funding infrastructure

July 30, 2021

ryan duckett
production line for the processing of plastic waste in the factory

The engineer in Ryan Duckett tends to want to build the biggest, most top-of-the-line waste and recycling facilities whenever he can, but always what is practical for his clients. SCS’s mission states that employees adopt our clients’ environmental challenges as our own, and that includes their budgets and social goals as well.

“I appreciate that the waste management enterprises I work with are businesses and care about more than the engineering of a project. They care about the economics, and they look for guidance in both realms to get maximum value and efficiency,” says Duckett, who came to SCS Engineers as a new environmental engineering graduate. Then he went back to school for his MBA. He wanted to join both the technical and financial puzzle pieces.

“Everyone, especially local governments, is constrained by tight budgets. You have to think about the interplay between design and construction and financial feasibility,” he says.

That’s his job – to plan technically sound programs and facilities, whether new builds, upgrades, or changes in operations or services. Or it can be developing protocols for clients to tap into low-carbon fuel credits.

He’s learned to look through both developers’ and operators’ eyes to help clients accomplish what they want at budget levels they set while maximizing what they get from their programs, facilities, and systems.

“You need to make assessments and quantify details to answer questions like, what would an operator have to charge for a given service to break even? Is this service fee reasonable given market conditions? What are estimated operational costs and capital costs for an expansion? Financial analysts vet these questions, but very few of them are intimately involved in solid waste practices or engineering,” Duckett says.

 

A holistic approach in play

He calls the work he does integrated solid waste management, which involves understanding the entire operation and how one component affects the other, whether routing and collections, materials recovery facilities (MRFs), transfer stations, landfill gas systems, or others.

Duckett shows this holistic approach in play by explaining how grasping the way collections work helps design transfer stations. These major builds can run up to multimillions, even when project managers have the skill set and foresight to plan for efficiency and sustainability.

“You can better estimate how to design queuing space, how to design surge capacity, how to size facilities,” he explains.

“Adding, for example, an extra day’s storage capacity at a transfer station or MRF provides extra flexibility in the event of a disruption farther down the line. In an emergency, owners could potentially save significantly by having more time to identify or negotiate more economical alternatives.”

Some of the solutions he finds are simple but require thinking out of the box—literally in one situation where cardboard boxes were stockpiling at a convenience center because they didn’t fit through the slot in a single-stream receptacle. Simply creating an acceptance area only for boxes diverts multiple truckloads a week from landfills and generates thousands a year in revenue.

Then there are the major construction projects where Duckett digs deeper, such as one plan to site, design, and build a MRF. He conducted a feasibility study looking at different sites and calculated estimated operational costs and upfront capital costs for each identified site.

“We ultimately determined that by co-locating a facility at the existing landfill, the client would save over $200,000 in operating costs, with savings from scales/scale house reuse, the reduced distance of residual stream hauling, labor efficiencies, and other areas.”

In this same scenario, adding robotics for additional processing comes with anticipated savings of about $300,000 in manual sorting costs annually.

 

When do you recommend spending more upfront?

This question often comes up in Duckett’s world.

He finds that sometimes spending more upfront and on what’s built to last translates to substantial savings in the long run. He reflects on when a client had to replace a transfer station floor every couple of years.

“These floors take so much impact, so this is not an uncommon problem. But you can provide a huge ROI by reducing floor replacement frequency. They can run over half a million to replace properly, even for relatively small facilities,” Duckett says.

He ran budget numbers for different approaches and found in this scenario the higher-end approach, cement with additives such as fly ash, was the better deal.

“It might cost 50 percent more upfront, but the floor could last three times as long, breaking the cycle of frequent, costly replacement,” he says.

 

What do you recommend when budgets are so tight, there’s no cash reserve to invest?

Duckett and his team have found solutions in this scenario, too; often, the strategy is to figure out if a phased approach is possible.

“You could spend ten years waiting to generate enough funds to build infrastructure for a major project. Your citizens are missing out, so sometimes it’s best to build smaller, as soon as you need it. Then increase capacity as you can afford it.”

