Strategy for Future Solid Waste Management Processing Material Recovery Facilities (MRF) Service Contracts

Some changes to consider are: 1. Future contracts for processing will be removed from municipal authority and made the responsibility of product producers, or others with a commercial connection as designated by provincial regulation, likely facilitated through engagement with a Producer Responsibility Organization (PRO). 2. Full transition to EPR implementation date target of 2024 (moving away from the current 50/50 cost-sharing system between municipalities and industry). 3. Timeline of EPR transition anticipated to be released within a 6-month period by the Minister of Environment, Conservation and Parks - Toronto's current processing contracts are set to expire in 2020 and 2021 respectively (extension options are available). 4. Significant staff changes within the Solid Waste Management Services Division at the City - time is needed to bring staff up to speed in their new roles. 5. The lack of a dedicated EPR Consultation is missing from the City's current Long Term Waste Strategy. 6. Market costs are rising all over North America due to China National Sword and increased contamination, meaning that issuing RFPs and entering into long term contracts now will not provide the desired cost savings to the City but could potentially double rates which has been seen in recent contract awards. This motion seeks to receive enhanced reporting on the upcoming wind-up of the Blue Box Program, schedule dedicated Extended Producer Responsibility (EPR) consultations to be added to the City's Long Term Waste Management Strategy and that Infrastructure and Environment Committee consider delaying the issuance of any RFPs that will result in long term contracts to provide staff with sufficient time to conduct a thorough, transparent, equitable and inclusive consultation on EPR while providing stability and continuity of processing services without a cost increase and provide security for the 400 local residents currently employed at the MRF during the EPR transformation period. The issuance of a Request for Proposal (RFP) prior to the new Provincial regulations, that will not result in cost savings for the City as the current market continues to dictate rising costs. Status quo with a strong partner is often preferable when the regulatory landscape is about to evolve.

3. The Infrastructure and Environment Committee direct the General Manager of Solid Waste Management Services to delay the issuance of any Requests for Proposals that entail long term contracts regarding Single Stream Recyclable Materials (Blue Bin Recyclables) Processing Services until the EPR consultation report is brought back to Committee in Q2 2020 and the Provincial EPR timelines are clarified. This will maintain stability of current costs for the City of Toronto, processing services and secure local employment while the EPR transition landscape is finalized.