The URL can be used to link to this page

Home My WebLink AboutCOM 0227.000 1998-2000 SUNRISE W.E.S.T. Waste Elimination Systems Technologies , , t. FOR IMMEDIATE RELEASE: CONTACT: Peter E. Martin Phone: (808) 326-7859 FAX: (808) 331-1969 E-Mail: pmartinCcilkona.net A Cleaner Future for the County (Hilo -March 8, 1999) If a clean and less costly alternative to Iandfilling really does exist, why haven't the people of Hawaii heard about it before now? The answer, according to representatives of a young Hawaiian company introducing itself to the County Council today, is that advancing technology has only recently made this process economically feasible. SUNRISE W.E.S.T. (Waste Elimination Systems Technologies), based in Kailua- Kona, presented plans to transform the majority of household trash, sewage sludge, and agricultural wastes into clean, useful organic materials. Under the proposal, the expensive and hazardous practice of trucking trash and sewage sludge to our rapidly filling landfill sites would be replaced by a system similar to but more advanced than plants now operating throughout Europe and the world, including the U.S.A. Besides offering an environmentally responsible solution to the current landfill closure crisis, any altemative must be bottom line oriented, according to Peter E. Martin of SUNRISE W.E.S.T. "What we are proposing is not entirely new," Martin said. °In fact, the natural processes it harnesses have been perfected by Mother Nature over the course of about four billion years. What is new is that our recent advances in systems technologies have brought the price tag down to very competitive levels.° - more - Comm. No. File No. ~ E F Ref. To: ~~f~ ~ rt. ~NPC Ref. Date 3- 8"99 "Fortunately, the drop in price for this technology coincides with our impending landfill crisis here on the Big Island,° Martin said. "It was to make the needed connection between the two that our company was formed.° Also representing SUNRISE W.E.S.T., Drew Martin presented data indicating overall costs approximately 16°~ lower than the long haul option, before the related long term costs of landfilling are even considered. He told the Council that besides having virtually no environmental impact, the process is highly efficient, converting waste materials into valuable products such as high-grade fertilizer and clean burning fuel gas. In addition, according to Drew Martin, the lifespan of existing landfills would be extended, thereby deferring the high cost of closing them and opening new ones. "The waste stream flow (into landfills) would be reduced to a small fraction of current levels," Drew Martin said. "Most people dislike the idea of `throwing it all away' and trashing the landscape in the process. "Until recently, certain traditional waste disposal options were billed as inexpensive based solely on overhead costs,° Drew Martin said. "Environmentally unfriendly methods such as incineration and land and sea dumping were considered cheap and easy. Nowadays, however, the true costs of such quick fixes are more often being honestly assessed. "Long term costs like damage to the atmosphere and groundwater, and the destruction and permanent loss of huge tracts of land are being factored into the price of waste disposal, as they should be,° he said. "A system that causes no damage to the environment and costs less to operate may sound too good to be true, but fortunately for all of us, that is no longer the case.° -30- - • 41 I -( - ✓ " ' It \\NN [4:4 4 1v d _ r`\ I `\� \ . - J ay ` c"*"." 4.43 r: \ �� ) \ \ 1 ` � f' 1 \ d am ; ti � s « N K \ .� Rye N V W o CL `�� 1--± ! h z • Js fi $ - �� w i L> 7 : }. 