THE REGIONAL MUNICIPALITY OF PEEL WASTE MANAGEMENT STRATEGIC ADVISORY COMMITTEE

Transcription

1 THE REGIONAL MUNICIPALITY OF PEEL WASTE MANAGEMENT STRATEGIC ADVISORY COMMITTEE AGENDA WMSAC - 2/2015 DATE: June 18, 2015 TIME: LOCATION: 1:00 PM 3:00 PM Regional Council Chambers, 5th Floor 10 Peel Centre Drive, Suite A Brampton, ON MEMBERS: B. Crombie; F. Dale; A. Groves; J. Innis; M. Palleschi; R. Starr; A. Thompson; J. Tovey Chaired by Councillor M. Palleschi or Vice Chair Councillor J. Innis 1. DECLARATIONS OF CONFLICT OF INTEREST 2. APPROVAL OF AGENDA 3. DELEGATIONS 4. REPORTS 4.1. Peel Energy Recovery Centre Update (Oral) (Deferred from the April 30, 2015 Waste Management Strategic Advisory Committee meeting) Presentation by Norman Lee, Director, Waste Management 4.2. Infrastructure Development Plan Use of Anaerobic Digestion for Green Bin Organics (Oral) Presentation by Norman Lee, Director, Waste Management 5. COMMUNICATIONS 6. IN CAMERA MATTERS 7. OTHER BUSINESS

2 WMSAC 2/ June 18, NEXT MEETING Thursday, September 17, 2015, 11:00 a.m. - 1:00 p.m. Council Chambers, 5th Floor Regional Administrative Headquarters 10 Peel Centre Drive, Suite A Brampton, Ontario 9. ADJOURNMENT

3 4.1-1 APPROVED AT WASTE MANAGEMENT STRATEGIC ADVISORY COMMITTEE April 30, Peel Energy Recovery Centre Update (Oral) Presentation by Norman Lee, Director, Waste Management Deferred to the June 18, 2015 Waste Management Strategic Advisory Committee meeting

4 4.1-2 Peel Energy Recovery Centre Update Waste Management Strategic Advisory Committee June 18, 2015 Norman Lee Director, Waste Management Region of Peel 1

5 4.1-3 Introduction At the April 9, 2015 Regional Council Meeting, Council referred a request to Waste Management Strategic Advisory Council (WMSAC) to discuss how Councillors could become better informed about the Peel Energy Recovery Centre (PERC) project while complying with procurement processes to enable decision making and provide guidance on implementation. Today s Presentation: 1. PERC Background 2. PERC Project Team 3. PERC Process 4. PERC Procurement Process 5. Peel s Recent Advisory Committee Experience 6. Key Differences Between Hanlan and PERC 7. Fairness & Transparency 8. WMSAC Mandate & Membership 9. Purchasing By-law 10. Potential Scope of PERC Advisory Body 11. Proposed Direction 2

6 4.1-4 PERC Background Projected Time Project Milestones Presentation / Outcomes Completed June Direction to conduct Long Term Disposal study Council adopted staff recommendation to consider all available technologies and recommended a preferred long term option April 2011 Long list of technologies / List of Criteria Nov Approval of Long Term Disposal study findings and direction to issue RFQ/RFP for Established Thermal Conversion Council approved staff recommendation to adopt Established Thermal Conversion (EFW) as the Preferred Long Term Disposal Option and to issue RFQ/RFP Jun Direction to apply for P3 Canada Funding and to issue REOI prior to RFQ/RFP Council adopted staff recommendation to submit an Application for P3 Canada Funding and to follow the P3 Canada process, including issuing an REOI and preparing a Business Case prior to RFQ/RFP Jun Region submitted P3 Canada Application July 2012 REOI issued on July 2 and closed on July 31, 2012 Sep Present status of Business Case Present hi-level status of Business Case Oct Present Results of Business Case Present high level results of P3 Business Case and obtain WMC feedback Oct Review draft Business Case with P3 Canada staff Nov Review contract structure Risk and Financial Implications Present details regarding Risk and Financial Implications and obtain Council direction Direction to abandon P3 Funding Jun Approval of Business Case by Regional Council Present detailed results of the Business Case and obtain Council direction Aug. 16, 2013 Release RFQ (3-5 month submission period) Four teams prequalified for PERC using Mass Burn Combustion Technology and will be invited to the RFP phase of the procurement process Public and Stakeholders consultation round # 1 3

