| 143401 | REPORT | N | N | MAIN | ACTION | AMENDED | N | Transition of the Blue Box Program to Extended Producer Responsibility: Post-Transition Plan | 2025.IE25.2 | Y | Y | Y | Y | <p>The General Manager of Solid Waste Management Services recommends that:</p>
<p> </p>
<p>1. City Council authorize the General Manager, Solid Waste Management Services, until June 30, 2031, to negotiate, enter into and execute new revenue generating service agreements and amend and extend any existing service agreements with various Producer Responsibility Organizations (including as non-competitive procurements pursuant to Article 195-7.1 of the Code) for the purpose of the City providing waste management and related services for waste recovery materials (non-Blue Box Materials) regulated under the Resource Recovery and Circular Economy Act, 2016, as amended, such as hazardous and special products, electrical and electronic equipment, batteries, tires, and any new waste recovery material introduced through regulation, with the total term of each new service agreement and each extension of an existing service agreement not exceed five (5) years, on terms and conditions acceptable to the General Manager, Solid Waste Management Services, and each in a form satisfactory to the City Solicitor.</p>
<p> </p>
<p>2. City Council authorize the General Manager, Solid Waste Management Services (or designate), to negotiate, enter into and execute amending agreements with Rehrig Pacific Company to:</p>
<p> </p>
<p style="padding-left: 30px;">a. Extend the recycling and garbage bin contract (47021231) term from July 1, 2026, for an additional four (4) years and five (5) months to November 30, 2030 with no increase in the contract value.</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">b. Extend the green bin contract (47019524) term for an additional three (3) years, from December 1, 2027, to November 30, 2030 with no increase in the contract value.</p>
<p> </p>
<p>3. City Council request the General Manager, Solid Waste Management Services' to continue to provide Blue Box Material collections to non-eligible City customers who are customers as of December 31, 2025 but not provide Blue Box Materials collection to new commercial customers or new multi-residential customers that join City collection services after January 1, 2026.</p>
<p> </p>
<p>4. City Council direct the General Manager, Solid Waste Management Services to report back to the Infrastructure and Environment Committee, no later than the first quarter of 2027, on the results of the review and analysis of whether to continue to provide recycling collection and management services to non-eligible sources that are not captured in Ontario Regulation 391/21: Blue Box.</p>
<p> </p>
<p>5. City Council amend Chapter 841 of the Code to align the provisions pertaining to the collection of recycled materials with Ontario Regulation 391/21: Blue Box, as further described in Schedule 1 to this report.</p>
<p> </p>
<p>6. City Council amend Chapter 844 of the Code to align the provisions pertaining to the collection of recycled materials with Ontario Regulation 391/21: Blue Box, as further described in Schedule 1 to this report.</p>
<p> </p>
<p>7. City Council amend Chapter 846 of the Code to align the provisions pertaining to the receipt of recycled materials with Ontario Regulation 391/21: Blue Box, as further described in Schedule 2 to this report.</p> | <p>Joint Collection Schedule</p>
<p> </p>
<p>With the execution of the joint collection schedule agreement with Circular Materials, Solid Waste Management Services will receive compensation for the inclusion of a recycling icon in the waste collection schedule. Circular Materials' funding formula for the consolidated collection schedules is $0.22 per household for development, design, and printing, with an additional $0.13 per household for mailing, for a total of $0.35 per household. For 2026, Circular Materials will compensate the Division for 462,000 households plus an additional 5,000 pieces for ad hoc requests from residents, for a grand total of 467,000 schedules. Based on the per household compensation, the Division can expect to receive $163,450 in 2026. This funding will be used to offset the design, print and distribution of the collection schedule. If a joint collection schedule is pursued in future years, the same funding formula would apply.</p>
<p> </p>
<p>Collection Bin Contract with Rehrig Pacific Company - Extension</p>
<p> </p>
<p>The total cost of the extension of the contracts with Rehrig Pacific Company will vary based on the length of each proposed term extension and annual Consumer Price Index adjustments applied to the current baseline rates, refer to Table 1 below for details. Funding for the extension period will be included in 2026 and future Solid Waste Management Services budget submissions.</p>
<p> </p>
<p>The removal of the 524,000 recycling bins for eligible sources effective January 1, 2026 will result in bin maintenance savings of approximately $1.8 million annually. Additionally, as part of the Extended Producer Responsibility transition, overall bin inventory and storage needs are expected to decline, due to the sale of City owned curbside residential recycling bins. In response, Solid Waste Management Services is anticipating a reduction in warehouse space requirements with Rehrig Pacific Company, resulting in a monthly savings of approximately $20,000. These total savings of approximately $2 million annually are reflected in the cost projections outlined below. All other current costs for both contracts will remain the same subject to annual Consumer Price Index adjustments.</p>
