Recycle Clark County LLC. Prepared By: Michael Snoddy, SC Kevin Dewey, MBA, PMP
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1 Recycle Clark County LLC. Prepared By: Michael Snoddy, SC Kevin Dewey, MBA, PMP
2 Contents Recycle Clark County is a solid waste transfer station Why do waste haulers prefer Recycle Clark County?... 3 Problem Statement... 4 Mission Statement... 4 Clark County 15-Year Ratified Plan... 4 Benefits... 6 Curbside Recycling... 6 Potential Oppositions... 8 Government Regulation... 9 Competition... 9 Pricing and Fees... 9 Recycle Recovery Rate Projections Keys to Success Location Design Hours of Operation Staffing Marketing Market Analysis Company Ownership/Legal Entity Start-Up Expenses: Real Estate Start Up Expenses: Equipment Executive Summary References Appendix
3 Recycle Clark County is a solid waste transfer station. A solid waste transfer station is a facility with a designated receiving area for waste haulers to discharge their loads of solid waste. The solid waste is compacted then loaded into larger vehicles for a long haul shipment to a landfill. No long-term storage of waste occurs at a transfer station. Waste is quickly sorted, consolidated and loaded out of a transfer station in a matter of hours. Solid waste transfer stations are regulated by the EPA and are subject to regulatory compliance and inspection. Recycle Clark County is a solid waste transfer station and material recovery facility, providing a valuable service to local waste haulers. Waste haulers will bring their solid waste to Recycle Clark County, unload the solid waste on the tipping floor where it will be loaded onto a belted sorting system to retrieve as many of the recyclables as possible. This sorting and recovery process reduces the amount of solid waste entering the waste stream and converts it into revenue. This type of facility is referred to as a mixed material recovery facility or a mixed MRF (pronounced Merf). Belted sort system with bunkers. The bunkers are used for collecting sorted recyclables. Belted sort system, currently operating in Van Wert, Ohio. Why do waste haulers prefer Recycle Clark County? Recycle Clark County will be used to reduce the cost of transporting waste to disposal facilities. Consolidating smaller loads from waste haulers into larger transfer vehicles (semi-trucks) reduces hauling costs by enabling collection crews to spend less time traveling to and from distant disposal sites and more time collecting waste. Reductions in fuel consumption, maintenance costs, overall traffic, air emissions and road wear are also realized
4 Problem Statement The waste haulers serving Clark County sent an average of 97,000 tons annually (265 tons per day) of waste to landfills from Estimates report that while as much as 75% of solid waste is recyclable, less than 30% is actually recycled. 1 A majority of the solid waste generated in the county is going into the waste stream and directly to a landfill. The Clark County Solid Waste Management District (CCSWMD) has broken down the composition of waste in Clark County by commodity. Recycle Clark County identified a high percentage of that solid waste is financially feasible to recover and recycle. Conservatively, as much as 55% of the waste generated in Clark County is recyclable. Of that 55%, a minimum of 36% of the recyclables could be processed for re-sale. That equates to 34,700 tons of waste per year being processed through Recycle Clark County. Twenty percent of the 34,700 tons could be recycled (6,940T/34,700T). Mission Statement Recycle Clark County s mission is threefold; to ensure the financial wellbeing of the business, to provide the Clark County municipalities and their citizens an economical alternative to process recyclable materials and dispose of waste and to reduce the amount of recyclables in the waste stream while capitalizing on the value of selling recyclable material in bulk. Clark County 15-Year Ratified Plan The CCSWMD was required to submit a solid waste 15-year plan for Clark County to the Ohio EPA. On April 24, 2013 the CCSWMD received EPA approval of the plan. The approved plan requires a feasibility study for the creation of an in-district transfer station in Specific language refers to an in district transfer station, strategy 1, initiative 1-3: determine feasibility of a private owned and operated, county owned and operated, county owned and privately operated transfer station 2 Recycle Clark County LLC will become the county s only in-district transfer station. Recycle Clark County will be consistent with the mission, central strategies and projections contained in the district s solid waste management plan. A key component of from the CCSWMD 15 year plan is: Until new policies, strategies and or initiatives are developed, the District will implement the following policy: Clark County Waste Management District Ratified Plan, pg. V
