Item - 2026.GG30.9

The General Government Committee recommends that:

1. City Council in accordance with Section 71-11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-Law), grant authority to General Manager Solid Waste Management Services to amend Purchase Order 6049718 issued to Veolia Water Canada Inc. (Veolia) to complete critical capital improvement and maintenance work based on the pricing information presented in the Confidential Attachment 1 to the report (May 19, 2026) from the General Manager, Solid Waste Management Services, and the Chief Procurement Officer.

2. City Council approve an in-year budget adjustment to Solid Waste Management Services 2026 Capital Budget and 2027 to 2035 Capital Plan, as detailed in the Confidential Attachment 1 to the report (May 19, 2026) from the General Manager, Solid Waste Management Services, and the Chief Procurement Officer.

3. City Council direct that the Confidential Attachment 1 to the report (May 19, 2026) from the General Manager, Solid Waste Management Services, and the Chief Procurement Officer, remain confidential in its entirety 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, and direct that the Confidential Attachment 1 be made public at the discretion of the General Manager, Solid Waste Management Services, or their designate.

This report is seeking authority to amend Purchase Order 6049718 issued to Veolia Water Canada Inc. (Veolia). The Purchase Order was issued based on City Council approval of Item 2019.IE5.11, authorizing the General Manager, Solid Waste Management Services and / or designate to negotiate and enter into any agreements necessary to operate, maintain and undertake capital improvements to continue to process source separated organics at the Disco Road Organics Processing Facility, commencing on July 1, 2019, for an approved term of up to 10 years.

The Disco Road Organics Processing Facility facility was commissioned in 2014. Through ongoing operations, engineering assessments, and capital work planning, several major capital improvement and maintenance requirements have been identified, some of which are critical to site operations and need to be addressed immediately. A portion of the major capital and maintenance work was anticipated to be delivered in conjunction with the Council-approved Disco Road Organics Processing Facility expansion. However, given the immediate need for critical infrastructure work, staff are also accelerating some of this planned work to take place at the same time as the critical work to ensure the facility is best positioned for expansion and to minimize overall downtime.

Aligning this work within one purchase order amendment will enable the timely completion of critical capital improvements and maintenance work ahead of the facility expansion. This work will extend the facility’s useful life, maintain safety and performance standards, and ensure the facility continues to fulfill its intended functions. Delivering this work through the existing operator will minimize financial, operational and coordination risks on an active site, avoid delays, and supports continuity of service by maintaining a single point of accountability.