Toronto Integrated Solid Waste Resource Management Process

Retention of MacViro Consultants Inc. and Tory Tory

DesLauriers and Binnington for RFP for Proven Solid Waste

Resource Diversion Services

The Policy and Finance Committee recommends the adoption of the Recommendations of the Works Committee embodied in the following communication (September 8, 1999) from the City Clerk:

Recommendation:

The Works Committee recommends the adoption of the report dated August 30, 1999, from the Commissioner of Works and Emergency Services respecting the Toronto Integrated Solid Waste Resource Management Process - retention of MacViro Consultants Inc. and Tory Tory DesLauriers and Binnington for the Request for Proposals for proven solid waste resource diversion services.

The Works Committee reports, for the information of the Policy and Finance Committee, having also taken the following action with respect to related reports in connection with the Toronto Integrated Solid Waste Resource Management Process (TIRM):

(1)deferred consideration of the report dated August 30, 1999, from the Commissioner of Works and Emergency Services, headed "TIRM - Request for Proposals for Disposal Services", until a special meeting of the Committee to be held at the call of the Chair prior to the Council meeting scheduled for September 28, 29 and 30, 1999, to receive comments and deputations on the proposed Terms of Reference for the Request for Proposals; and having tabled a motion by Councillor Fotinos with respect to the weighting factors under Table 5.2, Comparative Evaluation Criteria, for consideration at such special meeting;

(2)received the report dated August 30, 1999, from the Commissioner of Works and Emergency Services, headed "TIRM - Results of Stakeholder Review of Draft Evaluation Criteria for Proven Disposal Services RFP";

(3)recommended to Council the adoption of the report dated August 30, 1999, from the Commissioner of Works and Emergency Services, headed "TIRM - Development of Secondary Planning Process for Category 3, New and Emerging Technologies"; and

(4)referred the communication dated July 28, 1999, from the Toronto Civic Employees' Union, CUPE Local 416, to the Commissioner of Works and Emergency Services.

Background:

The Works Committee at its meeting on September 8, 1999, had before it a report (August 30, 1999) from the Commissioner of Works and Emergency Services respecting the Toronto Integrated Solid Waste Resource Management Process - retention of MacViro Consultants Inc. and Tory Tory DesLauriers and Binnington for the Request for Proposals for proven solid waste resource diversion services.

The Works Committee also had before it the following reports and communications:

(i)(August 30, 1999) from the Commissioner of Works and Emergency Services recommending that the Toronto Integrated Solid Waste Resource Management Process Request for Proposals for Disposal Services be approved for issuance on or about October 4, 1999, substantially in accordance with the Request for Proposals document attached to this report as Appendix "A".

(ii)(August 30, 1999) from the Commissioner of Works and Emergency Services providing an account of the stakeholder consultation activities regarding the Toronto Integrated Solid Waste Resource Management ("TIRM") Process draft evaluation criteria for the Proven Disposal Services request for proposals, conducted between July 14, 1999 and August 27, 1999, following the submission of a report from the Commissioner of Works and Emergency Services identifying the qualified Respondents which made submissions under the TIRM Request for Expressions of Interest; advising that while most of the feedback received was of a general nature and did not focus on the actual draft evaluation criteria, staff have proceeded to broaden the list of priority pollutants; and recommending that this report be received for information.

(iii)(August 30, 1999) from the Commissioner of Works and Emergency Services, recommending that:

(1)City Council authorize the Commissioner of Works and Emergency Services not to proceed with the design and issuance of an RFP for New and Emerging Technologies, under Category 3 of the Toronto Integrated Solid Waste Resource Management Process; and

subject to the approval of Recommendation No. (1), that:

(2)the Commissioner of Works and Emergency Services be authorized to develop a secondary planning process for the potential engagement of the type of proposals submitted under Category 3, New and Emerging Technologies, of the Toronto Integrated Solid Waste Resource Management Process.

