From Private to Public Dayton s Journey into the Biosolids Business. Jason Tincu, WWT Administrator June 19, 2013

Transcription

1 From Private to Public Dayton s Journey into the Biosolids Business Jason Tincu, WWT Administrator

2 Session Outline Dayton WWTP Overview History of Biosolids Processing at Dayton Financial Evaluation Transition Process Performance Review Lessons Learned 2

3 Dayton WWTP Overview At same location since MGD Design/190 MGD Peak/45 MGD Average High Industrial Loadings ~ 450 mg/l BOD Primaries, Trickling Filters, Activated Sludge, Effluent Filtration, Chlor/Dechlor Anaerobic Digestion / Gas Recovery and Reuse Discharge into the Great Miami River ~72 Staff Members Across Ops, Maintenance, Pretreatment/IMG, Lab, and Administration 3

4 History of Biosolids at Dayton WWTP s Drying Beds and Incineration 1940 s-1987 Digestion and Lagoons 1987-present Digestion, Dewatering and Land Application 1987-Private Facility Built 20-year Contract with 5-year Extensions and Buy-Out Clause 2001-Switched from Belt Presses to Centrifuges 4

5 Biosolids Treatment and Reuse Class B PSRP (Anaerobic Digestion) and VAR (38% VSred) Liquid to GBT s (2) 2.5% at Combined 600 gpm Thickened Sludge to Centrifuges (2) 6.5%TS at Combined 225 gpm Biosolids = 24% to 30% TS Annual Volumes 11,500 dry 21,000 Approved Acres for LA 5

6 Escalating Cost of Biosolids Processing Cost per dry ton

7 Biosolids Processing Expenditures Over $14M across 5 years Annual Cost in M

8 Contract Provision Provides Opportunity 2013 Presented Buy-Out Option at Depreciated Rate To Include All Permanent Structures and Assets Processing Building with Office Area 2 GBTs, Polymer System, 2 Centrifuges, Conveyance System Sludge Storage Barn Weigh Scale For Cost Savings / Retain Positions (Digester Complex Automation) 8

9 Financial Evaluations BCA Tool Used to Perform NPV (15 Year) Across a Series of Options Option #1 - Existing Contract, Private Ownership and Contractual Services for Biosolids Processing (Dewatering and Land Application) Non-competitive due to ownership Placeholder for Landfilling Option #2 Exercise Buy-Out, In-sourcing of Dewatering and Contractual Services of Land Application Competition due to Ownership Equivalent Placeholder for Landfilling 9

10 Financial Evaluations (2) Option #1 15 year NPV of over $55M Option #2 15 year NPV of $34M Includes Buy-Out Cash Conservative Placeholders for O&M, Labor, Polymer, and Capital R/R Projected Cumulative Savings of Over $20M Across NPV Term 1.5 Year ROI vs. Option #1 10

11 Action Steps Option #2 = Most Advantageous for COD Buy-Out Appropriation and Processing Land Application Bidding Polymer Procurement Training and Development CMMS Upload Capital Needs / Facility Improvements Executed Within a 4 Month Timeframe Imp / Opt Financial Analysis Transition planning The Takeover Training / Job Shadowing 11

12 Transition Planning Land Application Bidding (assuming COD ownership) 4 Bid Options- #1-Traditional Land Application #2-Land Application plus Landfilling (up to 5,000 wt) #3-Landfill per Trip #4-Full Turnkey Operation (Dewatering and Land Application) Selected Option #2 Polymer Procurement Purchased 4 Month Supply Facilitated Performance Bidding in April

13 Training and Development Program 3 Part Training Series (~22 Operators) Classroom Intro to Biosolids Processing and Dewatering System Specific Training for COD Installation System Operational Video ~Also available on Communication Boards and Shared Drives Alternate Site Visits-Greene Co. SC (Centrifuge) and Glady Run (GBT) Job Shadowing COD Staff Shadowed Contractor on Regular Basis for Final 3 Months Post-Transition Support Contractor Retained for Support Operations Oversight 13

14 CMMS Upload / Facility Needs CMMS Upload Hansen Package Station Codes, Asset Listings, PM Schedules, etc. Capital Needs / Facility Improvements Ops Optimization Quality of Life Safety Improvements Contingency Planning 14

15 Capital Needs / Facility Improvements Ops Optimization CC TV System SCADA Client Quality of Life Refresh of All Paint, Fixtures, Etc. Break Room Added (w/frig, Microwave, etc.) Heating Upgrade 15

16 Capital Needs / Facility Improvements (2) Safety Improvements Installation of Permanent Gas Monitor and Alarm PPE Availability Lighting Improvements BWC Safety Audits General Site Conditions Gas Exposure and Audible for TWA 16

17 Capital Needs / Facility Improvements (3) Contingency Planning Spare Parts Inventories Pumping-Polymer and Sludge GBT, Conveyor Spare Rotating Centrifuge Unit Mobile Dewatering Proposals 17

18 Performance Review ~62MG of Liquid Sludge Processed ~18,000 wet tons of Biosolids ~4,500 dry tons of Biosolids Capture rates in the 90+% Range ZERO Regulatory, Performance, or Contractual Issues Successfully Trained 20+ Operators 16 hours/day (avg) 18

19 Performance Review (2) Cost per Dry Ton YTD Expenditures Projected Annual Contractual Operation (CY13) $ $1.2M $2.7M In House Operation $ $634,000 $1.5M Savings $ $566,000 $1.2M 19

20 Lessons Learned Plan, plan, plan meet, meet, meet then do it again! Countless Hours of Prep Work Pays Off! Expect the Unexpected: Industrial Process Change Drastically Affected Dewatering Characteristics, Polymer Demands, Final Product Quality, and System Throughput Increasing YTD Operating Costs Don t get Caught Running Dirty! Poor capture rates ultimately consume the plant! Force recalibration of performance targets (quality, not quantity)! Circular clarifiers remove crappy solids much better than rectangular! 20

21 No member of a crew is praised for the rugged individuality of his rowing. ~Ralph Waldo Emerson Thanks and praise to all Dayton WWT staff!!!

22 Questions?...