7 4.1-5 PERC Project Team 4

8 4.1-6 PERC Process Complete Construction Complete all Approvals (ESA, ECA and Land Use) 2021 We Are Here Prequalified Four Proponent Teams and Technologies Competitively Procure the Design, Build, Operate and Maintain Agreement Obtain a Power Purchase Agreement and an Interconnection Agreement Held Commercially Confidential Meetings with Prequalified Respondent Teams Began the Environmental Screening Process and Public/Stakeholder Consultation Ongoing Public Consultation Ongoing Procurement Process Developed the Project Business Case 2010 Completed a Comparative Study of all Available Technologies

9 4.1-7 PERC Procurement Process A Request for Qualification was issued in August 16, 2013, beginning the procurement process. Four Respondent Teams have been prequalified. Prequalified Teams have been engaged with the Project Team in discussions regarding the project. Staff and Peel s external consultants are currently drafting the Request for Proposal, which is expected to be issued in late 2015/early A project agreement is expected to be finalized with the preferred vendor by summer 2017, ending the procurement process. 6

10 4.1-8 Peel s Recent Advisory Group Experience The Region established a Project Advisory Group for the Hanlan Feedermain project in October Purpose of the group was to review: procurement methodology; amendments to the Region s standard general conditions of contract; and, support and assist the contract administration team during construction. It was composed of 8 elected and 9 staff representatives. It was not a Committee of Council. The terms of reference for the group specifically directed that the Advisory Group not convene during the procurement process. 7

11 4.1-9 Key Differences between Hanlan & PERC Council/ Advisory Committee Engagement Contract Structure: Procurement Type & Evaluation Terms & Conditions of Contract Hanlan Prior to and following but not during procurement Design / Bid / Build (DBB) Contract for construction only Request for Tenders Award based on price only Results of which are difficult to challenge Used modified versions of Regional standard contracts Contract modifications completed prior to the procurement and with Advisory Group s participation PERC Procurement is underway (began Aug. 16, 2013) Past Council and WM Committee were involved prior to the beginning of the procurement process Design / Build / Operate / Maintain (DBOM) Request for Proposal Award based on price and evaluation of technical merit Results of which are easier to challenge especially if a potential proponent can prove the process was unfair Regional standard contract terms and conditions are not suitable for DBOM contract Legal, financial and technical consultants are preparing contracts specific to PERC based on Canadian standards for DBOM contracts Fairness Monitor Not used A Fairness Monitor has been engaged to oversee the procurement process and ensure a fair, open and transparent process Fairness Monitor will report their assessment of whether or not Peel conducted a fair, open and transparent process A negative report would have a damaging impact on the Region s reputation and could open the Region to litigation from unsuccessful bidders 8

12 Fairness & Transparency In order to maintain confidence and comply with Peel s Purchasing By-law, it is important that the procurement process be objective, fair and transparent to prevent legal and political challenges and reputational damage to the Region. Significant steps have been taken in the procurement process to date to ensure: the confidentiality of project information; the elimination of lobbying by prequalified teams; and, that the all members of the project team and external consulting team are not in a position of conflict of interest. Any perception that the process is not being conducted fairly and transparently would discourage prequalified respondent teams from making the significant investment of time and money necessary to submit a proposal. To maintain the integrity of the process and to be compliant with the Region s Purchasing By-law any advisory group for PERC must be transparent. Transparency can best be achieved through the Waste Management Strategic Advisory Committee which conducts open and public meetings. 9

13 WMSAC Mandate & Membership To provide strategic guidance on the implementation of the Waste Reduction and Resource Recovery Strategy and the Infrastructure Development Plan The PERC is a key component of the Strategy and the Infrastructure Plan. Therefore PERC will fit within the WMSAC mandate. WMSAC is a Committee of Council and therefore meetings are public. Conducting the advisory body in this format will reinforce confidence that the process is fair and transparent. PERC s Fairness Monitor and Legal and Procurement Advisors must be present when items related to PERC are presented to WMSAC, during the Procurement Process. 10

14 Purchasing By-law Since the PERC project is currently in procurement, the scope of any Council involvement must comply with the provisions of the Purchasing By-law ( ). Part VII of the By-law, Prohibitions and Compliance, prohibits members of Regional Council and Regional Staff from: permitting anything to be done or communicated to anyone which could cause any potential Vendor or contractor to have an unfair advantage or disadvantage in obtaining a contract from the Region; causing or permitting anything to be done which would jeopardize the legal validity or fairness of any purchase or which would likely subject the Region to any claim, demand, action or proceeding as a result of such act or omission; or, engaging in any form of political or other lobbying to seek to influence the outcome of the process or the award during bid solicitation process. On October 27, 2011, Regional Council recognized this principle by passing a resolution ( ) directing that Council members not be involved in negotiations or lobbying with respect to waste contracts (ie. that a cone of silence by implemented). Best procurement practice is that members of Regional Council not be involved in any aspect of procurement. 11

