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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.
   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
   Operate Residents Drop-Off
    Facility, Saturdays, 7 AM-3 PM
   Begin Service no later than December 31, 2015




                                                    3
   Single Gasification Unit           Modular System (Growth
                                        Potential)




      Materials Feed and Gasifier   Thermal Oxidizer and Heat Exchanger


                                                                          4
   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
   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
   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
8
9
   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
   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
   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
   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
   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
   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
   Company Guarantee
   Construction and Operation Payment and
    Performance Bonds (Operational Performance
    Bonds Limited to $2 Million)
   Insurance coverage meets City requirements




                                                 16
17
   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
   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
   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
   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
   Negotiations/Contract Award   By July1, 2012

   Permitting/Design/
    Construction              By December 2015

   Operation             By December 31, 2015




                                               22

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Solid waste management project wecare organics summary

  • 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. 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. Operate Residents Drop-Off Facility, Saturdays, 7 AM-3 PM  Begin Service no later than December 31, 2015 3
  • 4. Single Gasification Unit  Modular System (Growth Potential) Materials Feed and Gasifier Thermal Oxidizer and Heat Exchanger 4
  • 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. 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. 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
  • 8. 8
  • 9. 9
  • 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. 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. 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. 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. 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. 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. Company Guarantee  Construction and Operation Payment and Performance Bonds (Operational Performance Bonds Limited to $2 Million)  Insurance coverage meets City requirements 16
  • 17. 17
  • 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. 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. 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. 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. Negotiations/Contract Award By July1, 2012  Permitting/Design/ Construction By December 2015  Operation By December 31, 2015 22