4 t Iii w — ` I '� . r., M r, / , _ r r ♦ " "� �, i 'Ns ` � S 3-levyrivA „I � r ti • �� - - - -- ( $9156'M 76f4aNY QNd $�1SHM N93?I'J of `.fir \ 7-- .''LC\ • n o Zia. 1 . \ 1 _ � X1 ' `i ° ! Li HS • 1 ' a , a'70H351OH I Va tra i l,' :,. y \ \ ¢ Q Z ill p 4 • ` t, d` - , , t jf lf Z � • 4.? f G r4 _ _ , _l iI . 741:,44' vim..... b - ' ' f I�77+ y° .. 0.g F %, ; a7 _ r 1 U. ` - S Fr I T ��s . .v C w , A,- , , , , ,, t , ! J +j1 <4 � .." ., . SUNRISE W.E.S.T. Officers Peter E. Martin Drew Martin Kevin McCormick Researcher Postmaster President/Founder Recycle Hawaii West Jefferson, NC McCormick Advisory Group, a contract management firm Operations Director Communications Manager McCormick Advisory Group South Jersey Division Laconia, NH US Postal Service Twenty years experience: Finance, company startups, Founder/ President Communications Manager Real estate development, Professional Pilots Alliance San Jose Division Association management, Laconia, NH US Postal Service & Contract negotiations. Captain Editor Organizer/Manager of four Delta Airlines Video Writer/ Producer/ independent labor unions Director, Media Spokesman US Postal Service Selectman South Hampton, NH News Bureau Chief, Contract economics News Reporter, Editor specialist Captain, USAF WKFT-TV40 Raleigh, NC BA BA Cum Laude BS in Accounting Washington State Winthrop (University) Bentley College University Rock Hill, SC Waltham, MA Pullman, WA MuniciH.,l Solid Waste, County Of Hawaii, DPW Revenues/Expenditures/Assets Fiscal Year 1997/1998 Source O£ Revenues For Municipal Solid Waste: Tax Source Fee Source Transfer From Gen. Fund: $ 6,750,000 Indirect Funding: Less Current Year Em~ipment $ 1,838,356 State Grants: Used Oil Collection S $ 12,500 Glass Recycling Program $ 216,000 Landfill Tippinq Fees: $ 2,374,766 Landfill Permit Fees: $ 10,175 Miscellaneous: $ 346 Vehicle Disposal Fund: Licenses & Permits $ 467,692 Touring Charges $ 266 Vehicle Storage Fees $ 619 Revenues $ 8,588,356 $ 3,082,364 Total Revenues $11,670,720 Total Haraii County MSW Costs 1997/1998: Solid Waste Division Expenditures: $ 9,041,042 (Less Equipment) All County Department Allocations To MSW: $ 610,171 Capital Costs: $ 1,289,240 Annual Depreciation Of Asset: $ 555,267 Back-End Costs: ~s~ (Landfill) $ 175,000 Total Costs $11,670,720 Created By Recycle Hawaii Page 1 03/06/99 Solid Waste Division Expenditures: Landfill/Transfer Station Labor t3~ $ 1,545,258 Landfill/Transfer Station Operations $ 5,562 033 Landfill/Transfer Station Equipment * ($592,069) $ ~ 0 Recycling Programs $ 320,985 Glass Recycling Program $ 213,374 Vehicle Disposal Fund $ 675,394 Interdepartmental Charges $ 554,036 Miscellaneous Expenses $ 179,962 Total SWD Expenditures $ 9,041,042 * Current year equipment expenditures are eliminated because equipment is included in the depreciation schedule. ~°~Allocation Of Budgets To Solid Waste Budget Allocation Finsnce• Admin k Budget $1,290,268 $ 80,771 Purchasing $ 654,886 $ 40,996 Accounts $ 577,582 $ 36,157 Treasury $ 772,085 $ 48,332 Data Processing $ 653,843 $ 40,930 Corporate Counsel: $2,186,470 $ 136,873 (less Family Support Services) Chief Engineer Office: $ 666,094 $ 200,361 Civil Service: $ 882,705 $ 25,751 # Of County Emp. 2,269 # Of Solid Waste Emp. 71 3.13$ * Allocation Percentages Chief Engineer 30.086 Civil Service 3.136 All Othezs 6.266 Amounts Rounded to nearest whole dollar Total Allocation $ 610,171 Created by Recycle Hawaii 2 03/06/99 ~S~Capital Proj.,ts Expenditures For County .SSW, 1988-1998 Year Other Landfills Puuanahulu Only All Projects 1988 $ 100,000 $ 100,000 $ 350,449 1989 $ 60,000 $ 48,700 $ 198,911 1990 $ 59,808 $ 8,550 $ 103,986 1991 $ 0 $ 0 $ 26,978 1992 $ 0 $ 266,240 $ 616,240 1993 $ 830,088 $ 831,809 $ 1,661,897 1994 $2,478,917 $2,660,497 $ 5,859,496 1995 $1,404,663 $ 257,234 $ 1,661,897 1996 $1,456,345 $ 4,000 $ 1,511,441 