Preparing Your Organization and O&M for ENR and Biosolids-to-Energy
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1 CWEA Plant O&M Committee Seminar, Laurel MD, June 12, 2015, 2:00-2:30 PM Preparing Your Organization and O&M for ENR and Biosolids-to-Energy Bill Meinert, PE, Vice President - O Brien & Gere Bill.Meinert@obg.com
2 Agenda Case Study Frederick-Winchester Service Authority (FWSA), VA Authority Overview Opequon WRF Plant Management Evaluation ENR (2010) Energy Project (ESCO) (2016) Summary Questions 2
3 FWSA, Opequon WRF FWSA TN & TP Bubble Permit (3 facilities, 17.6-MGD) Opequon - BNR online 2001, ENR design in 2007 and online in 2010 County Landfill not meeting permit (incl. TKN) in (a 4 th ) Effluent-dominated Opequon Creek Watershed, local TMDLs 3
4 Frederick-Winchester Service Authority, Opequon 12.6-MGD ENR 4
5 (FWSA, VA - Parkins Mills - 5-MGD ENR) 5
6 Opequon WRF MRRE Scope & Approach Case Study - Frederick-Winchester Service Authority, Opequon WRF Managerial and Staff Retention / Recruitment Evaluation (MRRE) FWSA owner and permittee, City and County customers (2), City operations Phase 1 Organization, Operating Structures Consolidate all staff for Opequon under FWSA? Formal and informal arrangements Impact of the FWSA energy project Costs / Revenues, New and Unfamiliar Technology Phase 2 Plan and Schedule for Consolidation (if recommended) Salary differentials, Recruitment by nearby utilities Phase 3 Implementation financial, organizational, technical support Financial FWSA, MFSG Organizational City O&M, FWSA, MFSG, OBG Technical City O&M, OBG 6
7 Energy Project Drivers, MRRE Drivers ENR, Biosolids-to-Energy How to Pay for the Project? Cut Costs? Organizational Changes * Risk / Reward (ESCO) Staffing More, not Less! * No Dedicated Industrial Pretreatment Program Coordinator 7
8 Opequon WRF Energy Project Upgrades 8
9 Opequon WRF Energy Project Upgrades 9
10 FWSA Board: No More Debt! (?) 10
11 What will the Future Bring? Uncertainty 11
12 And Now For Something Completely Different Choices Energy Conscious, Green, Pro Forma 12
13 The Details of Different Comfort Level with Public-Private Partnerships 13
14 Financial and O&M Commitments 14
15 What will the Future Bring? O&M Needs and Challenges 15
16 Competing Priorities, Organizational Issues? Overall Waste Management Industrial Pretreatment Program Partnering Laboratory, QA/QC 16
17 MRRE Scope & Approach - Information Data Collection Staff listing employment dates, classification, compensation, skills, position Current job descriptions FWSA, City Salary and Benefits HR Manuals, Policy & Procedures Capital Improvement Program Anticipated Future Changes to the Plant, Influent, Organization, Regulations Needs for talent, education, training Historical overview Formation, phases, staffing levels, facilities, performance Operating procedures and policies (SOPs) 17
18 MRRE Scope & Approach - Benchmarking Site Visits Opequon WRF Benchmarked facilities (5) vicinity, Mid-Atlantic region Staff, management, recruitment and retention, lessons learned Staffing levels, organizational structure, training programs, career development Compare, Contrast Right Number, Right People 18
19 Workforce Needs Standards & Sophistication Brain Drain Succession Planning State-of-the-art Facilities 19
20 The Evaluation s Operational Review Web-based (Anonymous) Employee Survey O&M staff interviews Increase in O&M complexity Additional assets to manage Foreign waste acceptance Industrial pretreatment program Environmental, health & safety Plant laboratory New FWSA Employee Classification & Staffing Plan developed 20
