Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/12/2022 - CONTRACTING FOR RESIDENTIAL TRASH AND RECYCLING SEDATE: STAFF: July 12, 2022 Caroline Mitchell, Environmental Sustainability Manager Jackie Kozak-Thiel, Chief Sustainability Officer Tyler Marr, Interim Deputy City Manager WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Contracting for Residential Trash and Recycling Service. EXECUTIVE SUMMARY The purpose of this item is to seek feedback on program elements to be included in a contracted system fo r residential waste and recycling collection in preparation for a Resolution on the same topic at the July 19 Regular Meeting. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Do Councilmembers have feedback about the recommendations to be included in a contracted system for residential waste and recycling collection program, which will be included in a Request for Proposals (RFP)? • Materials Collected and How • System Design BACKGROUND / DISCUSSION One of the adopted Council Priorities is to explore a districted system for garbage, recycling and compost for single family homes. Districting is a sub-type of a contracted trash and recycling system. To ensure the broadest possible conversation in the community, this document utilizes the term “contracting.” Council Feedback from April 12 Work Session • Continue efforts to pursue contracting • Continue to engage community members regarding this effort and ensure engagement includes the benefits of trash contracting • Engage community members to understand priorities related to contracting and service options and what community concerns should be addressed via the process • Refine peer community research to understand best practices in program and RFP development • Present options for elements of a contracted system at the July 12 Council Work Session Baseline Recommendations for Elements to Include in the Request for Proposals The chart below outlines the recommendation for elements of a program for a contracted system that would be included in a Request for Proposals for Fort Collins. (Attachment 2) Materials to be Collected and How Material Recommendation Why Yard Trimmings Service type: Request two versions of pricing for opt-out and bundled pricing to find optimal balance of highest Requesting pricing for both service types allows for understanding of pricing impacts for both options to make informed decision Opt-out service type allows choice for those who July 12, 2022 Page 2 Materials to be Collected and How Material Recommendation Why diversion for lowest price Service frequency: Weekly collection from April – Nov don’t want / need the service Bundled service type is generally lowest price for service, but doesn’t allow households to opt out of yard trimmings service Bulky Waste (Items too large to fit in curbside cart) Request two versions of bulky waste pricing: a-la-carte (not in base trash charge) and 2 items / year included in base trash charge Allows for understanding of pricing impacts for different options to make informed decision Balances diversion focus with equity Provides options for people who don’t have trucks/trailers Trash Volume-based pricing (Price based on size of cart, also known as Pay- As-You-Throw (PAYT)) Current System Environmental Protection Agency (EPA)- recommended best practice for waste reduction Include extra low trash generator rate (<32 gal / wk) Recycling Pricing model: Bundled with trash service for no additional charge Service frequency: Request pricing for weekly and every-other-week service Current System EPA-recommended best practice for increased recycling Can evaluate pricing to determine whether to keep every other week or shift to weekly service (which would likely increase recycling) Food Scraps Do not include in this contract Consider adding when infrastructure that can process food scraps is within a reasonable haul distance from Fort Collins (currently pursuing through regional partnership) System Design Element Recommendation Why Home Owner’s Associations (HOAs) with current contracts for trash and recycling service Allow exemption from City contract as long as current contract meets Pay-As-You-Throw requirements Allows existing contracts to remain in place since these neighborhoods are already achieving the goals of a contracted system Carts Purchase: Hauler purchases carts, which become City property at the end of the contract Allows for cart purchase without the opportunity cost of using City funds Still allows for leveraging of grant funds to offset cost to residents Cost of carts (after grant offset) repaid to hauler over contract via fee in monthly bills Cart purchase and maintenance already part of July 12, 2022 Page 3 System Design Element Recommendation Why Cart maintenance Provided by hauler and funded in trash rate on resident bills Ownership and logo: City-owned carts with City logo at households service cost in current system Cart maintenance already a proficiency of hauler After initial purchase, maintenance fee funds replacement of broken carts Carts remain at residences when next contract begins Provides level playing field for next contract process Creates community ownership of program Opt-Out Fee Equivalent to smallest trash cart service cost Opt-out option permitted by State law and required to maximize benefits of a contracted system This level of fee common among peer communities Discourages opt-outs, which erode the benefits of the contracted system Districts One district Results in lowest price Leverage for most environmental benefits See more details about multiple district scenario considerations (Attachment 3) Flow Control Direct trash to Larimer County Landfill Supports Regional Wasteshed goals and a public landfill option Provides level playing field for hauler proposals Customer Service Conducted by hauler; Require Fort Collins- focused staff Aligns with hauler conducted billing Ensures most of calls answered by staff familiar with Fort Collins Allow roll-over to national customer service staff to allow for more customer service hours Admin Fee Include a fee to fund City role in contract management Best practice among peer communities City staff time investment will depend on final contract elements; will be clarified prior to contract adoption Alley Service Included Haulers provide service in alleys where curbside service is not an option Haulers currently provide this service for no charge Valet Service Included Haulers take carts from home down to curb for servicing and return the carts to the home for July 12, 2022 Page 4 System Design Element Recommendation Why disabled residents Haulers currently provide this service for no charge Billing Conducted by hauler City unable to conduct billing at this time May consider City billing in next contract Multi-family & Commercial Dumpster Pricing Request pricing from haulers Would provide a fixed price for dumpster service for multi-family or commercial customers who would like to opt in to the program Has been successful in peer communities IMPACTS AND BENEFITS OF A CONTRACTED SYSTEM Street Maintenance Savings The City commissioned a study comparing the road maintenance impacts from an open market and a contracted system. The analysis accounts for the fact th at 30% of Fort Collins households live in Homeowner’s Associations with contracted single hauler collection systems. Wear and tear on residential roads is directly related to the weight of a vehicle. Because they are so heavy, every trash truck causes impact equivalent to 1,250 passenger vehicles on residential roads . The study found that Fort Collins spends $603,000 more per year on street maintenance due to the impacts of multiple haulers on residential and collector streets, and that $14 million of the unfunded street maintenance backlog is due to the impacts of having had an open market system. Three additional haulers have recently contacted City staff with interest in starting service in Fort Collins if the City does not move forward with a contract. If there were seven haulers (the existing four plus three new companies) operating in the community, the City would pay $1,251,000 more per year on street maintenance . Further detail can be found in the Refuse Vehicle Street Maintenance Impact Study . (Attachment 4) Greenhouse Gas Emissions Reduction Hauling system: • Shifting from the current system to a contracted system for residential trash and recycling collection would reduce greenhouse gas emissions by an estimated 1200 Metric Tons of CO2e. This is equivalent to ~150 homes’ annual electricity use. Additional yard trimmings composted: • The greenhouse gas emissions reductions from additional yard trimmings composting depend on the system design and will be available to inform the final decision. More Recycling and Composting The recommended elements of a contracted system could provide additional recycling and yard trimmings composting. Staff recommends getting pricing for these elements in hauler proposals so the potential diversion can be compared with the additional cost for these services. July 12, 2022 Page 5 Increased recycling and composting expected depend on system design and will be available to inform the final program design. Increased Equity and Lower Pricing Homeowner’s Associations (HOAs) often contract with a single hauler for trash and recycling service and often receive rates 50% less than those paid by open market customers due to the efficiencies of servicing every household on the street. Since lower income households are less likely to live in neighborhoods with HOAs, this means lower income households often pay more for the same service from the same companies as higher income households living in HOAs while experiencing three times the noise and pollution. A contracted system provid es a predictable cost of service for all community members and may lower prices overall. Vehicle Emissions Reduction Reducing the number of miles driven is the primary method for reducing trash and recycling truck vehicle emissions. Contracting for residential trash and recycling service reduces the miles driven. If shifting from four haulers on residential streets to one hauler, vehicle miles traveled, and related emissions would reduce by 75%. Electric vehicles in the future or trucks fueled by compressed natural gas (CNG) in the short term can also reduce vehicle emissions. A contracted system would allow the City to request these trucks and would provide the leverage for these technologies far sooner than if Fort Collins remains in an open market s ystem while also reducing the upstream greenhouse gas emissions of materials for road repair. Less Noise Various elements of trash and recycling collection in neighborhoods generate noise: truck engine noise, backup alarms, sounds of materials being em ptied into the truck and engine revving during collection. The more trucks operating in a neighborhood, the more of this type of noise and greater the frequency. Reducing the number of trucks servicing a neighborhood reduces the amount and frequency of noise in neighborhoods. Improved Safety Trash and recycling collection vehicles can pose safety risks due to their size. Having fewer trash and recycling collection vehicles in neighborhoods on fewer days of the week supports safe neighborhoods . Operating a trash or recycling truck can also be dangerous for employees. They are most at risk when outside the cab of the vehicle. The recommended elements of a contracted system allow for collection to be fully automated, which allows drivers to remain safe inside their vehicles. Further details about vehicle emissions, noise and safety can be found in the Refuse Vehicle Emission Noise Safety Analysis Study. (Attachment 5) TRADEOFFS OF A CONTRACTED SYSTEM Household Choice of Hauler The primary benefit of an open market system is that each household can select the hauler they prefer to collect their trash and recycling. In a contracted system, households can still select a hauler other than the contracted hauler but must pay an opt-out fee. The opt-out fee is generally equivalent to the smallest trash cart service, which is currently between $10-$20 per month for the 32-gallon cart but has potential to be lower in a contracted system. July 12, 2022 Page 6 Concerns About Competition Many community members have shared concern that shifting to a contracted collection system would reduce the competition for haulers in Fort Collins and result in higher prices for service. However, peer communities have found long-term reduced rates in a contracted system when compared with an open ma rket and have found haulers continue to operate in their communities. Since a contracted system only applies to single-family and small multi-family complexes, haulers retain their customers in other sectors and remain in the community. The single family open market sector accounts for ~20% of the trash and recycling business in Fort Collins; HOAs with contracts are ~10%, construction and demolition sites ~30% and commercial & multi-family locations ~40%. This means that ~80% of the trash and recycling market in Fort Collins would not be impacted by the single-family contract. PRICING IN OPEN MARKET AND CONTRACTED SYSTEMS Variability in Current Pricing In an open market system, each household negotiates their own price for service. Community members sh ared their bills and City staff found significant disparities in pricing within the community. Some community members are currently paying $10-$15 more (sometimes twice the price) than others for the