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Monmouth County Reclamation Center

Stop Hauling that Leachate! From Concept to Operation Leachate Management

Wednesday May 6, 2015

Rick Sapir Hawkins Delafield & Wood LLP

Arie Kremen Cornerstone Environmental

MCRC Brief

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• 52 municipalities or over 630,000 population (2013)

• Permitted capacity: 1,350 ton/day (balefill)

• Air space capacity through 2018

• MCRC services:

• Material Processing and Recovery Facility (3,500 tpd)

• 2 LFGTE plants, totaling 12 MW

• Truckwash Facility

• Household Hazardous Waste

• Residence Convenience Center

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Monmouth County Reclamation Center

Phase I

Phase II

Phase III

Lateral

Expansion

Valley

Fill

500,000 gal Storage

Tanker Loading Dock

150,000 gpd

Leachate Treatment

Leachate Management

• Until 1994, direct discharge to POTW, up to 100,000 gpd

• Treatment process: Trickling Filters

• Discontinued after leachate implicated process upset

• SIU permit still current, but air-gap connection in place

• Disposal to regional treatment facilities by tankers

• Disposal cost increased over the years: $0.08/gal

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• 10,350 trucks, approx. 30 trucks per day

• 67.3 million gallons, equiv. 184,000 gpd

• $4.76 million, $13,000 per day

2010 Leachate Disposal Summary

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Landfill Acreage

(ac)

Leachate

(%)

Phase I 54 20%

Phase II 103 35%

Phase III 95 45%

Total 252 100%

Feasibility Study (2010)

• Existing practice is not sustainable

• Tasked to evaluate all options:

1. Disposal to regional POTW via tanker trucks

2. Treatment, onsite effluent discharge

3. Pre-treatment, effluent discharge to POTW via sewer

• Recommendations

• Onsite pre-treatment, maximizes potential for cost savings

• ‘Conventional’ continuous flow processes

• Limited area available for treatment facility

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COUNTY’S OBJECTIVES

Reduce Cost of Leachate Disposal

Treat Leachate On-Site

Eliminate/Reduce Truck Traffic

Design/Build/Operate (DBO):

Partner with Industry Expert

Obtain Long-Term Pricing and Performance

Guarantees that are Financially Secured

Transfer Risk

11

PROCUREMENT PROCESS

RFP Issued Pursuant to New Jersey Wastewater

Treatment Public Private Contracting Act (the “Act”)

Act allows for procurement of aggregated services

and long-term contract with private company for

wastewater treatment services

Act also provides for selection on factors in addition

to price and allows negotiation

12

Material RFP Considerations

Draft Service Agreement

Performance Guarantees

Term

Security for Performance

Minimum Experience Requirements

Evaluation Factors/Weighting

Cost Proposal Structure

IRS Rev. Proc. 97-13 Compliance

13

Material RFP Consideration (cont’d)

• Promote creativity, flexibility, and cost-competitiveness

• Demonstrated capability to meet performance criteria

• Permit-ability

• Prohibited Technologies

• Trickling Filters

• Sequential Batch Reactor (SBR)

• Powdered Activated Carbon Treatment (PACT)

• Aerated Lagoons

• Constructed Wetlands

• Pilots, research facilities

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Design Capacity

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 50,000 100,000 150,000 200,000 250,000 300,000 350,000

Pro

bab

ilit

y

Leachate Flow Rate (gallons per day)

De

sig

n F

low

Ra

te

Leachate Characterization

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0

1

10

100

1,000

10,000

100,000

BOD COD TOC NH4-N TKN TDS TSS ALK pH Fe

mg/l

Selected Leachate Quality Parameters

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Parameter Units RANGE

(10 – 90 Percentile)

Maximum

97.5

Percentile

Ammonia, as Nitrogen ppm 480.0 - 1,390.0 1,730.0

Biochemical Oxygen Demand ppm 1,180.0 - 2,540.0 5,450.0

Total Suspended Solids ppm 120.0 - 330.0 4,070.0

Cadmium ppm ND

Copper ppm 0.0 - 0.7 2.7

Cyanide ppm ND

Lead ppm 0.0 - 1.0 4.0

Magnesium ppm 80.0 - 100.0 110.0

Mercury ppm <PQL 0.0

Nickel ppm 0.3

Silver ppm 1.0 - 3.0 4.0

Zinc ppm 0.2 - 0.4 17.4

Petrol Hydrocarbons ppm ND

Permit Limits

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Parameter Units RANGE

(10 – 90 Percentile)

