Item - 2019.EX11.3
Tracking Status
- City Council adopted this item on December 17, 2019 with amendments.
- This item was considered by the Executive Committee on December 11, 2019 and adopted without amendment. It will be considered by City Council on December 17, 2019.
- See also By-law 1788-2019
EX11.3 - 2020 Rate Supported Budgets - Solid Waste Management Services and Recommended 2020 Solid Waste Rates and Fees
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
City Council Decision
City Council on December 17 and 18, 2019, adopted the following:
Rates and Fees
1. City Council adopt the 2020 Solid Waste Management Services Rates and Fees as set out in Appendix A to the report (November 12, 2019) from the Chief Financial Officer and Treasurer and the General Manager, Solid Waste Management Services, all effective as of January 1, 2020.
2. City Council amend Municipal Code Chapter 441 – Fees and Charges, and any other necessary Municipal Code Chapters as may be required to give effect to City Council's decision.
3. City Council authorize the City Solicitor to introduce any necessary Bills required to give effect to City Council's decision and authorize the City Solicitor to make any necessary refinements, including stylistic, format and organization, as may be identified by the City Solicitor, the Chief Financial Officer and Treasurer, and the General Manager, Solid Waste Management Services.
4. City Council request the General Manager, Solid Waste Management Services and/or designate to continue consulting and negotiating with Provincial Officials to ensure inclusion of the City's priorities in any new anticipated waste diversion regulations or policy statements that implement the Resource Recovery and Circular Economy Act, 2016, and the Waste Diversion Transition Act, 2016.
5. City Council authorize the General Manager, Solid Waste Management Services and/or designate until the end of 2025, 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 indicated in Part 4 above - including advocacy, business transformation, financial analysis, or receipt of funding on terms and conditions satisfactory to the General Manager, Solid Waste Management Services and each 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 a contract extension agreement with CRA Landfill Operations Limited to provide landfill operations, management and construction services for a term not to exceed 10 years, with the specific requirements that landfill compaction ratio be increased, a lower annual guaranteed minimum tonnage be implemented and efficiencies be developed to reduce site costs on terms and conditions satisfactory to the General Manager, Solid Waste Management Services and in a form satisfactory to the City Solicitor.
7. City Council authorize the Chief Financial Officer and Treasurer and 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 each in a form satisfactory to the City Solicitor and the Executive Director, Corporate Real Estate Management.
8. City Council direct that all the rates, fees and charges set out in Appendix A to the report (November 12, 2019) from the Chief Financial Officer and Treasurer and the General Manager, Solid Waste Management Services in Part 1 above, continue in full force and effect until such time as they are amended or repealed by City Council.
Operating Budget
9. City Council approve the 2020 Staff Recommended Operating Budget for Solid Waste Management Services of $360.1 million gross, $18.8 million net for the following services:
Service:
|
Gross
|
Revenue
|
Capital from-current Contribution |
|
($000s) |
($000s) |
($000s) |
City Beautification |
38,123.1 |
1,564.9 |
-36,558.2 |
Residual Management |
39,562.3 |
8,843.3 |
-30,719.0 |
Solid Waste Collection and Transfer |
126,904.9 |
322,156.9 |
195,252.0 |
Solid Waste Education and Enforcement |
5,655.2 |
3.5 |
-5,651.7 |
Solid Waste Processing and Transport |
149,858.1 |
46,335.3 |
-103,522.8 |
Total Program Budget |
360,103.6 |
378,903.9 |
18,800.2 |
10. City Council approve the 2020 staff complement for Solid Waste Management Services of 1,128.3 positions, composed of 50.4 capital positions and 1,077.9 operating positions.
11. City Council approve the 2020 new user fees, technical adjustments to user fees, market rate user fee changes, rationalized user fees, and other fee changes above the inflationary adjusted rate for Solid Waste Management Services identified in Appendix 8 to the 2020 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services, for inclusion in the Municipal Code Chapter 441, Fees and Charges.
Capital Budget
12. City Council approve 2020 Staff Recommended Capital Budget for Solid Waste Management Services with cash flows and future year commitments totaling $584.980 million as detailed by project in Appendix 5a to the 2020 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services.
13. City Council approve the 2021-2029 Staff Recommended Capital Plan for Solid Waste Management Services totalling $183.131 million in project estimates as detailed by project in Appendix 5b to the 2020 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services.
