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HomeMy WebLinkAbout(2) Landfill Improvements Rev1Landfill Improvements Project Designed to Receive Dirt from (Bechtel/Port Arthur LNG) 1 Bechtel is a construction contractor for Port Arthur LNG located on S. Gulfway Drive (Hwy 87) just before Keith Lake The City was approached by a Bechtel representative to dispose of dirt that they are removing from their Port Arthur LNG project The most recent estimate of 1.55 million cubic yards of dirt is proposed to be transported from the site to the Landfill over a 24 months period Purpose for Project 2 Benefits to Landfill The landfill would typically spend $1.2M annually for 156,000 CY of dirt used for covering waste as required by the TCEQ permit. The City tested the soil at the Port Arthur LNG project site and determined that the soil can be used to cover waste. The 1.55M CY of cover dirt in a 24-month period can potentially save the City approximately $11.9M and provide the City with 10 years of dirt supply. In addition, the City will charge Bechtel to receive the dirt at a Heavy User price of $5 per CY which translates to $7,750,000 in revenue Revenue + Savings = $19,650,000 3 Required Improvements to City’s Infrastructure The following Improvements are necessary to be able to accept the dirt from Bechtel/Port Arthur LNG TCEQ Permit Modification Coordinate with TXDOT to improve the deceleration and acceleration lanes in and out of the landfill Onsite Asphalt Paved Road Temporary Road/ Tipping Pads 32’ wide perimeter access road 60’ wide perimeter ditch system Detention/Sedimentation Pond Wheel Wash Water line extension from Hazel Street to the landfill on Highway 73 (1.7 miles) 4 Required Improvements to City’s Infrastructure Continued 5 Project Cost The total improvements cost for engineering and infrastructure improvements is estimated at $7,000,000.00 Engineering $500,000 Construction $6,500,000 6 Revenue and Savings vs. Cost The estimated revenue from the 1.55M CY of dirt is $7,750,000 The estimated savings from not purchasing dirt is $11,900,000 The estimated Expenses of Landfill Improvements is $7,000,000 Total Revenue and Savings is $12,650,000 7 Project Schedule Bechtel/Port Arthur LNG is scheduled to start hauling the dirt to the landfill in September 2021. The City has about 6-months to make the necessary landfill improvements to be able to accept dirt. The rest of the improvements will progress with the project. 8 Moving Forward In order to meet the Project’s schedule, Engineering Service Agreements should be executed in order to start the design and the Permit modifications. Funds in the current budget are available for the engineering cost. AWC will design the Water line. SCS will design the landfill improvements. Golden Triangle Consulting Engineers will manage the project as part of its current agreement. A meeting will be scheduled with Bechtel/Port Arthur LNG to request their participation in the project cost, which will be deducted from their cost to bring the dirt to the landfill. In case Bechtel/ Port Artur LNG cannot participate in the construction cost, a budget amendment will be required to fund the construction, after a guaranteed commitment by Bechtel/Port Arthur LNG to bring the dirt to the landfill. Direction from the Council on how to proceed. 9 Questions ? 10