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HomeMy Public PortalAboutORD09677 . 7 o . .a HILL NO. INTRODUCED BY COUNCILMAN �� ® ORDINANCE NO. �D 1 1 AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE MAYOR AND THE CLERK OF THE CITY OF JEFFERSON TO EXECUTE AN AUTHORIZATION FOR ENGINEERING SERVICES WITH BURNS AND MCDONNELL, RELATING TO THE JEFFERSON CITY RESOURCE RECOVERY FEASIBILITY STUDY. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS FOLLOWS: SECTION I. The Mayor and the Clerk of the City are hereby authorized and directed to execute an Authorization for Engineering Services with Burns and McDonnell for the Jefferson City Resource Recovery Feasibility Study. SECTION 2. Said authorization shall read in words and figures as set forth in Exhibit "A" attached hereto and made a part hereof as though fully set forth herein. . (SEE ATTACHED) SECTION 3. This ordinance shall be in full force and effect from and after its passage and approval. Passed _ Q _�� S /9 L_ Approved Joe Pr dent of t Council Mayor ATTEST: '! Cit Clerk EXHIBIT "A" ® CITY OF JEFFERSON CITY, MISSOURI AUTHORIZATION NO. 1 For PROFESSIONAL ENGINEERING SERVICES To BURNS & McDONNELL ENGINEERING COMPANY, INC. Kansas City, Missouri In accordance with the AGREEMENT for PROFESSIONAL ENGINEERING SERVICES dated between City of Jefferson City, Missouri (hereinafter called OWNER) and Burns & McDonnell Engineering Company, Inc. (hereinafter called ENGINEER) , OWNER hereby authorizes ENGINEER to proceed with the following services: I. SCOPE The Scope of services to be provided by ENGINEER, in connection with this Authorization, is as follows. In general, ENGINEER will prepare a study report examining the technical and economic feasibility of utilizing incinerators to recover energy from burning OWNER'S municipal solid waste. This study will include the following tasks: 1 . TASK I.1 DETERMINE SOLID WASTE GENERATION Burns & McDonnell will evaluate the available information on the loads and yards of waste received at the landfill to determine the volume of solid waste generated in Jefferson City and outside the corporate limits. Because weight data is not available on the loads of waste, it is planned to conduct a limited weighing program to determine load densities for use in calculating quantities in tons. Information on the quantities of wastes collected and recycled from state institutions, private industries, and commercial establishments will be obtained to provide a more complete evaluation of waste generation. Using the calculated quantities of waste available for energy recovery and census data, Burns & McDonnell will project the supply of solid wastes available for conversion to energy throughout the anticipated life of the facility. . 2. TASK I.2 DETERMINE SOLID WASTE COMPOSITION The waste composition will be estimated from the available landfill data and will be based on waste types (e.g. , residential, commercial, industrial, institutional, etc.) . Each waste route (or load) will be categorized by waste type (or percentages of each) and the total tons of each waste type calculated. The total waste composition will then be calculated by taking weighted averages of each waste type, using national composition data for each waste type. The calculated PBAUI.JEF 1 composition data for Jeffersion City will then be compared with composition data for similar cities. The data obtained in Tasks I.1 and 1.2 will be used to calculate the available energy in terms of Btu. 3. TASK II, COST OF PRESENT SYSTEM Burns & McDonnell will estimate the cost of operating the existing landfill based on amortized capital cost and operating cost to determine a disposal cost per ton. Because the existing landfill is only a short distance from the City, it is not anticipated that significant collection or transportation cost savings will be realized from the location of an energy recovery plant within the city limits. Therefore, a collection cost study will not be made in order to reserve available study funds for evaluation of alternative energy technologies and markets. 4. TASK III.1 IDENTIFICATION OF MARKETS Burns & McDonnell will develop a preliminary listing of potential users of recovered energy in and near the City of Jefferson City using the following sources: • Existing City listing. o. SIC listings of City industries, and • Local utility service companies. Steam/hot water will be the major energy commodity considered; however, the potential for cogeneration (simultaneous production of steam and electricity) and chilled water air-conditioning systems will be considered if warranted. The potential users (including city office buildings, state office buildings, hospitals, Lincoln University buildings, state penitentiary, and local industries identified from the above sources) will be telephoned to determine amount of steam usage, type and cost of fuel, etc. Significant energy users will be mailed an energy user survey form. A personal interview will follow the mailing in order to obtain complete survey information. At a minimum, the following data will be collected from the potential energy users: a. Consumption, characteristics, use, and contractual requirements for all fuels and electricity presently used. • b. Identification of existing boilers and turbine generators along.with their: • Location • Age • Type • Capacity • Primary and secondary fuels • Efficiency 2 PBAUI.JEF r o Operating schedule o Output conditions (steam-temperature, pressure; electricity- voltage) o Boiler feedwater treatment o Auxiliary equipment (air pollution, ash handling) . e. A statement of interest on the part of the potential user. Successful resource recovery facility operators stress the necessity of not only finding a customer for recovered energy products, but a willing customer. d. A proposed price which the potential energy user would pay for waste- derived energy. e. An indication of the stability of the market. Specific information useful in this regard includes: • Plans for installing new or removing old energy production equipment, • Plans for changing primary fuel usage, • General expansion plans, • Length of operation at existing location, ® • Other plant locations of the same firm, o Plans for major operational changes. 