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October 13, 2000
Toronto City Council approves disposal contracts
  
Works and Emergency Services (WES) --- On October 11, 2000 Toronto
City Council formally adopted negotiated contracts for its solid waste disposal
needs for the next 20 years with Rail Cycle North and Republic Services
(Canada) Ltd. These contracts, which Council agreed to make public, feature a
"no put or pay" provision (the City pays only for the amount of municipal waste
actually disposed) - allowing the City to engage in recycling and composting to
further reduce the amount of solid waste going to landfill without penalty
(aside from the minimum 100,000 tonnes per year required by Republic).

The contract with Rail Cycle North is for a term of 20 years for the residual
municipal solid waste disposal needs of Toronto at the Adams Mine Landfill Site
near Kirkland Lake, Ontario. The Councils of the GTA Regions of York and
Durham have agreed in principle to use the Adams Mine Landfill Site. Rail Cycle
North is able to handle a disposal capacity of up to 1.34 million tonnes per
year. The contract is scheduled to begin January 1, 2003. However, Council
has attached conditions to the contract that require Rail Cycle North's
acceptance within four days of Council's October 11, 2000 decision. The
acceptance of the contract is conditional on the removal of the section of the
contract providing Rail Cycle North with the ability to charge Toronto for
certain unavoidable cost increases.

In addition, the contract will terminate should the federal Minister of
Environment order an environmental assessment on or before February 15, 2001.
If that should occur, the City's waste will be directed to sites in Michigan.

The contract with Republic Services (Canada) Ltd. will provide disposal
capacity for up to 20 years for the solid waste received by the City from the
private sector. The contract begins January 1, 2001, at a rate of 300,000
tonnes of solid waste, per year for two years, in order to facilitate a
December 31, 2002 closing of the City's remaining public landfill, the Keele
Valley Landfill Site, located in the City of Vaughan. The Province has advised
Toronto that its policy is to not allow the City of Toronto to extend the life
of the Keele Valley Landfill past 2002.

Toronto generates one million tonnes of residential solid waste annually, of
which 250,000 tonnes (25 per cent) is diverted from disposal through recycling
and composting. Toronto's Agencies, Boards and Commissions and Departments
(A,B,C,D's) produce an additional 150,000 tonnes per year. As well, Toronto
receives 300,000 tonnes of waste for disposal from York and Durham Regions and
600,000 tonnes per year from private businesses, for a total of 1.8 million
tonnes a year that's currently disposed.

For further information, see the City's Web site at:
http://www.toronto. on.ca/involved/swm/swmmep.htm.


BACKGROUNDER

October 13, 2000

Toronto's integrated solid waste resource
management "tirm" process

KEY FACTS:
Toronto generates one million tonnes of residential solid waste annually, of
which 250,000 tonnes (25 per cent) is diverted from disposal through recycling
and composting. Toronto's Agencies, Boards and Commissions and Departments
(A,B,C&D's) produce an additional 150,0000 tonnes per year. As well, Toronto
receives 300,000 tonnes of waste for disposal from York and Durham Regions, and
600,000 tonnes per year from private businesses, for a total disposal volume of
1.8 million tonnes a year.

Toronto currently disposes its solid waste at the Keele Valley Landfill Site,
located in the City of Vaughan, and at Onyx's Arbor Hills Landfill in
Michigan. The City requires new waste disposal capacity because the Keele
Valley Landfill Site is scheduled to close in 2002, under provincial direction.

CHRONOLOGY:
Initiated by the former Metro Council in 1997 (following 10 years of
unsuccessful planning on the part of the province and the City), the Toronto
Integrated Solid Waste Resource Management ("TIRM") Process is the planning
process the City is following to acquire the necessary disposal capacity to
meet its residual solid waste disposal needs and to advance its diversion
targets through new recycling and composting facilities and new and emerging
technologies.

A 90-page Planning Document was released for review and consultation on
December 2, 1998. It provided a draft "roadmap" for Toronto to attain new
disposal capacity, new diversion opportunities and engagement of new and
emerging technologies.

Highlights of TIRM included:
- diverting 50 per cent of Toronto's waste from disposal by 2006 or sooner
- a mandate adopted by the current City Council in 1998 (the city's current
rate is 25 per cent)
- inviting GTA neighbours (York, Durham and Peel Regions) to partner with
Toronto
- ensuring the process follows sound environmental planning principles

Five stages of TIRM
1. Planning Document
2. Request for Expressions of Interest (REOI)
3. Request for Proposals (RFP)
4. Due Diligence and contract negotiations
5. Contract Award

1. Planning Document December 1998:
Public consultation took place in setting the Planning Document, as well as in
the creation of the REOI and RFP evaluation criteria. Stakeholders are
informed through newsletters and a Web site at: http://www.city.tor onto.on.ca/involved/swm/swmmep.htm

Related Submissions to Works and Utilities Committee and City Council -
On March 24, 1999, five reports were submitted to the city's Works and
Utilities Committee. These reports document:
1. Results of the Consultation Program
2. Greater Toronto Area Memorandum of Understanding
3. Prohibition Against Lobbying
4. Request for Expressions of Interest.