Service Levels
14. City Council approve the 2020 service levels for Solid Waste Management Services as outlined in Appendix 1 to the report (November 15, 2019) from the General Manager, Solid Waste Management Services.
Other
15. City Council request the General Manager, Solid Waste Management Services to report back, as part of the 2021 Budget process, on the impact of fees on diversion rates and source separation, contamination of blue bins, illegal dumping and undersized choice in household bin size.
Public Notice Given
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140594.pdf
(November 12, 2019) Revised Report and Appendix A and B from the Chief Financial Officer and Treasurer and the General Manager, Solid Waste Management Services on 2020 Rate Supported Budgets - Solid Waste Management Services and Recommended 2020 Solid Waste Rates and Fees
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140589.pdf
2020 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140588.pdf
Attachment 1 to 2020 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services - 10 Year Capital Budget and Plan
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140590.pdf
Attachment 2 to 2020 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services - 10 Year Capital Budget and Plan
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140592.pdf
(November 15, 2019) Report and Appendix A from the General Manager, Solid Waste Management Services on Recommended 2020 Service Levels - Solid Waste Management Services
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140591.pdf
(November 15, 2019) Notice of Public Meeting - 2020 Rate Supported Budgets - 2020 Solid Waste Management Services and Recommended 2020 Solid Waste Rates and Fees
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140586.pdf
Notice of Public Meeting - 2020 Rate Supported Budgets - Appendix A -2020 Solid Waste Management Services and Recommended 2020 Solid Waste Rates and Fees
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140587.pdf
Background Information (City Council)
https://www.toronto.ca/legdocs/mmis/2019/cc/bgrd/backgroundfile-141154.pdf
Motions (City Council)
That City Council request the General Manager, Solid Waste Management Services to report back, as part of the 2021 Budget process, on the impact of fees on diversion rates and source separation, contamination of blue bins, illegal dumping and undersized choice in household bin size.
Vote (Amend Item (Additional)) Dec-17-2019 5:22 PM
Result: Carried | Majority Required - EX11.3 - Layton - motion 1 |
---|---|
Total members that voted Yes: 24 | Members that voted Yes are Paul Ainslie, Ana Bailão, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, Joe Cressy, John Filion, Paula Fletcher, Michael Ford, Mark Grimes, Stephen Holyday, Jim Karygiannis, Cynthia Lai, Mike Layton, Josh Matlow, Jennifer McKelvie, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, Gord Perks, Michael Thompson, John Tory, Kristyn Wong-Tam |
Total members that voted No: 0 | Members that voted No are |
Total members that were Absent: 2 | Members that were absent are Anthony Perruzza, Jaye Robinson |
Vote (Adopt Item as Amended) Dec-17-2019 5:23 PM
Result: Carried | Majority Required - EX11.3 - Adopt the item as amended |
---|---|
Total members that voted Yes: 21 | Members that voted Yes are Paul Ainslie, Ana Bailão, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, Joe Cressy, Paula Fletcher, Mark Grimes, Stephen Holyday, Jim Karygiannis, Cynthia Lai, Mike Layton, Jennifer McKelvie, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, Gord Perks, Michael Thompson, John Tory, Kristyn Wong-Tam |
Total members that voted No: 3 | Members that voted No are John Filion, Michael Ford, Josh Matlow |
Total members that were Absent: 2 | Members that were absent are Anthony Perruzza, Jaye Robinson |
Councillor Layton, rising on a Point of Order, stated that the rebate is referred to in the Item and that his question to staff was to determine how the rate was arrived at. Councillor Layton further stated that he takes offence to the fact that Councillor Crawford snuck over to the Speaker to tell her to rule his questions out of order.
Councillor Crawford, rising on a Point of Order, stated that this issue regarding rebates came up at the Budget Committee and as the rebate program is part of the Operating Budget, unfortunately questions about the rebate are out of order.
Deputy Mayor Minnan-Wong, rising on a Point of Privilege, stated that Councillor Layton had remarked that Councillor Crawford had snuck up to talk to the Speaker and that the remark was disrespectful and that Councillor Layton should apologize.
Councillor Layton, rising on a Point of Privilege, stated that he would replace the word "snuck" with the words "walked to whisper in the Speaker's ear."