Maximum

97.5

Percentile

SIU Permit

Monthly

Average

Daily

Maximum

Ammonia, as Nitrogen ppm 480.0 - 1,390.0 1,730.0 REPORT REPORT

Biochemical Oxygen Demand ppm 1,180.0 - 2,540.0 5,450.0 744.0 REPORT

Total Suspended Solids ppm 120.0 - 330.0 4,070.0 597.0 REPORT

Cadmium ppm ND REPORT 10.5

Copper ppm 0.0 - 0.7 2.7 REPORT 10.9

Cyanide ppm ND REPORT 0.9

Lead ppm 0.0 - 1.0 4.0 REPORT 1.6

Magnesium ppm 80.0 - 100.0 110.0

Mercury ppm <PQL 0.0 REPORT 1.0

Nickel ppm 0.3 REPORT 10.2

Silver ppm 1.0 - 3.0 4.0 REPORT 2.8

Zinc ppm 0.2 - 0.4 17.4 REPORT 2.1

Petrol Hydrocarbons ppm ND 100 150

SIU Permit, existing:

• 100,000 gpd Leachate

RFP Discharge Limits

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Parameter Units

Provisional

Discharge Limits

Daily Maximum

Existing SIU Permit

Monthly Average Daily Maximum

Ammonia, as Nitrogen ppm 25 Report Report

Total Kjeldahl Nitrogen ppm 75 --- ---

Biochemical Oxygen Demand ppm 225 744 Report

Chemical Oxygen Demand ppm 700-1,200 --- ---

Total Suspended Solids ppm 300 597 Report

Cadmium ppm 0.1 Report 10.5

Chromium ppm 0.1 --- ---

Copper ppm 0.1 Report 10.9

Lead ppm 0.1 Report 1.6

Mercury ppm 0.001 Report 1.0

Nickel ppm 0.1 Report 10.2

Zinc ppm 0.2 Report 2.1

Petroleum Hydrocarbons ppm 100 100 150

SIU Permit Modification:

• 150,000 gpd Leachate

• 15,000 gpd Sanitary Wastewater

Post-Proposal Process

Proposals Received May 2011:

Natural Systems Utilities (Affiliate of Applied

Water Management)

Veolia

Clarification and Evaluation

Significant Factors

Experience

Business

20

Significant Factors (cont’d)

Technical Approach

• Aerobic biological treatment

• Metal Precipitation

Cost

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Veolia NSU

Gravity Clarification Membrane Separation

Concrete Process Tankage Stainless Steel Bio-reactors

NSU Veolia Trucking

Fixed Fee $7,914,459 $15,260,000

Annual Service Fee $1,487,170 $840,489

15-year NPV $36,900,000 $44,800,000 $78,200,000

20-year NPV $45,800,000 $57,200,000 $102,700,000

Schedule of Values

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NSU Fixed Fee: $7,914,500

Veolia Fixed Fee: $15,260,000

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 6 12 18 24 30

Months from Contract Execution

Unit Cost Comparison

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NSU

Veolia Trucking

$0.000

$0.020

$0.040

$0.060

$0.080

$0.100

$0.120

$0.140

2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060

Un

it C

os

t ($

/gp

d)

20-year Contract Period

Post-Proposal Process (cont’d)

Selection, Negotiation and Pilot Testing

Public Hearing and Public Comment Period

Regulatory Approval of Contract

24

SERVICE CONTRACT

COMPREHENSIVE SCOPE OF SERVICES

Design, Permit, Build, Operate, Maintain and Manage a

Leachate Pretreatment Facility at the Monmouth

County Reclamation Center

TERM

15 Years

Renewal Option for one additional 5-Year Term at

County’s sole discretion

COUNTY OWNED AND FINANCED

< 3% Debt Financing

25

SECURITY FOR PERFORMANCE

Performance and Payment Bond Equal to

Fixed Design-Build Price

Retainage Until Acceptance

Operations Performance Bond Equal to Annual

Service Fee

Required Insurance

Guaranty from Middlesex Water Company

26

DELAY LIQUIDATED DAMAGES

AND EARLY COMPLETION BONUS

Failure to Meet Scheduled Acceptance Date:

