HomeMy WebLinkAboutItem 9 PPP 05-13-2020 Administration Committee - Interim Food Waste Facility_REVISEDInterim Food Waste Receiving Facility, P2-124
Pricing and Policy Discussion
Administration Committee Meeting
May 13, 2020
•Help cities divert food waste from landfills
•Utilize existing OCSD infrastructure
•Recover energy and organics from food waste
•Provide a cost-effective option for ratepayers
Objectives
History
STATE
MANDATES
2011-2020
OCSD BIOSOLIDS
MASTER PLAN 2015
RECOMMENDATION
P2-124
PROJECT
DESIGN
2018-2020
OCSD 2019
STRATEGIC PLAN
Location –Plant No. 2
Main Entrance
Food Waste
Facility Highlights
•10-15 Year Life
•150 Wet Tons/Day
•5-6 Trucks/Day
•15% Gas Production Increase
Facility Process
Hauler
Truck
Facility Process
Offload
Pump
Storage
Tank
Hauler
Truck
Facility Process
Offload
Pump
Mixing
Pump
Storage
Tank
Hauler
Truck
Facility Process
Offload
Pump Mixing
Pump
Transfer
Pump
Storage
Tank
Existing Digester
Tanks
Hauler
Truck
Facility Layout
Offload
Pumps
Mixing
Pumps
Transfer
Pumps
Storage
Tanks
Existing
Digester
Tank
Facility Layout
LACSD Pilot Program
Offload
Pumps
Mixing
Pumps
Existing
Digester
Tank
Transfer
Pumps
Storage
Tanks
Project Budget & Schedule
Schedule
Advertise Bids July 2020
Construction Award Nov 2020
Facility On-line Apr 2022
Budget
Construction $3.3M
Non-construction $2.2M
Contingency $0.8M
Total Project $6.3M
2019 Strategic Plan
Tipping Fee Policy Question:
How should OCSD structure the tipping fee for
digestion of food waste?
Tipping Fee Basis
•Tipping fee cannot exceed OCSD costs
•Tipping fee transparency and notification to
member agencies
•Different fee for food waste from outside
OCSD’s service area
Cost Recovery -Overview
Cost Recovery
•Capital
•O&M
•New Facility
•Impact to Existing Facilities
•Benefits to OCSD
•More Gas = Less SCE
Cost Recovery –Capital, O&M
Costs ($/ton)
5-Year Capital
Recovery
10-Year Capital
Recovery
Capital Costs $23 $12
O&M Costs $18 $18
Subtotal $41 $30
Cost Recovery –Benefits of Extra Gas
Quality Food Waste = Less SCE Electricity Purchased
5-Year Capital
Recovery
10-Year Capital
Recovery
Savings Range ($2-9)($2-9)
Electricity
Savings ($4)($4)
Tipping Fee -Total
Costs ($/ton)
5-Year Capital
Recovery*
10-Year Capital
Recovery
Capital Costs $23 $12
O&M Costs $18 $18
Electricity
Savings ($4)($4)
Tipping Fee $37 $26
Comparable Agencies
Agency Tipping Fee
and Tonnages
Vendors
and
Feedstock
Onsite
Food
Process
Contract
Term
Cost of Project Cost Recovery
OCSD -
Planned
$26 -$37/ton:
150 tpd
TBD NO TBD $6.3M YES
(Construction and O&M)
LACSD
Current
$25/ton: 250-300
tpd –Direct
discharged into
headworks (no-co-
digestion)
8 Vendors
Preprocessed
Food Waste
and FOG
NO Year to
Year
N/A N/A
LACSD
Planned
Project
(2021)
$25-$40/ton: 100-
150 tpd
Co-Digestion
3 Vendors
Preprocessed
Food Waste
NO TBD $877,500
Repurposing
Existing Food
Waste Receiving
Station.
YES
(Construction and O&M)
–Time Length TBD
Other Similar Agencies
Agency Tipping Fee
and Tonnages
Vendors
and Feedstock
Onsite Food
Process
Contract
Term
Cost of
Project
Cost
Recovery
East Bay
Municipal
Utility
District
$50/ton: 15-70 tpd Central Contra Costa
County Solid Waste
Authority -
Food Waste
YES (Additional
Processing)
10 Years
(2014-2024)
with two
one-year
extensions
$5M YES only
O&M
Central
Marin
Sanitation
Agency
$23.90/ton: 15-70
tpd
Marin Sanitary Service -
Food Waste
YES (Additional
Processing)
10 Years
(2016-2026)
with three
one-year
extensions
$7.8M YES
(Const.
and O&M)
10 year
pay back
Other Similar Agencies
Agency Tipping Fee
and Tonnages
Vendors
and Feedstock
Onsite Food
Process
Contract Term Cost of
Project
Cost Recovery
Encina
Wastewater
Authority
$0.035/gallon +
$45,000/year (CPI)
50K-80K
gallons/week
Stone Brewery Waste
and Other Vendors
FOG
NO 8 Years (2015-
2023)
$2.3M YES
(Construction
and O&M) 4
year back
City of
Petaluma
(Under
Construction)
$0.04/gallon Clover Stornetta Dairy
and
Petaluma Poultry
Processors
NO TBD $6M YES
(Construction
and O&M) 4
year back –
Includes $3M
Grant and
Energy Credits
Summary Tipping Fee for Preprocess Food Waste for Co-Digestion
0
10
20
30
40
50
60
OCSD LACSD EBMUD Central Marin
$26-$37/ton Est. Range
$25-$40/ton
$50/ton
$24/ton
Service Area and Solid Waste Providers
125
3
City Member Agencies
Republic/Rainbow CR&R Waste Management
Organic Processing Fees:
•Rate increases have
been applied
•Organic Processing
Fee: $100.10/ton
(Republic)
Potential Food Waste Slurry Providers
Food Waste Slurry
•Republic Services
•Waste Management
Tipping Fee Deal Points
•Term duration of agreement
•Quality (specs) of the food waste slurry
Next Steps
•Set OCSD food waste tipping fee
•Secure agreement(s) with potential
vendor(s)
•Construct food waste receiving station
•Start receiving food waste
Outcome of Tipping Fee Analysis
How should OCSD structure the tipping fee for
digestion of food waste?
•5-Year Capital Recovery option-$37/ton (Interest 3%)
•10-Year Capital Recovery option-$26/ton
•OCSD will approach solids waste providers based on
an open and a fair process to secure food waste slurry
Questions
Thank You