1997 $ 128,245 $ 0 $ 161,537 1998 $ 92,873 $ 0 $ 125,652 Ten Year Costs $6,610,939 $4,177,030 $12,278,484 Ave. Cost/Yr. $ 661,094 $ 417,703 $ 1,227,848 Annual Bond interest Debt Service: csa=si,zz~,aae~ $ 61,392 Annual Capital Projects Total Expenditures $ 1,289,240 Solid Waste Division Assets: Vehicles Depreciated Value Heavy Trucks (11) $ 787,669 Medium Trucks (5) $ 157,025 Pickup Trucks (18) $ 415,388 Tractors (4) $ 905,931 Trailers (40) $2,739,956 Loaders/Backhoes (3) $ 179,747 Forklifts (1) $ 21,791 Other Heavy Equipment $ 347,248 Light Equipment $ 31,767 Office/Communications $ 306,149 Miscellaneous $ 3,488 Solid Waste Division Total $5,896,159 Created by Recycle Hawaii 3 03/06/99 _,nnual Depreciation Of Asses Heavy Trucks: (20 Years) $ 55,000 Medium Trucks: (20 Years) $ 6,250 Light Trucks: (15 Years) $ 24,000 Tractors: (20 Years) $ 60,000 Trailers: (10 Years) $ 300,000 Passenger Vehicles: (7 Years) $ 11,000 Loaders/Sackhoes: (20 Years) $ 12,000 Forklift: (20 Years) $ 1,250 Heavy 8quipment: (20 Years) $ 20,000 Light Equipment: (7 Years) $ 4,538 Office/Communications: (5 Years) $ 61,229 Total Annual Depreciation $ 555,267 Landfill Annual Post Closure Costs: (2) Realakehe Post Closure Costs: $ 175,000 Total Annual Landfill Post Closure Costs $ 175,000 "Total Municipal Solid gPaste Costs: `+~~a4i Coup t $11,6~'A,720;' Tot. M~iP~y T~~ay _ ~ e r.,. Cura~ d FGrdbs'oa er4+oS3x,s7~no/+o~,s lanpja 78 76~'ton ~ Total M39P Operating Costs: $11,670,720 Total MSSP Operating Revenue: $ 2,653,864 Tax Source Annual MSSP costs to Hawaii County $ 8,816,856 Tax Source Costs Per Ton: cse,ei6,es6/QO6tons/aay)= $59.49/ton Created by Recycle Hawaii 4 03/06!99 Endnotes 1) This document, designed and compiled by Recycle Haxaii, represents the first attempt at full cost accounting for the County of Haxaii, municipal solid xaste. Data came from County Of Hawaii, DPW records of actual dollars expended or received. DPW accountants have reviexed this data for accuracy. The summary does not include external, or true costs that incur due to the MSW management system in place.(e.g., social, environmental, economic impact on small businesses etc.) 2) Costs are listed only for Realakehe landfill, as estimated, based on current activities. Costs do not include any anticipated closing or yearly poet-closure costs for the Hilo landfill, xhich are estimated to be $12 million and $75,000 respectively. 3) The use of the term landfill in county records reflects the combined costs of labor, operations and equipment for all landfills and transfer stations. 4) Allocation percentages for each deparffient xithin the county administration are based on their best estimates of the time and resources devoted to solid xaste issues and personnel. The DPW accountant determined the final allocation amount based on the deparffient or division's budget or number of employees. Solid waste employees represent 3.138 of all civil service employees. The figures are based on the 98/99 fiscal year budget. 5) Capital Projects are those expenditures xhich are not part of the regular operating budget, but xhich are intended for development or improvement of the county's solid xaste infrastructure. (e.g.), The construction of a nex transfer station, the closure of a landfill, or major repairs to an existing facility. Annual aapital projects expenditures xere averaged over a ten-year period, as no single year's expenditures reflect a norm. Since capital expenditures are funded by general bonding, expenses for interest on the average yearly capital expenditures are estimated at 5$. The cost/value of land has not been included in these calculations. 