Councillor Layton, rising on a Point of Order, stated that he is trying to get clarification from staff as to why residents will see an above three percent increase on their solid waste bill.
Mayor Tory, rising on a Point of Order, stated that the budget Council is currently debating and bin rebates which are part of the Operating Budget are two separate budgets. Mayor Tory also stated that Members will have a chance to debate the bin rebates at the meeting in the new year.
EX11.3 - 2020 Rate Supported Budgets - Solid Waste Management Services and Recommended 2020 Solid Waste Rates and Fees
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Public Notice Given
Committee Recommendations
The Executive Committee recommends that:
Rates and Fees
1. City Council adopt the 2020 Solid Waste Management Services Rates and Fees as set out in Appendix A to the report (November 12, 2019) from the Chief Financial Officer and Treasurer and the General Manager, Solid Waste Management Services titled "2020 Rate Supported Budgets – Solid Waste Management Services and Recommended 2020 Solid Waste Rates and Fees", all effective as of January 1, 2020.
2. City Council authorize that the necessary amendments be made to Municipal Code Chapter 441 – Fees and Charges, and any other necessary Municipal Code Chapters as may be required to give effect to Council's decision.
3. City Council authorize the City Solicitor to introduce any necessary Bills required to give effect to Council's decision and authorize the City Solicitor to make any necessary refinements, including stylistic, format and organization, as may be identified by the City Solicitor, the Chief Financial Officer and Treasurer, and the General Manager, Solid Waste Management Services.
4. City Council request the General Manager, Solid Waste Management Services and/or designate to continue consulting and negotiating with provincial officials to ensure inclusion of the City's priorities in any new anticipated waste diversion regulations or policy statements that implement the Resource Recovery and Circular Economy Act, 2016, and the Waste Diversion Transition Act, 2016.
5. City Council authorize the General Manager, Solid Waste Management Services and/or designate until the end of 2025, 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 indicated in Recommendation 4 above - including advocacy, business transformation, financial analysis, or receipt of funding on terms and conditions satisfactory to the General Manager, Solid Waste Management Services and each 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 a contract extension agreement with CRA Landfill Operations Limited to provide landfill operations, management and construction services for a term not to exceed 10 years, with the specific requirements that landfill compaction ratio be increased, a lower annual guaranteed minimum tonnage be implemented and efficiencies be developed to reduce site costs on terms and conditions satisfactory to the General Manager, Solid Waste Management Services and in a form satisfactory to the City Solicitor.
7. City Council authorize the Chief Financial Officer and Treasurer and 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 each in a form satisfactory to the City Solicitor and the Executive Director, Corporate Real Estate Management.
8. City Council direct that all the rates, fees and charges set out in Appendix A to the report (November 12, 2019) from the Chief Financial Officer and Treasurer and the General Manager, Solid Waste Management Services titled "2020 Rate Supported Budgets – Solid Waste Management Services and Recommended 2020 Solid Waste Rates and Fees", adopted by Council in Recommendation 1 above, continue in full force and effect until such time as they are amended or repealed by City Council.
Operating Budget
9. City Council approve the 2020 Staff Recommended Operating Budget for Solid Waste Management Services of $360.1 million gross, $18.8 million net for the following services:
Service:
|
Gross
|
Revenue
|
Capital from-current Contribution |
|
($000s) |
($000s) |
($000s) |
City Beautification |
38,123.1 |
1,564.9 |
-36,558.2 |
Residual Management |
39,562.3 |
8,843.3 |
-30,719.0 |
Solid Waste Collection & Transfer |
126,904.9 |
322,156.9 |
195,252.0 |
Solid Waste Education & Enforcement |
5,655.2 |
3.5 |
-5,651.7 |
Solid Waste Processing & Transport |
149,858.1 |
46,335.3 |
-103,522.8 |
Total Program Budget |
360,103.6 |
378,903.9 |
18,800.2 |
10. City Council approve the 2020 staff complement for Solid Waste Management Services of 1,128.3 positions, comprising 50.4 capital positions and 1,077.9 operating positions.
11. City Council approve the 2020 new user fees, technical adjustments to user fees, market rate user fee changes, rationalized user fees, and other fee changes above the inflationary adjusted rate for Solid Waste Management Services identified in Appendix 8 to the 2020 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services, for inclusion in the Municipal Code Chapter 441 “Fees and Charges”.