same service. Prices are even different from the same company in the same area of town. Examples of Monthly Pricing in Open Market and Contracted Systems The following table includes pricing found in peer communities with different collection systems. Knowing that increased yard trimmings collection is a key step toward achieving zero waste goals, this peer community pricing shows that the most affordable system for increased yard trimmings collection is a contract. It also shows that Fort Collins HOAs currently receive a lower price for service than th e open market customers. $13 (50%) difference $15 (48%) difference July 12, 2022 Page 7 Fort Collins Open Market Fort Collins HOAs w contract Boulder Open Market Golden Single District Contract Lafayette Single District Contract Bundled services (for no extra charge) R R R, YT, FS R, YT, FS, BI R, YT, FS, BI Services for extra charge YT, BI YT, BI BI All bundled All bundled Smallest trash cart price $10-20 $6-11 $35 $11.50 $9.50 Yard trimmings price $13-18 Seeking information $0 $0 $9 Total cost for trash + recycling + yard trimmings $23-38 To be determined $35 $11.50 $20.50 Cost reduction when compared with Fort Collins open market pricing n/a - $4 to - $9 (no YT) 40% to 45% less + $13 to -$3 56% more to 8% less -$11.50 to -$26.50 50% to 70% less -$2.50 to -$17.50 11% to 46% less R = recycling; YT = yard trimmings; FS = food scraps; BI = bulky items Community Engagement Since the April 12 work session, engagement has focused on the details and tradeoffs within options of a contracted trash and recycling collection system. Engagement included connecting with the general community and targeted engagement to members of historically underrepresented groups. Engagement tools included a general survey, a targeted survey, two virtual community conversations, tabling at community events and community facilities, and information in the utility bill insert and other newsletters. The engagement built on the wide engagement conducted prior to April. It focused on deeper conversations and tools that ensured only one response per participant. Staff connected with ~325 community members during this phase of engagement. Themes heard from community engagement demonstrate different perspectives but are not a statistically valid and are not considered to represent community-wide sentiments or opinions. Priorities with the highest percentage of “extremely important” responses in surveys All Responses Targeted Survey Responses Reducing air pollution (60%) Reasonable cost (90%) Reasonable costs (59%) Stable, uniform rates (86%) Quality customer service (52%) Quality customer service (75%) Consistent recycling education Reducing illegal dumping (tied, 47%) Reducing air pollution (67%) Note: To explore community feedback in greater depth, please refer to the Curbside Contracting Engagement Report. (Attachment 6) Hauler Engagement City staff also continued to engage with haulers servicing the community. The new hauler servicing the community has not responded to staff requests to engage since the April 12 work session, but staff has met regularly with the other three haulers about details of a contracted system. July 12, 2022 Page 8 Perspectives from the haulers has not shifted since April: Republic / Gallegos Sanitation, Waste Connections / Ram, and Waste Management all support exploring a contracted system. Mountain Hig h does not support a shift to a contracted system. NEXT STEPS If consistent with feedback from Council at the July 12 Work Session, staff will: • Draft a resolution with policy elements to be included in the Program and reflected in a resolution for Councilmember consideration at the July 19 Regular Session • Finalize a Request for Proposals incorporating the policy feedback from Councilmembers • Issue the Request for Proposals in late July or early August and allow time for haulers to draft proposals • Conduct a competitive purchasing process review of hauler proposals • Return to Council to discuss elements of the final proposal to make remaining policy decisions • In late 2022 or early 2023, schedule a Regular Session for Council to consider the ordinance change s required to shift to a contracted system Contracted service would be anticipated to start 12-18 months after contract is finalized to account for enough time to purchase carts and trucks given global supply chain challenges and also allow preparation t ime for community outreach, cart sign-up and cart distribution. ATTACHMENTS 1. Chart of All Element Options in Contracted System (PDF) 2. Multiple District Considerations (PDF) 3. Refuse Vehicle Street Maintenance Impact Study (PDF) 4. Refuse Vehicle Emission Noise Safety Analysis (PDF) 5. Curbside Contracting Engagement Report (PDF) 6. Economic Advisory Board Recommendation (PDF) 7. Natural Resources Advisory Board Recommendation (PDF) 8. Economic Advisory Board Minutes (PDF) 9. Natural Resources Advisory Board Minutes (PDF) 10. Powerpoint Presentation (PDF) All Options for Elements of Contracted System Page 1 of 5 Materials to be Collected and How Material Recommendation All Options Notes Yard Trimmings Service type: Request two versions of pricing for opt-out and bundled pricing to find optimal balance of highest diversion for lowest price Service frequency: Weekly collection from April – Nov Opt-in, opt-out, or bundled Weekly or bi-weekly; seasonal or year- round •Opt-in requires resident request service and pay a separate fee for it o Allows choice; highest cost for service; lowest participation and lowest diversion •Opt-out automatically enrolls households in the service but they can choose to remove the service and lower their monthly bill o Allows choice; medium cost for service; medium participation; medium diversion •Bundled includes the service in every household’s bill. Households don’t have to use the service but refusing the service won’t decrease their bill. o Lowest cost for service; highest participation; highest diversion; some households pay for service but don’t want it or use it •Weekly increases amount composted, prevents carts from getting to heavy, prevents odor, and is higher cost than every other week service •Haulers prefer weekly b/c grass trimmings get heavy and stinky if in carts for two weeks •Seasonal collection common for yard trimmings only programs Bulky Waste (Items too large to fit in curbside cart) Request two versions of bulky waste pricing: a-la-carte (not in base trash charge) and 2 items / year included in base trash charge Collection by request: •A-la-carte pricing (not in base trash charge) •Bundled pricing (2 items / year included in base trash charge) Collection event: one or two days / year where all households place bulky items out for collection •Bulky item collection important for residents who don’t have a truck / trailer to dispose of large items •Bulky item collection price identified as a barrier to low- income community members’ ability to dispose of unwanted items •Unlimited bulky item collection / collection events tend to increase wasting of items that could be reused •Goal is to balance collection options for resident needs while not incentivizing wasting reusable items ATTACHMENT 1 Page 2 of 5 Trash Volume-based pricing (Price based on size of cart, also known as Pay-As-You-Throw (PAYT)) Volume-based or not volume-based pricing • Is our current system • Environmental Protection Agency (EPA)-recommended best practice for waste reduction • Studies show volume-based pricing with 80%+ price differential between cart sizes optimizes waste reduction • Recommend including an extra-low trash generator rate (<32 gal / wk) Recycling Pricing model: Bundled with trash service for no additional charge Service frequency: Request pricing for weekly and every-other-week service Recycling bundled for no separate fee or by request for a fee Collection can take place every other week or every week • Bundled is our current system • Bundled recycling is best practice for increased recycling • Every other week collection o Most common across the U.S. o Balances service cost with diversion • Weekly recycling o Increase in cardboard from online shopping and more working from home has increased recycling needs at homes o Under evaluation in more communities  Being considered now in Denver Food Scraps Do not include in this contract Consider when infrastructure that can process food scraps is within a reasonable haul distance from Fort Collins Food scraps collection an optional service from a separate provider Add food scraps in yard trimmings cart • Two small companies currently provide curbside food scraps collection for a separate fee • When infrastructure to process food scraps is in reasonable haul distance, many communities include food scraps in yard trimmings cart and shift to year-round collection System Design Element Recommendation All Options Notes Home Owner’s Associations (HOAs) with current contracts for trash and recycling service Allow exemption from City contract as long as current contract meets Pay-As-You- Throw (PAYT) requirements Allow HOAs with contracts meeting PAYT requirements to be exempt from City contract (and can opt in if they desire) Require HOAs with contracts to join the City contract as of a set date or pay an ongoing opt-out fee • HOAs with contracts meeting the City’s PAYT requirements already achieve the goals of a contracted system • HOA contracts with haulers often incur high fees to end contract prematurely • Requiring HOAs to join the City contract can create significant resident dissent without adding significant additional benefit • Approximately 30% of Fort Collins households are in HOAs with contracts Page 3 of 5 Carts Purchase: Hauler purchases carts, which become City property at the end of the contract Cart maintenance and replacement: Provided by hauler, funded in trash rate on resident bills Carts: City-owned carts with City logo at households Carts can be purchased by City or by the hauler (and can become City property at the end of the contract either way) In either scenario, staff has secured one grant and continues to seek additional grant funding to offset part of the cost Cart cost repaid over length of contract by fee on resident bills Grant-funded portion would not have to be repaid by residents Cart maintenance provided by hauler or City Hauler-owned, hauler-logo carts that must be delivered at beginning of contract and removed at end of contract City-owned carts with City logo that remain at households when contracted hauler changes • City purchased o Likely lowest cost option for residents o Would come at opportunity cost for City organization as those funds could not be used for other purposes until repaid • Hauler purchased o City does not have to provide up front funding o Hauler likely charges financing fee for carts, so is likely higher cost to residents o Is a “lease to purchase” where City owns carts at end of contract • Grant funding o Would allow for grant funding to offset part of cart cost no matter who purchases carts o Have secured $750k grant for recycling carts from Recycling Partnership o Have applied for $3.75M grant for yard trimmings carts from Front Range Waste Diversion (FRWD) grant • Cart maintenance already a proficiency of hauler • After initial purchase, maintenance fee funds replacement of broken carts o Generally assume 10% cart replacement / year o Anticipated lifespan of carts is 10+ years • Delivering carts to and picking carts up from homes is expensive – decreasing the times this happens saves residents money • If hauler-owned carts are at homes, that hauler would have a significant advantage in next contract proposal round (as they already own the carts and the carts are already delivered to homes) • Hauler-logo carts affiliate program with hauler more than community • City-owned, City-logo carts can remain at households when contracts change over, which provides a level playing field for all haulers submitting proposals in the next contract round Page 4 of 5 Opt-Out Fee Equivalent to smallest trash cart service cost Pricing determined by community. Peer communities have opt-out rates as low as $4/mo; most set fee equal to smallest trash cart service cost • Opt-out option permitted by State law and required to maximize benefits of a contracted system • Low opt-out fees results in high level of opt-outs, which can undermine benefits of contract o Community with $4 / mo opt-out fee has opt-out rate of 30%+ of households • Opt-out fee equal to smallest trash cart service incentivizes program participation while not overly penalizing opt-out customers. o Communities with this opt-out fee see 1-5% opt-out rate, which retains benefits of contracted system Districts One district Contract with one hauler per district. Can choose to have one or more districts in the community. • Multiple districts could result in different prices for same service in different areas of community • Single district optimizes environmental benefits and lowest prices • All Colorado communities with contracts have a single district • Colorado communities who have explored multiple districts have not implemented contracts • For more details, see Attachment 3: Multiple District Considerations Flow Control Direct trash to Larimer County Landfill Can direct trash to Larimer County landfill (enact flow control) or leave trash destination up to hauler (no flow control) • Directing trash to Larimer County landfill supports Regional Wasteshed goals and a public landfill option by providing a predictable and dedicated amount of