I have received several e-mails recently wondering about the status of the organic processing facility and the recent negotiations to process organic waste from Waterloo using excess capacity at the facility.
The City signed the contract with Maple Reinders in July to construct the facility. Demolition and site servicing is happening this fall. Construction will begin in Spring 2010 as soon as we receive an amended Certificate of Approval under the Environmental Protection Act to, once again, allow us to process organic waste at the Waste Resource Innovation Centre. We are hoping for a timely response from the Ministry of Environment.
With respect to the Waterloo contract, the net total cost for processing organic waste was determined to be $114/tonne (net present value; adjusted for inflation; amortization of debt included). This analysis was completed to evaluate the Waterloo contract. Our staff have reviewed the business case and terms of the Waterloo agreement and have concluded it benefits Guelph taxpayers as it helps to offset the cost of organic processing. A recent tender by another community for the processing of their organic stream brought in bids ranging from $107 to 130/tonne showing our processing costs will be competitive with the market place.
Based on current information, the estimated impact on the 2011 tax levy will be $2.456 M or approximately $236/tonne (this includes the processing cost plus capital cost of the new facility). The City is building a waste processing asset. The cost per tonne will vary in each year of the contract as the highly competitive world of waste management changes.
Organic Processing Facility Fact Sheet – updated December 2009