5. TASK III.2 INVESTIGATION OF POTENTIAL SITES The most promising potential energy markets will be identified based on the information developed in Task III.1 and available solid waste quantities. We will then meet with City personnel and representatives of potential energy users to identify possible sites for energy recovery facilities. Map and field investigations will be conducted in this effort, and sites both on and off potential user's property will be considered. The identified sites will then be evaluated for each potential energy user with respect to: o Availability of sufficient space o Proximity to tie-in to energy user o Existing and proposed zoning o Surrounding land use o Traffic patterns • , Applicable city ordinances • State laws and regulations concerning energy recovery incinerators. In most cases; the first two factors will be dominant in determining the optimum facility site for a specific energy market; however, all the above factors will be considered. 6. TASK III.3 ENERGY RECOVERY TECHNOLOGY ASSESSMENT An assessment of energy recovery technology will be developed based on information available from operating facilities. The incinerator technologies would include, as a minimum: PBAUI .JEF 3 o Multiple-ohamber oontrolled-air incinerators with external waste heat boilers o Multiple-chamber controlled-air incinerators with water tubes in the combustion area o Water-cooled, rotary-kiln incinerators with external waste heat boilers. The assessment will include as a minimum the following: • Experience • Equipment life • Capacities • Maintenance requirements • Manpower requirement • Downtime • Ash generation • Efficiency (combustion and heat recovery) • Energy product recovered. • Air pollution control requirements. 7. TASK III A IDENTIFY ALTERNATIVE SYSTEMS, The purpose of this task is to identify alternative energy recovery systems which are technically capable of being implemented. Information developed in the previous three tasks as well as that gathered concerning the existing solid waste management system will be evaluated and assimilated. A minimum of two alternative systems will be defined in sufficient detail to allow for economic analyses of the projects as discussed in Task IV.1. Burns & McDonnell will submit a progress report and meet with the City to discuss the alternative systems and potential sites before proceeding to perform the economic evaluation. This review by the City will serve as important input to the decision-making process. 8. TASK IV-1 ECONOMIC ANALYSIS OF ALTERNAXIVE SYSTEMS After review by the City of the progress report, we will perform an economic evaluation of the selected alternatives. The alternatives will not be developed in great detail; therefore, the pricing information will be based on historical data from operating facilities, previous Burns & McDonnell estimates, and published information; as well as manufacturer's quotes. The major elements of the economic analysis will be: • Project cost (amortized capital cost) includes total construction cost plus engineering, administrative, underwriting costs, interest ® during construction, start-up, debt reserve, and other reserves. o Annual operation and maintenance cost (salaries, fringe benefits, insurance, taxes, utilities, transportation, maintenance, ash disposal, etc.) . • Revenues produced by the system. • Tax credits. These elements will be utilized to generate present-worth cost summaries for each alternative. Interest rates and inflation rates to be used in 4 PBAU1.JEF 4 these analyses will be mutually agreed upon by Burns & McDonnell and the City. g. TASK IV.2 ANALYSIS OF OWNERSHIP AND OPERATING ALTERNATIVES The three major options which have been used in procuring energy recovery systems include: o Conventional--City contracts with engineering firm to prepare system plans and specifications which then are used as a competitive bid package for construction. o Turnkey--City contracts with one party to provide facility design, construction and start-up. o Full Service--City contracts with one party who has full responsibility for financing, design, construction, operation, and possibly ownership of the system. The potential advantages and disadvantages of the City of Jefferson City entering into the above procurement options will be evaluated. The following methods of financing will be discussed and evaluated for this specific situation: o Revenue Bonds o General Obligation Bonds o Industrial Development Revenue Bonds o Environmental Improvement Authority Revenue Bonds o Chattel or Corporate Bonds 10. TASK IV.3 PROVIDE FINAL REPORT A draft final report will be prepared for the City summarizing all the information and analytical results developed in all project tasks. This report will contain Burns & McDonnell's final recommended energy recovery alternative (if any) including the most suitable combination of financing, ownership and management. A preliminary implementation plan, including proposed project schedule, estimated project costs, and financing requirements will be provided. Following review of the draft final report with the City, the final report will be prepared and 100 copies provided to the City. OWNER will provide, in connection with this Authorization, the following: 1. Assist ENGINEER by placing at his disposal all available information pertinent to the assignment including reports, maps, listing of industry, and any other data relative thereto. 2. Designate a person to act as OWNER'S representative with respect to the services to be performed under this agreement. 3. Examine all reports, sketches, estimates, and other documents presented by ENGINEER and render in writing decisions pertaining thereto within a reasonable time so as to not delay services of ENGINEER. PBAUI.JEF 5 4. Assist ENGINEER (where needed) in obtaining data, information and services from others, including refuse quantity and composition data, landfill cost data, use of a scale, and interviews with potential purohasers of energy. 11, TIME OF SERVICE ENGINEER will proceed with providing the services set forth herein within five days of this Authorization. ENGINEER will submit final report to OWNER prior to January 31 , 1982. III. COMPENSATION OWNER shall compensate ENGINEER for providing the services set forth herein in accordance with the terms of the existing agreement. The total fee for those services shall not exceed $20,000. AUTHORIZATION BY: City of Jefferson City, Missouri By Date ACCEPTED BY: BURNS & McDONNELL ENGINEERING COMPANY, INC. By 6 PBAUI.JEF