Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Solid Waste And Energy topic
No spam. Unsubscribe anytime.
Waste‑to‑energy retrofit nears completion; city reports under‑budget delivery and improved long‑term economics
Summary
City staff reported the Waste‑to‑Energy retrofit reached substantial completion in January, the project came in under the $99.93 million budget, key systems were upgraded (ash building, water circulation piping), and long-term operating comparisons indicate city operation is less costly than prior contract operator proposals.
Deputy Infrastructure Administrator Brad Baird and Solid Waste Director Larry Washington briefed council on the Bay Waste‑to‑Energy Facility retrofit and operations. Baird said the construction retrofit reached substantial completion on Jan. 7, 2025 and that the program’s combined guaranteed maximum prices totaled $99,931,279. He reported the construction contract came in under that combined budget and estimated final negotiations would leave a final number near $98.99 million, with contingency funds available to directly purchase transformers.
Baird described two major scope changes discovered during the planning/execution phase: the ash-handling building was found to be beyond repair and was replaced in full rather than patched; and the underground water-circulation pipeline had substantially more deterioration and more conduit than originally documented so staff installed an above‑ground, oversized conveyance to ensure reliability. Baird said both decisions raised costs but were pursued because they increased the facility’s resilience, particularly given recent storms.
Staff provided comparative financial context: earlier feasibility work had shown a multi‑year capital program that ranged from $61 million (over 11 years) to $152 million (cash-funded over 30 years). The city consolidated work into a one‑year retrofit and trimmed the program to roughly $99.9 million; staff reported the consolidation and competitive procurement produced relatively modest escalation versus earlier internal estimates.
On operations, staff said 2023 operating expenses were about $25.1 million with waste‑to‑energy revenues of about $16.8 million (electrical revenue ~$15.3 million). Staff estimated continuing annual operating expenses in the mid‑$20 million range and projected electrical revenues of roughly $12–12.4 million in 2025–26 as existing contracts roll off. Crucially, staff reported that if the plant had been unavailable and all refuse had to go to the county landfill, hauling and disposal costs would have been roughly $40 million a year — staff noted that avoided landfill costs were a key part of the retrofit business case and implied a very short payback for the capital investment when avoided disposal costs and continued electricity sales are considered.
Solid Waste Director Larry Washington said there is not an immediate capacity problem; the plant burns roughly 300,000 tons per year and staff believe future recycling and composting efforts will keep growth manageable for at least 10–30 years. Washington and Baird said the city’s decision to operate the facility rather than remain solely a contract operator was justified by modeled operating savings across multi‑year timeframes.