(iv)a communication from the Toronto Civic Employees' Union, Local 416, stating the Union's position in support of a publicly owned and operate waste diversion/disposal system, and advising that Local 416 believes it is crucial for the City to maintain control over all aspects of the waste management system; further stating that the selection criteria to date has been totally in absence of any legitimate public consultation; and urging the City to implement a full broad-based consultation process on a proper waste diversion system and ultimate disposal;

(v)(September 8, 1999) from Councillor Jack Layton, Don River, recommending that the Request for Proposals be amended as follows:

"The City will only enter into a contract with a proponent of waste disposal capacity option if the host community has endorsed the proponent's plans. Endorsement would be demonstrated by a municipally-organized referendum where residents of the affected municipalities indicated over 50 percent support for the proponent's plans.";

(vi)(September 8, 1999) from Mr. Kevin Heise, Thornton, Ontario, respecting the AGRA Birwelco sponsored incinerator proposal for Simcoe County;

(vii)(September 8, 1999) from Mr. John Jackson, Citizens' Network on Waste, respecting the communication process for the Toronto Integrated Solid Waste Resource Management Process and the disposal RFP comparative evaluation criteria; and

(viii)communications from the following in opposition to the Rail Cycle North proposal for Toronto garbage:

-(August 16, 1999) from Ms. Elizabeth Dexter, Tarzwell, Ontario;

-(August 16, 1999) from Susie and Paul Gatz, Tarzwell, Ontario;

-(August 16, 1999) from Ms. Beatrice Grant, Tarzwell, Ontario;

-(August 16, 1999) from Mrs. Jean Simms, Tarzwell, Ontario;

-(August 16, 1999) from Ms. Kylli Swanson, Tarzwell, Ontario;

-(August 18, 1999) from Fern and Pauline Bruneau, Swastika, Ontario;

-(August 18, 1999) from Ms. Marlene Pitcaithley, Swastika, Ontario;

-(August 19, 1999) from Mr. Norman Macdonald, Swastika, Ontario;

-(August 20, 1999) from Ms. Anne Parkman, Tarzwell, Ontario;

-(August 20, 1999) from Ms. Frances Swanson, Tarzwell, Ontario;

-(September 6, 1999) from Mr. John Patterson, North Bay, Ontario;

-(September 7, 1999) from Mr. Dennis Hakola, Cobalt, Ontario;

-(September 7, 1999) from Ms. Kathy Hakola, Cobalt, Ontario; and

-(September 7, 1999) from Mr. Bob Meister, Trout Creek, Ontario.

Mr. Lawson Oates, Manager, Strategic Planning, Solid Waste Management, Works and Emergency Services, and Mr. Michael Pratt, Earth Tech (Canada) Inc., gave a presentation to the Works Committee in connection with the foregoing matter, and submitted a copy of the presentation.

The following persons appeared before the Works Committee in connection with the foregoing matter:

-Mr. Gregory Vogt, Eastern Power Ltd. and Super Blue Box Recycling;

-Mr. Nigel Guilford, representing Rail Cycle North;

-Mr. Peter Leiss, Executive Vice-President, Toronto Civic Employees' Union, Local 416, and submitted a copy of his presentation;

-Mr. Bob Webb, Director of Business Development, Republic Services of Canada, and Mr. Marvin L. Banotai, Supervisor, Sumpter Township, Michigan, and submitted material with respect thereto;

-Ms. Greta Thompson, Blenheim, Ontario;

-Mr. Jim Hamilton, Thornton, Ontario, and submitted a copy of his deputation;

-Ms. Shelley Petrie, Toronto Environmental Alliance;

-Ms. Karen Buck, Toronto, Ontario; and

-Mr. Richard Gilbert, representing AGRA Resource Management.

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(Report dated August 30, 1999, addressed to the

Works Committee from the

Commissioner of Works and Emergency Services)

Purpose:

The purpose of this report is to recommend the retention of a consulting firm and external legal counsel to assist staff in the Toronto Integrated Solid Waste Resource Management ("TIRM") Process proposal call for proven solid waste resource diversion services.

