Item - 2019.IE5.11

The Infrastructure and Environment Committee recommends that:

1. City Council amend its decision on 2018.PW31.11 to authorize the General Manager, Solid Waste Management Services and/or designate to negotiate and enter into any agreements necessary to operate, maintain, or undertake capital improvements to continue to process source separated organics at the Disco Road Organics Processing Facility, for terms up to 10 years, at the sole discretion of the General Manager, Solid Waste Management Services, based in part on the pricing information for operational costs adopted by City Council on July 23, 24, 25, 26, 27 and 30, 2018, on terms satisfactory to the General Manager, Solid Waste Management Services and the Chief Financial Officer and Treasurer and each in a form satisfactory to the City Solicitor.

In 2018, City Council, granted the General Manager, Solid Waste Management Services, delegated authority, through item 2018.PW.31.11, to enter into any agreements necessary to operate, maintain, or undertake capital improvements to continue to process source separated organics at the Disco Road Organics Processing Facility, for a five year term with the option to renew up to an additional five years

Solid Waste Management Services is currently negotiating an agreement with the existing vendor to operate and maintain the Disco Road Organics Processing Facility. Through the negotiations, staff have determined that the 5+5 year term structure may not represent the best value to the City. This report recommends amending the decision to allow delegated authority for a term up to 10 years. This change will not introduce any new risk into the agreement and has the potential to reduce costs and provide better value for the City.