Solid waste management project wecare organics summary

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Solid waste management project wecare organics summary

  1. 1. Presented to Solid Waste Committee of City Council Taunton, Massachusetts April 10, 2012 Prepared by James J. Binder, P.E. Alternative Resources, Inc. and Rodney G. Hoffman, Esq.Deutsch Williams Brooks DeRensis & Holland, P.C.
  2. 2.  1,000 TPD truck/rail haul transfer station for MSW; waste to landfill in Upstate New York outside of Syracuse 115 WTPD (20% solids) Max West gasification facility for WWTP sludge (36,000 TPY) 100-300 TPD regional single-stream MRF, also accept comingled recyclables 100 TPD Resident Drop Off for separated organic waste (e.g., food waste, yard waste) 2
  3. 3.  Operate Residents Drop-Off Facility, Saturdays, 7 AM-3 PM Begin Service no later than December 31, 2015 3
  4. 4.  Single Gasification Unit  Modular System (Growth Potential) Materials Feed and Gasifier Thermal Oxidizer and Heat Exchanger 4
  5. 5.  Contractor: WeCare Organics, LLC Project Guarantors: WeCare Organics, LLC Transfer Station Technology Provider: WeCare Organics, LLC MRF Provider: To be determined Organics Drop-Off Facility: WeCare Organics, LLC Gasification Technology Provider: MaxWest Environmental Systems 5
  6. 6.  Design Engineer: GHD, Inc. Construction Contractor: Blue Heron Construction, LLC Environmental Permitting: GHD, Inc. Facility Operator: WeCare Organics, LLC Arrange Project Debt: JP Morgan Chase; MaxWest Environmental Systems, Inc. 6
  7. 7.  Location Transfer Station – Myles Standish Industrial Park, 745 John Hancock Road Characteristics ◦ Approximately 36 acres; City estimated 10-20 useable acres considering wetlands, 500 ft site assignment setback (WeCare proposing to use 18 acres) ◦ Zoned industrial ◦ Access from major highway (I-495) without passing through residential neighborhoods ◦ Rail served Location Gasification Facility – at WWTP – site size (18,000 sq. ft.); one of three locations to be defined. 7
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  10. 10.  Environmental Benefits from Closure of Existing Landfill, e.g., Truck Traffic, Odor, Noise, Greenhouse Gas Emissions (However, transport to and disposal at Upstate New York landfill) Enhanced Recycling – Single-Stream Recycling Facility; Organics Drop-Off Facility Economic Benefits ◦ Construction Jobs ◦ 30-50 Long-Term O&M Jobs ◦ Host Benefits to Taunton ◦ Economic Stimulus to City and Region 10
  11. 11.  Landfill Benchmark: Free Waste Disposal (~$1.5–2.0 Million) and ~$1 Million Host Fee Outside Waste ($883,073 in FY11) Project: at Financing ◦ Project Development Fund: $0.5 Million ($100,000/year, starting 1/15/13) ◦ Environmental Fund: $0 ◦ Transfer Station Site Lease Payment: 100% City Debt Service (no back payment) ◦ Site Lease Payment at WWTP: $1/year proposed Project: During Facility Operation (Annual Benefit) ◦ Discounted Waste Disposal Costs: $55-60/Ton (Contract Date); Estimated Cost Year 1 is approximately $1,384,000 ◦ Host Fee for Outside Waste (MSW, sludge, organics): (Year 1) $4/Ton; Estimated Benefit Year 1 is approximately $919,000. ◦ NAC: $20,000 (Year 1) ◦ Contract Monitoring Payment: $115,000 (Year 1) ◦ Profit Share: 30% of MRF Gross Profits – Estimate $90,000 (Year 1) Term Extension Benefit – 30% Savings Haul Road Payment (if not extended): $100,000/Year (Years 5-9) 11
  12. 12.  Facilities design to meet or exceed Federal, State and City design, construction, operation and environmental requirements. Buildings to meet LEED standards. Transfer Station, MRF, Organics Drop-Off Site located in Myles Standish Industrial Park, landscaped/buffer from industrial neighbors to be defined Gasification Facility at WWTP Facility aesthetics-architectural treatment to fit with neighboring buildings in industrial park All processes, materials storage enclosed in buildings, structures, except storage baled waste and recycled products Access: Waste delivery to Transfer Station, MRF, Organic Drop Off limited to 7 AM-3 PM Monday-Saturday , via I-495 to Bay Street to Myles Standish Industrial Park – No use of Fremont Street Access to Gasification Facility by City Approved Routes 12
  13. 13.  Odor Control ◦ Covered delivery trucks ◦ Transfer Station-Enclosed, waste delivery/storage in buildings with ventilation and aspiration of baling area, odor control ◦ Gasification Facility-Enclosed, waste delivery/storage in buildings/silos, negative air pressure, odor control ◦ MRF-Enclosed, materials delivery/storage in buildings ◦ Organics Drop Off-Covered containers Noise attenuation: noise controls, equipment in enclosed structures, buildings Shields on outdoor lighting to minimize off-site impacts Rail and truck shipment of transferred waste ; waste moved off site daily if by truck, if by rail, movement is every 2 or 3 days 13
  14. 14.  Minimum process wastewater discharge (to be defined) Reuse of process water to minimize consumptive water use, as reasonably possible (to be defined) Stormwater drainage system to be designed with on-site retention ponds, as reasonably possible (to be defined) Safety and security to meet codes 14
  15. 15.  Risk-Performance of New Technology – Sludge Gasifier Challenges ◦ Waste Acquisition – Long Term ◦ Sale of Recycled Products ◦ Permitting ◦ Financing ◦ Facility Performance City Challenges-Provide Timely Oversight, Review 15
  16. 16.  Company Guarantee Construction and Operation Payment and Performance Bonds (Operational Performance Bonds Limited to $2 Million) Insurance coverage meets City requirements 16
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  18. 18.  Section 2 – Premises – Alec Rich Site, WWTP Site Section 3 – Term ◦ 3.1 Initial Term – 20 years ◦ 3.2 Extension – Three 10-year extensions – mutual consent ◦ 3.3 Early Termination – for failure of financing Section 6 – Surrender on Termination ◦ 6.1 Removal of commercially unusable improvements ◦ 6.2 City option to purchase of facilities Section 20 – Hazardous Materials ◦ City responsible for existing conditions of Alec Rich Site and existing conditions at WWTP Site ◦ WeCare responsible for any new contamination at either site 18
  19. 19.  Section 9.1 – Review of Plans – review but not approval Section 9.4 – Evidence of Construction Funding Section 9.5 – Conditions Precedent to Design; Construction; and Operation Section 9.9 – Acceptance Test & Startup – Appendix 7 Section 9.10 – Performance Guarantee – Appendix 8 19
  20. 20.  Section 8 – Duty Operate, Maintain and Provide Services ◦ Triple-net concept Section 8.6 – Provision of Services ◦ City may delay sending its Acceptable Solid Waste if landfill capacity remains 20
  21. 21.  Section 16 – Defaults and Remedies ◦ For the Agreement to be “financeable”, lenders will have right to receive notice of default and right to sure on behalf of WeCare Section 16.7 – Relief for Uncontrollable Circumstances ◦ Extension of time to perform ◦ WeCare responsible for three years of any increase in City disposal costs Section 20 – Hazardous Materials ◦ City responsible for cost of any existing contamination of Alec Rich Site and WWTP Site 21
  22. 22.  Negotiations/Contract Award By July1, 2012 Permitting/Design/ Construction By December 2015 Operation By December 31, 2015 22

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