GREENSBORO, .. LANDFILL RFP P .
Advanced Disposal
CITY CLERK'S OFFICE
DO NOT REMOVE
ABOUT ADVANCED DISPOSAL
• An integrated environmental services company providing solid waste collection, transport, processing, recycling and disposal in 7 states including North Carolina
• Customer Base: - 161 city & county contracts - 761, 000 residential customers - 45,500 commercial & industrial and construction & demolition customers
• Number of Trucks: 1,026
• Volumes: Collects 7,800 tons of waste per day and safely disposes of over 10,000 tons a day in our landfills
• Employee Base: 1,826
• Industry Standing: Fourth largest privately-owned environmental services company in the U.S.
ABOUT OUR PARTNERS
Hodges, Harbin, Newberry & Tribble, Inc. • A civil and environmental design and permitting company, specializing in solid waste,
surfacing mining, water and wastewater, storm water management, railroads, roads and recreation faci lities
• Designed, permitted and/or managed over 2,000 solid waste facilities in the Southeastern U.S. (including several in North Carolina)
• Never had a state- or federal-denied application in its 18 year history
II I... 13 Bunnell-Lammons Engineering. Inc.
• Provides environmental services, geological and hydrologic, geotechnical and construction materials engineering and testing
• Primary area of practice is in solid waste field
• Geotechnical & Hydrogeological Assessments, Groundwater Monitoring & Quality Evaluation, Geotechnical Engineering Applications, CQA, Geosynthetic Liner Testing, Laboratory Capabilities, Drilling Services
• North Carolina Office (Asheville, NC) and has worked on several NC solid waste sites
~ENVIRONMENTAL ltfM SERVICES, INC.
• Provides environmental consulting services focusing primarily on biological and natural resource investigations emphasizing wetland delineations & endangered/threatened species
studies • In addition , cultural resource assessments, mitigation services, soil science investigations,
environmental contamination studies, stream restoration , forestry management, & sustainable consulting services North Carolina Offices (Charlotte, Raleigh & Wilmington, NC) and has worked on 13 NC solid
waste sites ra· l~I RB Baker Construction. Inc. R.B. IL\lilll
'W&-·;;,:,7;.;:~1 Horizontal construction company with over 25 landfill constructions projects (including 8 in · NC) completed between 2002-201 O
SUMMARY OF OFFERING
Advanced Disposal is offering the City three Solid Waste Management Plan
cost savings options:
• Base: "Push & Pack" Proposal
- Immediate savings of $30.54/ton x 243,000 = $7.42M annually
• Alternative #1: Full Privatization & Expansion of White Street Landfill
- Converts a Community Liability into a Financial Asset
• Alternate #2: Privatization of The City's Residential Collection Services
- Encourage the City to fully review the financial and operational benefits
of privatizing it's residential collection services
EXPLANATION OF PROPOSED WASTE MANAGEMENT SYSTEM
Base: "Push & Pack" Proposal MSW White Street Landfill Disposal
• Operate the landfill for the City at $10.28 - $10.88/ton (blended rate for all waste streams)
• City pays any local, state or federal fees (currently $2/ton)
• Purchase City equipment at fair market value • Agree to minimum airspace utilization goal to ensure efficient operations
• Note: The landfill is not closed-accepts sludge (a MSW material) plus C&D materials-daily
• Financially it's underutilized
C&D White Street Landfill Disposal • Operate the landfill for the City at $10.28-$10.88/ton • City pays any local, state or federal fees (currently $2/ton)
Yard Waste White Street Processing & Recycling • Operate processing/composting operations for $10.28-$10.88/ton
• Provide a revenue share of 50% net sold
Materials Recovery Facility Permitting & Recycling • Permit, re-design and operate the gate and operational aspects of a MRF at existing transfer
station • Provide a revenue share of 28% net sold • Pay an annual lease payment of $20,000/month ($240,000/year)
City maintains all landfill permitting, engineering, construction, monitoring, closure & post-closure fees (excludes MRF permitting, engineering and re-construction fees) as well as all environmental liability at the landfill.