15 Potential Scope of PERC Advisory Body Project Aspect Be Informed Provide Direction Environmental Approvals Yes Yes Communications & Stakeholder Engagement Yes Power Purchase Agreement Yes Yes Budget Yes Yes Yes Procurement Process Project Agreements Decisions to be Approved by Council Non-confidential items subject to approval by the Region s internal Legal and Procurement Advisors and Fairness Monitor Subject to approval by the Region s Legal and Procurement Advisors and Fairness Monitor Yes Not consistent with procurement best practices Not consistent with procurement best practices Yes 12

16 Proposed Direction Staff recommend that WMSAC be used as the PERC Advisory Body to inform Councillors about the PERC Project and that the role of WMSAC with respect to PERC exclude procurement issues except as noted in this presentation. Support for Proposed Direction: PERC is currently engaged in the procurement process. The use of Committee of Council will help ensure that the process is perceived to be open, fair and transparent. Use of a Committee of Council, public forum, will allow the participation of key members of the PERC team who are best positioned to help inform the advisory process. Recommendation is compliant with the terms of the Region s Purchasing Bylaw and consistent with best procurement practices. 13

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19 4.2-1 Infrastructure Development Plan Use of Anaerobic Digestion for Green Bin Organics Waste Management Strategic Advisory Committee June 18, 2015 Norman Lee Director, Waste Management Region of Peel 1

20 4.2-2 Overview of Today s Presentation Recap of Infrastructure Development Plan Green Bin Organics System Study Next steps

21 4.2-3 Recap of Infrastructure Development Plan In response to the need for more waste processing capacity and given the age of existing infrastructure, staff conducted a review of the Region s future waste management infrastructure requirements. Bi-weekly garbage collection is expected to increase the recovery of Green Bin Organics by up to 50% The goal of Infrastructure Development Plan (IDP) was to develop infrastructure that will meet the Region s long-term needs in a reliable and cost-effective manner. The IDP identified anaerobic digestion as the preferred method treating Green Bin organics.

22 4.2-4 IDP Key Findings: Organic Processing The existing infrastructure for processing Green Bin Organics is over capacity and cannot satisfy the Region s future needs. Anaerobic Digestion is preferred over an aerobic composting because: AD facilities can be located in built up areas, which allows for direct delivery AD facilities produce biogas which is a source of renewable energy AD facilities are better able to deal with higher amounts of contamination AD facilities have the ability to process an expanded list of Green Bin materials including diapers and pet waste Public ownership of Green Bin processing facilities is preferred. Private development and operation is preferred (under a design, build, operate and maintain contract).

23 4.2-5 Endorsed Solution: Organics Processing On June 26, 2014, Council endorsed the IDP and staff s recommendation to develop a new Anaerobic Digestion (AD) facility within Mississauga or Brampton potentially colocated with the Peel Energy Recovery Centre at the Peel Integrated Waste Management Facility. Staff were directed to continue to refine the Infrastructure Development Plan. staff were to investigate technologies and approaches for implementing AD. Interim transfer and processing of Green Bin organics will be required while new long-term infrastructure is being developed.

24 4.2-6 GB Organics Project: Key Steps Operation Construction Obtain all Approvals (Environmental and Land Use) Issue RFP for DBOM Contract Issue RFQ to Pre-qualify Project Teams and Technologies 2014 We Are Here Retain Consultant for RFQ/RFP Retain Consultant and Complete a Comprehensive Green Bin Organics System Study Council endorsed the use of AD for Green Bin Organics in the Infrastructure Development Plan Developed Tonnage Projections to Determine Processing Needs Acquire Property (if required) Confirm Siting Requirements

25 4.2-7 GB Organics System Study Purpose: To assess technologies and approaches for implementing AD to process the Region s Green Bin Organics. Multi-phased Approach: 1. Confirm current context: waste trends, renewable energy options, and potential changes to regulations or policies 2. Assess options for key components of an AD system 3. Evaluate systems made up of key components identified in Phase 2 4. Assess siting options: PIWMF or other site 5. Prepare final business case for recommended system option Staff will engage qualified consultant to assist with the study.

