Item - 2008.GM18.4

Tracking Status

  • City Council adopted this item on October 29, 2008 with amendments.
  • This item will be considered by Government Management Committee on October 21, 2008. It will be considered by City Council on October 29, 2008, subject to the actions of the Government Management Committee.

GM18.4 - Local Food Procurement Policy and Implementation Plan

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

City Council on October 29 and 30, 2008, adopted the following motions:

 

1.         City Council receive, for information, the report presented to the Government Management Committee at its meeting of May 15, 2008, entitled, “Proposed Local and Sustainable Food Procurement Policy and Implementation Plan”.

 

2.         City Council adopt a Local Food Procurement Policy, in order to reduce greenhouse gas and smog causing emissions generated by the import of food from outside of Ontario. The Local Food Procurement Policy will establish:

 

i.          that it is the policy of City Council to progressively increase the percentage of food being served at City‑owned facilities or purchased for City operations from local sources;

 

ii.          that “local” is defined as food that is grown in the Greater Toronto Area, the Greenbelt of Ontario and other regions of Ontario; and

 

iii.         that a phased approach be used for the initial implementation of the Local Food Procurement Policy, with Phase I to be undertaken by Children’s Services.

 

3          A new and enhanced budget request of $15,000 be submitted by the General Manager of Children’s Services, as part of the 2009 Operating Budget process, to pilot increasing the purchase of some locally produced foods in 2009.

 

4.         The Director of the Toronto Environment Office and the General Manager of Children’s Services report back to the Government Management Committee, prior to the 2010 budget process, on the outcome of the 2009 implementation phase, including an evaluation of the approach and the potential financial implications of applying this model to other divisions in the City of Toronto.

 

5.         The Director of the Toronto Environment Office report on the ongoing policy development work and an action plan for City-wide implementation of the Local Food Procurement Policy prior to the 2010 budget process, and the policy development work and action plan investigate the mechanism available and/or required to achieve a purchasing target of 50 percent local food as soon as possible, with annual measurements gauging progress.

Background Information (Committee)

(October 6, 2008) Report and Appendix A from Richard Butts, Deputy City Manager, and Nancy Matthews, General Manager, Children’s Services Division - Local Food Procurement Policy and Implementation Plan
https://www.toronto.ca/legdocs/mmis/2008/gm/bgrd/backgroundfile-16137.pdf

Communications (Committee)

(October 16, 2008) Submission from Jamie Kirkpatrick, Campaigner, Toronto Environmental Alliance (GM.New.GM18.4.1)
https://www.toronto.ca/legdocs/mmis/2008/gm/comm/communicationfile-9038.pdf
(October 21, 2008) Submission from Elbert van Donkersgoed, Executive Director, Greater Toronto Area Agricultural Action Committee (GM.New.GM18.4.2)
https://www.toronto.ca/legdocs/mmis/2008/gm/comm/communicationfile-9039.pdf
(October 21, 2008) Submission from Jamie Reaume, Executive Director, Holland Marsh Growers' Association (GM.New.GM18.4.3)
https://www.toronto.ca/legdocs/mmis/2008/gm/comm/communicationfile-9040.pdf
(October 21, 2008) Submission from Andreea Ionescu, BetterDaycareFoodNetwork (GM.New.GM18.4.4)
https://www.toronto.ca/legdocs/mmis/2008/gm/comm/communicationfile-9041.pdf

4a - Proposed Local and Sustainable Food Procurement Policy and Implementation Plan

Background Information (Committee)
(May 1, 2008) Report and Appendices A-B from Richard Butts, Deputy City Manager - Proposed Local and Sustainable Food Procurement Policy and Implementation Plan
https://www.toronto.ca/legdocs/mmis/2008/gm/bgrd/backgroundfile-16134.pdf

GM18.4 - Local Food Procurement Policy and Implementation Plan

Consideration Type:
ACTION
Time:
10:00 AM
Wards:
All

Origin

(October 6, 2008) Report from Richard Butts, Deputy City Manager, and Nancy Matthews, General Manager, Children’s Services Division

Recommendations

Deputy City Manager Richard Butts and the General Manager, Children’s Services Division recommend that:

 

1.         The Government Management Committee receive for information the report presented at its meeting of May 15, 2008 entitled, "Proposed Local and Sustainable Food Procurement Policy and Implementation Plan".

 

2.         City Council adopt a Local Food Procurement Policy in order to reduce greenhouse gas and smog causing emissions generated by the import of food from outside of Ontario. The Local Food Procurement Policy will establish:

 

a.         that it is the policy of City Council to progressively increase the percentage of food being served at City owned facilities or purchased for City operations from local sources;

 

b.         that "local" is defined as food that is grown in the Greater Toronto Area, the Greenbelt of Ontario and other regions of Ontario; and

 

c.         that a phased approach be used for the initial implementation of the Local Food Procurement Policy, with Phase I to be undertaken by Children’s Services.

 

3.         A new and enhanced budget request of $15,000 be submitted by the General Manager of Children’s Services as part of the 2009 Operating Budget process to pilot increasing the purchase of some locally produced foods in 2009.