Capital Budget
12. City Council approve 2020 Staff Recommended Capital Budget for Solid Waste Management Services with cash flows and future year commitments totaling $584.980 million as detailed by project in Appendix 5a to the 2020 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services.
13. City Council approve the 2021-2029 Staff Recommended Capital Plan for Solid Waste Management Services totalling $183.131 million in project estimates as detailed by project in Appendix 5b to the 2020 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services.
Service Levels
14. City Council approve the 2020 service levels for Solid Waste Management Services as outlined in Appendix 1 to the report (November 15, 2019) from the General Manager, Solid Waste Management Services titled "Recommended 2020 Service Levels – Solid Waste Management Services".
Origin
Summary
This report outlines the recommended 2020 Solid Waste Management Services Rates and Fees arising from the adoption of the recommended 2020 Solid Waste Management Services Operating and Capital Budgets. The recommended rate and fee increases will vary based on customer group and are highlighted in Table 1.
Table 1 - 2020 Recommended Rates and Fees Increases (Effective Jan. 1, 2020)
Customer Group |
Percent Rate Increase |
Comments |
Multi-Residential |
1.50 percent |
Below Rate of Inflation |
Single Family and Residential Units Above Commercial |
2.50 percent |
Rate of Inflation |
Bag Tags, Bin Purchase |
6.00 percent |
Same as Commercial |
Commercial, Divisions, Agencies and Corporations, Schools |
6.00 percent |
Equivalent increase to 2019 |
Blended Rate |
2.45 percent |
Rate of Inflation |
The 2020 Recommended Operating Budget is $360.104 million, an increase of $10.169 million or 2.9 percent over 2019 plus $18.800 million contribution to the Waste Management Reserve Fund all of which are offset by total revenues of $378.904 million. The increase in operating expenditures is attributable to the increase in organic collection and processing costs due to volume and contractual inflation adjustments, start-up of the Dufferin Renewable Natural Gas and Ingram Compressed Natural Gas facilities, increase in debt principal and interest payments to fund the 10-Year Capital Budget and Plan.
The 2020 Recommended Capital Budget is $81.335 million which is comprised of $59.404 million in new 2020 funding and $21.931 million in funding carried forward from 2019 into 2020. Key capital objectives and priorities for Solid Waste Management Services in the 2020 Capital Program are:
To safely and efficiently collect materials from 875,000 homes, business and public spaces by implementing Council's direction on health and safety by installing telematics solutions on vehicles in support of Vision Zero 2.0; In addition, a cornerstone of the Program is to manage 900,000 plus tonnes of material in an environmentally and fiscally sustainable manner by accelerating the development of the 3rd Anaerobic Digester; and
To continue to develop and invest in Renewable Natural Gas facilities and the purchase of Natural Gas Vehicles.
The proposed 2.45 percent blended rate increase in Solid Waste Management Services Rates and Fees is in line with inflation and will generate $7.124 million in additional revenues necessary to maintain Council Approved service levels as well as improved and enhanced services in many areas, and fund the 2020 Recommended Capital Budget and 10-Year Capital Plan.
Background Information
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140594.pdf
(November 12, 2019) Revised Report and Appendix A and B from the Chief Financial Officer and Treasurer and the General Manager, Solid Waste Management Services on 2020 Rate Supported Budgets - Solid Waste Management Services and Recommended 2020 Solid Waste Rates and Fees
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140589.pdf
2020 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140588.pdf
Attachment 1 to 2020 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services - 10 Year Capital Budget and Plan
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140590.pdf
Attachment 2 to 2020 Staff Recommended Capital and Operating Budget Notes - Solid Waste Management Services - 10 Year Capital Budget and Plan
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140592.pdf
(November 15, 2019) Report and Appendix A from the General Manager, Solid Waste Management Services on Recommended 2020 Service Levels - Solid Waste Management Services
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140591.pdf
(November 15, 2019) Notice of Public Meeting - 2020 Rate Supported Budgets - 2020 Solid Waste Management Services and Recommended 2020 Solid Waste Rates and Fees
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140586.pdf
Notice of Public Meeting - 2020 Rate Supported Budgets - Appendix A -2020 Solid Waste Management Services and Recommended 2020 Solid Waste Rates and Fees
https://www.toronto.ca/legdocs/mmis/2019/ex/bgrd/backgroundfile-140587.pdf