Report to/Rapport au :
Corporate Services and Economic Development
Committee
Comité des services organisationnels
et du développement économique
and Council/et au Conseil
23 June 2003 / le 23 juin 2003
Submitted by/Soumis par : Rosemarie Leclair, General
Manager/Directrice générale
Transportation, Utilities and Public
Works/Transports, services et travaux publics
Contact/Personne-ressource : P.
McNally, Director/Directeur
Utility Services Branch/Direction
des services publics
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Ref N°: ACS2003-TUP-UTL-0009 |
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SUBJECT: |
BIOSOLIDS
DISPOSAL - BUDGET INCREASE |
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OBJET : |
ÉLIMINATION DES BIOSOLIDES – AUGMENTATION DU BUDGET |
REPORT RECOMMENDATIONS
That the
Corporate Services and Economic Development Committee recommend Council:
1. Approve an increase to the Utility Services Branch 2003
Operating Budget in the amount of $920,000 to provide additional funds for the
disposal of biosolids; and
2. Approve the transfer of $920,000 from the Sewer Reserve Fund
to the Utility Services Branch 2003 Operating Budget, to fund this requirement.
RECOMMENDATIONS DU
RAPPORT
Que le Comité des services
organisationnels et du développement économique recommande au Conseil :
1. d’approuver une augmentation de
920 000 $ du budget de fonctionnement de 2003 de la Direction des
services publics pour permettre l’affectation de crédits supplémentaires à
l’élimination des biosolides;
2. d’approuver le transfert d’une somme
de 920 000 $ du Fonds de réserve des égouts au budget de fonctionnement de
2003 de la Direction des services publics afin d’assurer le financement de ce
service.
During late 2001 and early 2002, as Council reviewed biosolids management options, an estimated quantity of 40,000 tonnes per year was used as a basis for all comparisons. On 22 May 2002, City Council approved the Biosolids Disposal Contract with GSI Environnement Inc. and a budget adjustment of $700,000 "based on estimated quantities". These budget amendments were in response to Council’s earlier decision to eliminate Land Application as a disposal method for municipal biosolids within the City of Ottawa.
Since the debate on biosolids options began, the actual biosolids production has continued to increase to what is now approaching an annual rate of 46,000 tonnes. In addition to the tonnage increase, the year-round trucking, including the impact of increased hauling during the half-load periods, and the unfavourable tax ruling, including Quebec Sales Tax (QST), has impacted the costs. The following table summarizes these impacts:
Items Impacting Cost
|
Additional
Costs |
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Increased Biosolids Tonnage |
$370,000 |
|
Transportation Costs |
$110,000 |
|
Tax Ruling |
$440,000 |
Total
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$920,000 |
As a result of the increased disposal costs, it is recommended that Council approve the increase to the Utility Services 2003 Operating Budget and the transfer of funds from the Sewer Reserve Fund to allow for continued payment to the biosolids disposal and haulage contractors.
The environmental policy approved by Council is being followed with respect to the beneficial reuse of biosolids.
Public consultation is not required as this is an administrative matter.
FINANCIAL STATEMENT
The Department's Utility Services Branch, Environmental Programs and
Technical Support Division 2003 Operating Budget, as approved by Council, is
not sufficient to meet the contractual obligation for the disposal of biosolids. The 2003 estimated forecasted requirement is
approximately $3.256 million, whereas the 2003 Operating Budget for this
contract is only $2.336 million, thus an additional $920,000 is required.
Funds are available in
the Sewer Reserve Fund to be transferred to the Utility Services Branch 2003
Operating Budget.
DISPOSITION
Staff of the originating Department will advise the Corporate Services
Department, Financial Services, to transfer the funds from the Sewer Reserve
Fund to the Utility Services Branch 2003 Operating Budget.