Item - 2024.IE12.2

The Infrastructure and Environment Committee recommends that:

1. City Council grant authority to the General Manager, Solid Waste Management Services to amend Purchase Order Number 6052895 with GHD Limited (GHD) awarded through Request for Proposal Number Doc2659801647 to provide detailed design and construction oversight services to expand the Disco Road Organics Processing Facility (Disco OPF) based on the pricing information presented in the Confidential Attachment to the report (March 13, 2024) from the General Manager, Solid Waste Management Services.

2. City Council authorize the General Manager, Solid Waste Management Services and / or designate, to negotiate and enter into any new agreements, amendments of existing agreements or related documents - including on the basis of a non-competitive procurement under Municipal Code Chapter 195, Purchasing - necessary to operate, maintain and undertake capital improvements to continue to process organics at the Disco Road Organics Processing Facility, for a term up to an additional five (5) years, based on the pricing information presented in the Confidential Attachment to the report (March 13, 2024) from the General Manager, Solid Waste Management Services, on terms and conditions satisfactory to the General Manager, Solid Waste Management Services and in a form satisfactory to the City Solicitor.

3. City Council authorize the General Manager, Solid Waste Management Services, and / or designate, to negotiate and enter into any new agreements, amendments of existing agreements or related documents with CCI Bioenergy Inc. (CCI) to supply a BTA ® Waste Pulper, two (2) anaerobic digester equipment packages and required ancillary equipment to expand the processing capacity of the Disco Road Organics Processing Facility, based on the pricing information presented in the Confidential Attachment to the report (March 13, 2024) from the General Manager, Solid Waste Management Services, on terms and conditions satisfactory to the General Manager, Solid Waste Management Services and in a form satisfactory to the City Solicitor.

4. City Council authorize the General Manager, Solid Waste Management Services, and / or designate, to negotiate and enter into any new agreements, amendments of existing agreements or related documents with GHD Ltd. (GHD) to provide engineering design and contract administration services for improvements to the Dufferin Organics Processing Facility, based on the pricing information presented in the Confidential Attachment to the report (March 13, 2024) from the General Manager, Solid Waste Management Services, on terms and conditions satisfactory to the General Manager, Solid Waste Management Services and in a form satisfactory to the City Solicitor.

5. City Council authorize the General Manager, Solid Waste Management Services and / or designate, to negotiate and enter into any new agreements, amendments of existing agreements or related documents - including on the basis of a non-competitive procurement under Municipal Code Chapter 195, Purchasing - necessary to design and supply pre-processing equipment to continue to process source separated organics at the Dufferin Organics Processing Facility, based on the pricing information presented in the Confidential Attachment to the report (March 13, 2024) from the General Manager, Solid Waste Management Services, on terms and conditions satisfactory to the General Manager, Solid Waste Management Services and in a form satisfactory to the City Solicitor.

6. City Council authorize the General Manager, Solid Waste Management Services, and / or designate, to negotiate and enter into any new agreements, amendments of existing agreements, or related documents or acknowledgements - including on the basis of a non-competitive procurement under Municipal Code Chapter 195, Purchasing - necessary in connection with the efforts to design, supply, install and operate additional Renewable Natural Gas infrastructure with Enbridge Gas Inc. (EGI) at the Disco Road Renewable Natural Gas facility with a term of fifteen (15) years from the date of total completion of construction estimated to be in the forth quarter of 2029, based on the pricing information presented in the Confidential Attachment to the report (March 13, 2024) from the General Manager, Solid Waste Management Services, on terms and conditions satisfactory to the General Manager, Solid Waste Management Services and, if necessary, the Executive Director, Corporate Real Estate Management, and in a form satisfactory to the City Solicitor.

7. City Council authorize the General Manager, Solid Waste Management Services and / or designate, to negotiate and enter into any new agreements, amendments of existing agreements, or acknowledgements - including on the basis of a non-competitive procurement under Municipal Code Chapter 195, Purchasing - necessary in connection with the efforts to produce, manage, market, distribute, use and sell Renewable Natural Gas and other environmental attributes associated with Renewable Natural Gas production, on terms and conditions satisfactory to the General Manager, Solid Waste Management Services and, if necessary, the Executive Director, Corporate Real Estate Management, and in a form satisfactory to the City Solicitor.

8. City Council direct that the Confidential Attachment to the report (March 13, 2024) from the General Manager, Solid Waste Management Services, remain confidential in its entirety indefinitely, as it relates to a position, plan, procedure, criteria or instruction to be applied to any negotiations carried on or to be carried on by or on behalf of the City of Toronto.

The City's Green Bin program helps to keep waste out of landfill by collecting and processing organics from approximately 460,000 houses and more than half of apartment and condominium buildings as well as schools and City-owned buildings. The City of Toronto (City) owns and operates two anaerobic digestion organic processing facilities: the Disco Road Organics Processing Facility and the Dufferin Organics Processing Facility. The Disco Road Organics Processing Facility is designed to process 75,000 tonnes of organics per year and the Dufferin Organics Processing Facility is designed to process 55,000 tonnes of organics per year, for a combined City-owned processing capacity of 130,000 tonnes per year. Solid Waste Management Services is currently collecting between 160,000 and 170,000 tonnes of organics per year and utilizing third-party contractors to process the excess organic waste.

With limited regional organics processing capacity and the need to plan for the growth of Toronto, Solid Waste Management Services identified increased organics processing capacity as a priority and accelerated the planning of a third organics processing facility (construction in 2026 – versus 2036). This initiative was approved by City Council and included within the capital budget.

As part of the planning work for a third facility, various studies were undertaken and it was determined that expanding the existing Disco Road Organics Processing Facility would be the most cost-effective way to increase the City's organics processing capacity versus building a new facility. Expansion of the Disco Road Organics Processing Facility would take advantage of existing infrastructure and known technology, reducing both risk and costs of the project. The expansion will allow the City to increase its organics processing capacity at the Disco Road Organics Processing Facility from 75,000 tonnes per year up to 140,000 tonnes per year.

The purpose of this report is to seek authorities to expedite the expansion of the Disco Road Organics Processing Facility and enhance performance at the Dufferin Organics Processing Facility.