21 Operational Review Additional Positions Concluded 26 employees needed at OWRF Energy project will bring changes Training, re-training, and timing of hires will be very important Suggests three additional hires should be made 1. Maintenance manager 2. Manager to address energy project work, safety and planning 3. Instrument mechanic/electrician 21
22 Staffing Calculator Objective means to assess staffing levels? Good tool, Starting point Site-specific situation? 22
23 A Changing Organization FWSA Board Right Number Right People Executive Director Executive Secretary Legend Existing Positions New Positions for Energy Project New Positions for Consolidation Restructure of Existing Positions Waste-to-Energy & Safety Manager Facility Manager Office Manager Environmental & Lab Manager Operations Manager Maintenance Manager Environmental Coordinator Lab Technician (2) Lead Shift Operators (3) Instrumentation Tech II Instrumentation Tech City to FWSA Transfer Re-mapped positions Wastewater Operations (11) Mechanic II Mechanic II Mechanic 3-5 new positions ($) 23
24 ESCO Contract Cash Flow Analysis Pro Forma ECMs (Measure, Verify) Stipulated Savings 24
25 Expenses Justification of Expanded Project - Savings & Revenue Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 2 Scenario 3 Scenario 4 Business Green + Green + As Usual (BAU) Green Consolidation Consolidation Green Consolidation Consolidation Wages $25.6 $26.5 $29.1 $29.9 $0.8 $3.5 $4.3 Fringe Benefits Repair & Maintenance Landfill Fees (11.1) - (11.1) Utilities (12.6) - (12.6) Insurance Chemicals (25.1) - (25.1) Material & Supplies Others Total Expenses $145.9 $103.5 $151.8 $109.3 ($42.4) $5.9 ($36.6) Operational CIP $6.6 $6.6 $6.6 $ Debt Service Payments $80.3 $119.2 $80.3 $119.2 $ $38.9 Life Cycle Costs w/o HSW $232.8 $229.3 $238.7 $235.1 ($3.5) $5.9 $2.3 High Strength Waste Revenue - ($31.5) - ($31.5) ($31.5) - ($31.5) Life Cycle Costs w/ HSW $232.8 $197.7 $238.7 $203.6 ($35.1) $5.9 ($29.2) Notes Green assumes only high strength customer is Valley Proteins Costs and Revenues Net Costs/(Savings) over Business as Usual Wages include reduction of City Management salaries and addition of Mechanic II and Office Manager salaries as well as market adjustment for other salaries Fringe Benefits include reduction of City Management benefits and addition of Mechanic II and Office Manager benefits as well as market adjustment for other benefits Others includes addition of lease and furnishing of office space 25
26 Operational & Financial Review Consolidation first-year cost of $425,000 in the first year Impact of 3% on total costs (operating and debt) FWSA charge to the City will potentially increase by five cents per 1,000 gallons City wastewater rate is $10.16 (per 1,000 gallons) Consolidation plus waste energy 20-year cost net savings: $29.2M $45M Project Additional revenue source foreign waste acceptance (The Balance) FWSA capital reserve utilized for one-time consolidation costs 26
27 FWSA Opequon WRF Biosolids Upgrades 27
28 FWSA 1+5-Year CIP Other Work To Do, Prioritized 28
29 Summary Consolidate, Reorganize Hire and Re-Train before the Energy Project goes online Know-how, Training, Operations assistance Balance Foreign Waste Acceptance and Industrial Pretreatment Program Enhance Laboratory staff, capabilities, and facilities Reliance on timely and accurate information Update Health & Safety programs Recognize Current and pending complexity High standards for ENR effluent and Revenue-driven ESCO project Solids Recycle management Remaining CIP Change management 29
30 CWEA Plant O&M Committee Seminar June 12, 2015, 2:30-3:00PM Bill Meinert, O Brien & Gere (443) , Bill.Meinert@obg.com #obgpresents
31 31 #obgpresents
32 FWSA Opequon WRF ENR, Biological Treatment Simultaneous Nitrification DN Primary & Secondary Ax, Swings Plant operations is critical DO monitoring and control Chemical feed Effluent polishing
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