November 22, 1999
To: Works Committee
From: Barry H. Gutteridge, Commissioner, Works and Emergency Services
Subject: Compliance Program with Monetary Concession -
Coca-Cola Bottling Ltd. (Ward 1)
Purpose:
To issue a Compliance Program with Monetary Concession to Coca-Cola Bottling Ltd., 46 Overlea Boulevard, to allow
them to pay 50% of the existing surcharge agreement for eleven months, in order to facilitate the installation of an on-site
pretreatment system.
Funding Sources, Financial Implications and Impact Statement:
This Department currently maintains 157 Industrial Waste Surcharge Agreements, which allow 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. Coca-Cola Bottling Ltd.'s surcharge assessment is $80,675.26 per
quarter. By allowing the company to pay at a reduced rate of 50 per cent of their surcharge rate would mean a reduction in
revenue of $73,952.32 for eleven months.
Recommendations:
It is recommended that a Compliance Program with Monetary Concession be granted to Coca-Cola Bottling Ltd., 46
Overlea Boulevard, as described herein, to allow for payment of their assessed surcharge less 50 per cent for eleven
months, subject to Coca-Cola'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 overstrength 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, who has an existing surcharge agreement or who is
entering into a new surcharge agreement to apply to the Commissioner of Works and Emergency Services for a
Compliance Program with monetary concession. This program allows the applicant to carry out works or improvements to
reduce their waste loading in order to avoid up to 50 per cent of the payment of the new or existing surcharge, for up to
three years. 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.
Comments and/or Discussion and/or Justification:
As set out in Section 6 of By-law 153-89, industries who have existing surcharge agreements or who are entering into new
surcharge agreements may apply for a surcharge reduction of 50 per cent of the new agreement or 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 are the guidelines for considering for Compliance Program with Monetary Concessions:
(1) all companies who have existing surcharge agreements, including new companies seeking their first surcharge
agreement and companies facing substantial increase in their surcharge costs, are eligible to apply;
(2) the applicant must commit in writing, in the form of a Compliance Program, with specific program activities,
commencement dates, completion dates and program costs, to reduce their waste loading by at least 50 per cent by a
specified date;
(3) the reduction in surcharge could be for a period of between one and three years, depending on the time required to
complete the program for waste reduction;
(4) pollution prevention would be the preferred option for waste reduction. End-of-pipe treatment would be approved only
if there are no pollution prevention options available;
(5) an applicant can only be granted on Compliance Program with Monetary Concession per lifetime; and
(6) 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 type of waste generated by Coca-Cola Bottling Ltd. is biodegradable and amenable to treatment at our Ashbridges Bay
Treatment Plant.
On September 21, 1999, Coca-Cola Bottling Ltd. submitted an application to have the industrial waste surcharge amount
reduced. The company had retained Jacques Whitford Environment Ltd. in Markham to conduct mass balance and drainage
study for the plant in order to develop an effluent recycling system, procure, construct and operate a waste treatment system
to bring their effluent contaminants down by 50 per cent by September 30, 2000. They have provided us with the following
schedule for their Compliance Program.
| Compliance |
Scheduled |
Scheduled |
Estimated |
| Program Activities |
Start Date |
Completion Date |
Cost ($) |
| a. |
Select Engineer |
Nov. 11/99 |
Nov. 22/99 |
No cost |
| b. |
Engineering
investigation of Plant
Conditions (Mass
Balance) |
Nov. 11/99 |
Dec. 30/99 |
$ 18,500 |
| c. |
Select process &
Design Criteria to
Divert High Strength
Waste |
Jan. 03/00 |
Feb. 03/00 |
No cost |
| d. |
Detailed Design of
Remedial Process |
Feb. 07/00 |
Apr. 07/00 |
$ 25,000 |
| e. |
Select Contractor for
Installation |
Apr. 17/00 |
Apr. 28/00 |
No cost |
| f. |
Order Long Lead Items |
May 01/00 |
June 09/00 |
No cost |
| g. |
Commence
Construction |
June 26/00 |
July 31/00 |
$150,000 |
| h. |
System Start-up |
July 31/00 |
Aug. 04/00 |
No cost |
| i. |
Preparation of
Operations Manual |
Aug. 04/00 |
Sept 04/00 |
$ 10,000 |
| j. |
Operator Training |
July 31/00 |
Aug. 04/00 |
$ 10,000 |
Coca-Cola Bottling Ltd. is currently under a surcharge agreement with the City. The surcharge is based on an average
B.O.D. concentration of 2242 mg/L at an annual discharge of 293,873 cubic metres. The estimated annual B.O.D loading
from the facility before the proposed treatment is 658,863 kg per year. With the assumption that the pretreatment will
reduce the B.O.D. concentrations by 50 per cent, the estimated loading for B.O.D. after pretreatment will be 329,431 kg per
year.
Conclusions:
In accordance with Section 6, our Compliance Program, of our Sewer Use By-law No. 153-89, a Compliance Program with
Monetary Concession should be issued to Coca-Cola Bottling Ltd. to provide a mechanism by which the overstrength
effluent, which exceeds the By-law limit for 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 :
Mr. Vic Lim, P.Eng.
Manager, Industrial Waste and Storm Water Quality
Quality Control and System Planning
Telephone: (416) 392-2966
Fax: (416) 397-0908
e-mail: vlim@toronto.ca
| Michael A. Price, P.Eng., FICE
General Manager
Water and Wastewater Services |
Barry H. Gutteridge
Commissioner
Works and Emergency Services |
cmm: File No. 1047.20 SP
wcrcoca3.doc
