Red Wing City Council Solid Waste Workshop. Jeff Schneider Public Works Department, Solid Waste Division

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1 Red Wing City Council Solid Waste Workshop Jeff Schneider Public Works Department, Solid Waste Division

2 City's WTE Operations Resumption of WTE Operations Require o Planning o Design o Bidding Process o Construction *Estimated Minimum 1-Year to Complete (*Timeline Applicable in Perfect World Only)

3 Extended Outage Timing Requirements Outages Lasting More than 2 Years EPA Classifies Operation as New Emission Source o New Regulatory Standards Applied to Operations o Standards Requiring Reduced Emissions o Significant Cost to Upgrade Operations Not Feasible Tight Timeline/Deadline for Direction/Decision Does the City Want to Continue Operating WTE? Without Action Issue May Resolve Itself

4 Options Based on Availability of Funds Refurbishing Existing Operations will be Costly Estimated Cost of $5-$10,000,000 Unknown Years of Operational Life Cost of Operations will not Decrease Sources of Funding Bonding with Increased Tipping Fees Outside Entities Regulating Waste to City Enforcement of Existing Statutes Designation Ordinance Timing of Either would be Incongruous with Needs

5 Consider the Factors/Variables Cost & Regulatory Requirements & Processes of Decommissioning WTE Facility Potential Issues Related to Performance Bond for Air Pollution Control Grant from State Cost of Removal & Retrofitting of Solid Waste Boiler Area

6 Must be Realistic Immediate Need for Guaranteed Funding Bidding & Design Process Take Time Would County or State Support be Timely? ASAP or Prior to June 30, 2014 Hard Deadline Uncertainty of Direction Delays Implementation of Alternatives

7 Conclusions/Staff Recommendation Review the existing terms of the Fuel Delivery Agreement with Xcel and negotiate operational improvements for the delivery of fuel from the City s operations and ensure the availability of capacity to accommodate local growth in the population and economy and secure a long term agreement;

8 Conclusions/Staff Recommendation Initiate the process of decommissioning the City s Solid Waste Boiler operations;

9 Conclusions/Staff Recommendation Begin refurbishing of the existing area to accommodate the installation of stationary shredders that will optimize the recovery of commodities and the removal of hazardous materials from the waste stream.

10 Conclusions/Staff Recommendation Secure funding for the purchase and installation of stationary shredding equipment to enhance the efficiency of Refuse Derived Fuel production to meet the terms of the Fuel Delivery Agreement with Xcel Energy.

11 Red Wing City Council Solid Waste Workshop RDF Operations & Xcel Fuel Agreement Update Jeff Schneider Public Works Department, Solid Waste Division

12 Summary of Fuel Delivery Agreement Operations to Date Reallocation of Resources Since July 1, 2013 from WTE to RDF Production RDF Tonnages of Materials to Xcel by Month Bypassed Waste Tonnages by Month Improved Fiscal Outlook Revenue Reduction Loss of Steam Sales Revenue, Special Waste Disposal Outweighed by Significant Reduction in Costs Staffing Hours, Testing Requirements, Hours of Operation, Utilities, Fuel

13 Operational Issues to Date Some Problems with Coordinating Fuel Delivery at Xcel City is Allowed only One Bay for Off-Loading RDF Restricts Delivery Highly Improbable City Could Use 20,000 tons of Capacity Allowed City Issues Mostly Minor Manageable Short-Term Conveyance Issues & Material Flow No Surge or Storage Capacity (In/Out) City s Operations Very Flexible to Adapt

14 Next Steps? Chicken or the Egg Several Variables Needing Resolution & Unable to Perform Simultaneous Answers Regulatory Issues Contractual Agreement Funding, Funding, Funding

15 Regulatory Issues Forgiveness of CAP Grant from State for APC Equipment Decommission the Solid Waste Boiler Operations RDF Operating Permit vs. Pilot Project Status

16 Negotiate Extended Fuel Delivery Agreement with Xcel Addressing Operational Concerns for Long-Term Success Better Access for Off-Loading City Operations Very Flexible, Many Options Exist Gain Additional Capacity to Accommodate Future Local Growth Timeline of Future Agreement (Years)