material • Directing trash to Larimer County provides level playing field for hauler proposals because some haulers own landfills nearby Fort Collins and can leverage lower landfill tip fees to impact price offerings Customer Service Conducted by hauler; Require dedicated Fort Collins- focused staff Can be provided by the City or the contracted hauler or each entity provide distinct customer service elements • Hauler conducting customer service aligns with hauler conducting billing • Requesting Fort Collins-dedicated staff from hauler helps ensure most of calls answered by staff familiar with Fort Collins; allow roll- over to national customer service staff to allow for more customer service hours • City will need to accept complaints about service • Cities often create dedicated phone number that remains consistent no matter which company is providing service for education consistency Page 5 of 5 Admin Fee Include a fee to fund City role in contract management City can fund City costs to implement and manage contract from City funds or from a fee charged in the base trash rate • Peer communities fund City staff investments through fee in base trash rate • Amount of fee proportional to services provided by City (e.g., higher if City were to provide billing) • City staff time investment will depend on final contract elements; will be clarified prior to contract adoption Alley Service Included Can provide service in alleys for homes with alleys (and where curbside service is not an option) for no extra charge or for a separate fee or require all households to bring carts to the curb regardless of alleys • Alleys are a particular challenge for haulers as they are often more narrow and less maintained than residential streets. Alley service often requires specialized (smaller) trucks and servicing bins takes longer, thus is a more expensive form of service. • The more alley service in a community, the higher the cost of service for all residents, unless alley residents pay a higher rate • Fort Collins does not have a significant number of alleys compared with other communities Valet Service Included Can provide or not; can charge a separate fee or not (Valet service is when haulers take carts from a home down to curb for servicing and return the carts to the home for disabled residents) • All haulers currently servicing Fort Collins provide valet service for disabled residents upon request for no additional charge • Valet service supports equitable access to services • Providing the service for no charge prevents penalizing residents for having a disability Billing Conducted by hauler Can be provided by the City or the contracted hauler • City unable to conduct billing at in the near future • May consider City billing in next contract • Among peer communities, common for City to provide billing in Utility bill o Often less expensive for residents o Makes it easier for City to determine if the hauler is meeting the contract requirement and to enforce them Multi-family & Commercial Dumpster Pricing Request pricing from haulers Can choose to include this option in hauler proposals or not • Would provide a fixed price for dumpster service for multi-family or commercial customers who would like to opt in to the program • Has been successful in peer communities • Leverages the benefits of the contracted system for multi-family or commercial customers if they choose to opt in Multiple District Options in Contracted Systems Many communities shifting from an open market to a contracted system explore a districted system as it often seems like a "middle ground" between an open market with many haulers and a single hauler contract. Multiple Colorado communities have explored districted systems: Lakewood, Westminster, Arvada and Fort Collins (in 2008). In each community other than Arvada, the contract didn't move forward. In Arvada, one hauler won every district, and it now functions as a single district contracted community. All Colorado communities with a contracted trash and recycling system have a single district. Multiple Districts •Often perceived as “middle ground” between open market and single hauler •No successful models in Colorado •Dilutes the benefits of a contracted system •Complications: different prices between districts for the same service •Would delay Request for Proposals (RFP) release Single District •Lowest price •Most environmental benefits •Many successful models in Colorado •Haulers remain in community – continue to service other sectors in Fort Collins and adjacent areas •Continued low price, competitive proposals from many haulers If Councilmembers are interested in exploring a Multiple District scenario in Fort Collins, it would be important to be clear about the goal to be accomplished via Multiple Districts. The following chart includes some potential goals of a Multiple District scenario and potential considerations for each. Potential Goal Likely # of districts Considerations Maintain a “backup” hauler in the community 2 •No matter the size of the district, haulers right-size staff and equipment to service needs in the community; if an issue arose with one hauler, it would still take time to increase capacity of another hauler to begin serving more areas •Could incentivize negotiating to a higher price proposal Keep all haulers in the community active in the general residential market 4 •Not possible to restrict competitive purchasing process to only existing haulers •All haulers currently operating in the community will stay in the community as they continue to service their commercial, multi-family, construction and demolition and Homeowners’ Association customers Make at least one district at a scale that could be won by a small hauler 2? •Cannot guarantee district would be won by small hauler •Smaller haulers are commonly purchased by large national haulers, so even if a small hauler won a district, it may not be serviced by a small hauler for the length of the contract ATTACHMENT 2 1512 Eureka Road, Suite 220, Roseville, CA 95661 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com June 11, 2022 Ms. Kira Beckham Lead Specialist Environmental Sustainability City of Fort Collins 300 LaPorte Avenue Fort Collins, CO 80521 submitted via email: kbeckham@fcgov.com SUBJECT: Final Report - Trash Collection Street Maintenance Impact Analysis Dear Ms. Beckham: R3 Consulting Group, Inc. (R3) was engaged by the City of Fort Collins (City) to update our trash collection street maintenance impact analysis that was prepared for the City in 2008. Specifically, to compare the impacts of residential trash, recycling, and yard waste collection vehicles (Refuse Vehicles) on the City’s residential streets and associated street maintenance costs for the City’s current open competition system as compared to a contracted or districted collection system with a single hauler operating in any given area of the City. This Letter Report provides the results of our analysis. Project Objectives To project the impact of the City’s licensed haulers’ Refuse Vehicles on the City’s residential and collector streets, and determine the associated annual street maintenance cost for the current open competition system. To calculate the associated annual street maintenance cost savings that would result from a contracted or districted collection system. Limitations Our analysis is based on a number of underlying assumptions for which reasonable ranges exist, including the average number of vehicle trips per day per residential street, the percentage of those trips made by various vehicle types, and the associated axle loadings of each vehicle type. Changes to those assumptions can have a material impact on the resulting findings. * * * * * * * We appreciate the opportunity to be of service to the City. Should you have any questions regarding our letter report or need any additional information, please contact me by phone at (916) 947-4880 or by email at wschoen@r3cgi.com. Sincerely, William Schoen | Senior Project Director R3 Consulting Group, Inc. 916.947.4880 | wschoen@r3cgi.com ATTACHMENT 3 Ms. Kira Beckham June 11, 2022 Page 2 of 12 Summary Findings Street Maintenance Budgeted Expenses Under the current open competition system with an average of three and a half (3.5) licensed haulers operating on each residential street, Refuse Vehicles are projected to be responsible for 24.4% of the vehicle impacts (i.e., wear and tear) on those streets, and 10.9% of the vehicle impacts on collector streets. The portion of the City’s annual residential and collector street maintenance budget attributed to Refuse Vehicles currently operating within the City’s open competition system is projected at $889,000 annually. Under a contracted or districted system, Refuse Vehicles are projected to be responsible for 8.0% of the vehicle impacts on residential streets, and 3.3% of the vehicle impacts on collector streets. The portion of the City’s annual residential and collector street maintenance budget attributed to Refuse Vehicles operating under a contracted or districted system is projected to be $286,000 annually; $603,000 less than under the current open competition system. Street Maintenance Unfunded Backlog The City’s current residential and collector street maintenance unfunded backlog expenses are $82 million and $43 million, respectively. Based on the vehicle impacts reported above, and all other factors the same, approximately $16 million of that current $82 million residential backlog expense can be attributed to residential Refuse Vehicles, and approximately $5 million of the $43 million collector backlog attributed to Refuse Vehicles. Had the City historically had in place a contracted or districted system, all other factors the same, the total residential and collector street backlog would be $14 million less. Refuse Hauler Vehicle Impact Fees If the City’s costs to repair street pavement impacts caused by Refuse Vehicles where charged back to the haulers in the form of a Refuse Hauler Vehicle Impact Fee, under the current open competition system the monthly charge to the haulers would be $1.50 per month per residential account. Under a contracted or districted system that charge falls to $0.50 per month; $1.00 less than under the current open competition system. Those fees do not account for any recouping of the existing backlog attributed to Refuse Vehicles, which if considered would increase those fees. Contracted, Districted and Open Competition Systems Considerations If effectively implemented, the City can move from an open competition residential collection system to a contracted or districted system and likely realize a cost (customer rate) savings, and/or improved services. This is due to the significant operational efficiencies and economies of scale that contracted and districted collection provides versus an open competition system. A contracted system with a single contracted hauler serving the entire City is the most operationally efficient and cost effective collection system. There is currently a competitive market place in the region with the three largest national haulers competing for regional market share. The regional market is likely to remain competitive regardless of what happens with the City’s residential collection system. Under a contracted or districted system rates can be effectively controlled and flow control can be maintained. Moving to a contracted or districted collection system will not create a monopoly and likely will not significantly impact the three national haulers (Republic Services, Waste Management and Waste Connections). It is not known what the impact would be on Mountain High Disposal if it lost its residential market share. As a condition of a contracted collection system, the City could require the selected hauler to hire all qualified displaced drivers and mechanics as a condition of the award of the contract. The City could also require the selected hauler to maintain displaced employee seniority, honor any scheduled vacations, provide a matching 401K program, and/or other conditions it may wish to establish. A contracted or districted collection system does not enable residents to select their hauler although residents could opt-out of those services if they choose to. The City can however charge an opt-out fee for doing so. To the extent that residents were to opt out of a contracted or districted collection system, the benefits associated with contracted or districted collection would be negatively impacted. The City’s regulatory oversight would also need to increase with an opt-out provision with multiple haulers to regulate. Ms. Kira Beckham June 11, 2022 Page 3 of 12 Background In Fort Collins, residential trash, recycling, and yard waste services are provided by the following four (4) licensed private trash haulers:  Mountain High Disposal  Republic Services  Ram Waste Systems (Waste Connections); and  Waste Management Residents are free to subscribe to collection services from any of the licensed haulers, with trash haulers competing for market share. Under this open competition system, multiple haulers provide service on each residential street each week, with resulting street maintenance and other impacts. In 2008, R3 assisted the City with a Trash Services Study to determine opportunities to reduce the impacts of trash collection services in the City and increase diversion. That review included projecting the relative impact of trash, recycling, and yard waste vehicles (Refuse Vehicles) on the City’s streets and associated street