MUNICIPALITY OF ANCHORAGE ENTERPRISE AND UTILITY OVERSIGHT COMMITTEE - - PowerPoint PPT Presentation

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MUNICIPALITY OF ANCHORAGE ENTERPRISE AND UTILITY OVERSIGHT COMMITTEE - - PowerPoint PPT Presentation

Mar 19, 2024 106 likes •488 views

MUNICIPALITY OF ANCHORAGE ENTERPRISE AND UTILITY OVERSIGHT COMMITTEE Mark Spafford, General Manager Department of Solid Waste Services September 19, 2019 #DoSomething Everything that we do LANDFILL CLOSURE COUNTDOWN

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Mark Spafford, General Manager Department of Solid Waste Services #DoSomething

MUNICIPALITY OF ANCHORAGE ENTERPRISE AND UTILITY OVERSIGHT COMMITTEE

September 19, 2019

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acak.statwindow.com/landfill

LANDFILL CLOSURE COUNTDOWN

Everything that we do…

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AGENDA

  • 01. New Centr

ntral al Tran ansfer sfer St Stati tion

  • n Design

ign Upda date te

Ch Chris Co Coleman, , Tetr tra Tec ech

  • 02. Rate

e Re Reque uest

Hei Heidi i Th Thom

  • merson

Mar Mark Sp Spaffor

  • rd
  • 03. Ener

ergy gy from Waste te White ite Pa Paper er

Mar Marc Rog

  • gof
  • ff

Geos eosyntec Co Cons nsultants

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01. Ne New Cen entr tral l Transf sfer er Station tion De Desi sign gn Update te

Chris Coleman, Tetra Tech

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FALL 2018

Where we are today, September 2019

10/2018 Master Plan Finalized 11/2018 Assembly Approved Master Plan Concepts

FALL 2019

Variance Request: Community Meeting #1 and Urban Design Commission Hearing

SUMMER 2023

Final season of construction and project completion

SUMMER 2021-22

Two seasons of construction

SUMMER 2020

Groundbreaking: construction begins

WINTER / SPRING 2020

Conditional Use Permit & Platting Requested: Community Meeting #2 and Planning & Zoning Commission Hearing Building Permitting Process Initiated

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02. Ra Rate te Req eques est t

Heidi Thomerson & & Mark Sp Spafford

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Disposal Rate History Rates to Consumer Price Index (“CPI”) Perspective

40 45 50 55 60 65 70 75 80 85 90 95 100

Solid Waste Disposal Rate Per Ton

Avg rates adjusted for CPI $ per ton - CTS

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SWS Financial Policies

Revenues must cover

  • perating expenses, and

the utilities must adhere to the following basic financial policies:

  • Operating Reserves
  • Capital Reserves
  • System Reinvestment Funding

(i.e. – Depreciation)

  • Dividends
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Rate Analysis Update to our Plan

We have a plan now.

SWS

Disposal Collections

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Disposal Rate Increase for Disposal

$- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 Projected 2018 Actual 2018 2019 2020 2021 2022

Disposal Revenue Requirement

Annual Expenditures-with CTS Revenue Under Existing Rates Revenue with Proposed Increase

Revenue Requirement Projected 2018 Actual 2018 2019 2020 2021 2022

Revenue Under Existing Rates $ 23,446,536 $ 23,314,640 $ 23,314,640 $ 23,314,640 $ 23,314,640 $ 23,314,640 Revenue with Proposed Increase $ 23,446,536 $ 23,314,640 $ 25,572,809 $ 28,619,596 $ 30,206,332 $ 31,892,239 Annual Expenditures-with CTS $ 24,936,165 $ 23,985,136 $ 25,238,955 $ 26,313,493 $ 27,900,235 $ 28,222,012 Net Revenue with rate increase $ (1,489,629) $ (670,496) $ 333,854 $ 2,306,104 $ 2,306,097 $ 3,670,228

Proposed Annual Rate Increase

0.00% 0.00% 6.25% 6.25% 6.25% 6.25%

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Disposal

$- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 Projected 2018 Actual 2018 2019 2020 2021 2022

Disposal Revenue Requirement

Annual Expenditures-with CTS Revenue Under Existing Rates Revenue with Proposed Increase

Proposed Annual Rate Increase

0.00% 0.00% 6.25% 6.25% 6.25% 6.25%

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Collections Rate Increase for Collections

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 Projected 2018 Actual 2018 2019 2020 2021 2022

