Developing a MRF Public-Private Partnership in the City of Dallas

Grand Opening – March 28, 2017 Note: The facility started accepting materials from the City of Dallas on January 2, 2017

Recovered Materials Pricing Volatility

Potential Public-Private Partnership Structures City Owned and Operated City Owned with Private Operations Privately Owned and Operated on City Land Processing Services Agreement Land Ownership City Private Capital Investment Operations

Planning and MRF Development Timeline Kick-off Resource Recovery Planning Study Recommendation Presented to City Council MRF Starts Accepting City Materials Kick-off MRF Procurement 2013 2014 2015 2016 2017 Present Study to City Council Issue RFCSP Earthwork Started for New MRF

Resource Recovery Technologies Considered Technology Description Single Stream Processing Sort mixed recyclable materials (blue bin), that are collected separately from refuse, and prepare for sale at market. Minimal residue remains after processing. Mixed Waste Processing (MWP) Process residential and/or commercial mixed waste, separating out the recyclable materials and preparing them to be sold at market. Remaining material disposed as residue. Gasification Process waste feedstock at high temperatures to produce an energy-rich synthesis gas and other products. Remaining material disposed as residue. Anaerobic Digestion Process organic materials anaerobically (without oxygen) using microorganisms to produce a methane-rich biogas and other products. Remaining material may be composted and/or disposed.

Focus on Single Stream and MWP Technology Rationale Analysis Results Gasification Eliminated Lack of U. S. operating facilities; relative high degree of permitting and operational risk; relative high cost Technology developing, reevaluate in five years Anaerobic Digestion Mixed Waste Processing Selected Opportunity to recover commercial solid waste; commercially proven/developed within United States Conduct detailed analysis Single Stream Consistent with existing system; commercially proven; need exists to process material already collected; opportunity to increase recovery Maybe add two appendix pages about Gasification and AD. Use a simplified word version of the chart/matrix.

Single Stream Detailed Analysis A single stream facility is financially and technically feasible Need 75,000 to 85,000 annual tons to break even (currently the city processes 55,000 tons annually) Depending on tonnages and commodity values, City could realize from $0 to $40 per ton of net revenue Based on tonnage, technical, and financial requirements a public/private partnership is recommended Locating new facility at the landfill could provide significant financial benefit Undeveloped site for new MRF would increase capital cost by $1.5 - $2.5 million Key recommendations Conduct procurement that allows direct comparison between a processing services agreement and a recycling facility located at McCommas Bluff Landfill

Planning Study Recommendations (June 2014) City should procure a new agreement to process single stream recyclables Single Stream processing agreement expires in December 2016 Develop a new long term agreement (15-20 years with renewal options) Consider a traditional processing service agreement (similar to current agreement), as well as look at developing a facility at McCommas Bluff Landfill through a public/private partnership agreement Process will require 12 – 48 months City should consider re-evaluating emerging technologies in 3-5 years City should look for opportunities to transform portions of McCommas Bluff Landfill to a Resource Recovery Park over time

RFCSP Process Overview

Final RFCSP Overview Options for companies to propose on either (or both) delivery methods Processing Services Agreement (PSA): Contractor processes material at a facility that meets RFCSP requirements. McCommas Bluff Facility: City to make 15 acres available to proposers to design, build and operate a facility at McCommas Bluff Landfill. Capital cost to be born by proposer and ownership transitions to the City of Dallas at contract termination. Opportunity for facility to “anchor” a Resource Recovery Park

Facility Rendering from Proposal

November 2016 Aerial

Building and Equipment Plan Viewing Gallery Highlighted in Blue

Viewing Gallery from Tipping Floor

Inside the Viewing Gallery

Fiber Sorting Cabin and Recirculation Line From Viewing Gallery

Tipping Floor From Viewing Gallery

View of Container Processing Line

Pre-Sort Cabin

Inside the Pre-Sort Cabin

ONP Quality Control Line

Glass Processing System

Questions? Scott Pasternak Burns & McDonnell spasternak@burnsmcd.com