maintenance costs for the City’s open competition residential collection system. The analysis also projected Refuse Vehicle street maintenance impacts associated with a “districted” residential collection system under which the City would be broken into service districts with a single hauler operating in each district. Moving from an open competition collection system to a districted collection system would reduce the number of Refuse Vehicle miles traveled on any given residential street with a corresponding decrease in the associated street maintenance impacts. All other factors the same, moving from an open competition residential collection system to a districted collection system would reduce the number of Refuse Vehicle miles traveled on the City’s residential streets. As a result, there would be a significant corresponding decrease in the associated vehicle street maintenance, emission, and noise impacts, improved neighborhood aesthetics, and fewer Refuse Vehicle accidents and related property damage. Overview Road maintenance is based on deterioration. While roads will deteriorate if simply left unused, most deterioration is associated with use, and the damage caused by vehicles increases exponentially with size and weight. Therefore, costs associated with maintenance are greater for trips made by heavy vehicles. A single large truck can cause as much damage as thousands of automobiles, and the configuration of the truck can affect the amount of damage as well. If the load is spread over more axles, there is less weight on each wheel, and damage is reduced.1 Refuse Vehicles are typically the heaviest vehicles regularly operating on residential streets and are a significant contributor to the wear-and-tear experienced by those streets. While Refuse Vehicles also contribute to the wear-and-tear on commercial streets, those streets are designed to a higher standard and experience significantly more vehicle trips and large truck trips than residential streets. As such, the relative impact of a Refuse Vehicle on commercial streets is significantly less than that on residential streets. The Pavement Condition Index (PCI) is a common unit of measure used to rate the condition of pavements. The PCI rates pavements on a scale of 0 to 100, with a higher value indicating better pavement condition (see Table 1 below). Rapid deterioration of pavement typically occurs after roadways drop to a PCI of 60 or lower, and studies have shown that every dollar spent performing preventative maintenance on a roadway with a PCI of 70 or higher saves $4 in the future – it would otherwise cost about $5 to rehabilitate the same roadway once rapid deterioration occurs2 (Figure 1). Assuring adequate funding for an effective pavement management system is therefore critical to achieving a cost-effective pavement management system. 1 A. Rufolo, Cost-Based Road Taxation, Cascade Policy Institute, November 1995. 2 J. Gerbracht, Bay Area Roads Close to “Tipping Point”, Metropolitan Transportation Commission, Street Talk, March 2006. Ms. Kira Beckham June 11, 2022 Page 4 of 12 Table 1 - PCI by General Street Condition Rating (Class) Figure 1 - Pavement Life Cycle Source: Metropolitan Transportation Commission The goal of a pavement management program is to bring all roads up to “good” or “excellent” condition where they can be maintained most cost-effectively.3 The strategy often recommended is referred to as the “best first approach”, which concentrates spending initially on routine and preventative maintenance on roads that are currently in fair to good condition. This extends the useful life of those roads, preventing rapid deterioration. Spending money now on routine maintenance prevents additional spending in the future on more expensive repairs. The average PCI of the City’s streets is 74, which is in the “Satisfactory” range. Attachment A provides a projection of the City’s PCI based on a number of funding scenarios. As shown, based on the assumptions noted, the City’s PCI is projected to drop from 74 (Satisfactory) to 68 (Fair) by 2032; approaching the point at which maintenance cost begin to escalate dramatically. Relative Impact of Refuse Vehicles The relationship between axle weight and inflicted pavement damage is not linear but exponential, and a single Refuse Vehicles can have an impact on the City’s streets equivalent to more than 1,000 automobiles. As part of the analysis of trash truck impacts we evaluated the impacts of trash trucks relative to other types of vehicles, including delivery trucks and buses. Table 2 below provides a comparison of the average PCI range Class 85-100 Good 70-85 Satisfactory 55-70 Fair 40-55 Poor 25-40 Very Poor 10-25 Serious 0-10 Failed Ms. Kira Beckham June 11, 2022 Page 5 of 12 equivalent single axle load (ESAL) factors for the various vehicle types noted4 to the estimated ESAL’s of residential trash and recycling trucks operating in the City. The impacts are presented in Passenger Car Equivalents. Table 2 - Comparison of Refuse Vehicle Street Impacts with Other Vehicle Types As shown, it is estimated that residential recycling vehicles exert an impact on the City’s streets of more than 900 automobiles, while residential trash and yard waste trucks have an impact equivalent to 1,250 automobiles. The above analysis is based on a passenger car ESAL Factor of 0.0008. R3 is aware of other analyses that use a passenger car ESAL Factor as low as 0.0004, which if used would double the Passenger Car Equivalents for residential recycling and trash and yard waste trucks shown in Table 4. Approach Our approach to projecting Refuse Vehicle street maintenance impacts is based on common principals of pavement design and vehicle loadings. The basic premise is that all vehicles, including Refuse Vehicles, exert an impact on streets that can be quantified. That impact or “vehicle loading” can be expressed as an ESAL, which is a function of the vehicle’s weight and the distribution of that weight over the vehicle’s axles. By projecting the number and type of vehicles (i.e., cars, trucks, Refuse Vehicles) that travel on a street over its design life, and the average ESAL associated with each vehicle type, the total ESALs that street will experience can be calculated. The relative impact associated with a specific type of vehicle (e.g., Refuse Vehicle) can then be determined based on the percentage of total ESALs attributed to that vehicle type. Refuse Vehicle impacts, as determined above, were projected for the current open competition system under a “base case” assumption that, on average 3.5 licensed haulers provide weekly residential refuse and yard waste collection and every other week recycling collection services on each residential street, making two passes down each residential street to provide each service. This equates to a total of five (5) passes down each residential street each week for each, for an total of 17.5 total Refuse Vehicle passes down each residential street each week. Under a districted system, with one hauler providing all three services in a given geographic area of the City, the total number of weekly residential Refuse Vehicle passes on a given residential street is five (5); two passes each for refuse and yard waste, and one (1) for recycling service; approximately 30% of the vehicle passes under the open competition system. 4 Based on sample data reported by American Association of State Highway and Transportation Officials (AASHTO) Guide for Design of Pavement Structures. General Classification AASHTO Classification Cars Passenger Cars 2 0.0008 1 Vans/Pickups Other 2-Axle/4-Tire Trucks 2 0.0052 7 Large Pickups / Delivery Vans Panel and Pickup Trucks 3 0.0122 15 Large Delivery Trucks 3 or More Axle Trucks 3 0.1303 163 Local Delivery Trucks 2-Axle/6-Tire Trucks 2 0.1890 236 Residential Recycling Trucks 2 0.7500 938 Buses Buses 2 or 3 0.6806 851 Residential Trash/Yard Waste Trucks 3 1.0000 1,250 Long Haul Semi-Trailers Various Classifications 3 - 5+ 1.1264 1,408 (1) AASHTO Guide for Design of Pavement Structures; Table D-21 with exception of Refuse Vehicles Vehicle Type Passenger Car Equivalents ESAL Factor (1) Number of Axles Ms. Kira Beckham June 11, 2022 Page 6 of 12 Methodology 》 The City’s budgeted residential and collector street maintenance costs were assigned to Refuse Vehicles in proportion to the projected impacts of Refuse Vehicles as a percentage of the vehicle impacts on the City’s residential and collector streets. 》 The City’s existing residential and collector unfunded backlog costs were assigned to Refuse Vehicles in the same proportions as for the current street maintenance budgets above. Major Assumptions Funding / Backlog Expense 》 The City’s current residential street maintenance annual budget is $5.5 million. 》 The City’s current collector street maintenance annual budget is $2.0 million. 》 The City’s current residential street maintenance backlog expense is $82.0 million. 》 The City’s current collector street maintenance backlog expense is $43.5 million. Residential Street Impact and Budget Allocation Assumptions 》 Thirty percent (30%) of residential streets are in home owner associations that are serviced by one (1) licensed hauler. It is assumed that 30% of the City’s residential street maintenance budget is spent on those streets. Switching to a contracted or districted system would not change the impact of Refuse Vehicles on those streets or impact that portion of the residential street maintenance budget. 》 Twenty percent (20%) of residential streets have solid waste service provided in alleys, with those residential streets not experiencing any Refuse Vehicle impacts. It is assumed that 20% of the City’s residential street maintenance budget is spent on those streets. Switching to a contracted or districted system would not change the impact of Refuse Vehicles on those streets or impact that portion of the residential street maintenance budget. 》 Fifty percent (50%) of the City’s residential streets receive curbside service from an average of 3.5 licensed haulers operating on each of those streets each week. It is assumed that 50% of the City’s residential street maintenance budget is spent on those streets. Switching to a contracted or districted system would change the impact of Refuse Vehicles on those streets. This portion of the City’s budget, which is impacted by Refuse Vehicles, is referred to as the “Impacted Residential Street Maintenance Budget” in the analyses below, and equals $2.75 million annually. Vehicle Loadings / Impacts 》 ESAL loadings for residential and commercial Refuse Vehicles, cars and other trucks are based on data from various sources including the American Association of State Highway and Transportation Officials (AASHTO). Residential Streets 》 There are an average of 1,000 vehicle trips per day on a typical residential street each day, with 3.0% of those trips made by heavy trucks, not including Refuse Vehicles. 》 Each licensed hauler’s vehicles make a total of five (5) passes down each residential street that they provide services on each week, with refuse and yard waste service provided weekly, and recycling provided every other week. Collector Streets 》 There is an average of 2,500 vehicle trips per day on a typical collector street, with 3.0% of those trips made by heavy trucks, not including Refuse Vehicles. 》 Each licensed hauler’s vehicles make a total of five (5) passes down a typical collector street each week with refuse and yard waste service provided weekly, and recycling provided every other week. 》 All residential accounts on collector streets receive curbside service. Ms. Kira Beckham June 11, 2022 Page 7 of 12 Findings Street Maintenance Budgeted Expenses Our analysis considered the following two scenarios, each assumes an average of 1,000 vehicle trips per day per residential street and 2,500 vehicle trips per day per collector street, with 3% of those trips made by trucks other than Refuse Vehicles. For each scenario the annual street maintenance costs for the current open competition system are compared to the costs for a contracted or districted collection system with a single hauler providing service on each residential and collector street.  Scenario 1 An average of 3.5 licensed haulers operating on each residential and collector street, each making a total of 5.0 weekly vehicle passes; 17.5 total weekly Refuse Vehicle passes residential and collector street per week.  