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Toronto Integrated Solid Waste Resource

Management Process

The Works Committee:

(1)submits without recommendation the report dated August 30, 1999, from the Commissioner of Works and Emergency Services, headed "Toronto Integrated Solid Waste Resource Management Process - Request for Proposals for Disposal Services", having regard for the Committee's direction that a special meeting 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 reports having tabled a motion by Councillor Fotinos with respect to amendments to the weighting factors under Table 5.2, "Comparative Evaluation Criteria" in the Request for Proposals, for consideration at such special meeting; and

(2)recommends the adoption of the report dated August 30, 1999, from the Commissioner of Works and Emergency Services, headed "Toronto Integrated Solid Waste Resource Management Process - Development of Secondary Planning Process for Category 3, New and Emerging Technologies".

The Works Committee further reports, for the information of Council, having:

(1)recommended to the Policy and Finance Committee the adoption of the report dated August 30, 1999, from the Commissioner of Works and Emergency Services, headed "Toronto Integrated Solid Waste Resource Management Process - Retention of MacViro Consultants Inc. and Tory Tory DesLauriers & Binnington for RFP for Proven Solid Waste Resource Diversion Services";

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

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

The Works Committee submits the following report (August 30, 1999) from the Commissioner of Works and Emergency Services, headed "Toronto Integrated Solid Waste Resource Management Process - Request for Proposals for Disposal Services":

Purpose:

The purpose of this report is to seek Council authority to issue the Toronto Integrated Solid Waste Resource Management Process ("TIRM") Request for Proposals ("RFP") for Disposal Services.

Funding Sources, Financial Implications and Impact Statement:

There are no direct financial considerations arising from this report.

Recommendation:

It is recommended 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".

Council Reference/Background/History:

On October 2, 1998, City Council provided direction to the Commissioner of Works and Emergency Services to:

"...immediately proceed 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 process based on the work undertaken in the planning process to date, but without proceeding to the submission of an environmental assessment." (Clause No. 2 of Report No. 8 of The Works and Utilities Committee)

In addition, City Council provided direction on a comprehensive range of policy and operational matters, which are summarized below:

-the establishment of a 50 percent diversion rate by the year 2006 or sooner;

-inclusion of potential export to the United States;

-inclusion of Energy from Waste ("EFW") technology as a marketplace option;

-engagement of Regional governments in the Greater Toronto Area as potential partners with Toronto for future disposal capacity contracts;

-active consideration of potential partnership proposals with Toronto that may contain a range of options including transfer of ownership or leasing arrangements; and

-preparation of a planning process to engage the marketplace that includes public and industry consultation and development of multi-faceted evaluation criteria.

Policies regarding potential partnership with other members of the GTA (through the Memorandum of Understanding) and the introduction of a prohibition against lobbying were adopted by Council at its meeting of April 13, 14, and 15, 1999. At that time, Council also adopted recommendations regarding:

-the introduction of options for 5, 10, 15, and 20-year timeframes for provision of disposal capacity;

-the right of Toronto to engage in a subsequent tender for the haulage component from our transfer stations by third party haulers in order to broaden the potential marketplace response for the transport component;

-the right of Toronto to maintain a role for its public sector employees in the haulage component of the project, based on the existing levels of staff and equipment involved in the haulage of waste from Toronto's transfer stations to the Keele Valley Landfill Site; and

-the inclusion of a preferred customer clause to ensure that the price(s) charged to Toronto remain competitive over the contract timeframe.

Council also approved at its meeting of April 13, 14, and 15, 1999, the issuance of the Request for Expressions of Interest ("REOI") document for three categories: Category 1. Proven Diversion; Category 2. Proven Disposal; and Category 3. New and Emerging Technologies.

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 application of the evaluation criteria to the 32 submissions received in response to the TIRM REOI. Of the 32 responses received, 23 were identified as qualified to proceed to the Request for Proposals ("RFP") stage (TIRM - Stage 3).

Comments and/or Discussion and/or Justification:

The attached RFP for solid waste disposal services has incorporated the body of policy decisions made by Council during the course of the TIRM process. The RFP is designed to provide the City with new disposal capacity on January 1, 2002, in order to dovetail with the projected closure of the Keele Valley Landfill Site in 2002.

The RFP is designed to provide the City with sufficient flexibility through the contractual process to meet the Council policy of 50 percent diversion by 2006 or sooner, and to possibly proceed beyond 50 percent diversion through the course of the planning period.

