monmouth county reclamation center stop hauling that ... · disposal to regional potw via tanker...
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Building lifetime relationships
with our clients and employees.
Monmouth County Reclamation Center
Stop Hauling that Leachate! From Concept to Operation Leachate Management
Wednesday May 6, 2015
Rick Sapir Hawkins Delafield & Wood LLP
Arie Kremen Cornerstone Environmental
MCRC Brief
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• 52 municipalities or over 630,000 population (2013)
• Permitted capacity: 1,350 ton/day (balefill)
• Air space capacity through 2018
• MCRC services:
• Material Processing and Recovery Facility (3,500 tpd)
• 2 LFGTE plants, totaling 12 MW
• Truckwash Facility
• Household Hazardous Waste
• Residence Convenience Center
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Monmouth County Reclamation Center
Phase I
Phase II
Phase III
Lateral
Expansion
Valley
Fill
500,000 gal Storage
Tanker Loading Dock
150,000 gpd
Leachate Treatment
Leachate Management
• Until 1994, direct discharge to POTW, up to 100,000 gpd
• Treatment process: Trickling Filters
• Discontinued after leachate implicated process upset
• SIU permit still current, but air-gap connection in place
• Disposal to regional treatment facilities by tankers
• Disposal cost increased over the years: $0.08/gal
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• 10,350 trucks, approx. 30 trucks per day
• 67.3 million gallons, equiv. 184,000 gpd
• $4.76 million, $13,000 per day
2010 Leachate Disposal Summary
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Landfill Acreage
(ac)
Leachate
(%)
Phase I 54 20%
Phase II 103 35%
Phase III 95 45%
Total 252 100%
Feasibility Study (2010)
• Existing practice is not sustainable
• Tasked to evaluate all options:
1. Disposal to regional POTW via tanker trucks
2. Treatment, onsite effluent discharge
3. Pre-treatment, effluent discharge to POTW via sewer
• Recommendations
• Onsite pre-treatment, maximizes potential for cost savings
• ‘Conventional’ continuous flow processes
• Limited area available for treatment facility
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COUNTY’S OBJECTIVES
Reduce Cost of Leachate Disposal
Treat Leachate On-Site
Eliminate/Reduce Truck Traffic
Design/Build/Operate (DBO):
Partner with Industry Expert
Obtain Long-Term Pricing and Performance
Guarantees that are Financially Secured
Transfer Risk
11
PROCUREMENT PROCESS
RFP Issued Pursuant to New Jersey Wastewater
Treatment Public Private Contracting Act (the “Act”)
Act allows for procurement of aggregated services
and long-term contract with private company for
wastewater treatment services
Act also provides for selection on factors in addition
to price and allows negotiation
12
Material RFP Considerations
Draft Service Agreement
Performance Guarantees
Term
Security for Performance
Minimum Experience Requirements
Evaluation Factors/Weighting
Cost Proposal Structure
IRS Rev. Proc. 97-13 Compliance
13
Material RFP Consideration (cont’d)
• Promote creativity, flexibility, and cost-competitiveness
• Demonstrated capability to meet performance criteria
• Permit-ability
• Prohibited Technologies
• Trickling Filters
• Sequential Batch Reactor (SBR)
• Powdered Activated Carbon Treatment (PACT)
• Aerated Lagoons
• Constructed Wetlands
• Pilots, research facilities
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Design Capacity
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000
Pro
bab
ilit
y
Leachate Flow Rate (gallons per day)
De
sig
n F
low
Ra
te
Leachate Characterization
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0
1
10
100
1,000
10,000
100,000
BOD COD TOC NH4-N TKN TDS TSS ALK pH Fe
mg/l
