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