The URL can be used to link to this page

Home My WebLink AboutCOM 1062.007 2006-2008 County of Hawai' i Waste Reduction Facility Design-Build-Operate Procurement Project Summary March 11, 2008 A l Toda 's Discussion... • General Recap of Project • Discussion of Technology • Service Contract Summary • Project Costs • Questions and Answers Comm. No. I0I t 17 Ref. To: Ref. Dote MAR 11 20h8 1 General Recap of Project Statement of Pr iect Purpose and Need • Due to the eventual closure of the South Hilo Sanitary Landfill, the County of Hawaii requires a method of long- term disposal of East Hawaii solid waste. That method should. - Provide reliable, cost-effective waste disposal using commercially proven technologies. - Maximize island self-sufficiency and sustainability by the beneficial utilization of waste to energy, soil amendments and/or reused materials. - Minimize social and environmental impacts. 2 General Recap • Identified County Objectives • Defined Acceptable Technologies • Issued Stage 1 RFP and Addenda • Received Stage 1 Proposals • Evaluation Committee and Consultants Conducted Evaluation • Evaluation Committee Short-listed three firms: - Covanta Energy Group (Waste-to-Energy) - Wheelabrator Technologies (Waste-to-Energy) - L-Con Constructors (Waste-to-Energy) General Recap • Solicited and Incorporated Comments from Short-listed Firms on DRAFT Stage 2 RFP • Issued Stage 2 RFP on October 16, 2006 • Two Proposals Received on April 16, 2007 - Wheelabrator Technologies, Inc. - Covanta Energy Services, Inc. • Proposal Submitted by Covanta was Incomplete and Non- Responsive based on Stage 2 RFP Requirements 3 General Recap • Evaluation Committee, R. W. Beck, Inc. and Hawkins Delafield & Wood LLP Conducted Evaluation of Wheelabrator Proposal - Qualifications and Experience - Technical Approach - Business and Contractual Considerations - Cost Proposal • County Council Authorized Staff and Consultants to Commence Negotiations with Wheelabrator and Solicit Best and Final Offer Discussion of Technology 4 Wheelabrator Experience and Qualifications • Owns and operates 16 waste-to-energy facilities • Over 30 years of operating experience • Serves more than 500 municipal customers • 21,340 tons per day = 609 MW of renewable electricity • Renewable energy to meet the needs of 600, 000 homes • Owns and operates 5 other renewable energy facilities - 227 MW Waste-to-Ener Technology Overview • Manages MSW remaining after recycling -as delivered • Reduces waste volume by over 90% • MSW management process fully enclosed 5 Waste-to-Ener Technology Overview affray dfra, / fabric Mar 6 recoWft area fca; PR "aaa The Waste Reduction Facility Provides More than Disposal • Proven technology - clean, reliable, renewable energy • Reduces: - greenhouse gases - dependence on fossil/foreign fuels - land disposal- preserving open spaces - truck traffic • Complements recycling and sustainability goals • Potential beneficial use of residue • Additional community services - assured destruction: - off-spec and out of date products - confidential documents and records - illegal contraband - certain hospital products 6 Service Contract Summary Service Contract Summary • Full Service - Design, Build, Operate and Maintain • Company- Wholly-owned Subsidiary of Wheelabrator Technologies, Inc. • Guarantor- Waste Management, inc. • Operations Term - 20 years + Optional 5-year renewal Significant County Responsibilities • Provide Site • Lead Agency for EIS Process • Negotiate Power Purchase Agreement with HELCO • Finance and Pay Design-Build Price • Deliver 85, 000 Tons per Year of Processible Waste to Facility Significant County Responsibilities • Pay Service Fee During Operations Period - Guaranteed Operating Fee - Pass-through Costs - Energy Revenue Credit @ $0.15 per kWh • Provide Residue Disposal Site 8 Significant Company Responsibilities • Fund and Implement EIS Process and Assist with Power Purchase Agreement Negotiations (up to $1 M including $250K of related County costs) • Provide Refined Design-Build Price (180 days) • Prepare Environmental Analysis Report • Obtain Government Approvals (Air and Solid Waste Permits) Si nificant Company Responsibilities • Design and Construct Facility in Accordance with Contract Standards • Start-up and Pass Acceptance Test Before Scheduled Acceptance Date • Operate and Maintain Facility in Accordance with Contract Standards 9 Performance Guarantees • Electricity Production Guarantee • Throughput Guarantee • Environmental Guarantee • Residue Guarantee Security • Parent Company- Significant Liability Assumption - $10M LOC if Credit Rating Declines • Payment and Performance Bond • Insurance Requirements • $2,000,000 Operating Period Letter of Credit r 10 County Termination Rights • Initial Development Period - County right to terminate upon receipt of refined DB Price • No Payment Obligation - County right to terminate following receipt of Environmental Analysis Report • No Payment Obligation - County right to terminate due to reduction in electricity price • No Payment Obligation (except for costs, if any, above $1M) - County right to terminate due to new significant environmental finding not addressed in the Environmental Analysis Report No Payment Obligation (except for costs, if any, above $1M) County Termination Rights • Development Period - County right to terminate at any time for any other reason Payment of Company costs incurred to-date • Operating Period - County right to terminate at any time for any reason • Payment of Termination Fee ($3.OM declining monthly) • Termination at any Time due to Company Event of Default I1 Pro•ect Costs Pro•ect Costs • Facility Capital Cost: $125,485,000 • Operating Fee (Year 1): $ 7,129, 685 • Ash Disposal: $ 986,000 • Passthrough Costs (Year 1): $ 1,829,969 - Chemicals - Insurance - Water - Propane - Electricity (WRF off-line) - Non-Processible Waste - Taxes 12 Proiect Costs • Best and Final Offer - 2008 Dollars - Debt Service on bonds $101 - Operating Fee to Wheelabrator $ 84 - Pass-through costs $ 21 - Ash disposal $ 10 - Revenue - electricity sales - 81 Total cost per ton 135 Based on 85,000 tons per year Questions and Answers 13