 

4.         The Director of the Toronto Environment Office and the General Manager of Children’s Services report back prior to the 2010 budget process on the outcome of the 2009 implementation phase, including an evaluation of the approach and the potential financial implications of applying this model to other divisions in the City of Toronto.

 

5.         The Director of the Toronto Environment Office report on the ongoing policy development work and an action plan for City-wide implementation of the Local Food Procurement Policy prior to the 2010 budget process.

Summary

On May 15, 2008 the Government Management Committee considered a staff report from the Deputy City Manager Richard Butts (report dated May 1, 2008) that recommended the establishment of a local and sustainable food procurement policy and implementation plan for the City of Toronto.

 

The staff report was submitted in response to Council’s direction through the City’s Climate Change, Clean Air and Sustainable Energy Action Plan to undertake a review of City procurement policies regarding the purchase of local food products.  That direction was based on the premise that there is a reduction in greenhouse gas emissions when food is grown and consumed locally, as opposed to food imports that are transported greater distances from the field to the point of purchase.

 

The Government Management Committee deferred consideration of the item and requested a follow-up report that would provide additional information on certification procedures, identification protocols for local and non-local grown foods, and additional information on financial impacts.

 

This report responds to those requests from the Committee. It is recommended that the City embark on implementing a Local Food Procurement Policy in a phased manner in order to gain a better understanding and knowledge about the opportunities, financial implications and operational adjustments that may be required to incorporate a greater quantity of local food into its food service operations.  The Toronto Environment Office will work with Children Services Division in piloting some specific strategies in 2009 to examine the implications of increasing the amount of locally grown food used in directly operated Childcare Centres where food is prepared on site.

 

Drawing from this experience, it is further recommended that the General Manager of Children’s Services and the Director of the Toronto Environment Office report back prior to the 2010 budget process with an implementation strategy that provides further options for expanding the implementation to other centres and potentially other divisions in the City.

Financial Impact

The 2009 impact of implementing the first phase of a Local Food Procurement Policy is a $15,000 gross and net increase to Children’s Services 2009 Operating Budget if the new and enhanced request by the General Manager, Children’s Services is approved as part of the 2009 Operating Budget Process. 

 

Options for expanding the implementation of the policy will have further financial implications, which will be reported as part of the implementation strategy.

 

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

Background Information

(October 6, 2008) Report and Appendix A from Richard Butts, Deputy City Manager, and Nancy Matthews, General Manager, Children’s Services Division - Local Food Procurement Policy and Implementation Plan
https://www.toronto.ca/legdocs/mmis/2008/gm/bgrd/backgroundfile-16137.pdf

Communications

(October 16, 2008) Submission from Jamie Kirkpatrick, Campaigner, Toronto Environmental Alliance (GM.New.GM18.4.1)
https://www.toronto.ca/legdocs/mmis/2008/gm/comm/communicationfile-9038.pdf
(October 21, 2008) Submission from Elbert van Donkersgoed, Executive Director, Greater Toronto Area Agricultural Action Committee (GM.New.GM18.4.2)
https://www.toronto.ca/legdocs/mmis/2008/gm/comm/communicationfile-9039.pdf
(October 21, 2008) Submission from Jamie Reaume, Executive Director, Holland Marsh Growers' Association (GM.New.GM18.4.3)
https://www.toronto.ca/legdocs/mmis/2008/gm/comm/communicationfile-9040.pdf
(October 21, 2008) Submission from Andreea Ionescu, BetterDaycareFoodNetwork (GM.New.GM18.4.4)
https://www.toronto.ca/legdocs/mmis/2008/gm/comm/communicationfile-9041.pdf

4a - Proposed Local and Sustainable Food Procurement Policy and Implementation Plan

(Deferred from May 15, 2008 - 2008.GM14.3)
Origin
(May 1, 2008) Report from Richard Butts, Deputy City Manager
Recommendations

The Deputy City Manager, Richard Butts recommends that:

 

1.         City Council adopt the Local and Sustainable Food Procurement Policy as presented in Appendix A of this report, which establishes that it is the policy of City Council to progressively increase the percentage of food being served at City owned facilities or purchased for City operations from local farms and food that is grown in a sustainable manner; and

 

            subject to the adoption of Recommendation (1), it is further recommended that:

 

2.         The Director of the Toronto Environment Office, the Director of Purchasing and Materials Management and the Division Heads of the five City Divisions (Children Services, Homes for the Aged, Facilities and Real Estate, Parks, Forestry and Recreation and Shelter, Support and Housing Administration) that have the greatest role in implementing this policy provide in May 2009 a report that: 1) establishes a benchmark as to what products currently being consumed are produced locally; 2) establishes annual targets for each Division for the purchase of locally produced and certified local and sustainable food; and 3) identifies estimated financial and operational implications.

 

3.         The Division Heads of the five City Divisions (Children Services, Homes for the Aged, Facilities and Real Estate, Parks, Forestry and Recreation and Shelter, Support and Housing Administration) that have the greatest role in implementing this policy include in their 2009 operating budget submissions, requests for funds to support implementation of the Local and Sustainable Food Procurement Policy.

