Item - 2012.BU31.2

The Budget Committee recommends to the Executive Committee that:

1.         City Council consider the report (November 6, 2012) from the General Manager, Toronto Solid Waste Management Services and the Acting Deputy City Manager and Chief Financial Officer concurrently with the 2013 Recommended Capital Budget, 2014-2022 Recommended Capital Plan and the 2013 Recommended Operating Budget of the Solid Waste Management Services.

2.         City Council adopt a zero percent rate increase for Solid Waste Volume-Based User Fees for the year 2013, with the exception of an increase of $2.84 to the small bin fee, which reflects a net zero net fee.

3.         City Council direct the General Manager of Solid Waste Management Services and the Acting Deputy City Manager and Chief Financial Officer to consider price hedging agreements as a means of stabilizing, directly or indirectly, Solid Waste Management Services annual revenue from the sale of its recyclable materials.

Solid Waste Management Services - 2013 Recommended Operating Budget

4.         City Council approve the 2013 Recommended Operating Budget for Solid Waste Management Services of $349.607 million gross and $0.0 million net, comprised of the following services:

5.         City Council approve Solid Waste Management Service's services and 2013 proposed service levels, as outlined on pages 5 and 6 of the 2013 Recommended Operating Budget for Solid Waste Management Services, and associated staff complement of 1,105.7.

6.         City Council request the General Manager of Solid Waste Management Services and the Acting Deputy City Manager and Chief Financial Officer to report to Budget Committee as part of the 2012 Year-End Variance Report on the actual net contribution to the Waste Management Reserve Fund.

7.         City Council request the General Manager of Solid Waste Management in consultation with the Acting Deputy City Manager and Chief Financial Officer to report to the Budget Committee as part of the 2014 Budget process with the results of an updated user fee review for City Divisions and Agencies, Schools and the Yellow Bag program.

8.         City Council request the General Manager of Solid Waste Management in consultation with the Acting Deputy City Manager and Chief Financial Officer to report to the Public Works and Infrastructure Committee and the Budget Committee early in 2013 to reconfirm City Council's commitment to continue with the 70% Waste Diversion Program and to recommend a supporting Multi-Year Rate Strategy.

9.         City Council request the General Manager of Solid Waste Management Services, in consultation with the Director of Facilities Management, to develop a plan to implement green bin and recycling programs for City-owned facilities beginning in 2013 and report to the Public Works and Infrastructure Committee in the First Quarter of 2013.

10.       City Council request the General Manager, Solid Waste Management Services to report to the Public Works and Infrastructure Committee in February 2013 on the Division's Plan for implementing the green bin program in multi-residential buildings for 2013.

Solid Waste Management Services - 2013 Recommended Capital Budget

11.       City Council approve the 2013 Recommended Capital Budget for Solid Waste Management Services with a total project cost of $203.615 million, and 2013 cash flow of $93.930 million and future year commitments of $260.505 million comprised of the following:

a.         New Cash Flow Funding for:

i.          19 new / change in scope sub-projects with a 2013 total project cost of $203.615 million that requires cash flow of $37.195 million in 2013 and a future year cash flow commitment of $36.378 million in 2014; $27.520 million in 2015; $29.017 million in 2016; $15.162 million in 2017; $13.148 million in 2018; $12.549 million in 2019; $11.007 million in 2020; $7.796 million in 2021; $13.843 million in 2022;

ii.         31 previously approved sub-projects with a 2013 cash flow of $39.939 million; and a future year cash flow commitment of $36.247 million in 2014; $12.658 million in 2015; $3.982 million in 2016; $2.258 million in 2017; $4.939 million in 2018; $5.379 million in 2019; $5.584 million in 2020; $5.584 million in 2021;

iii.        15 sub-projects from previously approved projects with carry forward funding from 2011 and prior years requiring 2013 cash flow of $16.775 million and a future year cash flow commitment of $12.308 million in 2014 and $4.255 million in 2015 which requires Council to reaffirm its commitment; and

b.         2012 approved cash flow for 20 previously approved sub-projects with carry forward funding from 2012 into 2013 and future years totaling $17.688 million.

12.       City Council approve new debt service costs of $0.227 million in 2013 and incremental debt costs of $1.782 million in 2014,  $2.879 million in 2015, $1.909 million in 2016, $2.717 million in 2017, $1.158 million in 2018, $0.903 million in 2019, $1.271 million in 2020, $1.235 million in 2021 and $1.043 million in 2022 resulting from the approval of the 2013 Recommended Capital Budget, to be included in the 2013 and future year operating budgets and are to be recovered from volume based user fees.

13.       City Council approve the 2014-2022 Recommended Capital Plan for Solid Waste Management Services totaling $332.846 million in project estimates, comprised of $78.855 million in 2014; $78.129 million in 2015; $81.699 million in 2016; $16.804 million in 2017;  $15.544 million in 2018; $14.778 million in 2019; $17.123 million in 2020; $15.764 million in 2021; and $14.150 million in 2022.

14.       City Council consider operating cost (savings) of $(0.603) million net in 2013, $(0.158) million net in 2014, $(3.004) million net in 2015, $(6.549) million net in 2016, $(6.738) million net in 2017, $(6.946) million net in 2018, $(7.224) million net in 2019, $(7.360) million net in 2020, $(7.557) million net in 2021; and $(2.769) million net in 2022 emanating from the approval of the 2013 Recommended Capital Budget for inclusion in the 2013 and future year operating budgets.

15.       City Council approve all sub-projects with third party financing conditionally, subject to the receipt of such funding in 2013 and/or future years and if such funding is not forthcoming, their priority and funding be reassessed by City Council relative to other City-financed priorities and needs.

16.       City Council direct the General Manager of Solid Waste Management Services not to proceed with the construction of the Mechanical/Biological Treatment (MBT) project (excluding various studies, Environmental Assessments and pre-design), identified in the 10 year Capital Budget, prior to a identifying and securing a dedicated source of funding for the entire amount of the project.

17.       City Council direct the City Solicitor to submit the necessary bills to Council required to implement the above recommendations.