Company Must Pay $4,000 Per Day For

Each Day Of Delay, Unless Excused By

Uncontrollable Circumstances

Early Completion Bonus:

Company Eligible to Receive Early

Completion Bonus of $3,000 Per Day

(Maximum of $100,000) if Acceptance Date

Occurs 11 or More Days Before Scheduled

Acceptance Date 30

COUNTY DESIGN-BUILD PERIOD

RESPONSIBILITIES

Payment of Fixed Design-Build Price

= $7,914,459.12 Based Upon Schedule of Values

Subject to Maximum Drawdown Schedule

Subject to Retainage

Review Design Submittals for

Compliance with Contract

Requirements

34

KEY COMPANY PERFORMANCE

GUARANTEES

PRETREATED LEACHATE GUARANTEE –

Operate Managed Assets on continuous 24-hour per day,

7-day per week basis so as to receive and treat all Raw

Leachate and discharge Pretreated Leachate up to

design capacity (150,000 GPD) in accordance with

effluent quality requirements

EFFLUENT QUALITY REQUIREMENTS – Both

Contractual and Regulatory

36

ODOR GUARANTEE

Company must comply with odor limits

imposed by Applicable Law and the Odor

Control Standards set forth in the Service

Contract

Issues Associated with Differentiating

Odors from Leachate Treatment Plant vs.

Landfill

37

ENVIRONMENTAL GUARANTEE

Assure that Managed Assets meet

all requirements of Applicable Law

with respect to noise control,

fugitive dust, traffic, litter, lighting,

vectors and other potentially

adverse environmental effects

38

MAINTENANCE, REPAIR AND

REPLACEMENT

Company must perform all normal and ordinary

predictive, preventive and corrective maintenance of

the Facility

The Company must also perform all major

maintenance, repairs and replacement of the Facility

Mechanisms to ensure compliance with

maintenance obligations:

MR&R Schedule

Inspections

Recordkeeping Requirements (CMMS)

End of Term Obligations

39

COUNTY OPERATIONS PERIOD

OBLIGATIONS Fixed Design Build Price = $7,914,459.12

Annual Base Operation Fee = $1,457,170

140,000 GPD / Excess Fee

Operation Fee Subject to Annual Escalation

(CPI)

Electricity and Gas (Up to Guaranteed

Maximum Utilization Levels)

40

OBJECTIVES ACCOMPLISHED

Significant Reduction in Costs

Elimination of Price Volatility Associated with

Hauling and Off-Site Disposal

Significant Reduction in Truck Traffic and Air

Pollution

Partnership with Industry Expert

Long-Term Pricing and Performance

Guarantees with Appropriate Security

Significant Risk Transfer

42

PROJECT STATUS

Final Engineering Design Complete

Treatment Works Approval Received

SIU Permit Received

Construction Permits Received

Construction began October 2013

Zero Pricing Change Orders to Date

Completion prior to December 2015

43

Selected Process

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Leachate

Storage

Bio-

reactor

Bio-

reactor

Ultrafiltration

Ultrafiltration

Lamella

Clarifier

Filte

r F

ilter

PO

TW

Fro

m

Landfills

Centrifuge

Return Activated Sludge

Return Activated Sludge

Waste Activated Sludge

To

Landfill

Floccing Agent

Truck

Haul-out

Regional

POTW

Plant Forward Flow: 150,000 gpd

Dewatered Sludge: 14,500 lb/day

Groundbreaking Ceremony

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Source:

Monmouth County, Department of Public Information & Tourism, Oct 25, 2013

Twin Bioreactors

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UF Filtration Unit

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Typical Membrane Module

Lamella-type Clarifier

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Sludge Dewatering

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QUESTIONS OR COMMENTS

52

Rick Sapir Hawkins Delafield & Wood LLP

973-642-1188

esapir@hawkins.com

Arie Kremen Cornerstone Environmental

845-695-2013

arie.kremen@cornerstoneeg.com