Alternate #1: Full Privatization & Expansion of White Street Landfill Operations
• $17,898,527 lump sum payment to City upon attaining a non-appealable permit for an additional 15 million cubic yards of airspace
• $28/ton (includes $2/ton State Environmental Fee) MSW Disposal Fee = Current Savings of $13/ton or $845,000+ in annual savings
• $8.79/ton Contractor Fee to Advanced Disposal from City for Operating C&D Landfill - City agrees to expand C&D permit by a minimum of $2M cubic yards
• $18.58/ton Contractor Fee to Advanced Disposal from City for Yard Waste Recycling & Composting - 50°10 net sales revenue share with City
• $70/ton Contractor Fee to Advanced Disposal from City for processing of Recyclable Materials at newly re-permitted MRF (formerly the MSW Transfer Station) - 50o/o-700lo net sales revenue share with the City
• $650,000/year (Option A) or $260,000/year (Option B) in Landfill Gas to Energy proceeds upon expiration of existing contract(s). Estimated 20 year value to City= $16.5M (Option A) or $6.5M (Option B)
• $2M community recreation facility located on landfill property
• $1 M/year lease payment for Life of Expanded landfill
• $30,000/year lease payment for MRF (converted transfer station)
Alternate #1: Full Privatization & Expansion of White Street Landfill Operations
• Advanced Disposal assumes all permitting, engineering, construction and monitoring immediately upon start of landfill operations. Advanced Disposal assumes financial liability for closure & post-closure and environmental liability for Advanced Disposal operations including the 15M cubic yard expanded area of the landfill. The City maintains liability for pre-Advanced Disposal landfill operations.
• This Alternate #1 contemplates either regional disposal/processing facilities with waste/recyclables accepted from Guilford County and possibly other North Carolina cities/counties or full flow control of all city/county waste in order to meet needed volume requirements. Additional required assumptions are detailed within the proposal.
Alternate #2: Privatization of Residential Solid Waste Collection Services
As part of a comprehensive Solid Waste Management Plan, the City may wish to consider the operational and cost benefits of privatizing its residential collection system.
OVERVIEW OF QUALIFICATIONS
The Advanced Disposal I HHNT I BLE I ESI I RB Baker team have the experience and qualifications to provide a safe and effective option for Greensboro's waste disposal & recycling needs.
• 2,000+ permitted/managed solid waste facilities
• No state- or federal-denied applications
• New, state-of-the-art equipment and engineering/construction procedures
• 10,000+ tons of waste disposed of daily at Advanced Disposal locations in an environmentally sound and fiscally responsible manner
• Knowledgeable and dedicated staff committed to clean, safe operations with minimal impact on its communities
ADVANCED DISPOSAL MSW LANDFILLS
Eagle Point Landfill Owned by Advanced Disposal Services, Inc.
Located in Forsyth County (Ball Ground), Georgia
Eagle Point Landfill is a MSW landfill that was designed by
HHNT and built by Advanced Disposal in 2001/2002. It
opened April 2002 and currently accepts approximately
4,000 tons per day.
Stone's Throw Landfill Owned by Advanced Disposal Services, Inc.
Located in Tallapoosa County (Tallassee), Alabama
Stone's Throw Landfill is a MSW landfill that was once
closed by a former owner and then reopened by
Advanced Disposal in spring 2002. It currently accepts
an average of 900 tons per day. At current tonnage,
the landfill has capacity until 2036.
ADVANCED DISPOSAL MSW LANDFILLS
Wolf Creek Landfill Owned by Advanced Disposal Services, Inc.
Located in Twiggs County (Dry Branch), Georgia
Wolf Creek Landfill is a MSW landfill that was designed by
Bil l Hodges, P.E., built by Twiggs County, and expanded by
Advanced Disposal in 2006. It currently accepts
approximately 1,200 tons per day. Please note: ADS was
awarded this landfill privatization in 2005 via a competitive
RFP process by Twiggs & Wilkerson Counties.
Turkey Trot Landfill Owned by Advanced Disposal Services, Inc.
Located in Washington County, Alabama
Turkey Trot landfill is a site that was designed by HHNT.
It received its permit in 2009 and recently opened
accepting its first load in December 2010. The site
currently receives 450 tons per day but is expected to
grow to approximately 850 tons per day. Please note:
ADS was awarded the contract to permit, develop and
operate this landfills via a RFP process by Washington
Co.
