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HomeMy WebLinkAboutADMIN-39-97REPORT M6 k r THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: SPECIAL COUNCIL MEETING Date: AUGUST 18 1997 Report #: _~ F1~ej#: Subject: pROPOSED TRANSFER STATION Recommendations: File # ~,= 0 '7 • ~ Res. # C - ,St7/^~%~ By-Law # It is respectfully recommended that Council approve the following: 1. THAT Report No. ADMIN-39-97 be received; 2. THAT Council direct staff to prepare and present to the Ontario Realty Corp. a Conditional Offer of Purchase and Sale, covering the approximately 13 acre site located at 178 Darlington-Clarke Townline in the amount of $1.00,000, once all the relevant documentation covering the appraised value of the lands and the cost of environmental clean-up, has been reviewed by staff; 3. THAT the offer be conditional on the Municipality of Clarington being awarded a Certificate of Acceptance from the Ministry of the Environment to operate a Waste Transfer Station on the site, in a given period of time; and, 4. THAT a copy of this report, together with Council`s decision, be forwarded to the Commissioner of Works for the Region of Durham, and Canadian Waste Services Inc. 1.0. BACKGROUND 1.1. Effective December 31, 1994, The Municipality of Clarington entered into a five year contract with Laidlaw waste Systems Ltd. for the collection of residential waste within the municipality. Once collected, Laidlaw delivered same to the Brock West Landfill Site in Pickering, under the direction of the Region of Durham, who has the responsibility of waste disposal for the member municipalities within the Region. 1.2. On June 11, 1996, the Regional Works Department advised Regional Council that Metropolitan Toronto intended to close the Brock West Landfill Site which resulted in Durham making other arrangements for the disposal of waste. o,P. °®.~.~,E r ~,' 1.3. In the same report to Regional Council, staff outlined an agreement whereby three separate contracts would be entered into regarding waste disposal.. 1.4. On September 3, 1996, the Regional Council directed staff to enter into an agreement with Laidlaw Waste Systems for the haulage and disposal of approximately 13,400 tonnes per year of residential solid waste from the Municipality of Clarington, until December 31, 1999. 1.5. In entering into this agreement with the Region of Durham, Laidlaw Waste proposed to utilize the existing transfer facilities at Pebblestone Multi-Services in Whitby until a proper transfer station could be established in the Municipality of Clarington, at which time Laidlaw would then dispose of the Clarington waste at their licensed disposal site near Napanee, Ontario. 1.6. On October 21, 1996, under Report # WD-35-96, Clarington Council advised the Region of Durham of their support for the establishment of a waste transfer station in the Municipality of Clarington, directing staff to work with Laidlaw regarding a site presently owned by the Ministry of Transportation, consisting of approximately 13 acres, located at the Darlington/Clarke Townline Road, just north of Highway 401, known as 178 Darlington-Clarke Townline. 2.0. REVIEW AND COMMENT 2.1. THE SITE For the past number of months, staff has been negotiating with the Ontario Realty Corp. regarding the site in question. After a lengthy process, we have now been successful in having the site declared "surplus" by M.T.O., and are presently in a position to put forth a Conditional Offer of Purchase and Sale to Ontario Realty Corp. 2.2. SITE CONDITION The site in question has been used for the past number of years by M.T.O. as a works yard, primarily for the maintenance of Highway #2, in the Clarington area, and has become "surplus" since M.T.O. passed the responsibility for Highway #2 onto the Region of Durham. However, since the site has been used for the storage of salt and fuel for the maintenance equipment, there is some environmental clean-up that must be done prior to the disposal of the property. 2.3. LAND VALUE We understand from Ontario Realty Corp. that they have a recent evaluation of the property that establishes a value of approximately $135,000. The cost of environmental clean- `~ 4~ r up of the site has been estimated in the are of $30,000. We are presently awaiting both of these reports from Ontario Realty Corp., who have agreed to provide copies of same. 3.0. CONDITIONAL OFFER OF PURCHASE AND SALE 3.1. As the site is to be used as a waste transfer station, there seems to be no reason to proceed with the environmental clean-up at this time. Under the circumstances it is recommended that staff be given the authority by Council to prepare and present a Conditional Offer of Purchase and Sale in the amount of $100,000 once both of the above-mentioned reports have been verified. 3.2. This offer would be based on the environmental clean-up NOT being carried out by the Ontario Realty Corp., and would also have a "hold-harmless" clause written into the agreement that would release the Province from all future liability that may result from the lack of environmental clean-up. 3.3. The offer would also be conditional on the Municipality of Clarington being awarded a Certificate of Acceptance from the Ministry of the Environment for the operation of a Waste Management Transfer Station on the site within a given period of time. 4.0. CAPITAL AND OPERATIONAL FUNDING 4.1. The necessary Capital funding for the project would be available in the Garbage Impact Reserve Account (Account #2900-11-X) which presently has a balance in excess of 2.8 million dollars. In regards to the operating costs of the project, it would be staff`s intention to negotiate an operational contract with Canadian Waste Services Inc., previously Laidlaw, who presently hold the waste collection contract for the Municipality, thereby leaving no operational costs with the Municipality and providing a rental income from the property. Any final agreement on operations will be presented to Council for approval. 5.0 RECOMMENDATIONS 5.1. It is respectfully requested that Council direct staff to present a Conditional Offer of Purchase and Sale, based on the foregoing report, to the Ontario Realty Corp. in the amount of $100,000 covering the lands in question. Respectfully submitted, W. H/~ ckw 11, Chief Administrative Officer