 

Expert advice from his colleagues

A very positive thing about his holistic approach is that Duckett can reach out to his colleagues who specialize in long-term financial management plans for utilities such as solid waste. This team, led by Vita Quinn, specializes in helping clients build sustainable financing models and plans.

The models help communities manage financial impacts such as COVID disruptions; make investments without burdening community budgets, and help take advantage of commodity market swings such as in the value of recycled paper. Models are useful to show community leaders and citizens the different options and what-if scenarios that make sense based on current and future conditions.

 

Going back to the drawing board to improve a system

Not long ago, Duckett’s team had to figure out what to do about a decal-based, pay-as-you-throw system that wasn’t working. The operator’s initial plan seemed logical and simple: residents purchase decals and place them on their bins for pick up. But some of them let their subscriptions expire. The city was losing money servicing outstanding accounts. It hired enforcement officers to check every decal for validity, which soon proved too labor-intensive.

“We found an alternative: adding fees for trash and recycling to the water and sewer bill. It’s bringing in more revenue. And the city is saving on hours spent checking thousands of decals, freeing the enforcement officers for other jobs, like bulky and yard waste enforcement,” Duckett says.

 

Duckett’s greatest lessons learned?

“In my seven years on the job, I have learned that the solid waste industry is complicated with a lot of intricate, moving parts that interconnect. Who would have thought trash was so complex?”

He’s also learned it’s critical to have comprehensive teams with diverse backgrounds to gather different perspectives.

“It goes back to the concept that you need more than engineering expertise to deliver that value add. That value add is important to our customers, so we strive to understand the business challenge along with the technical and social goals.”

Speaking as a young professional to other young professionals and students thinking about careers in waste management, he says: Check it out. Give it serious thought.

“I do not know of another industry that involves so many interesting disciplines: biology, hydrology, geology, engineering … even data and computer scientists.”

He shares this proposition for the young and ambitious:

“As technology advances and regulatory requirements heighten, our teams learn a lot on the job. But we appreciate our sharp graduates who bring the latest knowledge from academic settings. We depend on them to share new ways of thinking and help us solve challenging and intriguing problems.”

His motivation to get into environmental engineering evolved from his passion for the outdoors.

“I grew to appreciate conservation, which centers on doing more with less to preserve resources. Nothing is wasted in nature; everything is cyclical and gets used,” Duckett says.

“That’s what our waste system could emulate, and as a nation, we’re moving in that direction. It’s not just about reducing trash. It’s about reducing wasted effort and money spent beyond what’s necessary. It goes back to the idea of efficiency and getting the most out of something – instead of a using-disposing-buying new mentality.”

 

Learn more about comprehensive MRF and Transfer Station infrastructure

 

 

 

 

 

Posted by Diane Samuels at 6:00 am

April 19, 2017

The economic concepts discussed in the articles on our website are used by solid waste agencies to help determine the economic feasibility of a particular project, to determine service rates adjustments, and in general plan for the financial health and longevity of operations.

 

SCS Management Services™ helps many of our clients’  incorporate economic planning, financial analysis, and feasibility studies into their master planning and have requested copies of our articles. All can be found and filtered by topic area, and we are always ready to help you find the information you need.

Our articles may be printed or shared using the icons on the left navigation bar. Or, you may share or email this page to keep it handy. SCS respects your privacy; we do not monitor or collect your email address or information.

Contact Vita Quinn for more information. Ms. Quinn is SCS Engineers’ National Expert on Solid Waste Finance and Rate Studies. She has 12 years of experience as a financial analyst and management consultant. She has extensive experience working for local government and has developed financial sustainability solutions for various general governments, special revenue funds, and utility enterprise funds. Ms. Quinn has an MBA in Finance and a Bachelor’s Degree in International Economics.