Collections Revenue Requirement

Annual Expenditures Revenue Under Existing Rates Revenue with Proposed Increase

Cash Flow Summary FYE Projected 2018 Actual 2018 2019 2020 2021 2022

Revenue Under Existing Rates $ 11,445,000 $ 11,238,360 $ 11,238,360 $ 11,238,360 $ 11,238,360 $ 11,238,360 Revenue with Proposed Increase $ 11,445,000 $ 11,238,360 $ 12,006,250 $ 12,876,692 $ 13,202,327 $ 13,581,724 Annual Expenditures $ 11,940,660 $ 11,688,918 $ 11,306,941 $ 12,398,788 $ 12,646,764 $ 12,899,699 Net Cash Flow After Increase $ (495,660) $ (450,557) $ 699,309 $ 477,904 $ 555,563 $ 682,025

Proposed Annual Rate Increase

0.00% 0.00% 5.00% 5.00% 5.00% 5.00%

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Collections

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 Projected 2018 Actual 2018 2019 2020 2021 2022

Collections Revenue Requirement

Annual Expenditures Revenue Under Existing Rates Revenue with Proposed Increase

Proposed Annual Rate Increase

0.00% 0.00% 5.00% 5.00% 5.00% 5.00%

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Rate: Current - $27.62/month vs. Proposed - $29.00/month Rate: Current - $263.00/month vs. Proposed $276.00/month

3CY, 2 times/wk 64-gal with Recycle

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03. Ener ergy gy fr from

  • m Waste

te Wh Whit ite e Pap Paper er

Marc Rogoff, Geosyntec Consultants

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B OOKS

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WA S T E - TO- E N E RGY WORLDWIDE

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W T E P R E F E R R E D A LT E R N AT I V E I N E U R O P E

2,179+ WTE plants worldwide; 77 in U.S.

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  • 77 WTE plants in 25 states
  • 14%
  • 4 facilities in PNW:
  • Spokane
  • Vancouver
  • Portland
  • Modesto

WA S T E - TO - E N E R G Y I N T H E U. S .

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WA S T E - TO - E N E R G Y T E C H N O LO G I E S

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E VA LUAT I O N C R I T E R I A

STATE OF TECHNOLOGY

Degree to which technology has been proven on a commercial scale Operating History Freedom from high failure modes Demonstrated reliability of entire system

TECHNICAL PERFORMANCE

Compatibility with full spectrum of MOA waste system Ability to produce marketable byproducts Need for pre processing

TECHNICAL RESOURCES

Proven contractor experience with technology Proximity of technical support Availability to provide support on continuing basis

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A D VA N TA G E S O F M A S S B U R N P L A N T S

  • Commercially proven
  • Mature technology

addressing high risks with design and operational procedures

  • High gross energy output
  • U.S. based vendors
  • Pool of experienced

professionals

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C LO S E R LO O K AT M A S S B U R N T E C H N O LO G Y

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  • WTE is Renewable Energy
  • Reduces Greenhouse

Emissions

  • Reduces Reliance on

Landfills

  • Reduces Truck Traffic and

Related Emissions

  • Complements Recycling

E N V I R O N M E N TA L B E N E F I T S O F W T E

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E C O N O M I C S O F M A S S B U R N T E C H N O LO G Y

E X P E N S E S

  • Debt Service
  • Operating Fees
  • Potable and Non Potable Water
  • Propane
  • Lime Pebble
  • Lime Dolomite
  • Urea
  • Carbon

R E V E N U E S

  • Electric Sales
  • Biosolids Tipping Fees
  • Supplemental Waste Fees
  • Recovered Metals
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PRO FORMA MODEL

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PRO FORMA RATE MODEL

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CONCLUSIONS

01. 02. 03. 04. 05.

Mass incineration is the most well established and reliable WTE technology The MOA generates 1,000 tpd; 1,200 tpd with neighboring Boroughs WTE can incinerate MOA biosolids effectively WTE is a practical goal

  • f the ISWMP

Various economic scenarios suggest required tipping fees range from $58.04 to $85.67

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FUTURE STEPS

✓ SWRAC Resolution of Support ✓ Waste Composition and Fuel Analysis ✓ Confirm Site ✓ Confirm Energy Pricing ✓ Confirm Neighboring Boroughs Interest ✓ Develop Borough Implementation Team ✓ Procurement Options ✓ Develop Financing Plan

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Thank you. #DoSomething