N Lauderdale Workshop

419 views

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
419
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

N Lauderdale Workshop

  1. 1. Broward Resource Recovery Board Interlocal Agreement<br />North Lauderdale <br />City Commission Workshop December 14, 2010<br />
  2. 2. Sandy Gutner, PE<br />Solid waste management consulting for almost 25 years.<br />Consulting across the US in all aspects of solid waste management<br />Project Manager for the RRB and Broward County from 2003 to 2008.<br />Contract administration and negotiation as Owner’s Representative for 15 large mass burn WTEs in the US (combined capacity > 21,750 tons per day).<br />
  3. 3. DISCUSSION TOPICS<br />Components of District disposal costs<br />Uncertainties associated with Proposed District<br />Possible alternatives<br />
  4. 4. Only discussing this part.<br />OVERVIEW <br />RRB<br />County WRS<br />North Lauderdale<br />
  5. 5. CURRENT DISTRICT TIPPING FEE<br />ILA Cities<br />ILA Cities<br />ILA Cities<br />
  6. 6. WHEELABRATOR SERVICE FEE<br />
  7. 7. OVERVIEW OF KEY RISKS<br />The proposed ILA documents contain many uncertainties.<br />Three of the most significant uncertainties include:<br />District Program expenses and liabilities<br />Service Fee Pass Through Costs<br />Change-in-Law risks<br />The potential exists for disproportionate costs to Contract Communities.<br />Risk allocation include many that are more typical of public ownership.<br />
  8. 8. CURRENT DISTRICT TIPPING FEE<br />$30.17<br />$7.99<br />$99.20<br />$77.02<br />
  9. 9. DISTRICT PROGRAM COSTS AND LIABILITIES<br />
  10. 10. PROGRAM COSTS<br />Proposed Programs <br /><ul><li>Code enforcement
  11. 11. Regional yard waste
  12. 12. Construction and demolition debris
  13. 13. Emergency debris processing and disposal</li></ul>Total Program Costs<br />?????<br />Current District Programs<br /><ul><li>Contract administration
  14. 14. Recycled material processing
  15. 15. Closure and post-closure reserves
  16. 16. Environmental compliance
  17. 17. Public information and education
  18. 18. Household Hazardous Waste
  19. 19. E-waste recycling
  20. 20. Scrap tire removal
  21. 21. Unincorporated collection services
  22. 22. Research and development</li></ul>Approximate Cost $30/ton<br />Approximate Cost $????<br />
  23. 23. DISTRICT PROGRAM UNCERTAINTIES<br />District assets and liabilities not determined.<br />New programs envisioned but costs not determined.<br />Code enforcement costs not estimated.<br />No business plan. Plan of operations to be modified after ILA.<br />As an Independent District, all costs borne by Contract Communities.<br />All costs recovered through tipping fees and charges.<br />
  24. 24. WHEELABRATOR SERVICE FEE<br />Service Fee<br />Adjustments:<br /><ul><li>Inflation
  25. 25. Change-in-Law
  26. 26. Capital
  27. 27. O&M
  28. 28. Lost revenue
  29. 29. Pass through costs</li></ul>Pass Throughs as incurred:<br /><ul><li>Ash monofill expansion
  30. 30. Leachate disposal
  31. 31. Property tax
  32. 32. Non ad valorem</li></li></ul><li>CHANGE-IN-LAW COSTS<br />
  33. 33. CHANGE-IN-LAW RISKS<br />If a capital modification is needed, the District covers about 2/3 of Wheelabrator’s cost.<br />Capital may be financed by Wheelabrator with a 10% return on equity.<br />If Wheelabrator loses revenue due to C-I-L, District must make Wheelabrator whole. (if air emission changes result in lower energy recovery).<br />If operating and maintenance costs increase due to C-I-L improvements, the District must make Wheelabrator whole.<br />If ash can no longer to be used for daily cover at WM landfill, District must make Wheelabrator whole. <br />
  34. 34. MAXIMIMUM SERVICE FEE ADJUSTMENT(Change-in-Law or Force Majeure)<br />Can be adjusted maximum of 10% in any year, or up to 40% combining all prior adjustments over the Service Fee on the Contract Date.<br /> But….<br />Maximum adjustments exclude Pass Through Costs and inflation adjustments.<br />Service Fee was adjusted mid-year (May 2010) by 11.7% due to Energy Adjustment. <br />Another similar adjustment possible before Commencement Date.<br />
  35. 35. MAXIMUM INCREASE(Excludes inflation, Pass Through Costs<br />
  36. 36. TIPPING FEE RANGE-PROPOSED DISTRICT<br />ILA Cities<br />ILA Cities<br />ILA Cities<br />$12 - $30.17<br />$65.19-$140.19<br />$53.19-$110.02<br />
  37. 37. PROPOSED DISTRICT vs. ALTERNATIVE *<br />Cumulative Savings of $58/ton vs. $77.70<br />Cumulative Savings of $58/ton vs. $65.19<br />Assumes $1/ton escalated for HHW, e-waste, etc.<br />* Based on Miramar tonnage<br />
  38. 38. WHAT ARE THE ALTERNATIVES?<br />
  39. 39. WHAT DISPOSAL OPTIONS ARE THERE?<br />Wheelabrator North<br />Wheelabrator South<br />Central Disposal Sanitary Landfill<br />Reuters<br />New facilities to be developed<br />
  40. 40. ALTERNATIVES<br />Wait for situation to evolve.<br />As ILA expiration approaches:<br />Negotiate with Wheelabrator directly<br />Issue RFP for disposal<br />Join with other city(ies)<br />
  41. 41. NEGOTIATE WITH WHEELBRATOR<br />
  42. 42. ISSUE RFP<br />
  43. 43. In its current form, the City would be exposed to many undefined risks and liabilities.<br />The City will have limited control over the risks and liabilities incurred by the District.<br />Deadline is creating artificial urgency. <br />The “signing bonus”, offset by the District’s one-time payment is a fraction of known and unknown risks.<br />RECAP<br />

×