Funding Sources, Financial Implications and Impact Statement:

The identified cost of the undertaking is $520,000.00 ($499,200.00 net after GST rebate). The estimated expenditure in 1999 is $152,000.00, which can be accommodated within the current approved program under C-SW168 Waste Management Planning. These funds will not be expended as initially intended due to a re-adjustment of the project schedule into 2000. The balance of the funds ($368,000.00) will be needed, however, in 2000 for the TIRM RFP for Disposal Services planning process. Cash flows for this project will be incorporated in our preliminary 2000 Capital Works submission. As this undertaking is not in the current approved capital program, approval of additional funding for this undertaking is requested

Recommendations:

It is recommended that:

(1)additional funding of $520,000.00 ($499,200.00 net after GST rebate) under Solid Waste Management Capital Account C-SW168 Waste Management Planning be approved for the purposes of engaging a planning consultant and an external legal counsel to assist staff in the proposal call process for Proven Diversion Services; and

(2)subject to the approval of Recommendation No. (1),

(i)the firm of MacViro Consultants Inc. as the overall highest scoring proposal be retained at a cost not to exceed $267,000.00 including GST, in order to assist staff in the proposal call process, including the preparation and issuance of an RFP for Proven Diversion Services, analysis of responses, due diligence, contract preparation and negotiation support;

(ii)the legal firm of Tory Tory DesLauriers and Binnington be retained to provide external legal expertise, at a cost not to exceed $203,000.00, including GST, in order to assist staff in the proposal call process, including the preparation and issuance of an RFP for Diversion Services, analysis of responses, due diligence, contract preparation and negotiation support; and

(iii)an expenditure in the amount of $50,000.00, including GST, be authorized for site visits, disbursements, advertising, communications, technical studies and public consultation activities.

Council Reference/Background/History:

On October 2, 1998, City Council provided direction to the Commissioner of Works and Emergency Services to engage the marketplace to secure solid waste management options including waste diversion and disposal capacity to meet the City's long-term requirements through a Request for Expressions of Interest ("REOI") and a Request for Proposals process. (Clause No. 2 of Report No. 8 of The Works and Utilities Committee.)

At that time a planning processing and corresponding budget were designed to provide for the City's solid waste disposal needs only. Funds were not approved to proceed with a proposal call process for Diversion Services. Subsequently, funds were approved by Council at its meeting of November 25, 26, and 27, 1998, to facilitate an amendment to the workplan of Proctor and Redfern Ltd., to modify the Request for Expressions of Interest to include requests for diversion approaches/technologies as well as new and emerging technologies, and to undertake an assessment of Request for Expressions of Interest responses on diversion and new and emerging technologies.

Funding approval was not sought at that time to engage Proctor and Redfern Ltd. to proceed to prepare a Request for Proposals for Diversion Services. This had not been part of the initial Terms of Reference for the consulting contract and a re-engagement of consulting firms in a competitive process was the determined course of action for the RFP process for Diversion Services.

On April 26, 1999, the TIRM REOI was issued as per the Council approved schedule. The TIRM REOI closed on May 31, 1999. A subsequent report dated July 5, 1999, from the Commissioner of Works and Emergency Services provided members of the Works Committee and Toronto City Council with the results of the TIRM REOI.

At its meeting of April 13, 14, and 15, 1999, Council authorized the Commissioner of Works and Emergency Services to prepare a planning process regarding the establishment of an RFP for "proven diversion" and "new and emerging technologies", to be submitted for approval and subsequent issuance following the reporting out of the results of the TIRM REOI for "proven diversion", "proven disposal capacity" and "new and emerging technologies".

Following the reporting out of the results of the TIRM REOI process through the Commissioner's report dated July 5, 1999, planning began for the engagement of a consultant to assist staff in the preparation of a proposal call process for diversion services, including the preparation and issuance of an RFP, analysis of responses, due diligence, and contract preparation.

Thirteen firms from a supplier's list were invited to respond to a proposal call issued by the Purchasing and Materials Management Division of the Finance Department. The proposal call was also advertised. Of the two submissions received, one (MacViro's) was a consortium consisting of three of the originally invited firms. The submission consisted of the technical components and a separate sealed cost proposal.

Both proposals were reviewed by a staff Consultant Selection Committee based on a pre-selection process of evaluating the proposals against specified technical criteria.

Comments and/or Discussion and/or Justification:

The consortium led by MacViro is an experienced group of knowledgeable consultants who understand the challenges of instituting the necessary infrastructure to achieve Council's policy goal of 50 percent diversion by 2006 or sooner. MacViro was the consultant on the RFP for the Mixed Waste Recycling and Organics Processing Facility, approved last year.

