Derby gives preliminary approval for fuel cell project, rehires City Carting to run transfer station - CT Insider

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DERBY — With another tax hike looming, the city’s Aldermen gave preliminary approval to the placement of a 2 megawatt fuel cell that could generate $50,000 a year in revenue for the next 20 years.

The preliminary approval was required to allow Fuel Cell Energy of Danbury to apply to the Connecticut Siting Council for permission to install the fuel cell on the old dog pound site on Coon Hollow Road.

Should the Siting Council approve their application, it would have to come back to the Board of Alderman for final approval.

Fuel Cell Energy is in the process of building a 14.8 megawatt plant on 3.4 acres of land near the United Illuminating substation on Roosevelt Drive. The plant is expected to cost $8 million to build and generate at least $200,000 in annual taxes.

Currently, the Board of Apportionment and Taxation is wrestling with a possible 3 mill rate increase. Members have been meeting twice a week while attempting to finalize a budget.

During a meeting late last week, the Aldermen also approved a $3.8 million, three-year contract with City Carting of Stamford beginning July 1 to handle operation at the transfer station, curbside collection and disposal of trash, recyclables and bulk pick-up.

Broken down, the contract will cost taxpayers $1.24 million the first year, $1.27 million the second the second year and about $1.3 million the third year.

City Carting was the lowest of the three companies that submitted bids. They currently hold the contract.

Also submitting bids were Country Disposal of Wallingford which bid about $4.2 million and Oak Ridge Waste and Recycling of Danbury which bid about $5.1 million.

Barbara DeGennaro, a first ward aldermen, cast the only vote against awarding the contract to City Carting.