solid waste management project wecare organics summary
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Solid Waste Management Project
WeCare Organics SummaryPresented to
Solid Waste Committee of City CouncilTaunton, Massachusetts
April 10, 2012Prepared by
James J. Binder, P.E.Alternative Resources, Inc.
andRodney G. Hoffman, Esq.
Deutsch Williams Brooks DeRensis & Holland, P.C.
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)
WeCare OrganicsProject Description
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Project Description (continued)
Operate Residents Drop-Off Facility, Saturdays, 7 AM-3 PM
Begin Service no later than December 31, 2015
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Sludge Management Single Gasification Unit
Materials Feed and Gasifier Thermal Oxidizer and Heat Exchanger
Modular System (Growth Potential)
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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
Contractor Team
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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.
Contractor Team (cont.)
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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.
Site for Transfer Station/Gasification Project
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Project Benefits 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
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)
Key Costs/Financial Benefits to City
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Key Design Features for Environmental Mitigation
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 , viaI-495 to Bay Street to Myles Standish Industrial Park – No use of Fremont Street
Access to Gasification Facility by City Approved Routes
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Key Design Features for Environmental Mitigation (cont.) 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
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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
Key Design Features for Environmental Mitigation (cont.)
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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
Project Risks/Challenges
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Company Guarantee Construction and Operation Payment and
Performance Bonds (Operational Performance Bonds Limited to $2 Million)
Insurance coverage meets City requirements
Financial Security
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Other Key Contract Provisions
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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
Key Ground Lease Provisions
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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
Key Oversight of Construction Provisions
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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
Key Operations Agreement Provisions
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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
Key General Provisions
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Negotiations/Contract Award
By July1, 2012
Permitting/Design/Construction
By December 2015
Operation
By December 31, 2015
Next Steps/ScheduleTransfer Station/Gasification Project
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