5 Level I Support the private sector solution. Assure that the solid waste management plan does not include provisions that would discourage the development of a well sited, privately owned and operated transfer station in Clark County. Educate elected officials, residents and the local waste haulers on the potential benefits of a transfer station. 3 Additionally, the District s Policy Committee and Technical Advisory Committee have identified the following issue relating to an in-district transfer station. Recycle Clark County would alleviate burden. Current Issue o 91% of solid waste in Clark County must be hauled between miles to Montgomery County transfer stations. o Montgomery North Transfer Station is closing by the end of RCC Solution o The Recycle Clark County facility is centrally located within the District and anticipated to be fully operating by the end of % of waste generated in Clark County is sent to the Montgomery County North Transfer Station. This station is slated to close in The North Transfer Station is being consolidated to the existing South Transfer Station, due to county budget constraints. This consolidation would result in sixteen additional miles for the customers Recycle Clark County will be able to service locally. The consolidation does not allow for additional tipping floor space and will potentially result in the congestion of vehicles and extended wait time. 3 Clark County Waste Management District Ratified Plan, pg. V
6 Benefits There are numerous benefits to establishing Recycle Clark County. Global Environmental Benefits First and foremost, it benefits the environment by eliminating 6,940 tons or more of recyclables from entering the waste stream and consuming landfill capacity. Local Economic and Environmental Benefit Secondly, Clark County will benefit in the following ways: Private funding saves the county from paying more than $4,000, to establish a similar facility. The creation of new jobs, paying between $10.00-$20.00/hour stimulate the economy. Recycle Clark County would reduce operating costs of the CCSWMD by decreasing travel and fuel usage, and by receiving recyclables at NO COST to the county. In 2010, the CCSWMD collected 153 tons of commingled recyclables and made 306 trips (22 miles round trip) to Fairborn where the receiving facility charged $28 per ton, at a cost of $4,284, plus fuel and labor costs. Recycle Clark County will increase the recycling options available to everyone and provide a legal way to dispose of waste. Current and future waste haulers (letters of endorsement included in the appendix) will realize a savings in fuel, maintenance and labor costs by tens of thousands of dollars per year. Local banks and lending institutions will be generating loans and increasing revenue as a result of the new business. Construction contractors will be needed for the various phases of building and continued improvement of Recycle Clark County. Bids for the initial construction are being solicited from Clark County Contractors. Curbside Recycling Recycle Clark County can play an integral part in getting Clark County at or above the other districts average pounds per year recycled. According to the CCSWMD Ratified plan, Clark County had an average of just 11 pounds per person recycled, while the average for other key districts in Ohio was 84 pounds per person (see graph on pg. 7 ) 4. Currently some of the waste haulers are charging their customers for curbside recycling. Part of this is due to the fact the haulers are taking their recyclables to Fairborn where they are charged a fee of $28 per ton to dispose of the recyclables. 4 Clark County Solid Waste Management District Ratified Plan, Pg. V
7 Curbside Recycling Performance by District Montgomery SWACO Hamilton Lorain Henry NCO Clark Pounds/Person/Year Recycled These clean (not mixed with trash) comingled recyclables are valuable. They are already sorted out of the waste stream, which reduces handling costs. Recycle Clark County would charge $20 per ton to receive these clean comingled recyclables from the waste haulers. The resulting 29% savings, when added to the reduction in operating costs to the waste haulers, would encourage the implementation of more programs to make recycling desirable to their customers. The greater the participation, the greater the profit to the waste hauling company. The waste hauler already has the expense of going to the residence for pick up; however, they would much rather pay $20 per ton to Recycle Clark County, versus $59 per ton to dispose of something they are already handling. We feel the public is willing to recycle and places value in doing so. However, the extra charge and driving distance to the drop off location demotivates them from doing so. Recycle Clark County will employ personnel to educate the haulers on how a reduction, or possibly the elimination, of the recycle fee to the public can be financially beneficial by converting the $59 per ton waste fee to a $20 per ton recycle fee. The creation of an additional and convenient public drop-off center along with future implementation of satellite drop-off points will make it even more convenient for the public to recycle. Significant financial benefit and convenience, respectively, will encourage the haulers and the Clark County residents to improve environmental stewardship
