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Home My WebLink About2017-347-E SW - SCS Engineers for Consulting Services Scope of Services Performed DocuSign Envelope ID:7B0E5F1 E-ADCD-443B-B127-00EF2855662D SCS ENGINEERS SCOPE OF WORK FOR CONSULTING SERVICES BETWEEN SCS ENGINEERS AND ORANGE COUNTY, NC FOR SOLID WASTE MANAGEMENT PROFESSIONAL CONSULTING SERVICES ENTSORGA MBT FACILITY PRELIMINARY FEASIBILITY STUDY 1 . SCOPE OF SERVICES TO BE PERFORMED: This scope of services outlines the components of the task identified by SCS Engineers, PC (SCS) and Orange County,NC deemed necessary to perform a Preliminary Feasibility Study(Study) of the operational and financial parameters required for the implementation of a Mechanical Biological Treatment(MBT) Facility by Entsorga Italia S.p.A. and Chemtex Global N.V. (Entsorga). BACKGROUND In 2010, the County was in the process of gaining information about technology options for alternative waste disposal methods partially in response to the anticipated closure of the Orange County Landfill. An Entsorga representative gave a conceptual introduction of its system to the Solid Waste Advisory Group (SWAG) in October 2011. In Entsorga's High-Efficiency Biological Treatment(HEBioT)process, an aerobic digestion module is utilized to drive off moisture from waste that has been shredded, and the resulting produced solid recovered fuel (SRF) can be used in a combustion process to produce electricity. As a result, MBT facilities are often co-located with cement mills, Refuse Derived Fuel (RDF)power plants, or even coal-fired power plants. At the time of Entsorga's initial presentation, there was no pilot facility in the United States that could serve as an example of the viability of the technology. However, on January 6, 2016 Entsorga held a groundbreaking ceremony in Martinsburg (Berkeley County), West Virginia, for its first US facility which is currently finishing construction. The County reconnected with Entsorga in the fall of the same year, and in March 2017, SCS met with Entsorga's Vice President of Operations—North America to discuss the potential project. OBJECTIVE The objective for this proposed assignment is to assess the claims presented in Entsorga's various proposal elements to the County in recognition of the ongoing conversations between the two organizations. 1 7/26/ 17 DocuSign Envelope ID:7B0E5F1 E-ADCD-443B-B127-00EF2855662D SCS ENGINEERS APPROACH SCS has performed dozens of evaluations of proposed facilities and alternate waste handling and disposal technologies throughout the country. We also conducted a cursory review of the Entsorga technology during the development of the Town of Chapel Hill's Comprehensive Review of Solid Waste Collection and Disposal Options in 2013. As discussed with the County, our approach will include a systematic review of materials made available to the County from Entsorga. The study will include two primary components • Technology Review: SCS will review the technological elements of the HEBioT system. Typical steps associated with Solid Recovered Fuel (SRF) systems such as Entsorga's include waste screening and recyclables recovery, size reduction, shredding, fluffing, drying/thermal treatment, biological treatment, and final processing into a transportable fuel. • Financial/Economic Review: SCS will examine any existing pro forma models developed by Entsorga intended to demonstrate the Return on Investment(ROI) of Orange County's development and use of a potential MBT Facility. Examined outputs will include financial elements such as gate rates, CAPEX, OPEX, income streams, life expectancy, depreciation, and other cash flow parameters and metrics such as Net Present Value (NPV) and Internal Rate of Return (IRR). TASK 1 — ENTSORGA MBT PRELIMINARY FEASIBILITY STUDY SCS will employ a systematic approach to review and evaluate available information and data provided by Entsorga regarding the development of a potential MBT project for Orange County. SCS will specifically request whether an independent third-party due diligence document pertaining to the West Virginia Entsorga facility can be made available. Other components of this task will include: • Gather background information from Orange County or directly from Entsorga representatives utilizing contact information provided by the County. Background information will include marketing presentations and associated backup documents, financial spreadsheets, technical reports, internal memos, reports by previous consultants, emails between County stakeholders and Entsorga representatives, etc. • Review performance specifications and system illustrations developed by Entsorga to evaluate the technological feasibility of the HEBioT system. • Review financial background information and any preliminary pro forma model developed by Entsorga including components such as CAPEX and OPEX costs to evaluate the financial and economic feasibility of siting and operating a MBT facility in Orange County. SCS will investigate and inquire about the perceived material end markets/destinations assumed in Entsorga's models. • Communicate with Entsorga representatives as necessary. 2 7/26/ 17 DocuSign Envelope ID:7B0E5F1 E-ADCD-443B-B127-00EF2855662D SCS ENGINEERS Deliverables: SCS will develop a Letter Report which will compile the findings of the Study into a brief analysis detailing results of the technological and financial reviews. 2. WORK ORDER SCHEDULE: SCS is prepared to begin performing the work efforts identified under Task 1 as described above upon receiving authorization from the County to proceed. The duration for completing the work and submitting the deliverable under Task 1 will be discussed with the County prior to commencement of work efforts. 3. COMPENSATION : Compensation shall be as indicated below. Refer to the Attachment 1 Fee Estimate. SCS will be compensated for time and expenses in accordance with SCS' standard rates in effect at the time of performance. The budgetary fee estimate is as follows: • Task 1 —Entsorga MBT Preliminary Feasibility Study $7,500 Total Amount of this Work Order= $7,500 4. AGREEMENT BY THE PARTIES: This scope of work is submitted pursuant to the terms of the Agreement dated May 22, 2017 between SCS Engineers and Orange County. e. —Doccu'Signed by: Plic,vl t. Pi 7/26/2017 SC R iffetW PC Date Authorization to Proceed: This scope of work is approved pursuant to the terms of the above-referenced Agreement. DocuSigned by: aettit(, (Plt,Sbin, 7/27/2017 S rector(or designee) Date This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act: DocuSigned by rqotrt , rude/ 7/27/2017 Chief°1 ila i'a11Officer Date 3 7/26/ 17 DocuSign Envelope ID:7B0E5F1 E-ADCD-4438-8127-00EF2855662D ATTACHMENT 1 FEE ESTIMATE FOR ENTSORGA MBT FACILITY PRELIMINARY FEASIBILITY STUDY ORANGE COUNTY, NORTH CAROLINA TASK 1 ENTSORGA MBT FEASIBILITY STUDY SCE GI i R5 Rate LABOR CATEGORY $/hr Hours Cost Principal Advisor $ 230 6 $ 1,380 Project Director $ 200 10 $ 2,000 Sr. Project Professional $ 1 25 0 $ - Project Coordinator $ 115 5 $ 575 Project Professional $ 110 0 $ - Staff Professional $ 95 30 $ 2,850 Assoc. Staff Professional $ 80 0 $ - TOTAL LABOR 51 $ 6,805 OTHER DIRECT COSTS Auto/Mileage $ 275 Telephone/Facsimile $ 25 Reproduction/Printing $ 55 Admin/Computer $ 250 TOTAL ESTIMATED ODC's BY TASK $ 605 Administrative (15%) $ 91 TOTAL $ 7,500 7/26/17