 

 

An Exercise in Sound Fiscal Planning: A Rural County’s Public Works Professionals Evaluate Future Solid Waste Service Scenarios, Costs, and Financing Options

https://www.scsengineers.com/scs-articles/an-exercise-in-sound-fiscal-planning-a-rural-countys-public-works-professionals-evaluate-future-solid-waste-service-scenarios-costs-and-financing-options-by-marc-rogoff-karl/

 

 

Residential Automated Collection Makes Sense for Idaho Falls

https://www.scsengineers.com/scs-articles/residential-automated-collection-makes-sense-for-idaho-falls-by-marc-j-rogoff-chris-canfield-and-tony-arehart-waste-advantage-magazine-february-2015/

 

 

The Nuts and Bolts of Implementing a Residential Automated Collection Program

https://www.scsengineers.com/scs-articles/the-nuts-and-bolts-of-implementing-a-residential-automated-collection-program-by-marc-rogoff-scs-richard-e-lilyquist-city-of-lakeland-fl-jeffrey-l-wood-city-of-lakeland-fl-and-donald/

 

 

Conducting a Rate Analysis as Part of a Master Plan Study in Killeen, Texas

https://www.scsengineers.com/scs-articles/conducting-a-rate-analysis-as-part-of-a-master-plan-study/

 

 

Financial Tools Assist in Completing Cost of Service Studies

https://www.scsengineers.com/scs-articles/financial-tools-assist-in-completing-cost-of-service-studies-wasteadvantage-may-2016/

 

 

Conducting Solid Waste Rate Studies and Business Plans

https://www.scsengineers.com/conducting-solid-waste-rate-studies-and-business-plans/

 

 

Get a Firm Handle on Solid Waste Costs to Optimize Performance

https://www.scsengineers.com/get-a-firm-handle-on-solid-waste-costs-to-optimize-performance/

 

 

Cash Flow Analysis Forestalls Long-Term Debt

https://www.scsengineers.com/scs-articles/cash-flow-analysis-forestalls-long-term-debt-waste-advantage-magazine-december-2015/

 

 

Is Privatization the Answer? You Need to Consider Several Factors Before Making the Decision for Solid Waste Services

https://www.scsengineers.com/publications/articles/page/11/

 

 

Developing a Strategic Business Plan for Your Agency

https://www.scsengineers.com/scs-articles/developing-a-strategic-business-plan-for-your-agency-bymarc-rogoff-apwa-reporter/

 

 

Economic Feasibility 101 – Understanding the Tools of the Trade

https://www.scsengineers.com/scs-articles/economic-feasibility-101-understanding-the-tools-of-the-trade-by-marc-rogoff-msw-management/

 

 

Assessing a Solid Waste Agency’s Financial Health

https://www.scsengineers.com/scs-articles/assessing-a-solid-waste-agencys-financial-health-by-marc-rogoff-and-richard-allen-msw-management/

 

 

Are Your Rates Correct? Collection and Disposal Rate Studies are a Valuable Tool

https://www.scsengineers.com/scs-articles/are-your-rates-correct-collection-and-disposal-rate-studies-are-a-valuable-tool-marc-rogoff-public-works-magazine/

 

 

Integrating Financial Analysis into Solid Waste Operations Planning

https://www.scsengineers.com/scs-articles/integrating-financial-analysis-into-solid-waste-operations-planning-by-marc-rogoff-msw-management/

 

 

High Costs and Limited Markets Put a Crack in Glass Recycling

https://www.scsengineers.com/scs-articles/high-costs-and-limited-markets-put-a-crack-in-glass-recycling-msw-june-2016/

 

 Recycling Trends in the United States

https://www.scsengineers.com/scs-articles/6555/

 

 

Calculated Decisions: An Engineer’s Feasibility Report Can Help Communities and Financiers Assess the Risk of a Waste Conversion Project

https://www.scsengineers.com/scs-articles/calculated-decisions-an-engineers-feasibility-report-can-help-communities-and-financiers-assess-the-risk-of-a-waste-conversion-project-by-mark-rogoff-rew-magazine-renewable-energy-from-wast/

 

 

Anaerobic Digester Economics

http://digital.mswmanagement.com/publication/?i=250886&p=22#{“page”:22,”issue_id”:250886}

 

Give SCS a call or send an email to if you have questions. Find your local office here: https://www.scsengineers.com/locations/.   Visit our Solid Waste Planning Services page for additional information, articles, whitepapers, and case studies.

 

 

 

Posted by Diane Samuels at 1:30 pm