ADVANCED DISPOSAL C&D LANDFILLS
Caruthers Mill Landfill Walton County (Monroe), Georgia
950 tons per day
Coastal Recyclers Landfill Harrison County (Biloxi), Mississippi
500 tons per day
Fire Tower Landfill Harrison County (Pass Christian), Mississippi
Received an emergency permit from the State of Mississippi in
2005 to handle the debris generated by Hurricane Katrina; 150
tons per day
Old Kings Road Landfill Duval County (Jacksonville), Florida
1,500 tons per day
Pasco Lakes Landfill Pasco County (Wesley Chapel), Florida
450 tons per day
Rogers Lake Landfill DeKalb County (Lithonia), Georgia
250 tons per day
Jones Road Landfill Duval County (Jacksonville), Florida
All tonnage currently diverted to Old Kings Road Landfill
FINANCIAL OVERVIEW
Company Resources and Financial Strength
For the year ended 12/31/2010:
• Revenues and EBITDA of $321.8 million and $89.5 million, respectively
• Produced $64 million of cash flow from operations
• Stockholders equity at December 31, 2010 was $364 million with total assets of $872 million
Credit Facility: • $400 million first lien bank Credit Facility including $250 million revolving
credit facility due Jan. 2014 and $150 million term loan B due Jan. 2015
Corporate Rating: • Ba3 corporate family rating from Moody's
• B+ corporate credit rating from Standard & Poor's
• Advanced Disposal holds the highest/best financial .------------
---~
rating for a private company within the solid waste industry
PROJECT APPROACH
• Transition from the Current Contract
• Maximize Utilization of City's Assets & Minimize Community Impact
• Maximize Landfill Diversion
Transition from the Current Contract - Communications & Logistical plan to redirect loads to White Street Landfill
- Convert transfer station to MRF maintaining residential Convenience Center
- Begin engineering efforts to expand the existing MSW and C&D disposal areas
- Analyze and evaluate landfill infrastructure upgrades (if needed)
- Hire and train the appropriate staff giving first consideration to existing landfill employees
- Develop and/or identify new markets for the composted/recycled yard waste material
- Begin preparing the re-permitting applications to convert the existing transfer station to a properly permitted M RF
PROJECT APPROACH
Maximize Utilization of City's Assets Gain full financial benefit of existing permitted MSW airspace at landfill
Utilize - highest and best use - the surplus property at landfill with an expansion Purchase/sale of existing capital equipment at FMV $2+ million Investment/upgrade at City's TS to convert to MRF
Minimize Community Impact Proven Community Partnerships at our MSW landfills Host Community Meetings: Start Up and Quarterly/As Needed
Investment into the Community: Volunteerism, In-kind Services, Financial Commitment Implement operational measures/controls to operate the landfill properly
Alternative Proposal: • Permit & build a community recreation facility on landfill property • Designed with the input from local leaders .--- -----------,
• Governed as a 501 (c)3 entity • Total financial commitment = $2 million
PROJECT APPROACH
Maximize Landfill Diversion Convert Transfer Station to MRF Recycling Educational Campaign Increase number of Recyclables Accepted
Assist with compost markets
II
- -QUALITIES THAT Advanced Waste Republic Carolina MMR/WCA Waste
DIFFERENTIATE Disposal Industries Energy Management Development
Rate (150k $10.88/ton $4.12 ' t $12.62 I t $27.12 ' $11.12 ' t Did not follow bid
tons/year) (city pays $17/t $25.50/ $40/to $24/t specs and respond
local/state fees) (contractor pays (contractor pays (does not address (contractor pays per pricing form
local/state fees) local/state fees) payment of any local/state fees) local/state fees)
Est. Annual Offers city $618,000/year $1.8M/year $4M/year higher $1.6M/year
Difference greatest higher higher higher
compared to ADS savings proposal
Host Fee None $3/ton royalty None None $2/ton on non-on all tons city controlled
exceeding waste (res. or
284K tons/year c ity facilities)
Recycling Convert TS to None None Gasification None
Component MRF ($2M+ capital
investment)
Lease Payment $201</month None None Expected but no None (non-conditional) $amounts
proposed
Revenue Sharing Recycling = None None Discussed but Landfill gas
28% net sales no$ amounts discussed but
Composting= proposed no$ amounts
50% net sales proposed
Purchase Equip. Yes Yes NIA N/A 1 Yr Option
Other No proposal for City maintains Cannot meet utilization of expense of start date of
unneeded TS operating C&D 2011 and composting Limited Volumes