8 Potential Oppositions The proposed location (Parcel # , Leffel Lane, Springfield, Ohio 45506) is zoned M-1 General manufacturing District. The conditional uses permitted clause states, Solid waste transfer station (except a rock or aggregate crushing or recycling plant), provided the operation is totally enclosed within a building. Notwithstanding, Recycle Clark County realizes community opposition may arise in the areas addressed below. Odor The goal is to have the waste transferred in and out of Recycle Clark County in a matter of hours. Removing all the waste off the tipping floor and spraying it clean, at the close of each business day, will dramatically reduce the odor. There is a natural wooded area behind the property, which will assist as a buffer for noise and odors. Noise Recycle Clark County will be located far enough away from residences that noise should not be an issue. Hours will be regulated to first and second shift only. Traffic All inbound and outbound trucks will be instructed to stay on main roads and not to cut through residential areas. Currently, US Xpress and UPS run semi-trucks daily on these same roads. Vectors Recycle Clark County will be completely fenced, the waste will be transported out in a timely fashion and there will be no storage of waste on the tipping floor at the end of the day. Appropriate measures will be in place with a commercial exterminator to eliminate issues with pests including flies and mosquitoes. Property Values Recycle Clark County is far enough from any residences that there will not be a negative impact on house values. Water Contamination Recycle Clark County will use an EPA approved and monitored leachate system. Litter The area inside the fence will be patrolled daily. Recycle Clark County intends to meticulously maintain the property. An onsite community relation manager will be available to address concerns from our neighbors in a timely and considerate manner
9 Government Regulation Because Recycle Clark County will be dealing with Municipal Solid Waste, the Ohio EPA, Clark County Solid Waste Management District, Clark County Combined Health District and other state, county, and city regulatory agencies will regulate them. All required state, county, and local permits and licenses will be obtained and kept current. Competition As noted earlier, our closest competitor, Montgomery County North Transfer Station, is 26 miles away and is scheduled to cease operations in Due to the high cost of establishing a transfer station, there is very little danger of another company entering the market. Pricing and Fees Recycle Clark County will charge $59 per ton of solid waste; environmental fees are $15.25 and the per ton tipping fee is $ Neighboring Transfer Station Charges (60 mile radius) Miami County Solid Waste $61.80 per ton Hardin County $61.00 per ton Recycle Clark County Transfer Station $59.00 per ton Solid Waste Authority of Central Ohio (Columbus) $56.75 per ton Montgomery County North $50.25 per ton Montgomery County South $50.25 per ton Our closest competitor, Montgomery County Transfer Station North (which is closing in 2014 and receives 91% of solid waste from Clark County) currently charges $50.25 per ton. Though the tipping fee is $8.75 more than Montgomery County, this additional expense can be justified with a reduction in labor, fuel and equipment utilization. The average waste collection vehicle gets 3-4 mpg, equating to $1 per mile in fuel expense. The reduction in fuel costs, labor and vehicle wear and tear will make Recycle Clark County an economically viable alternative
10 Recycle Recovery Rate Projections Two models of volume have been projected. The first model (30,000 TPY) is based off of the commitment of two local haulers, Vince and Mann, to use Recycle Clark County. Letters of endorsement are located in the Appendix. An additional 17% of solid waste is projected to enter Recycle Clark County from other haulers and the public. The second model (34,700 TPY) projects up to 35% of solid waste will be brought to Recycle Clark County from other haulers and the public. Estimates report that while as much as 75% of solid waste is recyclable, less than 30% is actually recycled. 5 The CCSWMD has broken down the composition of the waste generated by Clark County citizens (see below), 55% of the waste generated has a market value and therefore financially feasible to recover. 6 Of that 55% Recycle Clark County conservatively estimates that 36% can be recovered for a waste diversion rate of 20% (55% X 36% =20%) Financially Feasible to Recover Other paper 16.2% Cardboard 14.2% Plastics 6.5% Newspaper 6.0% Glass 5.7% Office paper 3.9% Ferrous metals 1.4% Aluminum 1.0% Total Percentage 54.9% Yard Waste, 10.2% Lead-Acid Batteries, 0.9% Food, 6.4% Clothing, 2.6% 2009 Residential/Commercial Waste Composition Ferrous Metals, Other, 9.3%, 01.4% Other Paper, 16.2% Scrap Tires, 1.8% Cardboard, 14.2% Appliances, Durables, Furniture, 13.9% Aluminum,, 0 1.0% Office Paper, 3.9% Glass, 5.7% Newspaper, 6.0% Plastics, 6.5% Clark County Solid Waste Management District Ratified Plan, Pg. IV
11 Keys to Success The keys to Recycle Clark County s success are: Designing an efficient facility with future expansions and upgrades considered. Developing strategic partnerships with current and future waste haulers in Clark County. Working closely with the CCSWMD to support proper waste screening to prevent recyclables from entering the landfills. Establishing and maintaining a good working relationship with local agencies, state agencies, and local waste haulers. Soliciting business from neighboring counties. Educating the public on recycling and environmental ethics. Being intentionally eco-friendly as well as profitable. Location Recycle Clark County will be located within the city limits of Springfield, on approximately 11 acres of land. The address is 0 West Leffel Lane, Springfield Ohio The site is ideal because there are few residents in the area. It is located in a commercial area, zoned correctly, is able to be designed with future expansion in mind and is easily accessible to RT4, US 68 and US 70. Design Although they may not be local, there are several architects that specialize in transfer stations. A large portion of success will be in a transfer station designed for efficiency with future expansions and upgrades. Recycle Clark County management has toured many transfer stations in Ohio, Indiana and California to get as much feedback as possible from operators. When asked what would you do to improve your facility? The operators most commonly answered, increase the size. They would make it bigger. Management intends to design the building with the intention of expansion
