Title
Contract Amendment with Ameresco, Inc. for SR85 Landfill Gas Processing (Ordinance S-49261)
Description
Request to authorize the City Manager, or his designee, to amend Contract 153826, Ameresco, Inc. (Ameresco), or its City-approved designee for landfill gas-to-energy development. Further request authorization for the City Treasurer to accept, and for the City Controller to disburse, all funds related to this item.
Report
Summary
Landfill gas has been collected at the SR85 Landfill since 2006. Under this agreement, Ameresco will take the gas collected at the landfill, convert it to energy and sell it. Ameresco will return to the City a percentage of gross revenue derived from sales. Actual revenues will depend on a number of factors, including landfill gas quantity and quality, processing costs and market conditions.
By amending this agreement, the City agrees to share 20 percent of costs associated for a one-time design and installation of vertical wells for the third liquids return line, and Ameresco, Inc. agrees to cover the remaining 80 percent. This cost share arrangement is consistent with the revenue share. The City’s 20 percent share of costs would be deducted annually from the landfill gas payments, which are expected to be higher as a result of the installation of these additional landfill gas collection wells. The City will not be providing any upfront costs and Ameresco, Inc. will be responsible for the work completion.
Contract Term
The initial contract term is 20 years, with five two-year options, which may be exercised by the City Manager or his designee.
Financial Impact
There is no cost to the City for this agreement. The City’s 20 percent share of costs would be deducted annually from the landfill gas payments. The City will not be providing any upfront costs and Ameresco, Inc. will be responsible for the work completion.
Concurrence/Previous Council Action
Contract 153826 was approved by City Council on July 6, 2017 (Ordinance S-43776).
Location
The SR85 Landfill is located at 28361 W. Patterson Road, Buckeye, Ariz.
Council District: Out of City
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.