Selected Leachate Quality Parameters
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Parameter Units RANGE
(10 – 90 Percentile)
Maximum
97.5
Percentile
Ammonia, as Nitrogen ppm 480.0 - 1,390.0 1,730.0
Biochemical Oxygen Demand ppm 1,180.0 - 2,540.0 5,450.0
Total Suspended Solids ppm 120.0 - 330.0 4,070.0
Cadmium ppm ND
Copper ppm 0.0 - 0.7 2.7
Cyanide ppm ND
Lead ppm 0.0 - 1.0 4.0
Magnesium ppm 80.0 - 100.0 110.0
Mercury ppm <PQL 0.0
Nickel ppm 0.3
Silver ppm 1.0 - 3.0 4.0
Zinc ppm 0.2 - 0.4 17.4
Petrol Hydrocarbons ppm ND
Permit Limits
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Parameter Units RANGE
(10 – 90 Percentile)
Maximum
97.5
Percentile
SIU Permit
Monthly
Average
Daily
Maximum
Ammonia, as Nitrogen ppm 480.0 - 1,390.0 1,730.0 REPORT REPORT
Biochemical Oxygen Demand ppm 1,180.0 - 2,540.0 5,450.0 744.0 REPORT
Total Suspended Solids ppm 120.0 - 330.0 4,070.0 597.0 REPORT
Cadmium ppm ND REPORT 10.5
Copper ppm 0.0 - 0.7 2.7 REPORT 10.9
Cyanide ppm ND REPORT 0.9
Lead ppm 0.0 - 1.0 4.0 REPORT 1.6
Magnesium ppm 80.0 - 100.0 110.0
Mercury ppm <PQL 0.0 REPORT 1.0
Nickel ppm 0.3 REPORT 10.2
Silver ppm 1.0 - 3.0 4.0 REPORT 2.8
Zinc ppm 0.2 - 0.4 17.4 REPORT 2.1
Petrol Hydrocarbons ppm ND 100 150
SIU Permit, existing:
• 100,000 gpd Leachate
RFP Discharge Limits
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Parameter Units
Provisional
Discharge Limits
Daily Maximum
Existing SIU Permit
Monthly Average Daily Maximum
Ammonia, as Nitrogen ppm 25 Report Report
Total Kjeldahl Nitrogen ppm 75 --- ---
Biochemical Oxygen Demand ppm 225 744 Report
Chemical Oxygen Demand ppm 700-1,200 --- ---
Total Suspended Solids ppm 300 597 Report
Cadmium ppm 0.1 Report 10.5
Chromium ppm 0.1 --- ---
Copper ppm 0.1 Report 10.9
Lead ppm 0.1 Report 1.6
Mercury ppm 0.001 Report 1.0
Nickel ppm 0.1 Report 10.2
Zinc ppm 0.2 Report 2.1
Petroleum Hydrocarbons ppm 100 100 150
SIU Permit Modification:
• 150,000 gpd Leachate
• 15,000 gpd Sanitary Wastewater
Post-Proposal Process
Proposals Received May 2011:
Natural Systems Utilities (Affiliate of Applied
Water Management)
Veolia
Clarification and Evaluation
Significant Factors
Experience
Business
20
Significant Factors (cont’d)
Technical Approach
• Aerobic biological treatment
• Metal Precipitation
Cost
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Veolia NSU
Gravity Clarification Membrane Separation
Concrete Process Tankage Stainless Steel Bio-reactors
NSU Veolia Trucking
Fixed Fee $7,914,459 $15,260,000
Annual Service Fee $1,487,170 $840,489
15-year NPV $36,900,000 $44,800,000 $78,200,000
20-year NPV $45,800,000 $57,200,000 $102,700,000
Schedule of Values
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NSU Fixed Fee: $7,914,500
Veolia Fixed Fee: $15,260,000
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 6 12 18 24 30
Months from Contract Execution
Unit Cost Comparison
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NSU
Veolia Trucking
$0.000
$0.020
$0.040
$0.060
$0.080
$0.100
$0.120
$0.140
2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060
Un
it C
os
t ($
/gp
d)
20-year Contract Period
Post-Proposal Process (cont’d)
Selection, Negotiation and Pilot Testing
Public Hearing and Public Comment Period
Regulatory Approval of Contract
24
SERVICE CONTRACT
COMPREHENSIVE SCOPE OF SERVICES
Design, Permit, Build, Operate, Maintain and Manage a
Leachate Pretreatment Facility at the Monmouth
County Reclamation Center
TERM
15 Years
Renewal Option for one additional 5-Year Term at
County’s sole discretion
COUNTY OWNED AND FINANCED
< 3% Debt Financing
25
SECURITY FOR PERFORMANCE
Performance and Payment Bond Equal to
Fixed Design-Build Price
Retainage Until Acceptance
Operations Performance Bond Equal to Annual
Service Fee
Required Insurance
