Compliance Program with Monetary Concession -
Coca-Cola Bottling Ltd. (Ward 1)
The Works Committee recommends the adoption of the following report
(November 22, 1999) from the Commissioner of Works and Emergency
Services:
Purpose:
To issue a Compliance Program with Monetary Concession to Coca-Cola
Bottling Ltd., 46 Overlea Boulevard, to allow them to pay 50 percent 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
percent of their surcharge rate would mean a reduction in revenue of
$73,952.32 for eleven months.
Recommendation:
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 percent 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 Toronto 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
percent 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 No. 153-89, industries which have
existing surcharge agreements or which are entering into new
surcharge agreements may apply for a surcharge reduction of 50
percent 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 which 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 percent 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 one Compliance Program with
Monetary Concession per lifetime; and
(6) at the end of the Compliance Program period, the companies
which 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
percent 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 and 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 percent, the
estimated loading for B.O.D. after pretreatment will be 329,431 kg per
year.
Conclusions:
In accordance with section 6 of 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 percent 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.