"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.
Best regards,
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.
get off the "Rubber Stamp" comment wow. Talk about jumping on a bandwagon and over playing it. It really takes away from the real issue.
ReplyDeleteToo bad the Nampa City Council can't whip out a calculator and do a quick and dirty payback on the project. It takes one heck of a lot of KWH's at 6 cents each to pay back this project in any reasonable time frame.
ReplyDeleteRubber STamp doesn't even begin to describe these folks. Bobble heads dolls could make better business decisions
Reminds me of the 2/C commissioners spending all that money on feasibility studies for a new jail... no jail... but the commissioners have spend thousands of dollars to tell us why we need a new jail and the best way to build it and where to build it.......
ReplyDeleteEditor Note: Rocky Mountain Corrections was the consultant used and they said point blank Canyon County would never be able to build their way out of the need for more jail space. They were critical of who was going to jail for low level offenses if memory serves me well on this matter. Commissioners have since decided to make the TENT a jail and as such they have vacated the 4th floor of the old jail and now using it for storage space.
regards, paul
The intent of that $40K figure leaves certain issues unsettled. I think to myself; gee, what could I buy for $40K.
ReplyDelete