12 Hours of Operation Monday through Friday from 6a-6p Saturday from 6a-1p Management anticipates staggered start times to ensure quality customer service. Staffing Recycle Clark County will work with OIC of Clark County for staffing assistance. These programs include; SUREHIRE, Training, Evaluating and Mentoring, Work Experience Program and Opportunities for New Direction. Marketing The primary customer base will be the waste haulers currently serving Clark County. Preliminary discussions with the waste haulers have resulted in enthusiastic feedback. Public marketing efforts include newsprint, local radio, direct mail to business owners and other social media outlets. Recycle Clark County would like to participate in local, environmental events, such as Earth Day, The Great American Clean Up, Keep Ohio Beautiful, and Keep Clark County Beautiful. Market Analysis There are customers on both ends of the supply chain that will benefit from Recycle Clark County s products and services. Waste haulers will benefit by reducing labor, fuel, and wear on equipment and increased productivity. The public will benefit by having a safe, legal, and environmentally friendly way to dispose of waste. Manufacturers of recycled goods will benefit by having another opportunity to purchase quality, recycled raw materials
13 Company Ownership/Legal Entity Recycle Clark County will be formed as a Limited Liability Corporation established in Ohio, owned by Michael Snoddy and Kevin Dewey. Both owners will be active in daily management decisions. Start-Up Expenses: Real Estate Category Expenditure Projection % Total Cost Alarm/Security System $15, % Safety Equipment $15, % Fire Suppression $20, % Inside Office $25, % Excavating $30, % Architect/Engineering $30, % Legal $30, % Scale House $30, % Plumbing $50, % Electric $50, % Leachate System $50, % Scales $60, % Labor $70, % Estimated cost over runs $95, % Working capital for start up $100, % Buildings $190, % Concrete $190, % Land 0 West Leffel $350, % Total $1,400,
14 Start Up Expenses: Equipment Category Expenditure Projection % Total Cost Back-up Generators $50, % Wheeled Equipment $100, % Sort System $1,000, % Total $1,150, Total Investment for startup is $2,550,
15 Executive Summary In conclusion, Recycle Clark County is a desired, necessary business addition to all parties aforementioned. It will be profitable while helping the environment by diverting as much as 13,880,000 pounds of waste to be recycled. Recycle Clark County will provide a good solution to Clark County s need. It will also save the county money in several other ways while providing employment to qualified applicants. Recycle Clark County will work closely with the CCSWMD to provide quality service, while encouraging local residents to recycle by offering incentives, such as reduced rates for incoming recyclables to waste haulers. The waste haulers benefit from saving tens of thousands of dollars per year in operating costs while increasing productivity. These initiatives will support achievement of Recycle Clark County s ultimate goal of promoting Clark County s environmental status, eventually achieving the highest recycle rate in Ohio. Recycle Clark County will be closely regulated. Therefore, management will have contingency plans in place to cover all possible scenarios. Pricing is in line with competition, and the biggest advantage remains the location of Recycle Clark County. Two different financial models using various waste volumes have been generated. They demonstrate that even in the worst-case scenario, the facility will remain profitable even if the expenses remain the same
16 References Clark County Waste Management District Ratified Solid Waste Management Plan Update SWANA Transfer Station Planning and Design American National Standards Institute ANSI Z245.1 Mobil Waste and recyclables material collection, transportation and compaction equipment American national Standards Institute ANSI Z Transfer Stations American national Standards Institute ANSI Z Facilities for the Processing of comingled recyclable materials P.C & Calrecovery Inc. Material Recovery facility for Municipal Solid Waste Recycling Marketing Cooperative for Tennessee: Material Recovery facility Handbook Sources USEPA Waste Transfer Stations: A Manual for Decision-Making USEPA Waste Transfer Stations: Involved Citizens Make the Difference Material Recovery Facilities: Operational Assessment and Optimization Guide ODNR State of Ohio Waste Characterization study Illinois Recycling Association Best Operational Practices manual for Material Recovery Appendix Appendix A Clark County Solid Waste Management District Ratified Plan Appendix B Letter from Vince Refuse Appendix C Letter from H.W. Mann Appendix D Site Layout Appendix E Timeline Appendix F Miscellaneous Fees Appendix F Management Team
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