Sylvan Lake is moving forward towards a greener future.
The Town of Sylvan Lake has chosen to move forward with a contract with Fogdog Energy, creating a No Landfill Disposal Facility in Sylvan Lake.
At a special meeting of Council Wednesday night, Council will have the final approval on whether to proceed with the proposal or not.
The Town and company have been in talks since the original motion to move forward was made on March 26, this motion included making arrangements to visit a facility similar to the one proposed in Sylvan Lake.
Sylvan Lake staff visited a facility in Turin, Italy from June 4-8. During this time Town staff met with manufacturer representatives this included Edita Kairlene of Ompeco SRL and Marlon Lee of Fogdog Energy, where they discussed logistics of the proposed Sylvan Lake site and the facility staff were visiting.
Paolo Pejrani, president of Ompeco SRL, gave a detailed overview of of the manufacturing of the machinery as well as the Company’s history, technology and their vision of waste management moving forward.
The original facility staff were meant to visit in Genoa, Italy was closed due to “proximity to a residential area.”
It was revealed to staff there is “nowhere in the world where a facility is operating that processes municipal solid waste using this technology.” The facility in Genoa was a medical waste facility, as are all others in the world.
After a lengthy discussion with Fogdog Energy staff and the company came to an understand that Fogdog Energy, and not the Town, would carry any financial risk, especially because operations aspects of the facility remain unproven.
The company has since come back to the Town with a modified proposal, which includes Fogdog would fund the site development, up to $400,000, at the Wast Transfer Site as well as road repairs on 30 Street, up to $40,000 in return for a performance bond.
Eventually the Town would pay this money back.
“This scenario essentially removes the financial risk from the Town for the proposal and is intended by Fogdog Energy to demonstrate their confidence in the proposal,” a report to Council reads.
There are still some unanswered questions remain with the proposal, specifically pertaining to operations details and logistics.
The technology is being considered as proved, as staff was able to witness a demonstration of a converter unit by the manufacturer.
The facility is expected to generate roughly $54,000 in lease revenue while also saving about $240,000 a year in waste disposal and fleet vehicle replacements.
Council directed staff to continue working with Fogdog Energy to draw up a contract with the following conditions:
• Fogdog Energy provides the processing plant and operates the facility,
• Fogdog Energy pays the Town a lease for the land at market value,
• The Town develops the site for use, at the expense of Fogdog Energy,
• The Town repairs 30 Street, at the expense of Fogdog Energy,
• The Town pays Fogdog Energy an annual performance bond until the expense of the site development and road repair has been paid back in full, including interest,
• The Town and Fogdog Energy negotiates a tippage rate that is not to exceed $100 per tonne,
• The Town commits to provide Fogdog Energy with all suitable waste within its control, but with no minimum waste volumes are required to be provided by the Town,
• That a refinery for converting fluff is not located at the Waste Transfer Site,
• That the contract term is no longer than fifteen (15) years with a termination clause and a mutually agreed upon option to renew,
• Fogdog Energy will carry the appropriate insurance coverage,
• Fogdog Energy will arrange a Skype meeting, or similar, with Genoa City officials familiar with the Ompeco facility that recently closed,
• Fogdog Energy will comply with all regulatory requirements, including federal, provincial and municipal acts, regulations or bylaws.