<p> </p>
<p>A large portion of the remaining contract value is due to the durability of the bins, which have exceeded their expected lifespan. Projections for the breaking of a bin ("breakage") are inherently difficult to make, so additional funds were built into the original contracts to account for potential increases in breakage rates.</p>
<p> </p>
<p>Based on the savings realized from the durability of the bins and from the reduction of recycling bins resulting from the Extended Producer Responsibility transition, the current bin contract values, $13.6 million for the garbage and recycling contract, and $3.6 million for the organic contract, do not need to be increased to support these proposed contract term extensions. These estimates encompass both capital and operational costs, account for yearly Consumer Price Index increases, and exclude taxes.</p>
<p> </p>
<p>The table below outlines the estimated costs for each bin contract. Incorporating projected Consumer Price Index adjustments based on economic factor tables from the Financial Planning Division. The projections also account for current and anticipated rates of bin breakage and replacement needs.</p>
<p> </p>
<p>Table 1: Estimated Contract Extension Costs (Consumer Price Index-Adjusted)</p>
<p> </p>
<table style="width: 474.4pt; border-collapse: collapse;" width="633">
<tbody>
<tr style="height: 29.25pt;">
<td style="width: 67.35pt; border: solid windowtext 1.5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 29.25pt;" width="90">
<p>Contract</p>
</td>
<td style="width: 94.95pt; border-top: solid windowtext 1.5pt; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 29.25pt;" width="127">
<p>Term</p>
</td>
<td style="width: 86.1pt; border-top: solid windowtext 1.5pt; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 29.25pt;" width="115">
<p>Extension Period</p>
</td>
<td style="width: 77.55pt; border-top: solid windowtext 1.5pt; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 29.25pt;" width="103">
<p>Estimated Cost</p>
</td>
<td style="width: 70.9pt; border-top: solid windowtext 1.5pt; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 29.25pt;" width="95">
<p>Operating Costs</p>
</td>
<td style="width: 77.55pt; border: solid windowtext 1.5pt; border-left: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 29.25pt;" width="103">
<p>Capital Costs</p>
</td>
</tr>
<tr style="height: 42.75pt;">
<td style="width: 67.35pt; border-top: none; border-left: solid windowtext 1.5pt; border-bottom: solid black 1.0pt; border-right: solid windowtext 1.5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 42.75pt;" rowspan="5" width="90">
<p>Recycling & Garbage Bins -47021231</p>
</td>
<td style="width: 94.95pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 42.75pt;" width="127">
<p>Initial Term (Existing contract ending June 30, 2026 + extension term)</p>
</td>
<td style="width: 86.1pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 42.75pt;" width="115">
<p>Jan 1, 2026-Nov 30, 2030</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 42.75pt;" width="103">
<p>$9,230,688</p>
</td>
<td style="width: 70.9pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 42.75pt;" width="95">
<p>$3,286,118</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 42.75pt;" width="103">
<p>$5,944,570</p>
</td>
</tr>
<tr style="height: 28.5pt;">
<td style="width: 94.95pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 28.5pt;" width="127">
<p>Option year 1</p>
</td>
<td style="width: 86.1pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 28.5pt;" width="115">
<p>Dec 1, 2030-Nov 30, 2031</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 28.5pt;" width="103">
<p>$1,989,655</p>
</td>
<td style="width: 70.9pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 28.5pt;" width="95">
<p>$708,316</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 28.5pt;" width="103">
<p>$1,281,339</p>
</td>
</tr>
<tr style="height: 29.25pt;">
<td style="width: 94.95pt; border-top: none; border-left: none; border-bottom: double windowtext 2.25pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 29.25pt;" width="127">
<p>Option year 2</p>
</td>
<td style="width: 86.1pt; border-top: none; border-left: none; border-bottom: double windowtext 2.25pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 29.25pt;" width="115">
<p>Dec 1, 2031-Nov 30, 2032</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: double windowtext 2.25pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 29.25pt;" width="103">
<p>$2,029,448</p>
</td>
<td style="width: 70.9pt; border-top: none; border-left: none; border-bottom: double windowtext 2.25pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 29.25pt;" width="95">
<p>$722,482</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: double windowtext 2.25pt; border-right: solid windowtext 1.5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 29.25pt;" width="103">
<p>$1,306,966</p>
</td>
</tr>
<tr style="height: 30.0pt;">
<td style="width: 94.95pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 30.0pt;" width="127">
<p>TOTALS</p>
</td>
<td style="width: 86.1pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 30.0pt;" width="115">
<p>Jan 1,2026-Nov 30, 2032</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 30.0pt;" width="103">
<p>$13,249,791</p>
</td>
<td style="width: 70.9pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 30.0pt;" width="95">
<p>$4,716,915</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 30.0pt;" width="103">
