COUNTY OF SIMCOE
ITEM FOR:
CORPORATE SERVICES COMMITTEE
SECTION:
Solid Waste Management
ITEM NO.
CS 12-095
MEETING DATE:
June 13, 2012
SUBJECT:
Central Composting Facility Viability Assessment Report and Next
Steps
RECOMMENDATION:
THAT direction be provided to staff with respect to options presented on the timing of
commencement of the siting and procurement processes for development of a County Central
Composting Facility (CCF) as outlined within Item CS 12-095.
RELATIONSHIP TO THE WASTE MANAGEMENT STRATEGY:
The Waste Management Strategy considered two options with respect to organics processing;
either processing outside of the County or within the County. In the shorter term, the Strategy
recommended discussions with Hamilton and Aim Waste Management to determine their
capacity and potential to extend the existing contract. These discussions are well underway. In
the longer term, the Strategy recommended development of organics processing capacity within
the County. Through the Strategy process public input indicated support for processing within
the County as well as for the addition of pet waste and diapers to the program. The Strategy
recommended that a facility developed in the County be owned by the County with a design,
build, operate arrangement with a qualified vendor.
BACKGROUND:
As reported in CS 11-175 (November 2011) and CS 12-063 (April 2012), staff has been working
with Genivar Consulting which have completed a viability assessment as Task 1 of the Central
Composting Facility (CCF) project which is attached as Schedule 1.
A representative of Genivar Consulting will be in attendance at the June 13, 2012 Corporate
Services Committee to provide a presentation and answer questions with respect to the report
including the quantities and characteristics of organic material as it relates to facility sizing,
organic processing technologies including aerobic and anaerobic digestion, technologies for
contaminant removal, design considerations and cost estimates, facility site considerations,
procurement considerations, approvals required and timelines.
The consultant report, attached as Schedule 1, takes a very reasonable approach to facility sizing
which allows for capacity to include expected growth over a period of 25 years, thus allowing
merchant capacity to be made available to neighbouring municipalities in the interim which
would allow for some economies of scale and reduce the operating cost per tonne.
The report also identifies a number of processing technologies including opinions as to which
technologies could realistically incorporate the additional materials which Council has previously
indicated a desire to process (diapers, pet waste, sanitary products).
June 13, 2012
Corporate Services Committee CS 12-095
Page 2
The document also contains a number of next steps required, if directed by Council to proceed
with development of a facility, including the procurement process required to obtain a design,
build and operate (DBO) vendor; and the required siting and approvals processes. It is noted that
these processes will require significant effort and resources to achieve which were not specifically
incorporated into the 2012 budget (see Financial Analysis section with respect to reserves). Staff
therefore provides two options for Council’s consideration with respect to the Central
Composting Facility project:
Option 1 – Commence Central Composting Facility project development as soon as possible.
This option would see the Central Composting Facility project move forward as soon as possible
in order to reduce our reliance on outside processing service and to potentially enable diversion of
diapers and pet waste. As indicated previously, this project will require significant effort and
resources to achieve. In order to minimize the consulting costs, staff recommends that a qualified
full time staff person be retained in order to manage the siting and procurement processes and
ultimately to oversee the development and operations at the facility. Should Council direct that
the Central Composting Facility project development commence as soon as possible, project work
could reasonably commence in the fall of 2012.
If Option 1 is selected by Council, staff provides the following recommendation:
THAT Option 1 be approved as the preferred option to commence Central Composting Facility
project work as soon as possible as outlined in Item CS 12-095;
AND THAT funding related to the project work be provided as outlined within Option 1 of the
financial analysis of Item CS 12-095.
Option 2 – Delay further development of the Central Composting Facility project until 2013,
pending budget approval.
If this option is selected, and budget approval provided in 2013, project work could reasonably
commence sometime in the second quarter of 2013. It is noted that delay of the project would
have an impact on the County’s future landfill capacity and/or disposal or processing costs to
external facilities as diapers and pet waste account for approximately 25% of the County’s
garbage stream. If Option 2 is selected by Council, staff provides the following recommendation:
THAT Option 2 be approved as the preferred option to delay further development of the Central
Composting Facility project until 2013, pending budget approval as outlined in Item CS 12-095.
FINANCIAL ANALYSIS:
The viability assessment report completed by Genivar Consulting was funded through the Solid
Waste Management Department 2011 and 2012 budgets.
In 2011, capital funding was allocated to the project which was not fully utilized and therefore there
is approximately $100,000 remaining in reserves for 2012.
Option 1 - Should Council direct staff to commence with Option 1, it is anticipated that the full time
equivalent would be funded through the 2012 Solid Waste Management operating budget, it is
June 13, 2012
Corporate Services Committee CS 12-095
Page 3
estimated that the impact would be approximately $30,000 for the remainder of the year. Approval
for any additional funds required for land purchases would be sought through a future report to
Council.
Option 2 – Should Council direct staff to delay further development of the project, costs would be
included in the 2013 budget for Council consideration and there would be no impact to the 2012
budget.
SCHEDULES:
The following Schedule is attached hereto and forms part of this Item:
Schedule 1 – Viability Assessment
Schedule 1 to CS
12-095
PREPARED BY:
Willma Bureau, Contracts & Collections Supervisor
APPROVALS:
Rob McCullough, Director of Solid Waste Management
Rick Newlove, General Manager Engineering, Planning and Environment
Lealand Sibbick, Deputy Treasurer
Mark Aitken, Chief Administrative Officer
Date:
May 25,2012
June 6, 2012
June 6, 2012
June 6, 2012