Guaranty from Middlesex Water Company
26
DELAY LIQUIDATED DAMAGES
AND EARLY COMPLETION BONUS
Failure to Meet Scheduled Acceptance Date:
Company Must Pay $4,000 Per Day For
Each Day Of Delay, Unless Excused By
Uncontrollable Circumstances
Early Completion Bonus:
Company Eligible to Receive Early
Completion Bonus of $3,000 Per Day
(Maximum of $100,000) if Acceptance Date
Occurs 11 or More Days Before Scheduled
Acceptance Date 30
COUNTY DESIGN-BUILD PERIOD
RESPONSIBILITIES
Payment of Fixed Design-Build Price
= $7,914,459.12 Based Upon Schedule of Values
Subject to Maximum Drawdown Schedule
Subject to Retainage
Review Design Submittals for
Compliance with Contract
Requirements
34
KEY COMPANY PERFORMANCE
GUARANTEES
PRETREATED LEACHATE GUARANTEE –
Operate Managed Assets on continuous 24-hour per day,
7-day per week basis so as to receive and treat all Raw
Leachate and discharge Pretreated Leachate up to
design capacity (150,000 GPD) in accordance with
effluent quality requirements
EFFLUENT QUALITY REQUIREMENTS – Both
Contractual and Regulatory
36
ODOR GUARANTEE
Company must comply with odor limits
imposed by Applicable Law and the Odor
Control Standards set forth in the Service
Contract
Issues Associated with Differentiating
Odors from Leachate Treatment Plant vs.
Landfill
37
ENVIRONMENTAL GUARANTEE
Assure that Managed Assets meet
all requirements of Applicable Law
with respect to noise control,
fugitive dust, traffic, litter, lighting,
vectors and other potentially
adverse environmental effects
38
MAINTENANCE, REPAIR AND
REPLACEMENT
Company must perform all normal and ordinary
predictive, preventive and corrective maintenance of
the Facility
The Company must also perform all major
maintenance, repairs and replacement of the Facility
Mechanisms to ensure compliance with
maintenance obligations:
MR&R Schedule
Inspections
Recordkeeping Requirements (CMMS)
End of Term Obligations
39
COUNTY OPERATIONS PERIOD
OBLIGATIONS Fixed Design Build Price = $7,914,459.12
Annual Base Operation Fee = $1,457,170
140,000 GPD / Excess Fee
Operation Fee Subject to Annual Escalation
(CPI)
Electricity and Gas (Up to Guaranteed
Maximum Utilization Levels)
40
OBJECTIVES ACCOMPLISHED
Significant Reduction in Costs
Elimination of Price Volatility Associated with
Hauling and Off-Site Disposal
Significant Reduction in Truck Traffic and Air
Pollution
Partnership with Industry Expert
Long-Term Pricing and Performance
Guarantees with Appropriate Security
Significant Risk Transfer
42
PROJECT STATUS
Final Engineering Design Complete
Treatment Works Approval Received
SIU Permit Received
Construction Permits Received
Construction began October 2013
Zero Pricing Change Orders to Date
Completion prior to December 2015
43
Selected Process
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Leachate
Storage
Bio-
reactor
Bio-
reactor
Ultrafiltration
Ultrafiltration
Lamella
Clarifier
Filte
r F
ilter
PO
TW
Fro
m
Landfills
Centrifuge
Return Activated Sludge
Return Activated Sludge
Waste Activated Sludge
To
Landfill
Floccing Agent
Truck
Haul-out
Regional
POTW
Plant Forward Flow: 150,000 gpd
Dewatered Sludge: 14,500 lb/day
Groundbreaking Ceremony
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Source:
Monmouth County, Department of Public Information & Tourism, Oct 25, 2013
Twin Bioreactors
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UF Filtration Unit
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Typical Membrane Module
Lamella-type Clarifier
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Sludge Dewatering
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QUESTIONS OR COMMENTS
52
Rick Sapir Hawkins Delafield & Wood LLP
973-642-1188
Arie Kremen Cornerstone Environmental
845-695-2013