Scenario 2 An average of seven (7.0) licensed haulers operating on each residential street making a total of 5.0 weekly vehicle passes; 35 total weekly Refuse Vehicle passes per residential and collector street per week. Scenario 1 – 1,000 Vehicles per Day per Residential Street - 3.5 Haulers Under this scenario, the projected annual street maintenance cost savings to the City for a contracted or districted residential collection system, versus the current open competition system is $603,000, as shown in Table 3 below. Table 3 – Scenario 1 Analysis Under the City’s current open competition collection system it is estimated that, on average, Refuse Vehicles account for 24.4% of total vehicle impacts on the City’s residential streets. Under a districted collection system with only one licensed hauler providing services on any given residential street that impact is 8.0% (67% less). Refuse Vehicles have much lesser impacts on collector streets as they represent a smaller percentage of all vehicle trips, and there is a larger percentage of other truck traffic on collector streets. Residential Street Assumptions Collector Street Assumptions 3.5 Licensed Haulers 3.5 Licensed Haulers 1,000 Vehicles per Day 2,500 Vehicles per Day 3.0%Truck Percentage 3.0%Truck Percentage Annual Impacted Residential Street Maintenance Budget Refuse Vehicle Impact as Percent of Total Vehicle Impacts Portion Attributed to Residential Refuse Vehicles Annual Collector Street Maintenance Budget Refuse Vehicle Impact as Percent of Total Vehicle Impacts Portion Attributed to Residential Refuse Vehicles Open Competition 2,750,000$ 24.4%670,000$ 2,000,000$ 10.9%219,000$ 889,000$ Contracted or Districted 2,750,000$ 8.0%220,000$ 2,000,000$ 3.3%66,000$ 286,000$ Annual Savings with Contracted/Districted Collection = 450,000$ 153,000$ 603,000$ Residential Streets Collector Streets Total Annual Cost Ms. Kira Beckham June 11, 2022 Page 8 of 12 Scenario 2 – 1,000 Vehicle Trips per Day per Residential Street – 7.0 Haulers Under this scenario, the projected annual street maintenance cost savings to the City under a contracted or districted residential collection system, versus the current open competition system is $1.251 million, as shown in Table 4 below. That is roughly double the projected Refuse Vehicle cost impact for Scenario 1 above. Table 4 – Scenario 2 Analysis Sensitivity Analysis Changes to the assumptions used for the above analyses can have a material impact on the results. To provide a sense for the sensitivity of the resulting financial impacts to changes in the underlying assumptions we considered the following changes to Scenario 1:  Scenario 1A 2,000 vehicles per day per residential street with 3.0% of those trips made by trucks other than Refuse Vehicles.  Scenario 1B 1,000 vehicles per day per residential street with 5.0% of those trips made by trucks other than Refuse Vehicles. Table 5 provides the resulting financial impacts for each of the above sensitivity scenarios. As shown, as the number of vehicle trips per day and the percentage of those trips made by trucks other than Refuse Vehicles increases, the associated impact of Refuse Vehicles decreases, although is still significant. Residential Street Assumptions Collector Street Assumptions 7.0 Licensed Haulers 7.0 Licensed Haulers 1,000 Vehicles per Day 2,500 Vehicles per Day 3.0%Truck Percentage 3.0%Truck Percentage Annual Impacted Residential Street Maintenance Budget Refuse Vehicle Impact as Percent of Total Vehicle Impacts Portion Attributed to Residential Refuse Vehicles Annual Collector Street Maintenance Budget Refuse Vehicle Impact as Percent of Total Vehicle Impacts Portion Attributed to Residential Refuse Vehicles Open Competition 2,750,000$ 41.2%1,133,000$ 2,000,000$ 20.2%404,000$ 1,537,000$ Contracted or Districted 2,750,000$ 8.0%220,000$ 2,000,000$ 3.3%66,000$ 286,000$ Annual Savings with Contracted/Districted Collection = 913,000$ 338,000$ 1,251,000$ Residential Streets Collector Streets Total Annual Cost Ms. Kira Beckham June 11, 2022 Page 9 of 12 Table 5 – Sensitivity Analyses Street Maintenance Unfunded Backlog The above cost projections do not account for the City’s current deferred (unfunded) street maintenance backlog. That unfunded backlog consists of pavement maintenance that is needed but cannot be performed due to lack of funding.. The City has a $82 million residential street unfunded backlog and a $43 million collector street backlog. If it is assumed that Refuse Vehicles contributed to those backlogs in a similar proportion to Refuse Vehicles current projected impact on residential and collector streets, it is reasonable to assign an associated portion of those costs to Refuse Vehicles. Table 6 provides that allocation for Scenario 1 (1,000 vehicle trips). As shown, it is projected that $20.7 million of the total residential and collector street unfunded backlog expense is attributed to Refuse Vehicles. Had the City historically had in place a contracted or districted system, all other factors the same the total residential and collector street backlog would be $14.0 million less. Table 6 – Scenario 1 Backlog Allocation to Residential Refuse Vehicles Alley Maintenance Costs The above analyses are specific to the City’s residential and collector streets, and as noted assume that 20% of residents receive alley service. While information was not available that would allow us to perform a specific analysis of the impact of Refuse Vehicles on the City’s alley repair costs, the City spends approximately $60,000 annually on residential and commercial alley repair. It is reasonable to assume that Current Residential Street Maintenance Backlog Expense Refuse Vehicle Impact as Percent of Total Vehicle Impacts Portion Attributed to Residential Refuse Vehicles Current Collector Street Maintenance Backlog Expense Refuse Vehicle Impact as Percent of Total Vehicle Impacts Portion Attributed to Residential Refuse Vehicles Open Competition 82,000,000$ 24.4%15,978,000$ 43,000,000$ 10.9%4,703,000$ 20,681,000$ Contracted or Districted 82,000,000$ 8.0%5,247,000$ 43,000,000$ 3.3%1,427,000$ 6,674,000$ 10,731,000$ 3,276,000$ 14,007,000$ Total Annual Cost Collector StreetsResidential Streets Scenario 1 Scenario 1A Scenario 1B Licensed Haulers 3.5 3.5 3.5 Vehicles per Day 1,000 2,000 1,000 Truck Percentage 3.0% 3.0% 5.0% Open Competition 889,000$ 587,000$ 590,000$ Contracted or Districted 286,000$ 286,000$ 286,000$ Savings with Contracted/Districted Collection 603,000$ 301,000$ 304,000$ Residential Street Assumptions (1) Total Annual Residential Refuse Vehicle Street Maintenance Cost Ms. Kira Beckham June 11, 2022 Page 10 of 12 Refuse Vehicles are responsible for some, potentially significant portion of that expense specific to the maintenance of residential alleys. Refuse Vehicle Hauler Impact Fees Regardless of whether or not the City decides to maintain its current open competition residential collection system or move to a contracted or districted collection system, it may wish to consider charging licensed haulers a fee to offset the street maintenance cost impacts of their residential Refuse Vehicles. While we are not aware of any cities in Colorado that charge such a fee, “Refuse Vehicle impact fees” have been applied in California for more than 15 years and in many cases the amount of those fees were based on studies that used the same methodology R3 used for this analysis. Table 7 provides the projected monthly and annual Refuse Vehicle Impact Fee charge per residential account for Scenario 1 (3.5 haulers) As shown, under the current open competition system a monthly fee of $1.50 per residential account would fund the portion of the City’s current street maintenance budget associated with Refuse Vehicle impacts. Under a contracted or districted system that monthly fee would be $0.50 per residential account; $1.00 less per month than for the open competition system.5 Table 7 Note: The calculated fees in Table 7 do not account for any recouping of the existing unfunded backlog attributed to Refuse Vehicles, which if considered would increase those fees potentially significantly depending on the period of time over which they were recouped. Contracted, Districted, and Open Competition Systems Considerations R3 is a consulting firm that has worked exclusively for municipal agencies for more than 15 years, we do not work for private haulers. We do however have good working relationships with Waste Management, Republic Services, and Waste Connections (National Haulers), as well as many other regional and local haulers, and regularly interact with their local and regional staff on behalf of our clients. We have direct experience with all types of residential and commercial solid waste collection system structures, and specifically contracted, districted, and open competition services. In support of the City’s consideration of contracted or districted solid waste collection services we offer the following considerations, based on our experience: 1. Community Outreach and Education is Critical - Residents typically have a lot of questions about how they would be impacted by a contracted or districted residential collection system. It is important that they receive accurate information, that addresses the major issues and concerns so that residents have an informed understanding of the associated impacts. 5 This analysis assumes the calculated cost impact is spread across all residential accounts evenly. Monthly Refuse Vehicle Street Maintenance Impact Fee per Residential Account Annual Refuse Vehicle Street Maintenance Impact Fee per Residential Account Open Competition 1.50$ 18.00$ Contracted or Districted 0.50$ 6.00$ Savings with Contracted/Districted Collection 1.00$ 12.00$ Ms. Kira Beckham June 11, 2022 Page 11 of 12 2. Maintaining Flow Control - Flow control can be established as a condition of any contracted or districted system. In either case, the City would contractually require the selected hauler(s) to use City designated facilities (e.g., Larimer County landfill), or allow proposers to offer an alternative site, which the City could allow at is sole discretion. 3. Benefits of Contracted or Districted System versus an Open Competition System - In addition to reduced Refuse Vehicle impacts, which can be significant, a major advantage of districted and contracted collection as compared to open competition are the significant operational efficiencies to be realized. The operational efficiencies that are gained by collecting every account on a street rather than only a portion are substantial. As collection operations comprise the majority of costs (monthly rates), there is a potential for significant cost savings (and/or service improvements) to be realized within a contracted or districted system. 4. Benefits of Contracted versus Districted Collection System - A single hauler contracted system provides for economies of scale with respect to required management, administration and operational resources when compared to a multiple hauler districted system, and there are potential associated cost savings and/or service improvements that can be realized. City contract management requirements are also significantly less with a single contracted hauler versus multiple districted haulers. 5. Opt Out Provisions Undercut the Benefits of Contracted and Districted Collection – If the City chooses to contract or district collection services, Colorado law preserves the right for residents to choose their waste hauler, although residents could be charged an opt-out fee for doing so. If the City contracts or districts collection services, to the extent that residents opted-out from the City’s selected hauler the benefits associated with districted or contracted services would be negatively impacted. Our experience has been that in those jurisdictions that have contracted (franchised) collection the vast majority of residents would not support moving to an open competition system with multiple haulers operating on their street. Under a contracted or districted system the National Haulers’ operations while not interchangeable, are from the residents interface generally similar, with programs and operational standards dictated by contractual requirements. 6. Meeting Zero Waste Goals – Many but not all of the City’s zero waste goals are achievable under the current open competition system. The next step for the City on the path to zero waste is to increase yard trimmings, and food scrap collection once infrastructure is available within a reasonable haul distance. Yard trimmings and food scrap collection can take place under an open market or contracted system but would be much more affordable under a contracted system. A contracted system supports addressing zero waste goals and other community livability goals through the same action. 7. National Haulers Routinely Win and Lose Contracts - The three National Haulers that operate in the City routinely compete for franchised collection services. Winning and losing contracts is part of the industry and should any National Hauler not be awarded a residential collection system contract with the City going forward they would reassign their assets and move on. The National Haulers are not going to be significantly impacted by losing their existing residential market share should the City contract with an exclusive hauler. It is not known the extent to which Mountain High Disposal would be impacted should it lose its residential market share. Note: It is not uncommon for the winning hauler to reimburse a city for the cost of a competitive procurement process. 8. There is a Competitive Local Marketplace - Districting for purposes of maintaining competition in the City is not necessary. If the City enters into an exclusive contract with a hauler, if and when that contract goes back out for a competitive procurement, all of the National Haulers and other regional haulers will likely have a significant interest. The most significant step the City can take to ensure ongoing competition for its residential collection system is for it to own the corporation yard that its contracted hauler operates out of. Access to a local corporation yard location is a major factor impacting a hauler’s interest/ability to compete for a collection franchise. If the City owns the corporation yard any hauler in the State or nationally that wanted to compete for the City’s contract would have the ability to effectively do so. They simply come in and set up shop at the City’s refuse corporation yard and pay the City a monthly rent. Ms. Kira Beckham June 11, 2022 Page 12 of 12 9. Contracted or Districted Services do not Create a Monopoly - Contract term lengths and the annual rate adjustment mechanism need to be contractually established, and if you have a strong performance-based franchise agreement that holds the hauler to objective safety, customer service, public education and outreach, financial and operational standards, you have an effective regulatory framework. 