Item - 2024.GG17.5

The General Government Committee:

1. In accordance with Section 71-11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-law), authorized the amendment to Blanket Contract Number 47024197 issued to Lystek International Corporation for increased haulage costs associated with the increased volumes of biosolids which cannot be processed at the pelletizer facility due to ongoing maintenance shutdowns by increasing the overall value by $1,361,863 net of all applicable taxes ($1,385,832 net of Harmonized Sales Tax recoveries), from $13,443,408 net of all taxes and charges ($13,680,012 net of Harmonized Sales Tax recoveries) to $14,805,271 net of all applicable taxes ($16,729,956 including all taxes and charges, $15,065,844 net of Harmonized Sales Tax recoveries).

2. In accordance with Section 71-11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-law), authorized the amendment to the legal agreement and increase Blanket Contract Number 47024222 issued to Terratec Environmental Ltd., for increased haulage costs associated with the increased volumes of biosolids which cannot be processed at the pelletizer facility due to ongoing maintenance shutdowns by increasing the overall value by $2,367,895 net of all applicable taxes ($2,409,570 net of Harmonized Sales Tax recoveries), from $9,294,185 net of all taxes and charges ($9,457,763 net of Harmonized Sales Tax recoveries) to $11,662,080 net of all applicable taxes ($13,178,150 including all taxes and charges, $11,867,332 net of Harmonized Sales Tax recoveries).

3. Authorized the General Manager, Toronto Water, to negotiate, enter into and execute an amending agreement to the City's agreement with Lystek International Corporation, dated February 8, 2022 to give effect to the amendments to Blanket Contract Number 47024197, as hereby authorized by General Government Committee, on terms and conditions acceptable to the General Manager, Toronto Water, and in a form acceptable to the City Solicitor.

4. Authorized the General Manager, Toronto Water, to negotiate, enter into and execute an amending agreement to the City's agreement with Terratec Environmental Ltd., dated March 14, 2022 to give effect to the amendments to Blanket Contract Number 47024222, as hereby authorized by General Government Committee, on terms and conditions acceptable to the General Manager, Toronto Water, and in a form acceptable to the City Solicitor.

The purpose of this report is to request authority to amend Blanket Contract 47024197 issued to Lystek International Corporation in the amount of $1,361,863 net of all applicable taxes and charges ($1,385,832 net of Harmonized Sales Tax recoveries) and Blanket Contract Number 47024222 with Terratec Environmental Ltd., in the amount of $2,367,895 net of all taxes and charges ($2,409,570 net of Harmonized Sales Tax recoveries).

Both contracts have been awarded under Request for Proposal Doc 2959888829 for the removal, haulage, and Beneficial Use of Biosolids from the Ashbridges Bay Wastewater Treatment Plant. The increases are required to cover higher haulage volumes of biosolids resulting from both scheduled and unscheduled maintenance shutdowns of the pelletizer at Ashbridges Bay Wastewater Treatment Plant. These shutdowns lead to increased biosolids haulage. This amendment will ensure coverage of increased haulage volume services, if required, for the current contract period and option year renewal periods.

The amendments requested include an increase to the current contract target value and

two (2) option year periods for both contracts. The total amount being requested is $3,729,758 net of all applicable taxes ($3,795,402 net of Harmonized Sales Tax recoveries), increasing the total contract target values from $22,737,593 to $26,467,351 net of all applicable taxes ($29,908,106 including all taxes and charges, $26,933,176 net of Harmonized Sales Tax recoveries).