Saturday, November 5, 2011
"October 17, 2011
RE: Reduction on Phase 1 Municipal Solid Waste to Energy Feasibility Study
Dear Mayor Dale:
Mckinstry remains committed to investigating the possibility of implementing a municipal solid waste to energy (MSWTE) facility that will provide sustainable energy and economic development for the City of Nampa and it participating partners.
Per our recent meeting, we have elected not to proceed to Phase 2 of this study, until such time that we can identify additional waste volumes that will make a larger MSWTE plant cost-effective under the recently revised PURPA power purchasing rates as set by Idaho PUC. This investigation into additional waste volumes is being pursued at our expense.
As you know the Phase 1 report, which is now complete was to cost the City of Nampa $100,000 upon completion. However, our technology partner, Dynamis Energy, has volunteered to absorb the costs ($40,000) that they incurred for their portion of the work to develop and implement the Phase 1 Report. The beneficial result to the City is a decease to a total of $60,000. In addition, McKinstry has elected to postpone invoicing the City of Nampa for this amount until we have the opportunity to investigate other waste streams further.
Thank you for your support and commitment to this project. As the ESCO (Energy Service Company) partner to the City of Nampa, we affirm that Nampa is an example for other cities that are looking for innovative and sustainable solution in this new economy-ones that focus on integrated community partnerships and public-private cooperation.
I look forward to many years of rewarding collaboration.
David C. Naccarato
Business Development Manager
Cc: Cliff Long, Director-Nampa Development Corporation
Lloyd Mahaffey, CEO-Dynamis Energy"
The above letter shows Nampa Urban Renewal is on the hook for $60K of Nampa taxpayer money down the drain for the work done by McKinstry. This project is a very fine example of the "RUBBER STAMP" actions of Nampa City Council members.
The only sources of revenue on this project will be what they can get from Idaho Power for the electricity generated and any "Tipping charges" they can collect from waste haulers. Current PURPA reimbursement rates authorized by Idaho PUC are $.06/KWH. Again, it was going to be Urban Renewal issuing REVENUE bonds with no vote of the people as the financing instrument.
We find the lack of DUE DILIGENCE on the part of the people authorizing this study amazing and once again demonstrates it takes no talent to spend other people's money.
Posted by Paul Alldredge at 12:20 PM