10. Rate can be Effectively Controlled - With contracted or districted services the competitive marketplace establishes the reasonableness of the initial rates. An annual rate adjustment mechanism needs to be defined and made known to the haulers at the time they prepare their proposals. A Refuse Rate Index (RRI) is one method for annual adjustments that uses a number of indices (e.g., labor, fuel, vehicle capital cost, vehicle maintenance cost, consumer price), and is intended to model actual changes in major cost items. An option for an special rate adjustment can also be provided to address extraordinary circumstances (e.g., change in law, force majeure, costs beyond contactor’s control). Alternatively, costs can periodically be set to actual expenses, plus a reasonable profit. 11. Street Maintenance Costs and Refuse Vehicles Contribution to those Costs are Going to Increase Unless City is Able to Maintain its Current CPI - At current budgeted levels the average PCI of the City’s streets is projected to decrease from “good” to “fair” by 2032. The most significant step the City can do to maintain the quality of its residential streets and starve off the significant street maintenance cost increases that begins as streets fall from good to fair to poor quality is eliminate the current open competition residential collection system and not allow for an opt-out provision. 12. City Can Require Winning Hauler to Hire All Displaced Drivers and Mechanics - There is a shortage of qualified drivers and mechanics throughout the industry, and any hauler that wins a contract in the City would likely look to hire as many of the drivers and mechanics from those companies that did not win a contract as it could. Any Request for Proposals can require the winning hauler to offer employment to all displaced qualified drivers and mechanics as a condition of the award of the contract. Additional requirements can also be established including require the selected hauler to maintain displaced employee seniority, honor any scheduled vacations, provide matching 401K program, and/or any other conditions the City may wish to establish or encourage. 13. Municipal Operations Generally Cannot Compete with Private Sector Operations - We are not aware of any jurisdiction that has moved from a collection system operated by private haulers to a municipal operation. The price of entry alone may make this option a non-starter given that fully automated solid waste vehicles can approach $400,000 each, and obtaining qualified drivers, mechanics, and other staff is extremely difficult in the current employment market. Even if the City could afford to implement a municipal collection system, it is very unlikely that it could effectively compete with a private sector hauler operating under a well-designed performance based franchise agreement. This is due to the fact that Municipal operations: a) Do not have the economies of scale of regional or national haulers; b) Do not have access to the significant corporate safety, customer service, vehicle maintenance and other resources of regional or national haulers, and c) Unlike private haulers, municipal collection managers do not have direct control over a city’s safety, vehicle maintenance, or customer service functions, all of which are fundamental to collection system performance. It is not uncommon for a city’s safety resources to be inadequate for the safety management demands of solid waste collection operations, and for fleet services to prioritize the maintenance of police and fire vehicles above that of Refuse Vehicle. City customer service functions also commonly fill a broader demand than just solid waste customer service needs, which can impact performance versus an industry specific customer service function with objective contractual performance standards. Attachments: A Pavement Condition Projections 66.0 67.0 68.0 69.0 70.0 71.0 72.0 73.0 74.0 75.0 66.0 67.0 68.0 69.0 70.0 71.0 72.0 73.0 74.0 75.0 2022 2023 2024*2025 2026 2027*2028 2029 2030*2031 2032 Year Pavement Condition Projections 3.5% Plus $1M in 2023 Plus 3.0% 2024 - 2032 Annual Budget Increase, PCI drops from 74.1 in 2022 to 72.0 in 2032 3.5% Increase in 2023 Plus 3.0% 2024 - 2032 Annual Budget Increase, PCI drops from 74.1 in 2022 to 70.6 in 2032 $16.471M Constant Current Annual Budget, PCI drops from 74.1 in 2022 to 68.2 in 2032 4.15.2022*Data Collection Years Pavement Condition Index (PCI)LOS B LOS C Attachment A 1512 Eureka Road, Suite 220, Roseville, CA 95661 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com June 6, 2022 Ms. Kira Beckham Lead Specialist Environmental Sustainability City of Fort Collins 300 LaPorte Avenue Fort Collins, CO 80521 submitted via email: kbeckham@fcgov.com SUBJECT: Final Report - Trash Collection Vehicle Emission, Noise, and Safety Analysis Dear Ms. Beckham, R3 Consulting Group, Inc. (R3) was engaged by the City of Fort Collins (City) to update our trash collection vehicle emission, noise, and safety analysis that was prepared for the City in 2008. This Letter Report provides the results of our analysis. Project Objective To compare the vehicle emission, noise, and safety impacts of residential trash, recycling, and yard waste collection vehicles (Refuse Vehicles) of the City’s current open competition system to a contracted or districted collection system with a single hauler providing services in any given area of the City. ** * * * * * We appreciate the opportunity to be of service to the City. Should you have any questions regarding our letter report or need any additional information, please contact me by phone at (916) 947-4880 or by email at wschoen@r3cgi.com. Sincerely, William Schoen | Sr. Project Director R3 Consulting Group, Inc 916.947.4880 | wschoen@r3cgi.com ATTACHMENT 4 June 6, 2022 Page 2 of 9 Summary Findings The vehicle emissions from the City’s licensed hauler Refuse Vehicles are in large part directly related to the number of miles those vehicles drive on the City’s streets. As such, contracting or districting solid waste collection services and limiting services in any given area of the City to one hauler and reducing the associated miles driven by Refuse Vehicles, is the most significant immediate step the City can take to reduce Refuse Vehicle emissions. If you assume that all four licensed haulers provide service on both sides of every residential street in the City, switching from the open competition to a contracted or districted system would reduce the number of haulers on any given residential street from four (4) to one (1); a 75% reduction in the number of haulers and Refuse Vehicle miles driven, with a reduction in the associated vehicle emissions. If we assume an average of three (3) haulers currently operating on each residential street the vehicle miles driven would decrease by 67%. At two (2) haulers there would be a 50% reduction in miles driven and associated vehicle emissions.1 It is estimated that under the current open competition system, and assuming an average of three and a half (3.5) licensed haulers operating on each residential street, Refuse Vehicles emit approximately 830 carbon equivalent tons annually. Under a contracted or districted residential collection system that figure would be reduced to approximately 300 carbon equivalent tons annually. Vehicle emissions can also be reduced by expanded use of compressed natural gas (CNG) vehicles, and/or potentially electric vehicles at some point in the future. Similarly, both CNG and electric vehicles generate less noise then diesel powered engines. Those and other emission and noise reduction technologies can be required as part of the City’s hauler licenses or contracts. Requirements we recommend the City consider include: limiting the age of Refuse Vehicles unless retrofitted with City required emission, noise and/or safety technologies (e.g., operate-in-gear-at-idle, automatic engine shut off systems, LED headlights and strobe lights, vehicle safety cameras, “smart” back-up alarms, on-board video event recorders (e.g., DriveCam)). Whether or not the City maintains the current open competition residential collection system or switches to a contracted or districted system, we recommend that it consider developing an (exclusive/non-exclusive) Solid Waste Franchise Agreement (Agreement). That Agreement should provide detailed and objective performance standards with respect to safety, customer service, public education and outreach, required programs, diversion requirements (e.g., minimum required diversion rates), City fees, and other specifics. If the City maintains its current open competition system, we recommend that all haulers be required to agree to the City’s contract (franchise agreement) terms as a condition of doing business in the City. If the City issues a request for proposals (RFP) for contracted or districted services, we recommend that the RFP include a draft of the City’s Agreement. All proposers should be required to identify any terms of the Agreement that they take exception to, and provide acceptable replacement language as part of their proposals, with the understanding that the City will only consider negotiating those terms identified in the haulers’ proposals. Note: A copy of a recently executed franchise agreement between Waste Management and the City of Beaumont, CA has been provided to the City under separate cover. That document provides an example of the types of general terms and conditions that Waste Management, Republic and other haulers have committed to under existing contracts. While the City may wish for a more abbreviated agreement, we recommend that many of the provisions of that document be included in any Agreement the City develops. 1 Vehicle emission reductions would be somewhat less than the associated reduction in vehicle miles driven since the emissions associated with vehicles while they are physically dumping residential carts does not change regardless of the number of haulers. Similarly, noise associated with vehicles traveling down residential streets would decrease but the amount of noise generated at the point of collection would not change regardless of the number of haulers operating on a given street. June 6, 2022 Page 3 of 9 Background In Fort Collins, residential trash, recycling, and yard waste services are provided by the following four (4) licensed private trash haulers: Mountain High Disposal Republic Services Ram Waste Systems (Waste Connections); and Waste Management Residents are free to subscribe to collection services from any of the licensed haulers, with trash haulers competing for market share. Under this open competition system, multiple haulers provide service on each residential street each week, with resulting street maintenance and other impacts. Under a contracted system, a single hauler would provide all residential services citywide. Under a districted system, the City would be broken into multiple service areas (districts), with a single hauler providing service in each district. All other factors the same, moving from an open competition residential collection system to a contracted or districted collection system would reduce the number of Refuse Vehicle miles traveled on the City’s residential streets. As a result, there would be a significant corresponding decrease in the associated vehicle street maintenance, emission, and noise impacts, and improved neighborhood aesthetics. All of the factors the same, there would also be fewer Refuse Vehicle accidents and related property damage corresponding to the decrease in the number of Refuse Vehicle miles driven in the City. Refuse Vehicle Emissions Background / Overview The greatest contribution to human Greenhouse emissions comes from transportation, followed closely by electricity generation and industry. There is a tremendous amount of pressure on the top 3 economic sectors to reduce their GHG emissions, with most goals set for 2035 and 2050. Within the transportation sector, municipalities deploy the highest GHG-emitting vehicles daily, including public transportation vehicles and refuse trucks. On a per-mile basis, the refuse truck is the most egregious contributor,2 with an average fuel efficiency of approximately 2.5 miles per gallon.3 Options for reducing Refuse Vehicle Emissions include the following, which are discussed in more detail below: Converting to CNG 4, liquefied natural gas (LNG), or electric engines; Requiring operate-in-gear-at-idle systems; and Requiring automatic engine shut off systems. Natural Gas and Electric Vehicles Natural Gas Vehicles While the majority of refuse vehicle fleets are powered by diesel engines, that is changing. By the end of 2020, 53% of Waste Management’s collection fleet had been transitioned to CNG vehicles, comprising the largest heavy-duty natural gas fleet of its kind in North America. Over half of Waste Management’s CNG vehicles use dairy or landfill biogas, including gas captured from landfills. In California, Oregon and Washington, 100% of Waste Management’s natural gas fleet runs on renewable natural gas (RNG).5 By the end of 2019, Republic had more than 3,100 of its total vehicles running on alternative fuels; more than 2 Source: EPA: Sources of Greenhouse Gas Emissions 3 Source: US Dept. of Energy - Alternative Fuels Data Center 4 CNG is the more economical and accessible option for U.S.