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HomeMy WebLinkAboutCOM 0582.000 2004-2006 vv or M Harry Kim c~.~~~~% William Takaba ,Llayor Direcmr • Nancy E. Crawford h~oi~M~ County of Hawaii Finance Department 25 Aupunf Street, Room 118 • Hilq Ilavraii 96720 (808)961-8234 Fax (808)961-8?48 November 25, 2005 Stacy Higa, Chairman, and Members of the Hawaii County Council Hawaii County Council 25 Aupuni Street Hilo, HI 96720 Subject: Solid Waste Keduction Project: RFP Monthly Report At the Environmental Management Committee meeting of October 17, 2005, consultants for the Solid Waste Reduction Project, Rick Sapir (Hawkins Delafield Wood, LLP), Kyle Rhorer IR.W. Beck, Inc.), and David Robichaux (DR Associates), presented a progress report on the development of the Request for Proposal (RFP). The report included handouts and discussion of the following: The Procurement Framework Summary • Ownership and Financing Considerations in Solid Waste Reduction Facilities Implementation • RFP Timeline • EIS Preparation Notice (EISPN) Statement of Project Purpose and Need The purposes of the presentation were: ? To fully inform the Council of the progress being made in the development of the RFP, to answer questions, and explain items that needed clarification; ? To discuss ownership and financing issues that are critical in the solicitation and evaluation processes; Comm. No. ~ ~ Z Ref. To: E~MG €~f. ate-~~ZOOJ Stacy Higa, Chairman Page Two November 25, 2005 ? To obtain feedback from the Council on the direction being taken; and ? To achieve consensus on an RFP framework. We believe that these purposes were accomplished through our meeting. At the end of the presentation, the consultants were asked to provide monthly updates and follow-up presentations when appropriate. Enclosed, please find the Monthly Update as of November 16, 2005. The next follow-up presentation by the consultants will be tentatively scheduled for February 14 (v) 2006. Should you have any questions or concerns, please call Barbara Bell or me. Thank you very much. . tik William Takaba Director cc: Barbara Bell Rick Sapir Kyle Rhorer Enclosure APPROVED: G~ Harry Kim ~ Mayor County of Hawaii Waste Reduction Facility Design-Build-Operate Monthly Update -November l6, 2005 • Waste Reduction Technology Analysis R.W. Beck has completed a first draft of the waste reduction technology summary memo, which is currently under internal review. The document will be submitted to the entire project team for review and comment early in the week of 11/21/2005. • Solicitation Documents R.W. Beck has completed and distributed the outline for the Request for Proposals (RFP) - Stage 1. The outline is currently being reviewed by the project team. R.W. Beck is currently developing the RFP -Stage 1 document. The document is approximately 70% complete and will be distributed to the entire project team for review and comment during the week of 11/21/2005. The RFP -Stage 1 document is based on the recommendations approved by County Council on October 17, 2005. As a recap, these recommendations are outlined below: o General Deal Structure Recommendation: The County intends to enter into along-term (20 to 25 year) Design- Build-Operate service agreement ("DBO Service Contract") with the most qualified integrated team ("DBO Team"). o Procurement Approach Recommendation: The County intends to utilize a "two-stage" procurement process to "short-list" [he most qualified firms prior to seeking technical and pricing proposals. o Technology Limitations /Requirements Recommendation: R.W. Beck to recommend acceptable technologies based upon ongoing technical/cost feasibility considerations. o Level of Demonstrated Effectiveness Recommene/ration: The County intends to require all firms to "adequately demonstrate" the viability and effectiveness of their proposed technical approach by meeting specific minimum qualifications for proven successful application under similar module size and waste composition, including their project experience in [he U.S. and abroad. o Project Financing and Ownership Recommendation: The County intends to utilize the preferred public financing and ownership approach. If the County elects to move forward with less proven technology, private financing and ownership approach would be considered. o Project Residual Value Recommendation: The County intends to ensure its ability to utilize waste reduction facility (residual value) following contract expiration by owning the facility. o Scope of Services Recommendution: Scope of services to include design, construction, long-term operation and maintenance (including all repair and replacements), regulatory permit acquisition and compliance, residue disposal, and monitoring and reporting. Emphasis will be placed on the integration of design and construction with other County solid waste management facilities and processes. o Performance Requirements Recommendation: The County intends to require DBO Team to comply with all applicable laws and permits, contractual guarantees relating to throughput, energy generation, residue quality and yuantity, and other areas designated by the County. o Environmental /Regulatory Permitting and Compliance Recommendation: The County intends to allocate all permit acquisition and compliance responsibility to the DBO Team. However, the County intends to be responsible for all [he permitting and regulatory responsibilities related to the Environmental Impact Statement processes, with exception to any mitigation measures that will be allocated to the DBO Team. o Project Capacity (Short- and Long-Term) Recommendation: The County intends [o require the DBO Team to design and construct the WRF based on a defined throughput identified in the RFP document which takes into consideration anticipated increases in waste flow over the term of the agreement. Operations period throughput guarantees to be structured to correspond to anticipated waste flows during the term. o Project integration with Other Facilities Recommendation: The County must ensure clear allocation of responsibilities among the operators of County solid waste management facilities. o Risk Allocation Recommendation: Risk allocation to be structured in a reasonable and cost effective manner. o Project Schedule Recommendation: The DBO Team to be required to submit a guaranteed schedule (including a firm deadline for completion set by the County). The contract will provide for delay liquidated damages in the even[ the DBO Team fails to meet the schedule. 2 o Selection Process Recommendation: The County intends to require the DBO Teams to meet specific minimum qualifications prior to further consideration in the evaluation of proposals. Should the minimum qualifications be met, the evaluation criteria will include both economic and non-economic factors. o Contract Term Recommendation: The County to set the initial DBO Contract term for 20 years and have a 5-year contract extension at its sole discretion, for a maximum of 25 years. The County intends to retain convenience termination rights throughout the DBO Contract term. o Project Security Recommendation: The County intends to require a separate project guaranty agreement to be signed by the Project Guarantor that will unconditionally guarantee the performance of the W RF project throughout the entire contract term. The County intends to require performance and payment bonds during the construction period. If County elects to move forward with the less proven nature of the technology, an irrevocable standby letter of credit to be considered. o Payment Methodology Recommendation: The County intends to utilize a payment methodology based on an annual service fee that is paid by the County to the DBO Team for processing of a certain quantity and quality of WRF throughput. ¦ Environmental Impact Statement / EISPN The Environmental Impact Statement Preparation Notice is currently under development. R.W. Beck will be providing technical input to Ron Terry and Dave Robichaux via the waste reduction technology summary memo and additional background information regarding the various waste reduction technologies under consideration. • Regulatory Issues The County is currently preparing the documentation for modifying the landfill permit for the Hilo facility. The application is scheduled to be submitted to the Department of Health for review in the next two weeks. Presentations and Workshops Depending on project schedule and County Council availability and/or schedule, a workshop or presentation is being considered by the project team in order to provide the Council with an overview of the RFP -Stage 1 solicitation document. 3 • Project Schedule While intermediate milestones have been slightly adjusted, the overall project remains on schedule. • Action Items and Responsibilities o R.W. Beck to distribute waste reduction technology summary memo early in the week of 11 /21 /2005. o R.W. Beck to distribute RFP -Stage 1 draft during the week of I 1 /21 /2005. 4