Item - 2023.IE6.3

Confidential Attachment 1 to the report (September 8, 2023) from the General Manager, Solid Waste Management Services was made public on October 12, 2023, in accordance with the direction in the letter (October 11, 2023) from the General Manager, Solid Waste Management Services.

The Infrastructure and Environment Committee recommends that:

1. City Council support the decision of City staff to not submit a bid in response to the Circular Materials, as the Common Collection System Administrator, and Reverse Logistics Group, as the Common Collection System Operator, Request for Proposals for services to collect Provincially-regulated blue box material from residences and facilities as defined in O. Reg. 391/21: Blue Box in City of Toronto Districts, beginning January 1, 2026.

2. If Recommendation 1 is adopted, City Council authorize the General Manager, Solid Waste Management Services, to negotiate and enter into any agreements to sell City recycling carts from eligible residences and facilities, and for the funds from the sale to return to Solid Waste Management Services' utility rate, as an exception to section 195-12.2 of the Code.  

3. City Council support the decision of City staff to decline any request from Circular Materials and Reverse Logistics Group, received after December 31, 2023, to negotiate a Blue Box Materials service agreement with the City of Toronto.

4. City Council direct the General Manager, Solid Waste Management Services to review and analyze potential service delivery options for waste collection (excluding Provincially-regulated blue box recycled materials) from District 2 beginning July 1, 2026, including issuing a competitive tender to the private sector, pursuing managed competition, and bringing collection services in-house to be performed by City of Toronto staff.

5. City Council direct the General Manager, Solid Waste Management Services to report back to the Infrastructure and Environment Committee in the first quarter of 2024 on the review and analysis of potential service delivery options for District 2 beginning July 1, 2026, as authorized in Recommendation 4.

6. City Council authorize the General Manager, Solid Waste Management Services, to negotiate and enter into any agreements or amending agreements necessary for professional services such as a financial analysis firm or a management consulting firm to support the review and analysis authorized in Recommendation 4.

7. City Council direct that Confidential Attachment 1 to the report (September 8, 2023) from the General Manager, Solid Waste Management Services, remain confidential in its entirety for five years from the date that City Council adopts the report titled "Transition of Toronto’s Blue Bin Recycling Program to Extended Producer Responsibility", dated September 8, 2023, as it contains a position, plan, procedure, criteria or instruction to be applied to any negotiation carried on or to be carried on by or on behalf of the City.

8. City Council direct that Confidential Attachment 2 to the report (September 8, 2023) from the General Manager, Solid Waste Management Services, remain confidential in its entirety until December 31, 2024 as it relates to labour relations or employee negotiations.

9. City Council request the General Manager, Solid Waste Management Services to continue to collaboratively work with CUPE Local 416 to address any staffing impacts caused by the continued implementation of Ontario Regulation 391/21: Blue Box.

10. City Council request the General Manager, Solid Waste Management Services to report to City Council in fourth quarter of 2025 on any known operational and customer experience impacts in Ontario municipalities as a result of the implementation of Ontario Regulation 391/21: Blue Box (the Province of Ontario's Residential Blue Box Extended Producer Responsibility program), with the purpose of informing a comprehensive change management and communications strategy for Toronto residents as a result of the transition.

11. City Council direct the General Manager, Solid Waste Management Services to inform the Province and the Issuing Authority for Ontario Regulation 391/21: Blue Box (Blue Box Extended Producer Responsibility program) of the City of Toronto’s interest and ability to continue to provide a cost-effective, seamless and high-quality Blue Box recycling collection service across the City of Toronto post-2025 for both Torontonians and Producers through direct negotiations for service.

12. City Council request that the Province require the Issuing Authority for Producers as it relates to the implementation of Ontario Regulation 391/21: Blue Box program to make public the Request for Proposals: Collection of Blue Box Material from Residences and Facilities in City of Toronto Districts document to support public access and transparency as the relates to the future delivery of Blue Box collections services in the City of Toronto.  

This report provides the outcome of discussions with the System Administrator (Circular Materials) for the post-transition phase of the Blue Box transition to Extended Producer Responsibility, beginning January 1, 2026, specifically whether the City of Toronto would play a continued role in service provision on behalf of producers past December 31, 2025. 

This report also summarizes key considerations following a review of the Issuing Authority's (comprised of Circular Materials and Reverse Logistics Group) Request for Proposals, which is seeking a collections service provider for eligible sources in the City of Toronto post-2025.  Based on an extensive and collaborative multi-divisional review of the Request for Proposal and its technology, operational, asset, staffing and other service requirements, staff are recommending to not respond to the tender and have prepared an alternative workplan with supporting City Council recommendations and further detail outlined in Confidential Attachment 2.