-based refuse fleets. 5 Source: Waste Management 2021 Sustainability Report June 6, 2022 Page 4 of 9 20% of the company’s fleet, and Waste Connections, has been running a fleet of around 1,100 CNG vehicles; 11% of its fleet. According to NGV America, more than 17,000 refuse and recycling trucks in the United States run on natural gas and about 60% of new collection trucks on order will be powered by natural gas. According to NGVAmerica,6 natural gas vehicles are 90% cleaner than the EPA’s current NOx7 standard and emit up to 21% fewer GHG emissions than comparable gas and diesel vehicles. When fueling with RNG, GHG emissions can be reduced up to 382%. While burning natural gas in vehicles emits less carbon dioxide than burning diesel, the drilling and production of natural gas leaks methane, a potent greenhouse gas, and those leaks offset some of natural gas' carbon dioxide (CO2) benefit.8 Burning natural gas for energy results in fewer emissions of nearly all types of air pollutants and CO2 than burning coal or petroleum products to produce an equal amount of energy. About 117 pounds of CO 2 are produced per million British thermal units (MMBtu) equivalent of natural gas compared with more than 200 pounds of CO2 per MMBtu of coal and more than 160 pounds per MMBtu of distillate fuel oil. The clean burning properties of natural gas have contributed to increased natural gas use for electricity generation and as a transportation fuel for fleet vehicles in the United States.9 Electric Vehicles While natural gas-powered vehicles are the solid waste industries preferred form of alternative fuel, Waste Management, Republic, and Waste Connections are all testing electric refuse vehicles, which do not directly generate any vehicle emissions. In July 2020, 15 states, including Colorado, and Washington D.C, signed a memorandum of understanding to work toward a goal of 100% of medium- and heavy-duty zero- emissions vehicle sales by 2050. An added advantage of electric vehicles is that they generate significantly less engine noise. Eco-Cycle of Bolder recently unveiled what it claims to be the country’s first electric compost truck, and the move toward electric vehicles is in line with Colorado’s draft Greenhouse Gas Pollution Reduction Roadmap, which calls for an accelerated move to electric vehicles. Operate-in-gear-at-idle Technology Operate-in-gear-at-idle technology can also reduce emissions. Operate-in-gear-at-idle systems allow an engine to run at much lower revolutions per minute (RPM) and thus conserve fuel when compared with collection vehicles that do not have the technology. Operate-in-gear-at-idle systems save fuel by using a larger hydraulic pump that produces the extra flow of fluid needed for a trash collection vehicle to load and compact garbage at standard speeds while the engine remains at idle. Without the systems, truck operators must shift the transmission and throttle the engine to power the hydraulic system every time they make a route stop or want to pack the load. There is minimal effect on truck performance and fuel savings of as much as 20% have been attributed to operate-in-gear-at-idle systems.10 Operate-in-gear-at-idle technology is generally standard on new side loading equipment. An added advantage of operate-in-gear-at-idle technology is that it significantly reduces engine noise. Most of the loud engine noise associated with garbage trucks comes from revving the engine to pack the load. With an operate-in-gear-at-idle trash truck the hydraulic system is capable of packing without revving the engine and generating the associated engine noise. 6 Natural Gas Vehicles for America (NGVAmerica) is a national organization of roughly 200 companies and organizations dedicated to the development of a growing, profitable, and sustainable market for vehicles, ships and carriers powered by natural gas or biomethane. 7 Nitrogen oxides (NOx) are a collective term for toxic gas molecules that are chemical compounds between nitrogen and oxygen and are an essential component of air pollution. 8 Source: https://www.usatoday.com/story/news/nation/2014/02/13/natural-gas-leaks-methane-beyond-epa- estimates/5452829/ 9 Source: U.S. Energy Information Administration; https://www.eia.gov/energyexplained/natural-gas/natural-gas- and-the-environment.php 10 Ideal Idle Idea; K. Simpson, Waste Age, Sep 1, 2006 12:00 PM June 6, 2022 Page 5 of 9 Automatic Engine Shut-Off Systems Idling engines can burn up to one (1) gallon of fuel per hour. A 2013 report from the Argonne National Laboratory-Center for Transportation Research estimated that garbage trucks waste approximately 27.5 million gallons of fuel per year through idling, whether they’re waiting in line to drop off a load or providing a comfortable place for a driver to take a break. On-board engine controls can be installed that automatically cut off the engine after a set time period if a driver leaves it idling. Waste Management, Republic, and Waste Connections all have installed automatic engine shut off devices that shut the engine down after five minutes of idling on some of their vehicles. This five-minute standard is consistent with the proposed time frame in EPA’s Model State Idling Law and in accordance with the American Transportation Research Institutes Compendium of Idling Regulations. Waste Management has mandated an idle shutdown policy, which means all of the company’s trucks with electronic engines are programmed to shut down after five minutes of idling. Additionally, with the installation of on-board computer GPS tracking technology, Waste Management can review how, when, and where trucks idle, which will inform them as they develop new policies on the issue.11 Diesel Fuel Emissions12 A diesel engine, like other internal combustion engines, converts chemical energy contained in the fuel into mechanical power. Diesel fuel is a mixture of hydrocarbons, which during an ideal combustion process would produce only carbon dioxide (CO2), and water vapor (H20). Diesel emissions, however, also include other pollutants, most of which originate from various non-ideal processed during combustion. Common pollutants include unburned hydrocarbons (HC), carbon monoxide (CO), nitrous oxides (NOx) or particulate matter. Total concentration of pollutants in diesel exhaust gases typically amount to some tenths of one percent, with much lower, “near zero” levels of pollutants emitted from modern diesel engines equipped with emission after treatment devices such as NOx reduction catalysts and particulate filters. Given the relatively low levels of those pollutants, our review of diesel emissions focused on the production carbon dioxide, which is the major greenhouse gas produced by burning diesel fuel. Contracted/Districted vs. Open Competition System Vehicle Emissions Projections Implementing a contracted or districted collection system would also reduce overall vehicle emissions as a result of the reduction in the number of residential trash collection vehicle miles traveled. Table 1 provides a comparison of projected Refuse Vehicle engine carbon dioxide (CO2) emissions for a contracted or districted collection system, with one hauler per residential street, versus an open competition collection system with an average of 3.5 and 7.0 haulers per residential street. Table 1 11 Solving the truck-idling Problem; Laura Waldman 2013; Sustainable America. 12 Source: https://dieselnet.com/tech/emi_intro.php June 6, 2022 Page 6 of 9 As shown, one hauler operating in the City providing weekly solid waste and yard waste service, and biweekly recycling, is estimated to generate approximately 300 tons of carbon equivalents annually.13,14 Assuming that on average 3.5 licensed haulers provide service on each residential street under the current open competition system, a total of 828 carbon equivalent tons are generated by their Refuse Vehicles; 52715 more carbon equivalent tons annually. Recommendations Contract or district collection services to reduce Refuse Vehicle emissions. Require all Refuse Vehicle engines be equipped with emission after treatment devices such as NOx reduction catalysts and particulate filers. Require all Refuse Vehicles to be equipped with operate-in-gear-at-idle technology, and automatic engine shut-off systems. Consider requiring the testing/use of at least one electric Refuse Vehicle should the City contract Citywide services to a single hauler. Refuse Vehicle Noise Background / Overview Noise from trash trucks can be related to a number of factors including: Engine noise; Backing alarms; Noise at the point of collection (dumping material such as glass in curbside recycling systems); Time of collection; and Vehicle maintenance. The specific strategies and options to reduce those noise impacts depend in large part on the source of the noise. Some jurisdictions have established specific noise standards that haulers must comply with during collection operations (e.g., decibel ratings within a specified distance from the vehicle). Engine Noise Engine noise associated with residential trash trucks is largely related to revving of the engine when the vehicle is packing. Diesel garbage trucks can generate noise levels of up to 100 decibels. Two of the most significant options available to reduce trash truck engine noise are: Converting to CNG, LNG, or electric engines; and Using “operate-in-gear-at-idle ” technology16. In addition to the above options, a well-built, tight-fitting, well-maintained vehicle can also help reduce noise. 13 A CO₂ equivalent (CO₂e) is a unit of measurement that is used to standardize the climate effects of various greenhouse gases. 14 This is for on-route miles driver only and does not account for miles driven back and forth from the route to the corporation yard, landfill, and yard waste and recyclable material processing facilities. 15 The analysis assumes that 30 percent of the City’s residential streets are in home owners associations with a single hauler providing service on those streets. 16 With non-operate-at-idle vehicles the engines need to rev when the body is packing. With an operate at idle vehicle there is a hydraulic system on the body which is capable of providing the hydraulic pressures need to pack without revving the engine, which creates noise. June 6, 2022 Page 7 of 9 A study in the Netherlands found there were noise reductions with natural gas vehicles of 90% inside the truck, 98% beside the truck, and 50% behind the truck compared to diesel powered vehicles.17 Our understanding is that Waste Management has its own natural gas fueling station and currently operates a natural gas fleet in the city, while the other licensed haulers operate diesel vehicles. Electric vehicles offer the potential for further significant vehicle noise reduction, although their technical viability within the solid waste industry has yet to be proven. In addition to fuel savings, operate-in-gear-at-idle technology also significantly reduces engine noise. Most of the loud engine noise associated with garbage trucks comes from revving the engine to pack the load. With an operate-in-gear-at-idle trash truck there is a separate hydraulic system on the truck body. This separate hydraulic system provides the pressure needed to pack the load without revving the engine and generating the associated engine noise. Many Refuse Vehicle manufacturers offer operate-in-gear-at-idle technology standard on vehicle models, including Heil and McNeilus. Backing Alarms (Beepers) Vehicle backing and noise associated with vehicle backing alarms are most often associated with commercial collection activities. Placing limits on the time of commercial collection activities near residential neighborhoods can help address related noise issues. “Smart” back-up alarms can also be used. These alarms sense the level of ambient noise and adjust accordingly. In quiet conditions the alarm beeps at a much quieter level. Smart Alarms are also available that sound at a minimum decibel level only when radar detects an object and makes a sound only as long as the danger exists.18 Noise at Point of Collection Noise at the point of collection (i.e., emptying containers) can be reduced by taking various actions to reduce engine noise, as discussed above. In addition, efforts to reduce noise associated with the dumping of materials, particularly glass recovered through the curbside program can also be taken. These include commingling of glass with other recyclable materials, reducing dump heights and potentially eliminating glass from the curbside program, although we are not recommending the City consider doing so. Overall noise associated with residential collection operations at the point of collection would not be reduced under a districted collection system since it does not reduce the number of pickups, only the number of vehicles making those pickups. The noise produced in transit from point-to-point would be reduced however due to fewer vehicles. The noise associated with collection operations would also be limited to a specific day in each neighborhood. Time of Collection Section 15.423 of the City’s Municipal Code [Hours of Operation] states that, “No collector shall operate any vehicle for the purpose of collection of solid waste, recyclables, food scraps, or yard trimmings on any non-arterial street as designated by the City’s Master Street Plan between the hours of 7:00 p.m. and 7:00 a.m.” Time restrictions placed on residential collection activities are common. Some jurisdictions also limit the time of commercial collection activities, which by their nature are noisy, within a specified distance of residential neighborhoods (e.g., not before 7:00 a.m. within 200 feet of a residential area). The City’s municipal code does not place any limits on the time of commercial collection other than as specified above. Vehicle Maintenance Effective vehicle maintenance can also reduce noise. Assuring that vehicles are well built, tight-fitting and well maintained will help reduce vehicle noise. Recommendations Contract or district collection services to reduce Refuse Vehicle noise. Require all Refuse Vehicles to be equipped with operate-in-gear-at-idle technology. 