26 4.2-8 GB Organics System Study: Phase 1 Confirm Current Context This phase of the study will identify: Opportunities and challenges in Peel context, e.g. opportunities to use biogas / renewable energy in Peel s operations or within the community Opportunities for co-operation with municipal or private partners Current policy and regulatory trends and their potential impact over the planning horizon, including: bi-weekly collection, carbon pricing, energy pricing, potential landfill organics ban, etc. Lessons learned from recent AD projects: Toronto, ON (operational) Surrey, BC (under construction) Saint Hyacinthe, QC (permitting) Elmira, ON (operational) Interest and ability of vendors to deliver technologies and services

27 4.2-9 GB Organics System Study: Phase 1 Confirm Current Context (cont.) Recent Municipal AD Projects: Toronto, ON Owner City of Toronto Facility Status Operational Commissioned Dec Design/Build/Operate AECOM Canada, ES Fox Construction, Veolia Water Canada Process Single-stage, Wet AD (Mesophilic) Capacity 75,000 tonnes per year Feedstock Residential and commercial SSO Liquid Effluent Treated and discharged to sewer Solid Digestate Processed into compost Biogas Utilization Co-generation to produce heat and electricity for facility and overall site needs

28 GB Organics System Study: Phase 1 Confirm Current Context (cont.) Recent Municipal AD Projects: Surrey, BC Owner City of Surrey (P3 Development) Facility Status Under construction March 2015 mid 2016 Design/Build/Operate Iris Solutions: Orgaworld Canada Ltd, Shanks Group, Stantec Consulting Ltd., Smit Bros, Wilson (BC) Ltd. Process Dry AD Capacity 115,000 tonnes per year Feedstock Residential and commercial SSO & yard waste Solid Digestate Processed into compost Biogas Utilization Refined to Recycled Natural Gas to fuel the City s waste collection vehicles

29 GB Organics System Study: Phase 1 Confirm Current Context (cont.) Recent Municipal AD Projects: Saint-Hyacinthe, QC Owner City of Saint-Hyacinthe Facility Planned expansion of digestion capacity at the City s wastewater treatment plant (WWTP) and construction of an injection station to connect to the local natural gas distribution network Process Two-stage, Wet AD Capacity 17,000 tonnes per year (SSO), 13,500 tonnes per year of sewage sludge Feedstock Municipal and commercial SSO and sewage sludge Liquid Effluent Discharged to WWTP Solid Digestate Processed to a fertilizer for agricultural, municipal and domestic use Biogas Utilization Refined to biomethane and injected into the natural gas distribution network operated by Gaz Metro with a portion to be used to heat City buildings and fuel City vehicles and the remaining made available to Gaz Metro clients

30 GB Organics System Study: Phase 1 Confirm Current Context (cont.) Recent Private AD Projects: Woolwich Bio-En Biogas Plant, Elmira, ON. Owner Bio-En Power Inc. Facility Status Operational Commissioned April 2014 Process Two-stage, Wet AD Capacity 70,000 tonnes per year Feedstock Municipal and commercial liquid and/or solid organic waste Liquid Digestate Hauled to on-farm storage for later land application as fertilizer Biogas Utilization Production of 2.85 megawatts of electricity under a Feed-In-Tariff contract with the Ontario Power Authority

31 GB Organics System Study: Phase 2 Assess Options for Key System Components This phase of the study will: Create a list of options for each key system component Pre-treatment Anaerobic digestion Biogas utilization Management of other outputs (liquids/solids) Apply criteria that reflect Peel s needs and the learning of the context review in Phase 1 Narrow the scope of options for further consideration (short list) by focusing on options best suited to Peel For some components the list may be narrowed to one option

32 GB Organics System Study: Phase 2 - Assess Options for Key System Components

33 GB Organics System Study: Phase 3 System Evaluation This phase of the study will: Combine high scoring options for each component into practical systems Consider integration with other waste management facilities or operations Compare systems based on cost performance, risk etc. Recommend a preferred system

34 GB Organics System Study: Phase 4 Facility Siting This phase of the study will investigate siting options once outcome of the PERC siting is known. At PIWMF co-located with PERC or other new infrastructure Elsewhere within the build up area of Peel If new site is needed, site area, site access, planning and other requirements will be determined to inform the site search and selection process.

35 GB Organics System Study: Phase 5 Final Business Case This step of the study will outline: Contract structure, e.g. one overall contract or separate contracts for different system components Anaerobic Digestion Gas Utilization Digestate Management Ownership approaches Project delivery options: DBOM, etc. Availability of funding or financial incentives Management of key risks Procurement approach

36 GB Organics System Study: Next Step Staff will engage a qualified consultant and complete the organics system study (funds are available in 2015 Capital Budget). We Are Here Retain Consultant and Complete a Comprehensive Green Bin Organics System Study

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