6) The County of Haxaii replaces equipment only on an as needed basis. There is no formal replacement schedule or equipment replacement reserve funding. Equipment is purchased out of current operational funds, therefore, xe have conservatively estimated annual depreciation costs for equipment and other assets based on information obtained from the county solid xaste division and comparisons xith other municipalities. Created by Recycle HawaPi 5 03/06/99 7) Total daily to. ,.age Of MSW For East 6 West la,.aaii is 406 Currently the county tips 181 tons/day xithout fee at Hilo. There is a Disposal fee of $48.72/ton for the 215 tons a day of MSW xhich the county trucks to Puuanahulu. This analysis shoxs that the present cost per ton to the county for M3W disposal is $78.76 *Additional Cost Information if all the county MSW were hauled to Puuanahulu there xould be a corresponding increase in the daily disposal fee, xhich xould increase the per/ton cost. Hoxever, that cost does not reflect the increased cost of transporting the 181 tons/day from Hilo to Puuanahulu, the increased number of trucks and trailers needed, nor the additional employees required to drive and service the vehicles. It should be noted that the anticipated 1999 year Capital Projects Fund appropriation of $12,000,000 to finance the closing of the Hilo Landfill xould increase county M3W costa by an average of $710,000/yr.for 30 Years, assuming a 58 rate of interest. Post closure costs of $75,000/yr have bean estimated by the county, hoxever, the annual post closure costs at the Railua landfill are $175,000. According to the Hilo Waste Composition Aaalysis, 1996 the xaste stream entering the Hilo landfill includes the folloxing materials by percentage. Metal (5.34,) , glass (2.390 , plastic (7.a~), cardboard (is.a$), newsprint (z.66), xhite paper (a.6~), greanxaste (9.ea), rood (12.4), (xot.6oa). Even if only half of these materials mere diverted from the xaste stream at their source through recycling, M3W tonnage and the associated costs to the county xould be significantly reduced. According to the latest EPA figures a Pay As Yon Throx (PAYT) program, xedded to an aggressive recycling campaign, is reducing the volume of MSW by as much as 508 in a groxinq number of US communities. With an integrated approach to xaste management, involving a complete recycling and marketing program, reuse, remanufacturing industry, C&D reclamation, and organics recovery plant, the County of Haxaii could reduce its xaste stream by as much as 879:. In addition to saving the county a great deal of money such an approach xould create jobs, xhile cleaning up the environment. Created by RecyGe Hawaii 6 03106/99 SUNRISE W.E.S.T: 1. No upfront or back end costs for the county. 2. Stable and predictable MSW costs, lower than the long haul option. 3. Our system will accept and treat all organic wastes, including the organic components of MSW (71 sewage sludge, and agricultural green waste. 4. Extended life for landfills /Deferred costs of closure. 5. System may be customized to your needs and preferences. 6. Virtually no environmental impact. 7. Valuable products are created by the process. long haul Total Costs Increase Additional Operating Cost: $4,000,000 New Transfer Station: $5,000,000 Probable Cost Per Ton: $105 + Not Included Wear & Tear on Roads Quality of Life Impacts Threats to Safety Loss of Deferred Costs Loss of Valuable Resources Current Expenditures Total Annual MSW Costs to Hawaii County: $11,670,720 Gross Cost Per Ton: $78.76 Impending Costs Hilo Landfill Closure: $12,000,000 Post Closure Costs: $ 75,000 per year (x 30 years) _ $ 2,250,000 Long Haul Costs -r SUNRISE W.E.S.T. Waste Elimination Systems Technologies PETER E. MARTIN Ipil. 75-431 Hoene Street Kailua -Kona, HI 96740 Phone: (808) 326 -7859 ', Fax (808) 331 -1969 1 _ E -Mail: pmartingkona.net