Presentation to utilities commission

7/30/2019 Presentation to utilities commission

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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

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Presentation to utilities commission