2. Request for Expressions of Interest (REOI), issued April 1999:
Respondents submitted Expressions of Interest (EOI) in one or more of the three
solid waste management categories:
- Category 1 - Proven Diversion
- Category 2 - Proven Disposal
- Category 3 - New, Emerging and Innovative Technologies
- In 1999, Council approved a "secondary planning process" for Category 3, a
process using a different planning and time schedule.

3i. Request for Proposals in Category 2:
Proven Disposal, issued October 1999.

3ii. Diversion Request for Proposals in Category 1:
Proven Diversion, issued December 1, 1999.

4. The Due Diligence Reviews and contract negotiations:
January - October 2000 - focused on such issues as licensing and regulatory
processes of proposed disposal facilities, compliance of the facilities with
regulatory requirements, a review of the nature, terms and conditions of any
agreements between the site owners and host municipalities and counties, a
review of relevant reports, transportation, ability to fulfill the contract,
financial soundness, identification of any obvious financial deficiencies,
environmental liability, etc.

The Respondents' Disposal proposals were also evaluated based on the following
criteria:

- Human Health and Safety and Natural Environment (e.g. Greenhouse gas
emissions and traffic safety)

- Ontario and GTA Social benefits (e.g. Jobs created and investment in goods)

- Financial (e.g. Transportation cost and disposal tipping fee)

February 24, 2000 - A special Works Committee meeting was held to consider
staff reports that included:

- TIRM - Identification of Top-Qualified Proposals for Proven Disposal Capacity

April 25, 2000 - A special Works Committee meeting was held to consider staff
reports that included:

- TIRM Process Proven Diversion Analysis of Canadian Union of Public Employees'
(CUPE) Waste Management Plan (Wet-Dry System)

June 14, 2000 - A Works Committee meeting included review of two staff reports:

- TIRM Process - Disposal and Diversion Tonnage Projections

- TIRM Process - Top Qualified Proposals for Proven Disposal Capacity - Due
Diligence Reviews

June 22-23, 2000 - A Special Joint Meeting of Works Committee and Policy and
Finance Committee was held to consider staff reports on:

- TIRM Process - Category 2, Proven Disposal Capacity, Residual Solid Waste
Disposal Capacity Options

July 21, 2000 - A special Joint Meeting of Works Committee and Policy and
Finance Committee -staff submitted the following reports:

- TIRM Disposal Project - Requests for Further Information

- Attachment 1 - Residential Waste Diversion System Alternatives

- Category 2, Proven Disposal Capacity Residual Solid Waste Disposal Capacity
Options Supplementary Report

- TIRM Process - Category 2, Proven Disposal Capacity, Residual Solid Waste
Disposal Capacity Options, Rail Transportation Review

- TIRM Process - Category 2, Proven Disposal Capacity - Legal Issues Arising
from Solid Waste Disposal in the United States

August 1-3, 2000 - Council awarded Disposal Contract Awards (in principle) to
the following Respondents:

- Rail Cycle North: The Rail Cycle North proposal would provide disposal over
20 years to meet the City's residual solid waste disposal needs for Toronto and
the GTA (Regions of Peel, York and Durham). It proposes using the Adams Mine
Landfill Site near Kirkland Lake, Ontario. Rail Cycle North Ltd. is able to
handle a disposal capacity of up to 1.34 million tonnes per year. The contract
is scheduled to begin on January 1, 2003.

- Republic Services (Canada) Ltd.: The Republic proposal provides for tonnages
above 100,000 per year for up to 20 years to manage private sector waste. The
contract begins January 1, 2001 at a rate of 300,000 tonnes of solid waste,
both municipal and private sector, per year for two years, in order to
facilitate a December 31, 2002 closing of the Keele Valley Landfill Site.

Both contracts feature a "No Put or Pay" provision which means the City only
pays for the amount of waste disposed (aside of the minimum 100,000 tonnes
per year required by Republic). This will allow the City to expand its
diversion activities and reduce the amount of solid waste going to landfill
without penalty.

September 13, 2000 - Works Committee considered three reports relating to the
TIRM Process:

- A 3Rs Implementation Plan for the City of Toronto

- TIRM Process - Category 1, Proven Diversion Capacity - Initiation of
Negotiations

- TIRM Process - Category 2, Proven Disposal Capacity

5. Contract Award October 3 - 11, 2000:
City Council gives approval to execute contracts with Rail Cycle North
(additional conditions set by Council, which require Rail Cycle North's
acceptance) and Republic Services (Canada) Ltd.

Further details on staff reports, public consultation/newsletters, decision
documents, including historical background, are available on the City's Web
site at: http://www.city.tor onto.on.ca/involved/swm/swmmep.htm.


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