct staff to develop and issue a Request for Proposals to solicit entities to submit proposals and project economics for development of a LFG recovery project at the Orange County Landfill, including urging UNC to participate. It is expected that such an RFP could be ready to issue within two weeks. Option 3: County Development of LFG Recovery Project Another option for LFG project development would be for Orange County to develop a gas recovery project itself. Staff has not yet requested a more detailed feasibility analysis for this option; however, existing preliminary modeling provides some reasonably reliable data and additional analysis could be promptly completed and presented to the BOCC at the BOCC's January 15, 2008 meeting. Under Option 3, the BOCC would direct staff to perform the necessary additional analysis to provide the technical and economic information on which the BOCC can consider an Orange County funded and managed LFG recovery project