 

4.         The Local and Sustainable Food Procurement Policy be applied on a go forward basis for upcoming RFPs and RFQs for food related procurement and that for existing contracts staff enter into discussions with the vendors to determine where and how the policy could be implemented within the context of existing contracts.

 

5.         The Province of Ontario be requested to partner with the City of Toronto in this effort and provide funding to help address any increases in operating costs that may occur in City operations that receive significant funds from the Province through implementation of this policy.

 

6.         The Director of the Toronto Environment Office on behalf of the City of Toronto be authorized, at no financial cost to the City, to enter into for a two-year period a Memorandum of Understanding with the non-profit organization Local Food Plus, in a form and content satisfactory to the City Solicitor, for the purpose of engaging Local Food Plus in assisting the City in identifying food and products that are local and sustainable.

 

7.         The Director of the Toronto Environment Office, with the assistance of the City Manager’s Office, initiate work with the appropriate City’s Agencies, Boards, Commissions and Corporations to develop a similar policy for their operations and report to the Executive Committee on this work in 2009.

 

8.         The Director of the Toronto Environment Office be authorized to allocate funds up to $100,000 in 2008 from the approved operating budget for the Live Green Toronto program to assist City Divisions in meeting any cost increases associated with implementation of the Local and Sustainable Food Procurement Policy in 2008.

 

9.         The Budget Committee be requested to support potential operating budget increases that may be required to accommodate implementation of the Local and Sustainable Food Procurement Policy in subsequent years.

Summary

In July 2007, Council unanimously adopted the Climate Change, Clean Air and Sustainable Energy Action Plan, the "Climate Change Action Plan". Included in that plan are directions to take action to promote the production and consumption of locally grown food, including a review of the City’s own food procurement policy. This report offers recommendations for establishing and implementing a local and sustainable food procurement policy for all City operations.

With respect to local and sustainable food, "local" is being defined as food that is grown in the GTA, Greenbelt, and other regions in Ontario, "sustainable" is food produced by farmers who are utilizing food production and processing processes that are environmentally and socially responsible and which will guarantee the lands will be viable for agricultural production for future generations. "Food" includes fruits, vegetables, meats, poultry, dairy products, eggs, fish and seafood, grains, legumes, nuts, seed, beverages, oils, fats and sweeteners, as well as foods made from a combination of these ingredients.

There is well documented evidence that there is significant greenhouse gas and smog causing emissions associated with the growing, transportation, processing, packaging, and storage and preparation of food. One study in the United States found that of the energy used in the food system, 36% is for production, 24% for transportation and 40% for processing and packaging. In order to achieve the greenhouse gas emission reduction targets of the Climate Change Action Plan, action must be taken on all sources of emissions. A shift in consumption to food that is grown locally and in a sustainable manner will help reduce the emissions associated with food transportation and production.

Financial Impact

In order to estimate the financial implications of adopting a local and sustainable food procurement policy, staff have drawn from the experience of the University of Toronto (U of T) which adopted a 10% local and sustainable procurement policy in 2006. The University found, on average, a 15% increase in the cost for procurement of food that is local and sustainable.  This increase was only experienced on the percentage of the budget allocated to the purchase of local and sustainable food.

 

The U of T in its procurement policy set a target that 10% of the food would be certified as local and sustainable and they interpreted this as 10% of the food budget should be spent on these purchases.  For example, if the total food budget was $1 million, then $100,000 should be allocated for local and sustainable food purchases.  The average 15% cost increase would be on that $100,000, representing a $15,000 increase in the food budget.

 

If the City of Toronto were to follow a similar approach for its current $11 million annual food budget it would result in an increase of $165,000 in the required operating budget (10% of $11 million equals $1.1 million times 15% equals $165,000).

 

The U of T example provides an indication of what might be the financial implications. However, City Operations are very different in terms of client groups, the amount of food being prepared on-site and food preparation operations. As the City gets more experience in implementing a local and sustainable food procurement policy it will be able to more accurately identify and quantify probable cost changes.

 

Estimating what the financial implications might be on contracts with vendors operating food concessions out of City facilities is also difficult at this time. There is a possibility that it may result in less revenue being generated for the City from these contracts because the vendor may have increased operating costs.

 

To address potential cost pressures in 2008, it is recommended that an amount up to a maximum of $100,000 be allocated from the approved 2008 operating budget of the Toronto Environment Office for the Live Green Toronto program. This money would only be accessed to support any identified cost increases associated with the implementation of the local food procurement policy in 2008.

 

For 2009 and beyond the financial implications of implementing the Local and Sustainable Food Procurement policy should be identified and integrated into the operating budget submissions of the engaged Divisions and appropriate City Agencies, Boards and Commissions. The budget submissions should clearly articulate what is the local and sustainable food objective and the estimated cost comparison to alternative purchases.

 

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

Background Information
(May 1, 2008) Report and Appendices A-B from Richard Butts, Deputy City Manager - Proposed Local and Sustainable Food Procurement Policy and Implementation Plan
https://www.toronto.ca/legdocs/mmis/2008/gm/bgrd/backgroundfile-16134.pdf
Source: Toronto City Clerk at www.toronto.ca/council