Post on 28-Mar-2020
transcript
City of Lethbridge Materials Recovery Facility
Feasibility StudyPresentation to City Council
November 30, 2015
Identify & assess recyclable materials
for curbside collection & MRF
Establish design parameters, process flow, & conceptual
design
Assess ownership & operational scenarios
Assess financial feasibility
2
Scope of Work
Provide recommendation
regarding potential MRF
development in Lethbridge
• Curbside single stream recyclables:• Fiber: newspaper, cardboard, mixed
paper & paperboard• Containers: aluminum cans & foil, steel
cans, plastic containers, paper cartons & glass containers
3
Recyclable Materials Assessment
• Recycling station recyclables:
• Same list as curbside materials
• Other materials: plastic bags, shredded paper
4
Sample MRF Processing System
• Design capacity:
• 15-year tonnage projection for facility sizing:
• City-only residential and portion of commercial recyclables: 5 tph increasing to 9 tph
• Including regional recyclables from communities within 150 km: 5 tph increasing to 12 tph
• Conclusion:
• Base MRF analysis on 10 tph design capacity
6
Lethbridge MRF Design Capacity
• Building Size 27,000–34,000 square feet• Minimum 25 ft height for processing system and truck
access
• Tipping floor with 2-day capacity
• Area for processing system (18K–24K s.f.)
• Bale storage area
• Office, employee facilities, public meeting space
• Site Size minimum 3 acres, preferably more• Truck scale and off-street queuing
• Shipping container staging area
• Employee & visitor parking
• Truck traffic
• Potential parking for recycling collection fleet
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Lethbridge MRF Design Parameters
• Progressive & Paper Trail• Neither site provides sufficient area
• Both buildings would require extensive expansion & modification
• Both facilities are fully utilized for existing company activities which would need to be relocated if use for City MRF was possible
• Recommendation:• MRF should be developed on a new
site, potentially one already owned by the City
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Assessment of Existing Facilities
9
Ownership & Operations Assessment
City Owned & Operated
Privately Owned & Operated
City Owned & Privately Operated
Control of Critical City Infrastructure
Yes No Yes
Competition / Contract Term
Not applicableInitially /
Long TermRecurring /Short Term
Capital Financing Cost Lower Higher Lower
Private Capital Risk Cost / Profit Margin
None Both Profit Margin
Prior Development Experience
No Yes No
Prior Operating Experience
No Yes Yes
Labor Cost Higher Lower Lower
Commodity Market Experience
No Yes Yes
• Recommendation:
• If City decides to pursue MRF development, utilize a public-private partnership based on City developing and owning the facility and a competitive selection of a private company to operate the MRF
10
Ownership & Operations
• Alternative:
• City partners with local non-profit work center to provide labor and City provide MRF management and other staffing
• New MRF development phases:
• Design, engineering, procurement, construction, equipment installation, performance testing, & commissioning
• 18 months required for new 10 tph MRF not including site acquisition, investigation & permitting
11
MRF Development Timeline
Q1 Q2 Q3 Q4 Q5 Q6
Site & Facility Design
Design-Build Procurement
Equipment Procurement
Site & Facility Development
Equipment Fabrication & Install
Commissioning
Relative Impact of Major Financial Variables
12
Financial Analysis
City Owned & Operated
Privately Owned & Operated
City Owned & Privately Operated
Land Acquisition Possibly No Possibly Yes Possibly No
Cost of Borrowing Lower Possibly Higher Lower
Labor & Benefits Higher Lower Lower
Other Direct Costs Similar Similar Similar
Revenue Similar Similar Similar
Profit Margin No Yes Yes
Total and Net Annual Cost per Tonne
13
Financial Analysis
City Owned & Operated
Privately Owned & Operated
City Owned & Privately Operated
Capital Cost
Facility Development & Rolling Cost
$11.4MM - $12.0MM $12.0MM - $12.6MM $11.4MM - $12.0MM
Net Annual Cost
Year 1
Total Annual Cost $152 - $160 $161 - $169 $146 - $154
Revenue ($97) - ($102) ($97) - ($102) ($97) - ($102)
Net Annual Cost (Revenue) $55 - $58 $64 - $66 $49 - $52
Year 15
Total Annual Cost $113 - $118 $115 - $120 $107 - $112
Revenue ($100) - ($105) ($100) - ($105) ($100) - ($105)
Net Annual Cost (Revenue) $13 - $13 $15 - $15 $7 - $7
Net Annual Cost
14
Financial Analysis
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
City O&O Private O&O City O & Private O
$51
$15
$57
$65
$7
$13
• A MRF to service a City curbside single stream recycling program is technically and financially feasible
• If the City chooses to move forward with implementation, KCI recommends a new MRF developed using a public-private partnership based on City development & ownership and private sector operation.
15
Summary
16
Questions & Discussion
Thank you for your time!