Post on 04-Apr-2018
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Participation in IRWD BiosolidsProject
Presentation to City of San JuanCapistrano Utilities CommissionJanuary 25, 2010
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Biosolids Project at IRWD
Biosolids at SOCWA
Biosolids market/management strategies
Current Options Management Costs
IRWD Project Opportunity
Project Benefits
Project Participation and Structure Financials
Schedule
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Biosolids at SOCWA
Biosolids production at 3 locations
27,000 tons/year (75 tpd)
Annual management cost of $1.6M Biosolids Master Plan update every 2 years
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Biosolids market/management
strategies Compost/land application/landfilling/dryers
Market mostly in remote distance locations
Bans/restrictions/ordinances are common Local landfill option for SOCWA
Strategy of diversity and proven technology
Strategy of more local control
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Current Options
Local landfill Prima Deshecha
South Kern Industrial Center - composting
Arizona Soils composting South Yuma landfill backup only
Simi Valley landfill backup only
Nursery Products potential compost
option
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Management Costs
Approximately $1.6M per year
Local landfill - $35/ton
South Kern composting - $76/ton AZ Soils composting - $61/ton
Blended (average) rate - $60/ton
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IRWD Biosolids Project
On-Site Digestion, Dewatering, Drying& Fuel Cell
Digest, dewater and thermally dryall sludge at MWRP
Produce Class A pelletized product(90% solids)
Distribute product locally
Use biogas for energy generation ordryer fuel
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On-SiteDigestion/Dewatering/Drying
8
PRIMARY
CLARIFIER
ROTARY DRUM
THICKENER
SECONDARY
CLARIFIERACID-PHASED
DIGESTION
DEWATERING
CENTRIFUGE
ROTARY DRUM
THICKENER
DIGESTED
SLUDGE
STORAGE
FUEL CELL
BIOGAS ELECTRICITY
CAKE
STORAGE &LOADOUT
CLASS B CAKE HAUL(BACKUP)
ROTARYDRYER
PELLET
STORAGE &
LOADOUT
CLASS A
PELLET HAUL
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MWRP Biosolids Facility Location
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Project Benefits
Local regional project; good partnership
Produces Class A pellets for fertilizer or e-fuel
Strong long-term viability
Unique opportunity
Proven technology
Lowers market risk; increases autonomy
Capacity ownership for SOCWA; not solelydependent on service contracts
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Project Participation
25 wtpd at IRWDs MWRP
Scheduled for operation in 2015
Capacity ownership versus disposal guarantee forguaranteed term
SOCWA cost estimate: $7.6M (design, constructionand construction services)
Offer by IRWD to carry some/all financing
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Participants
ETWD, EBSD, CLB, MNWD, SCWD, CSJC, SMWD(they fund solids handling at SOCWAs facilities)
New Project Committee agreement requires approval byrespective Boards to validate Agreement terms
Agreement between IRWD and SOCWA
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Framework for Participating
Letter of Intent signed 12/15/10 to meet deadline
Discussion/decision by participating agencies
Terms and conditions between SOCWA and IRWD
Review of financial alternatives
New Project Committee for participating agencies
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Financials Current average biosolids cost per ton is $60
IRWD Project biosolids rate approximately $118/ton(annualized capital and O&M)
Project capital of $7.6M includes 30% contingency onconstruction and $1.4M in improvements at SOCWA
Citys allocation of capital approx $832,000
Changes average biosolids cost per ton to $73-80/ton
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Financing Options
Option 1 - Capital funding by SOCWAs participating agencies upfront
Option 2 IRWD has offered to cover the capital costs for set term(20 year) and predetermined interest rate
Option 3 SOCWA issued lease revenue bonds (LRBs); similar toCoastal Treatment Plant and Aliso Creek outfall funding by City
Laguna Beach
LRB or other lease based/installment purchase financing structurerelies on the credit position of the participating agencies
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Schedule and Sequence LOI December 15, 2010
Discussion/confirmation by participating agencies (30-45 days)
Project Agreement between SOCWA and IRWD (90 days)
Internal Project Committee Agreement (90 days)
Final design & cost estimate complete (Fall 2011)
Final opt out opportunity: solicitation of construction bids (Nov 2011)
Completion of biosolids project construction late 2014 to mid 2015
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Concept Drawing
http://localhost/var/www/apps/conversion/tmp/scratch_5//irv-filsrv01/Marketing-Drafts/Water_Proposals_in_Production/40204_IRWD_Biosolids_Design/Interview/For_Client/IRWD%20Biosolids%20Final.wmv