The expense for constructing a facility to manage Saskatoon’s organic waste has surged significantly, leading to a one-year delay in the project timeline. Despite this setback, a compost facility overseen by the city administration remains the most cost-effective solution for taxpayers, as confirmed during a city council committee meeting.
Initially, a plan to engage a private firm to establish and operate a waste processing facility in the Rural Municipality of Corman Park, handling materials from Saskatoon’s green cart program, fell through following the RM council’s rejection of the proposal. The project budget has now escalated to $30.5 million from the initial $22.1 million estimate. However, the additional cost will be covered by an $8.4-million grant from the federal Canada Housing Infrastructure Fund.
Mayor Cynthia Block expressed concerns during the environment, utilities, and corporate services committee meeting, highlighting the unsustainable trend of escalating project costs. Angela Gardiner, the city’s general manager of environment and utilities, clarified that all project bids exceeded the approved budget.
Brendan Lemke, the city’s director of water and waste operations, noted that local bidders lacked experience in constructing compost facilities, leading to inflated bids. Mayor Block emphasized the prevalence of risks over mere inflation in the bidding process.
Gardiner emphasized the cost-saving benefits of a city-operated facility, estimating annual operational cost savings of about $1 million compared to outsourcing to a private entity. The project is set to employ nearly 10 new full-time staff members to manage the compost facility.
With the committee’s approval to expand the project budget, the final decision now rests with the council. Originally slated for completion next year near the Saskatoon landfill, construction is now anticipated to commence in the spring, with the target completion date pushed to 2027.
Gardiner mentioned that only one private company in the region is capable of constructing and operating a plant in Saskatoon, without disclosing the company’s identity. Green Prairie Environmental, initially contracted by the city to expand its operations in Corman Park, will operate the plant.
The city’s east compost depot closed last year, and the west compost depot will follow suit upon the new facility’s operational commencement.
In a related development, uncertainties surround the federal industrial carbon tax status, but Saskatoon electricity consumers will continue to benefit from its suspension by the province. The committee unanimously agreed to prolong the suspension of the carbon charge on electricity bills for Saskatoon Light & Power customers within Circle Drive. Premier Scott Moe’s decision to halt the tax collection was mirrored by the council for Saskatoon Light & Power customers.
Trevor Bell, director of Saskatoon Light & Power, highlighted the ambiguity regarding the duration of the province’s suspension of the carbon tax, considering the federal government’s discussions on a new industrial carbon pricing structure.
The continued suspension, subject to final council approval, is expected to last until the end of the following year unless the province’s stance changes. This move is projected to save the average customer approximately $10.46 monthly but may lead to a utility deficit of $476,400 by the end of the specified period.