MacViro's submission includes the engagement of Earth Tech (Canada) Inc. (formerly Proctor and Redfern Ltd.) and Enviros-RIS Ltd. as sub-consultants. Earth Tech (Canada) Inc. is the principle consultant for the TIRM Process for the engagement of disposal services, and Enviros-RIS Ltd. was the firm that prepared the Preliminary Metro 3Rs Strategy- Draft Report, dated November 26, 1996.

In order to proceed with the aggressive schedule for the RFP for Diversion Services, MacViro has recommended that the stakeholder consultation regarding the establishment of evaluation criteria and planning methodology begin in September 1999, rather than October 1999, as previously cited in project schedules. We believe this is a friendly amendment to Council's approved project schedule and as such is designed to better facilitate Council's objectives. Accordingly, we are proceeding with this recommendation from MacViro.

The total budget for the consortium led by MacViro is $267,000.00, including GST.

On the advice of the City Solicitor, we are recommending retaining the legal firm of Tory Tory DesLauriers and Binnington ("Tory"), to assist staff in the proposal call process, including the preparation of the RFP, analysis of responses, due diligence, and contract preparation and negotiation. Tory was the firm providing external legal expertise in the process leading to the current disposal contract with Browning-Ferris Industries. The estimated budget for Tory is $203,000.00, including GST.

We have also identified an internal project budget to accommodate site visits, disbursements, advertising, technical studies, communications, and public consultation activities. The estimated budget for these activities is $50,000.000.00, including GST.

The total project budget for (i) the consortium led by MacViro, (ii) Tory, and (iii) the internal project budget, is $520,000.00 ($499,200.00 net after GST rebate).

The expenditure for this project is not in the current approved capital budget as the approved program was designed to provide for the City's solid waste disposal need only. Hence, approval of additional funding of $520,000.00 ($499,200.00 net after GST rebate) is requested to proceed with the project. The expenditure of $152,000.00 in 1999 can be accommodated within the current approved program under C-SW168 Waste Management Planning. These funds will not be expended as initially intended due to a re-adjustment of the project schedule into 2000. The balance of the funds ($368,000.00) will be needed, however, in 2000 for the TIRM RFP for Disposal Services planning process. Cash flows for this project will be incorporated in our preliminary 2000 capital works submission.

As discussed in the "Council Reference/Background/History" section of this report, we are requesting this funding in order to meet Council's policy decision to pursue the engagement of the marketplace for Proven Diversion Services to meet its stated objective of 50 percent diversion by 2006 or sooner. This policy was established by Council on October 2, 1998, when direction was provided to the Commissioner of Works and Emergency Services to engage the marketplace to secure solid waste management options including waste diversion and disposal capacity to meet the City's long-term requirements through a Request for Expressions of Interest and Request for Proposals. (Clause No. 2 of Report No. 8 of The Works and Utilities Committee.)

Council reiterated this policy at its meeting of July 27, 28 and 29, 1999, through its adoption of a recommendation to amend the TIRM Process schedule in order to facilitate a closer linkage between decision-making on engagement of diversion and disposal services. Earlier, at its meeting of April 12, 13, and 14, 1999, Council authorized the Commissioner of Works and Emergency Services to prepare a planning process regarding the establishment of a Request for Proposals for "proven diversion" and "new and emerging technologies", to be submitted following the reporting out of the results of the Request for Expressions of Interest for "proven diversion", "disposal capacity", and "new and emerging technologies". This process was concluded at the Council meeting of July 27, 28, and 29, 1999.

Approval of funding in the amount of $520,000.00 ($499,200.00 net after GST rebate) is required at this time in order to comply with Council's stated direction and approved schedule.

Conclusion:

In order to proceed with the Council direction to engage the marketplace to provide diversion options, in addition to disposal options for long-term solid waste resource management, we are recommending the retention of MacViro as the highest scoring proponent and Tory as external legal counsel, to assist staff in the Request for Proposals for Diversion Services planning process.

 Contact Names:

Lawson Oates, B.A., M.E.S., Policy and Planning, Solid Waste Management Services, Works and Emergency Services, Metro Hall, 19th Floor, Phone: (416) 392-9744; Fax: (416) 392-4754;

E-mail: lawson_oates@toronto.ca