Long Beach : Trash Incinerator Takeover Will Avoid Shutdown
To avoid a shutdown of Long Beach’s new trash-burning plant on Terminal Island, the city is taking over the plant from the company that built it.
In the meantime, the city will pursue legal claims against that company, Dravo Corp. of Pittsburgh, which has indicated it intends to sue the city for additional construction and testing costs.
Dravo, insisting it has fulfilled its contract obligations, has also informed the city it will soon pull out of the plant. To keep it running, the City Council and the plant’s governing board Tuesday voted to assume responsibility for the facility and continue the contract with the company that is actually operating the plant, Montenay Pacific Corp.
Using money from a construction escrow account, the city will attempt to finish the repairs it says are necessary to get the plant running the way it is supposed to. Officials also voted to stop any remaining payments on the $107 million plant and to pursue legal claims against Dravo for breach of contract.
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