A consultant retained by the city says the company’s proposal could save local taxpayers as much as $122 million over 25 years
Green for Life Environmental (GFL), the solid-waste management behemoth founded by billionaire Saultite Patrick Dovigi, has expressed interest in running the landfill and composting operations in his hometown.
GFL has approached the City of Sault Ste. Marie with a proposal to take over local landfill operations, including expansion of the existing landfill at 402 Fifth Line East with new cell development and mining.
It also wants to build and operate a composting facility for biosolids and single-source organics.
Tom Vair, the city’s chief administrative officer, says over a 25-year operating agreement, GFL’s proposal could save the city between $39 million and $122 million.
The Sault’s municipal landfill site was developed during the early 1960s by Cherokee Disposals and Construction Ltd.
In 1989, it was bought by the city.
The landfill is currently licensed to accept domestic, commercial, non-hazardous solid industrial waste and processed organic waste.
If GFL’s offer is accepted, the city would continue to own the land and GFL would pay the city a royalty per metric ton of inbound municipal solid waste.
“GFL would be responsible for all future capital investments and construction costs associated with the landfill, and would take over landfill operations, as well as environmental compliance and regulatory requirements,” Vair said in a report prepared for Monday’s council meeting.
“The city would be charged an inbound tipping free for all material in our care and control,” he said.
GFL is also willing to build an organic waste processing facility at the landfill as part of an agreement lasting at least 25 years.
The city would be charged for each tonne of organic waste received.
An analysis done by city staff with help from an independent consultant found the deal could save the city between $39 million and $122 million over its 25-year term.
“Further, outsourcing the construction of the composting facility would free up debt capacity, enabling the city to consider other priority municipal projects,” Vair said.
“The most recent council report indicated a construction cost of approximately $56 million for the composting facility. Given the timing of the report, there is a risk that the cost of the facility could be higher than $56 million once tendered.”
City councillors will be asked on Monday to issue a request for proposals (RFP) for the project.
“Operations of a landfill by a private sector operator are not an uncommon model in Ontario and Canada,” Vair said.
“An agreement would be recommended only if the results of the RFP process enable the city to achieve satisfactory outcomes.”
One possible wrinkle involves who will work at the landfill.
“A key consideration for the city is looking after existing city staff working at the landfill,” Vair said.
“Should an agreement proceed with a proponent, an important component of this project will be to create individual plans for affected employees.
“The city will make efforts to find alternative employment opportunities within the city so that affected employees have a choice in their career paths.
“Union members will have the ability to rely on their general seniority as per the CUPE-3 collective agreement to revert back to public works operations.
“In addition, private-sector proponents will have an obligation to offer employment opportunities to affected employees so they may choose to remain with landfill or composting operations,” Vair said.
“The city retains the ability not to award the RFP to a proponent should the submissions not meet the threshold of benefit for city staff and, ultimately city council.”
Monday’s city council meeting will be livestreamed on SooToday starting at 5 p.m.