<p>$8,532,875</p>
</td>
</tr>
<tr style="height: 40.2pt;">
<td style="width: 181.05pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 40.2pt;" colspan="2" width="241">
<p>Estimated Remaining contract value (as of Dec 31, 2025)</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 40.2pt;" width="103">
<p>$13,583,238</p>
</td>
<td style="width: 70.9pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 40.2pt;" width="95">
<p>-</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 40.2pt;" width="103">
<p>-</p>
</td>
</tr>
<tr style="height: 28.5pt;">
<td style="width: 67.35pt; border-top: none; border-left: solid windowtext 1.5pt; border-bottom: solid black 1.0pt; border-right: solid windowtext 1.5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 28.5pt;" rowspan="5" width="90">
<p>Organics Bins -47019524</p>
</td>
<td style="width: 94.95pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 28.5pt;" width="127">
<p>Initial Term (Existing contract ending November 30, 2027 + extension term)</p>
</td>
<td style="width: 86.1pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 28.5pt;" width="115">
<p>Jan 1, 2026-Nov 30, 2030</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 28.5pt;" width="103">
<p>$2,346,115</p>
</td>
<td style="width: 70.9pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 28.5pt;" width="95">
<p>$931,725</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 28.5pt;" width="103">
<p>$1,414,391</p>
</td>
</tr>
<tr style="height: 28.5pt;">
<td style="width: 94.95pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 28.5pt;" width="127">
<p>Option year 1</p>
</td>
<td style="width: 86.1pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 28.5pt;" width="115">
<p>Dec 1, 2030-Nov 30, 2031</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 28.5pt;" width="103">
<p>$505,700</p>
</td>
<td style="width: 70.9pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 28.5pt;" width="95">
<p>$200,831</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 28.5pt;" width="103">
<p>$304,869</p>
</td>
</tr>
<tr style="height: 29.25pt;">
<td style="width: 94.95pt; border-top: none; border-left: none; border-bottom: double windowtext 2.25pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 29.25pt;" width="127">
<p>Option year 2</p>
</td>
<td style="width: 86.1pt; border-top: none; border-left: none; border-bottom: double windowtext 2.25pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 29.25pt;" width="115">
<p>Dec 1, 2031-Nov 30, 2032</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: double windowtext 1.5pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 29.25pt;" width="103">
<p>$515,814</p>
</td>
<td style="width: 70.9pt; border-top: none; border-left: none; border-bottom: double windowtext 1.5pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 29.25pt;" width="95">
<p>$204,848</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: double windowtext 1.5pt; border-right: solid windowtext 1.5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 29.25pt;" width="103">
<p>$310,966</p>
</td>
</tr>
<tr style="height: 30.0pt;">
<td style="width: 94.95pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 30.0pt;" width="127">
<p>TOTALS</p>
</td>
<td style="width: 86.1pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 30.0pt;" width="115">
<p>Jan 1,2026-Nov 30, 2032</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 30.0pt;" width="103">
<p>$3,367,630</p>
</td>
<td style="width: 70.9pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 30.0pt;" width="95">
<p>$1,337,404</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 30.0pt;" width="103">
<p>$2,030,226</p>
</td>
</tr>
<tr style="height: 36.3pt;">
<td style="width: 181.05pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 36.3pt;" colspan="2" width="241">
<p>Estimated Remaining contract value (as of Dec 31, 2025)</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 36.3pt;" width="103">
<p>$3,559,592</p>
</td>
<td style="width: 70.9pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 36.3pt;" width="95">
<p>-</p>
</td>
<td style="width: 77.55pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.5pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 36.3pt;" width="103">
<p>-</p>
</td>
</tr>
</tbody>
</table>
<p> </p>
<p>The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information as presented in the Financial Impact section.</p> | <p>The purpose of this report is to provide City Council with an update on Solid Waste Management Services' plans for the Post-Transition Phase (January 1, 2026 and beyond) of the Blue Box Program's transition to (Extended Producer Responsibility, including: the impact of the final Blue Box Regulation amendments, joint collection schedule agreement with Circular Materials, post-transition operations, procurement and contract management, required by-law amendments, and advocacy.</p>
<p> </p>
<p>This report also seeks authority to re‑negotiate and extend existing agreements with Rehrig Pacific Company for agreement 47021231, Supply, Delivery and Maintenance of Recycling and Garbage Bins, and agreement 47019524, Design, Manufacture, Supply, Distribution and Maintenance of the Next Generation Green Bin (organics) for the City of Toronto’s Solid Waste Management Services Division.</p> | 25 | 2 | CMMTTEE | IE | All | N | 1762923600000 | … | Report | ACTION | Amended | Main | Committee | … | … | … | … | … | … | … | … | … | … | … | Decision information not found | false | Amended | … | … | … | … | — | — | — | — |