NO WAY WE CAN ALLOW YOU TO REDUCE WASTE
Good News/Bad News
My client was a Central Pennsylvania cheese processing facility headquartered in Europe.? When the company was acquired by a larger European food conglomerate, the VP/General Manager of the Pennsylvania plant shared with me his apprehension about whether the new company will retain him.? He was more pessimistic about continuing the career track to senior corporate management that the VP/GM had been told would be enhanced if he gained experience at one of the company’s foreign (e.g., American) facilities.
However, I was assured that my firm would certainly benefit from the difference of approach by the new management.? “First, they are looking to grow this business, implement the master plan your team created for us but we never funded.? Second, they’re much more green-oriented than our corporate ever was.? Pull out those pitches for sustainability initiatives from your files, we’re likely to need them.”
Those new opportunities for our firm were great news to hear.? My greatest concerns, however, were that this new entity would want to replace my company in its longtime consultant role with a preferred US-based architect or have a heavier involvement by a corporate facilities department.? I was relieved a few days later when I was invited to a meeting with the corporate staff as part of their weeklong familiarization visit on site.? My presentation was slotted during lunch. The VP-GM and I were in regular contact up until then, to assure my report on the status of current and pending projects aligned with the story my client wanted told.
Arriving a half hour early, I was impressed with quality of the lunch buffet being set out.? My audience arrived exactly on time. ?I was directed to begin as soon as they were all seated and starting in on their salads, realizing that my access to lunch would be delayed.? My audience was attentive during my overview of the major facilities projects over the past few years.? They became animated when I began presenting the multiphase plan for the new production facility.? The site plan indicated that the receiving and process facility would be constructed to the east of the current aging plant.? Finished products then would be conveyed to the existing warehouse and shipping facility to its south.? I was asked why a long transfer corridor was necessary.
“There is an existing process wastewater complex between the new processing facility and the warehouse,” I explained.? “The time and cost to move that facility led to the decision to work around it.? Instead, that existing facility will need to be expanded to increase capacity.”
My audience started shaking their heads as they partook of the main course, a bad sign for me.? After confirming that this facility did not pretreat sanitary waste, and being lectured about how easily cheese absorbs the smells (both good and bad) and the taste of nearby foods (which makes it ideal to use in recipes), I was quizzed on alternatives.? Fortunately, I was prepared for that question.? There were several vacant acres owned by the company across the road just south of the warehouse.? A new pretreatment facility could be located there on a portion of what was now being leased to a local farmer to grow corn.? Heads started nodding again when I explained at length the advantages of the new pretreatment site:
My hosts were now delighted, as they began consuming the French pastries.? An engineer then stood up and strode over to my drawing.? She indicated how they could construct a full wastewater treatment facility, where the final outflow will meet local standards such that it can be used to fertilize the corn field.? “That’s what we do in our Cordoba cheese facility,” she reported.
My turn to make heads shake.? Probably unknown to our guests, their newly acquired plant was in the highly regulated Chesapeake Bay Watershed.? I carefully explained that the requirements to receive a permit to treat wastes from process drains to field will require years to achieve.? “Perhaps we can construct a pretreatment facility now and plan to add a final treatment component in several years once permits are received,” I offered.
The lunch time slot was about to end, the caterer was waiting to clear away the food, so there was no further discussion about the full wastewater treatment except for one final point.? I was asked about what measures were being considered to reduce overall process waste in the proposed processing facility before we sized the new pretreatment plant.? Our firm had proposed a number of actions along with payback projections that were 5 – 10 years, all of which were not accepted by the previous owner.? A directive was then given to revisit all those opportunities to reduce effluent, and to begin piloting them in the existing plant.? I nodded happily as I watched the buffet being taken way.
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As my audience was heading out to their next stop on their very full agenda, the VP/GM took me aside, congratulating me on handling myself well under fire, promising he would be in touch the next day with more direction.? He then provided me with a gourmet sandwich and some pastries he had set aside.
The VP/GM’s promised call reiterated much of the direction I had heard the previous day.? We agreed on a timeline and my fees to update the master plan to the layout and phasing discussed.? I then recommended that we be in touch soon with the local Sewer Authority to make sure they could accommodate the increased pretreated effluent that will result from the new, higher-capacity facility, including future planned expansions.? I had once met the Sewer Authority Executive Director at a regional US Green Building Council event, and knew she was a staunch environmentalist and a likely ally in this facility development process.? The VP/GM agreed with the wisdom of convening the meeting.
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Love It/Hate It
The Authority ED arrived at our morning meeting the following week in a logoed worksheet and jeans, looking very much the hands-on person I expected she was.? She laughed when the VP/GM was visibly surprised at her attire, quickly explaining that she had been up since 3:00 AM overseeing repair on an unresponsive pump.? She then listened attentively, occasionally nodding, as I explained the new master plan, how it will affect the Sewer Authority’s future capacity and operations, and all the environmental advantages.
When I had completed my overview, she sat back, paused for a while, and then responded in measured sentences.? “Your plan sounds wonderful.? You’re doing all the right things.? It will be a showcase of best practices.? Sadly, I cannot support it and must do everything I can to delay or stop it.”
The VP/GM and I were in shock.? Once she was confident that we had fully absorbed her message, she continued, “Let me explain.? Several years ago, we expanded our treatment capacity and throughput based on the expected growth of our customers.? We estimated how many new housing units would be built in all those neighborhoods being constructed off the new highway. ?We spoke with our major industrial clients, including you, about their future plans.? From those calculations we sized the new expansion.? We paid for the design and construction through municipal bonds.? Payout to those bondholders was based on approval of a rate per thousand gallons that would produce the monies needed.? If we receive more effluent than expected but within our capacity, payments received would have excess cashflow that we will put into a reserve account.? If the effluent is significantly less, we can’t bill as much, and then we can’t meet our bond payment obligations.”
She stopped there for a moment, waiting for us to nod our understanding.? We complied and she concluded, “Not only are you now projecting much less effluent than you had told us, but your improved pretreatment will also lower your monthly bills, to your advantage and our detriment.? If you do this upgrade, we will not meet our financial obligations, or will be forced to try to increase our rates through the regulatory commission to handle capacity we will now never need.? By rights, you can do the wastewater pretreatment improvements you are proposing.? However, the longer I can delay you from receiving your permits, the more cash will flow to us from your company, the longer until I have to face this dilemma.? As the person who developed the expansion recommendations, my job will be in jeopardy if the income from process flow is insufficient, so this is personal.? I love what you’re doing.? I just have to make it as hard for you as possible.”
After she departed, the VP/GM asked that I summarize her remarks in a confidential memo.? He was shaken and not looking forward to informing his new bosses of this conundrum.? “It feels like I am always telling them that what you can get away with in Europe you can’t as easily do in the US.”
A process wastewater pretreatment strategy remained unresolved in the next several months, awaiting results from efforts to significantly reduce the quantity of waste.? Meanwhile, I was released to design some of the infrastructure and stormwater improvements that will be needed regardless of how the facility expansion master plan was finalized.? As those projects were completed, the VP/GM was transferred back to corporate headquarters.? Before he departed, he confided that it was a way to courteously cover the cost for his move back to Europe, and not for a promotion.? His replacement was decent enough to advise me that he had a preferred architect who would be taking over from my firm.? I was pleased for what I had accomplished for this client over many years, and had been well paid.? And as with many projects, I had a great story to tell!
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