Also listed on this agenda is a report recommending the hiring of MacViro Consultants Inc., to assist staff in the preparation of an RFP for Diversion Services. As per the Council schedule, the Diversion RFP will be prepared for submission to the November 1999 meeting of Council.

On July 27, 28, and 29, 1999, City Council adopted recommended amendments to the TIRM project schedule. The amendments enhance the integration of the RFP processes for acquiring new disposal capacity and diversion capacity. The amendments will provide Council with the ability to make decisions in an integrated and comprehensive fashion.

Development and Application of Evaluation Criteria:

The RFP for Disposal Services contains evaluation criteria in three categories:

(1)Human Health and Safety, Natural Environment;

(2)Ontario and GTA Social Benefits; and

(3)Financial.

These categories are weighted at 35, 30, and 35 points respectively. The evaluation criteria will be applied to the Respondents' service proposals. The service proposal will consist of the Respondents' technical (environmental) proposal, price proposal (fee per tonne), and any exceptions and partnership offers.

The evaluation criteria from the first two categories (Human Health and Safety and Natural Environment, and Ontario and GTA Social Benefits) will be applied to the technical performance information provided in the proposals (Envelope No. 1) without any reference to the information provided under the third category, Financial. After this initial step, the results of the application of the Financial evaluation criteria (Envelope No. 2) will be "aggregated" with the results of the first two categories to produce an overall ranking.

The top-ranked submissions will then be carried forward to City Council and will include a summary of any partnership proposals (Envelope No. 3) that may have accompanied the top-ranked submissions. At that time, we will seek Council's authorization to proceed with due diligence and contract negotiations.

The project schedule calls for the top-qualified proposals to be before Council in February 2000, with a recommendation(s) regarding engagement in contracts in June 2000.

Another report listed on the September 8, 1999 Agenda of the Works Committee provides a summary of the stakeholder consultation process regarding the evaluation criteria for the RFP for disposal services.

Conclusions:

We are recommending that Council approve the issuance on or about October 4, 1999, of the TIRM RFP for Disposal Services, substantially in accordance with the RFP document attached to this report as Appendix "A". The RFP for Disposal Services is scheduled to close on December 15, 1999. A list of top-qualified Respondents is then scheduled to be recommended to Council in February 2000, with recommendations for contracting to come before Council in June 2000, following the due diligence process and contract negotiations.

Contact Name:

Lawson Oates, B.A., M.E.S., Manager, Strategic Planning

Solid Waste Management Services, Works and Emergency Services

Metro Hall, 19th Floor

Phone: 392-9744; Fax: 392-4754

E-mail: lawson_oates@toronto.ca

The Works Committee also submits the following report (August 30, 1999) from the Commissioner of Works and Emergency Services, headed "Toronto Integrated Solid Waste Resource Management Process - Development of Secondary Planning Process for Category 3, New and Emerging Technologies":

Purpose:

The purpose of this report is to recommend the development of a secondary planning process for the Toronto Integrated Solid Waste Resource Management ("TIRM") Process Category 3, New and Emerging Technologies.

Funding Sources, Financial Implications and Impact Statement:

There are no direct financial considerations arising from this report.

Recommendations:

It is recommended 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), it is recommended 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.

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.)

On April 26, 1999, the TIRM REOI was issued as per the Council approved schedule. The TIRM REOI closed on May 31, 1999. The TIRM REOI called for expressions of interest in three categories:

(1)Proven Diversion:

Proven waste diversion technologies are those with an ability to manage mixed waste or mixed waste and source-separated waste, utilizing mechanical and/or biological processes.

(2)Proven Disposal:

Proven waste disposal technologies must have an ability to manage mixed waste, utilizing landfill and/or energy recovery processes.

(3)New and Emerging Technologies:

Technologies that have been proven at the pilot scale, but have not yet been applied for larger waste volumes are referred to as new, emerging, innovative, and demonstration technologies. These technologies generally are technologies or applications with:

-unproven large scale performance;

-no demonstration of long term performance; or

-proposals for unconventional or unproven situations.

This category was "capped" at a service level of 100,000 tonnes per year through the TIRM REOI.

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. In total, 32 submissions were received in response to the TIRM REOI, of which 12 were received in Category 3. Eight submissions under Category 3 qualified following the application of the evaluation criteria in the REOI.

The following table provides the names of the Category 3 qualified respondents and a short description of their proposed technologies.

 

   
Please note that council and committee documents are provided electronically for information only and do not retain the exact structure of the original versions. For example, charts, images and tables may be difficult to read. As such, readers should verify information before acting on it. All council documents are available from the City Clerk's office. Please e-mail clerk@toronto.ca.

 

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