HomeMy WebLinkAboutCOM 0475.003 2004-2006 _ _ _ Today's Discussion...
County of Hawaii
Waste Reduction Facility • Recommendationsforkeyissuesimpactingthe
Design-Build-Operate Procurement development of apublic-private partnership for
the design, construction and long-term operation
Summary of Recommendations of a Waste Reduction Facility
October 17, 2005
Rick Sapir-Hawkins, Delafield 8 Wood LLP
Kyle Rhorer-R.W. Beck, Inc.
~~lAuii~~e~~._
General Deal Structure Procurement Approach
• Recommendation: Recommendation:
-Enter into along-term (20 to 25 year) Design-Build- - Utilize a two-stage procurement process to "shon-
Operate service agreement with the most qualified list" the most qualifed companies prior to evaluating
team for the design, construction and long-term technical and pdcirg proposals
operation and maintenance of the Waste Reduction
Facility
7echnolo9V Limitations f Requirements ~Lev_el of Demonstrated Effectiveness
• Recommendation: Recommendation:
- Identrfy "acceptable" waste reduction technologies -Require companies to demonstrate the effectiveness
based on technical and cost feasibility considerations of their technical approach by meeting specifc
- Require companies to propose only those minimum qualifications
technologies deemed "acceptable" -Require proven project experience in the U. S. or
abroad
• Simtlar module size and throughput
• SimAarwaste composition
Comm. No. ~~S • 3
Ref. To: ProsoM4 INfrfi
Reif. Uate
Project Fina~?cing and Ownership Project Residual Value
• Recommendation: Recommendation:
- Utilize a public financing and ownership approach -Utilize the Waste Reduction Facility residual value
- Should the County elect to move forward with less following contract expiration by owning the facility
proven technology, private financing and ownership
approach should be considered
Scope of Services Performance Requirements
• Recommendation: Recommendation:
-Require the Company to provide the folowing services: -The Company will compty with.
• Design • All applicable laws and permits
• ConsWClion • Contractual guarentees relating to waste stream
• Lag~lerm operation and maintenance quantities, energy generation, residue quality antl
• Repair and replacement quantity, and other areas desgnated by the County
• Regulatory permit acgwsdion and compliance
• Residue disposal
• Monitoring and repoding
Environmental/Regulatory Permitting and Protect CC~acity_~ort• and Long-Term)
Compliance
• Recommendation: Recommendation:
-Allocate all permit acquisition, compliance and -Require the Company to design and construct the fadlity
mitigation responsibilities to the Company based on a defined East Hawai i waste stream
- Retain responsibility for the Environmental Impact -Waste processing guarantees will correspond with
Statement processes anticipated waste streams over lime
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Project Inte ration with Other Facilities Project Schedule
• Recommendation: Recommendation:
-Integrate design and construction with aN County facilities -Require the Compamy to meet a deadline for completion
and processes set by the County
- Establish clear allocation of responsibilities among the -Contractually provide for delay liquidated damages in the
operators of all County facilities and processes event the Company fails to meet the schedule
- Consider including components of Sort Station Complex
operations and maintenance in the conlrad
Selection Process Contract Term
Recommendation: Recommendation:
-First, require the Company to meet minimum -Set the contract term for 20 years with one 5-year contract
quaycations for: extension, for a maximum of 25 years
• Project operatwns and permitting experience
• Financial viability and sWvency -Retain convenience termination dghts throughout the
- Then, use spedfic evaluation criteria for companies who contract term
met minimum qualifcations
• Lifecyde cost rxtmpetitiveness
• Effectiveness and suitability of technical approach
• Prolecl team capability
~Proiect_Securi _ Pa ment Methodology
• Recommendation: Recommendation:
-Require unconditional guarantee for pedormance of the - Require an annual service fee paid by the County to the
project Company
- Require construction period secunty -Base the service fee on the processing of a defined
• Pedommance and paymem rands quantity and quality of waste stream
- Require operations period security
• Performance bonds I letlers of credi!
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Questions and Answers
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