June 2, 1998
To:Works and Utilities Committee
From:Commissioner of Works and Emergency Services
Subject:Compliance Program With Monetary Concession -Nu-Way Potato Products Limited
Purpose:
To issue a Compliance Program with monetary concession to Nu-Way Potato Products Limited to allow them to pay 50
per cent of the increase to the existing agreement for 2 years, in order to facilitate the installation of an on-site pretreatment
system.
Funding Sources, Financial Implications and Impact Statement:
This Department maintains approximately 157 Industrial Waste Surcharge Agreements, which allows for the recovery of
approximately $7.5 million per year in additional treatment costs. These charges reflect a user pay philosophy and directly
offset the cost of the operation of our treatment plants. Nu-way Potato Products Limited's new annual surcharge is
$17,066.36 per quarter, an increase of $7,645.62 over their old surcharge of $9,420.74 per quarter. By allowing the
company to pay at a reduced rate of 50per cent of the increase of $7,645.62 per quarter would mean a reduction in revenue
of $15,291.24 per year for a total of $30,582.48 for two years.
Recommendations:
It is recommended that a Compliance Program with monetary concession be granted to Nu-Way Potato Products Limited,
as described herein, to allow for payment of their re-assessed surcharge less 50 per cent of the increase for two years,
subject to Nu-Way Potato Products Limited's investment of the avoided surcharge payment in the purchase and installation
of an on-site pretreatment system.
Council Reference/Background/History:
On November 9, 1989, Metropolitan Council, by adoption of Clause No. 6 of Report No. 16, of The Works Committee,
authorized execution of agreements with industries, permitting them to discharge wastewater in excess of the limits set out
under By-law No. 153-89, providing that the over-strength discharges are amenable to treatment at our treatment plants.
Industries are required to pay for the additional cost of treatment above the limit of the By-law.
Section No. 6 of this By-law allows the owner of industrial premises to submit to the Commissioner of Works, a program
to prevent, or to reduce and control the discharge of wastewater into the sewer system. The Commissioner of Works may
then issue an approval known as a Compliance Program to the person who submitted the program. The person to whom a
Compliance Program has been issued shall not be prosecuted under the By-law during the period within which the
Compliance Program is applicable, provided that the person complies fully with the terms of the Compliance Program.
On August 10 and 11, 1994, Metropolitan Council, by adoption of Clause No. 12 of Report No. 14 of The Works
Committee, authorized the Works Department to discuss modifications to Industrial Waste Surcharge Agreements and
Compliance Program policies with existing and potential surcharge companies to promote and encourage improvements in
on-site treatment and source reduction.
The policy approved by Metro Council was to allow industries facing significantly increased surcharge for new
agreements or amendments to existing agreements to apply to be allowed to avoid up to 50 per cent of the payment of the
new agreement or the increase to the existing agreement, for up to three years if they commit under a Compliance Program
to invest the avoided surcharge payment for specific improvements to their on-site pretreatment system.
There have been two Compliance Programs with Monetary Concession approved by Metro Council to date.
Comments and/or Discussion and/or Justification:
Recently, several companies have complained that their new surcharge assessment or increased surcharge assessment on
existing agreements are creating financial hardship and have expressed an unwillingness to pay the surcharge. These
companies would like to reduce these costs, however, they would have to install treatment facilities which would add
further costs.
Recognizing that some industries are really facing financial hardship, we recommend that industries facing significant
increases in surcharges for new agreements or amendment to existing agreements could apply for a surcharge reduction of
50 per cent of the new agreement or the increase to the existing agreement, for up to three years if they commit under a
Compliance Program to invest the reduced surcharge payment for specific pollution control equipment. In this way, the
discharger benefits in the long term because they permanently reduce their surcharge costs. We also benefit in that more
treatment capacity is free for additional development.
