SW-23-0430

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TranscriptWhat was said at each appearance is below it. Machine transcription, with speaker names inferred from voice matching. 100% of 17 lines carry a name. It shows what was said, not what was decided, and both the words and the names can be wrong.

1. 1Sep 5, 2023
   Board of County CommissionersR44Regular businessApproved

   Approved minutes

   Approved Staff’s recommendation.

   Open this item →▶ Play from 1:24:49
   ▶ 1:24:495m

   Jack MarianoChair

   1:24:49So R of forty four? Justin?

   Justin Ressler

   1:24:56Good morning Chairman, members of the board, Justin Ressler, Solid Waste Director. Um item R forty-four is approval of the Waste Energy Design Build Agreement, Contingent Payments Agreement, and Service Agreement for the Waste Energy Expansion and Continued Facility Operation with Covana Pasco Incorporated. The not to exceed price for the design build agreement is $260 million, and the price for the 10-year term of a service agreement is $290 million. an aggregate. So in 2019, the department presented this master plan to the board, and that master plan really focused

   1:25:27on waste and energy and the benefits that it brings for the local community. There are no aesthetic impacts that are associated with the landfill, whether that's birds or odors and smell using a waste and energy facility, and it expends the life of our site, which is really our most valuable resource when you're talking about waste management. So in February of 2020, the board authorized staff to negotiate. With Kobana, these agreements which we have here present to you today. And again, one thing that I want to highlight is that all these agreements fall within the range of our budget plan that we had approved this morning that we set forward

   1:25:57in 2019. So it's a very positive thing. So a little bit about each of the three agreements. We will stay with the same pricing structure that we have with Cobanta until the fourth spoiler, which we're adding, comes on. In 2026. At that point, we're going to get a 6.6% reduction in the overall price of the proton cost. Right? So if you look at what we saved over the term, with that 6.6% reduction, that's over $25 million. We're also going to get a decrease in the amount we pay them

   1:26:27per megawatt of electricity we generated due to some of the issues that we've had with the pricing of our power falling off of the long-term boot deal there. And we will fund some of our capital maintenance out of our CIP repairs, major repairs to the facility as they go on. Well, moving on to the design build agreement as an overall not-to-exceed price of $260 million. One of the things that we try to do to be flexible and keep bringing those costs down is if there's a shared band of funding in there, we require Cabana to detail out all the bids of their major subcontractors, right? So if

   1:26:57they overrun that, they're locked into that $260 million cap. If they underrun it, some of that money can come back to the county. It's a 36-month construction timeline for movie. release the notice to proceed, the commercial operations date, and there's significant financial penalties in there in the event that they're late or that they don't perform up to the standards of the project.

   1:27:18Um one thing I do want to highlight is that I know that grant funding, federal funding has been a big priority board. Happy to announce that we we have found some for this project. So the waste energy plant qualifies as a green energy project under the Inflation Reduction Act, right? And there are certain things that you have to do to qualify for that. So you have to pay prevailing wage during the construction project, and you have to buy domestic materials. And those costs are significant. They're in excessive. of $10 million for a project like this. So what we did is when we worked with Cobana in the negotiations, they guaranteed

   1:27:48to go out and take that risk, put that money up front in exchange for half of the funding that would come back to the county. Right? So what does that mean? It means our net award from 2027, which we've secured with an insurance product will be somewhere on the order of $20 million.

   1:28:06Um, with that, uh make the recommendation that the Board approve the Fourth Amendment Restated Service Agreement, the Design Bill Agreement for Waste Energy Facility Expansion, and the Contingent Payments Agreement between Cobana Pasco and Pasco County.

   Jack MarianoChair

   1:28:18Okay. Just a move approval to have a mo have a motion, second and just a little discussion. Now Justin, this is a phenomenal contract you've negotiated. It's been a long term plan for us to expand this for many, many years for uh all the great re reasons you cited and the extra work you've taken to make sure we're gonna get all the revenues back we can and and negotiate down. I think you've done a phenomenal job with it, so thank you.

   Justin Ressler

   1:28:41I just want to say thank you to Joe Richards and the County Attorney's Office who really did the heavy lifting on this thing getting across the line. So it was a true team effort.

   Mike Carballa

   1:28:47Great, great work. All in favor say aye. Mr. Chad, I just wanted to if if I may if I may, I just want to compliment uh Justin and his team and partners with the County Attorney's Office. This is a complex deal. Yeah. And they come in and they make it look easy, but uh this has been uh four years worth of negotiations, many ups and downs, and there were some parts and times when uh we didn't think we were gonna get there. But hats off too to our partner with Covanta. As well. This is uh truly a team effort, as Justin says, but uh uh my my compliments to to you Justin and the infrastructure

   1:29:17team for getting it here. Yeah,

   Jack MarianoChair

   1:29:19great work, great work team. Commissioner Weightman,

   Seth Weightman

   1:29:23sure, thank you. Just one call. So the new the new power provider that we're working with is Tico. So we

   Justin Ressler

   1:29:29brought an original power purchase agreement to the board, I believe it was early this year, for execution and approval. When that power contract went to the public service commission, it was not approved in its entirety. So we have repackaged that and we're bringing it back to the board at the next meeting. Gotcha. Okay. But we'll be with Tampa Electric if the board passes that. Well we we know we know a guy.

   Jack MarianoChair

   1:29:53All right. All in favor say aye. Aye. Aye. Any opposed? All right. Thank you very much. And miscellaneous business, district one, Commissioner Oakley.