LONG BEACH : Settlement Expected in Refuse Plant Lawsuit

City officials and the builder of a refuse-to-energy plant in Long Beach appear close to resolving a lengthy multimillion-dollar legal dispute.

Pittsburgh-based Dravo Corp., builder of the plant, issued a statement last week that it has agreed in principle to settle the case. Attorneys on both sides declined to elaborate.

Long Beach had filed suit in 1989 against Dravo. Officials contend the city is losing millions of dollars a year because the plant, which has been gobbling up trash since 1988, does not produce as much electricity as it should. Officials said Dravo should pay at least $49 million to compensate for alleged design and construction problems.

Dravo, which filed a countersuit in 1990, claimed Long Beach owes $25 million to $30 million in damages, including what the company said is $17 million in unpaid bills for the construction project.

Long Beach and the Los Angeles County Sanitation Districts issued $172 million in bonds and used the proceeds to build the plant, the Southeast Resource Recovery Facility, on Terminal Island. It was the city’s answer to the problem of scarce landfills. The plant has three incinerators coupled with steam-driven generators. Technicians fired up the first incinerator in July, 1988.

Most of the garbage burned in the plant comes from Long Beach, Lakewood and Signal Hill. But private haulers bring refuse from other cities, including Lomita and Redondo Beach.