17 Funding, Funding, Funding Funding Sources & Options Legislature Appropriation of $1,000,000 Available Xcel Renewable Energy Development Grant, Reserve Funding Bonding Future Agreements or State Regulatory Assistance

18 Keys to Long-Term Success Dependent Upon Operational Efficiencies Achieved & Capacity Optimization Ability to Meet Regions Disposal Needs, Surrounding Communities Participation Local Support Meeting Needs of Local Hauling Community, Single Sort Recycling Services, Fair Rates Continue to Provide High Level of Service to the Public Electronics Disposal, Convenient Self-Haul Drop-Off, Yard Waste Disposal & More

19 Long-Term Success Continued Obtain Necessary Funding to Modify Facility & Purchase Equipment Reconfigure Conveyance & Material Flow to Optimize Recovery Placement of Permanent Shredding Equipment for RDF Production Surge Capacity During Outages Modifications to Support Single Stream Recycling

20 Red Wing City Council Solid Waste Workshop Renewable Energy Development Fund, Grant Proposal Update Jeff Schneider Public Works Department, Solid Waste Division

21 City of Red Wing s Grant Proposal Proposal Request $1,999,500 for Small Scale Refuse Derived Fuel (RDF) Concept Proposal Outlined Method for Retrofitting Traditional MeRF s into RDF Generator s Providing Many Small Scale Providers of RDF vs. One Major Fuel Distributor Grant Funds were to be Used to Implement Permanent Shredding Operations

22 Grant Status City s Proposal was Initially Rated as a Tier I Reserve Project Currently Ranked 12 of 15 Projects on the Reserve Funding List Xcel Revised Initial Report Due to Concerns from Individuals from Advisory Committee

23 Possible Funding & Timing Additional Funding was Placed into the Current Grant Cycle to Fund Reserve Projects Currently Unknown if Sufficient Funding will be Available for City s Proposal Dependent Upon the Success of Higher Prioritized Proposals Meeting Terms of Grant Funding Availability Timeline, if Available, 9 ~ 18 Months from Now

24 Red Wing City Council Solid Waste Workshop Refuse & Recycling Audits & More Jeff Schneider Public Works Department, Solid Waste Division

25 Internal Audit of City Serviced Residential & Commercial Accounts Appropriate Service for All Accounts Based on Existing Charges Were Customers Being Billed Correctly Benchmarking & Accountability of Services to Public Data Collection Included Check of all Customers Residential Accounts Commercial Accounts

26 Service Audit Results 87 Incidents the City was Incorrectly Billing 124 Volume of Receptacle Larger than Service Charged For 3 Customers were Being Charged too Much

27 City Limits Audit of Services Residences within City Limits Required to Use City Waste & Recycling Services Non-City Collection Was Allowed Previously at Rural Locations to Achieve Efficiencies in Routing Automated Collection Now Allows Expansion of Services Stops would be Added to Existing Routes No Increase in Staff Resources Needed

28 City Limits Audit Outcomes Primarily Residents Living in these Areas: Mount Carmel, Green Spring Road, Collischan Road, Spring Creek Road, HWY 61, HWY 58, Mill Road, HWY 19 and others In Total 70 Residents Identified (1% of All Residencies Affected)

29 Internal Audits Recommendations Notify Customers of Issue & Request they Contact City Solid Waste Division if they would like Smaller Volume Container at Existing Rate. If Customer Does not Contact the City in 30 Days, Billing Statement will be Increased to Rate Commensurate with Services Received City Limits Residencies Should be Notified of City Services Requirement & Provide 60 Days to Obtain City Services.

30 Auditing the City Environmental Service Charge (CESC) Licensing & Ordinance Provides the City with the Authority to Examine Commercial Hauler Records to Ensure Proper Remitting of CESC Examples of Submitted Fee Reports from Haulers Accuracy of Fees to Volumes

31 Audit City s Application of Front End Fuel Cleaning Charge (FEFC) Attorney Review of FEFC Billing External Auditing Conducted by Outside Firm Ordinance Provisions Allow for External Audits of Licensed Hauler Records