The following conditions must be met to be considered for a Compliance Program with monetary concessions:
(1)the applicant must commit in writing, in the form of a Compliance Program, to reduce their waste loading by at least 50
per cent by a specified date:
(2)the reduction in surcharge could be for a period of between one and three years, depending on the time required to
complete the installation of pretreatment equipment;
(3)an applicant can only be granted one Compliance Program with monetary concession per lifetime; and
(4)at the end of the Compliance Program period, the companies who are unsuccessful in reducing their waste loading to
within By-law limits must resume paying surcharge based on the actual waste loading at that time.
The Region of Niagara has a similar policy of granting a discharges a Program Approval (which is similar to our
Compliance Program) with monetary concessions. The concession has been as high as 50 per cent for a period of one year.
The reduction is based on the size of the surcharge compared to the spending the discharger plans to spend in effecting a
reduction in both the hydraulic and contaminant load to the municipal sewage treatment system.
The type of waste generated by Nu-Way Potato Products Limited is biodegradable and amenable to treatment at our Main
Treatment Plant.
On May 21, 1998 Nu-Way Potato Products Limited through its Consultant Venerus International Purification Inc.,
submitted an application to have the industrial waste surcharge amount reduced in accordance with the policy adopted by
Metro Council on August 10 and 11, 1994.
The company had retained Venerus International Purification Inc. in Guelph to undertake a study to evaluate their
production processes and develop an effluent solids reduction process, procure, construct and operate a waste treatment
system to bring their effluent contaminants down by 50 per cent by December 31, 1999. They have provided us with the
following schedule for their Compliance Program.
Compliance ScheduledScheduledProject
Program ActivitiesStart Date Completion DateCosts ($)
a.Select ConsultantJanuary, 1998March, 199810,000
b.Investigation of PlantMarch, 1998June, 1998 1,000
Conditions
c.Treatability StudiesJuly, 1998October, 199820,000
d.Design of SystemNovember, 1998February, 1999 1,000
e.Contractor SelectionMarch, 1999April, 199920,000
(+Deposit on Equipment)
f.Commence ConstructionMay, 1999August, 199920,000
(2nd payment)
g.Pretreatment SystemSeptember, 1999December, 199920,000
Start-up
h.Operating Manual PreparationSeptember, 1999December, 1999 1,000
i.Commissioning & OperatorSeptember, 1999December, 1999 5,000
Training
Nu-Way Potato Products Limited is currently under a surcharge agreement with the City. The surcharge is based on an
average suspended solids (S.S.) concentration of 14,490 mg/L at an annual discharge of 8,334 cubic metres. The average
biochemical oxygen demand (B.O.D.) concentration is 4,007 mg/L. The estimated annual S.S. and B.O.D. loading from the
facility before the proposed treatment are 120,760 kg per year and 33,400 kg per year, respectively. With the assumption
that the pretreatment will reduce the S.S. and B.O.D. concentrations by 50 per cent, the estimated loading for S.S. and
B.O.D. after pretreatment will be 60,380 kg per year and 16,700 kg per year, respectively.
Conclusions:
In accordance with Section 6, our Compliance Program, of our Sewer Use By-law No. 153-89 and the policy adopted by
Metro Council on August 10 and 11, 1994, a Compliance Program with monetary concession should be issued to Nu-Way
Potato Products Limited to provide a mechanism by which the over-strength effluent, which exceeds the By-law limit for
S.S. and B.O.D. can be discharged on a 50 per cent reduced fee basis while the company implements further wastewater
treatment controls, under the conditions previously stated in this report.
Contact Name:
V. Lim, Chief Engineer - Environmental Services
Water Pollution Control Division
Telephone: (416) 392-2966
Fax: (416) 397-0908
E-Mail: victor_lim@metrodesk.metrotor.on.ca
M. G. Thorne, P. Eng.Barry H. Gutteridge
Interim Functional LeadCommissioner
Water & Wastewater ServicesWorks and Emergency Services
vl:mmFile No. 1047.20 SP