17 Ahhhh…the Peaceful Sounds of Garbage Trucks; N. Stiles; MSW Management May/June 2007. 18 Note: Any vehicle specification requirements need to consider applicable local, state and federal requirements. June 6, 2022 Page 8 of 9 Consider requiring the testing/use of at least one electric Refuse Vehicle should the City contract Citywide services to a single hauler. Refuse Vehicle Safety Background / Overview Solid waste operations can pose safety risks to employees and the general public. The consideration of “Safety First” is central to an effective solid waste management operation as safe operations enhance productivity and profitability. According to the Department of Labor Statistics, Refuse and Recyclable Material Collectors have the one of the most dangerous jobs in the country with a fatality rate approximately 10 times the national average. A University of Miami study found that the leading cause of on-the-job fatalities for refuse and recyclable material collectors is impatient motorists who try to pass the garbage truck and hit the collector. Trash collection activities also result in interaction with the general public and as such generate the potential for public safety issues. Efforts to reduce those interactions (e.g., contracted or districted collection), make the public more aware of collection vehicles and drivers (e.g., signage, lights), and providing drivers with additional training and tools to provide for safer collection operations (e.g., video recorders) all contribute to increasing public safety as it relates to trash collection services. Waste Management, Republic Services, and Waste Connections all have reported safety records that compare favorably to the industry average. Waste Management Inc., the largest solid waste services provider in the country, has a model “Mission to Zero” plan and has significantly reduced worker injuries since the model was implemented. Republic, the second largest solid waste provider in the country, has paid particular attention to vehicle safety, including adding or replacing all incandescent lights with LED’s and additional LED strobe lights on each side and the front of the vehicles. Many of the vehicle specifications, and other best practice industry safety initiatives have been embraced by the National Haulers to varying degrees. Best practice vehicle safety systems include:19 Collision Avoidance Systems and Advance Driver Assistance Systems - Smart vision sensors can detect possible collisions with other vehicles, pedestrians, cyclists, and fixed objects and alter the driver visually and audibly to take proper measures to avoid collisions. The addition of smart sensors to the sides of large trucks addresses the blind zones and obstacles experienced by the operators. In-Cab Recording Systems - Automotive recording systems have become a staple for many companies. In-cab recorders typically have two cameras, one facing inside the cab and the other showing the view outside of the windshield. Most systems allow for extra cameras that can offer supporting views including backup views, side views and extra interior views. Recorders serve multiple purposes for both the operator and fleet manager. For the driver, most recorders also incorporate an event alert system that will chime when an event such as speeding or harsh braking occurs. The chime reminds the driver to take action to correct or avoid another event. Many are used as a “what happened” tool after an accident and can provide irrefutable evidence to exonerate drivers if they are the subject of a false liability claim. In-cab recorders can also offer live tracking and streaming via 4G LTE allowing managers to track vehicles throughout the route. Multi-Camera Systems - Camera and monitor kits can act as extra eyes and ears for drivers. The most commonly used camera is the backup camera used to show the otherwise “blind area” behind a vehicle during reversal. This may be sufficient for standard cars, but larger vehicles have many more blind zones to cover around the vehicle. New surround view camera systems provide a 360° aerial view of the vehicle and cover the immediate perimeter around the vehicle. This is achieved by “stitching” together the image from multiple cameras—typically four. This is a game changer for 19 Source: https://wasteadvantagemag.com/how-to-maximize-the-safety-for-waste-trucks-and-operators/ June 6, 2022 Page 9 of 9 waste truck operators. With the use of a surround view system, immediate blind zones around the vehicle are visible to the truck operator. The City may also wish to require haulers to report overweight vehicles periodically (e.g., monthly or quarterly) and potentially establish fines for overloaded vehicles. Overloaded vehicles present a safety hazard and are of particular concern with respect to Refuse Vehicle impacts on the City’s streets, most notably residential streets. The impact of Refuse Vehicles on the City’s streets increases exponentially with weight, and as such overloaded vehicles exert significantly greater impacts on the City’s streets than vehicles that do not exceed their legal load weights. Recommendations Contract or district collection services support increased Refuse Vehicle safety. Consider requiring that all Refuse Vehicles be equipped with the state-of-the-art safety technologies as conditions of the City’s hauler licenses or contracts. Consider requiring haulers to track and report overweight vehicles. DRAFT 1 ATTACHMENT 5 DRAFT In a contracted system, haulers compete for the chance to provide service to all homes in a neighborhood. Large multifamily complexes (more than eight units) are exempt by state law, and households that want to use a different hauler can pay an opt-out fee. Potential benefits of a contracted system can include receiving lower, “bulk” rates for collection services, reducing noise, pollution, and road wear-and-tear from truck traffic, and increasing options for recycling and composting. Potential drawbacks can include a lack of individual choice, reduction in the number of companies providing services, and a loss of ability to customize services to meet individual needs. In June of 2022, City staff gathered feedback at virtual information sessions, in-person outreach events, and through online surveys and forums. In total, approximately 300 residents shared their thoughts and priorities for their trash and recycling services. These efforts built on previous engagement surveys, and sought to prioritize feedback from traditionally under-surveyed populations (low-income households, etc.). Many mentioned the urgency of taking action to protect the environment and curb the effects of climate change. Some expressed a desire for increased recycling and/or composting services, but low prices were a higher priority, particularly for renters and respondents under 30. Comments related to personal choice frequently cited a lack of trust in City government, and uncertainty that the benefits warranted the risks of this potential path. Finally, while specific services for “low-generators” who do not have or currently underutilize their trash service was not a priority in the survey, it came up frequently in comments as important to uphold the goals of a contracted system and maintain low, fair pricing. 2 DRAFT Demographic Summary The City received 211 responses through an open survey posted online on the OurCity engagement page. In addition, 29 responses were received in person and online through targeted outreach to typically under-surveyed populations, including low-income households and renters for a total of 240 survey responses. An additional 61 comments were received through an OurCity open forum (43), and through email to City staff (18), and approximately 25 people participated in two online events regarding a potential contract. No demographic information is available for emailed comments, forum comments, or event participants, but survey respondents were asked to fill out optional demographic information on their age, income, and homeownership status, among others. Thus, in the following sections we distinguish “respondents” from “commenters,” and any demographic information only refers to those who filled out the surveys. The City used a targeted survey in an attempt to reach typically under-surveyed populations like renters and low-income households. Targeted engagement efforts were successful in reaching more low-income households and better reflecting community rates of homeownership, but residents under 30, Spanish-speaking residents, and those in manufactured housing remain under-represented in this sample. Category All responses Targeted survey Age 60+ significantly over-represented 20-29 under-represented 60+ significantly over-represented 20-29 under-represented Income Low income households under-represented Low-income households over-represented Homeownership status Homeowners significantly over-represented Homeowners slightly over-represented The following sections include some breakdowns by homeownership status, income, and age in an attempt to better represent the perspectives of our diverse community. Renters and respondents under 30 frequently had similar priorities. While these groups overlapped to some extent, not all renters fell into the under 30 category (and vice versa), and each should be treated as a distinct group. Overall, it is important to treat these results as a “slice” of community feedback and not a representative sample of community sentiment. More detailed information on the survey sample, and how it compares to Census Bureau estimates of community characteristics will be available as an appendix to the final report. 3 DRAFT Overall Feedback and Priorities Key Findings ●Environmental impact, low, stable costs, and quality customer service were most important to survey respondents ●Low, stable rates were particularly important for low-income households and renters. The majority prioritized lower prices over additional services, though some commenters expressed a desire for more options for composting, yard trimmings, and other services that would support waste reduction. ●While personal choice was extremely important to about 20% of respondents, most groups ranked it the lowest of the six priorities. ●Among commenters, 43% submitted comments in opposition. Many of these comments cited the importance of personal choice. 30% of comments were in favor of a contracted system, citing a mix of potential benefits to the environment, costs, and services. Survey respondents were asked to rate the importance of a variety of different priorities related to environmental quality, cost, and services. Environmental impact, low, stable costs, and quality customer service were most frequently cited as “extremely important.” Priorities with the highest percentage of “extremely important” responses All responses (240)Targeted survey responses (29) Reducing air pollution (60%)Reasonable cost (90%) Reasonable costs (59%)Stable, uniform rates (86%) Quality customer service (52%)Quality customer service (75%) Consistent recycling education Reducing illegal dumping (tied,47%) Reducing air pollution (67%) Among all responses and in the targeted survey, alley pickup and personal choice were among the least likely to be “extremely important.” Personal choice was “extremely important” for 22% of all respondents. When asked to rank across different priorities, more than half of all respondents (53.4%) said that meeting environmental goals was the highest priority. About 17% of respondents ranked personal choice as their top priority, though for most it was the lowest priority. Another 15.5% of all responses said that low prices were their top priority. 4 DRAFT All responses Targeted survey Under 60K Renters Under 30 Over 60 Environmental goals Environmental goals Environmental goals Environmental goals Environmental goals Environmental goals Lowest price Customer experience Lowest price Underserved populations Underserved populations Lowest price Customer experience Lowest price Underserved populations Lowest price Lowest price Customer experience Underserved populations Underserved populations More services More services More services Personal choice More services More services Customer experience Customer experience Customer experience More services Personal choice Personal choice Personal choice Personal choice Personal choice Underserved populations The following sections contain illustrative quotes and key findings for each priority area, in order of prioritization by respondents to the targeted survey. Environmental Goals Zero waste and other environmental goals are the highest priority for me since it affects all others. If we trash our planet and continue to pump CO2 into the atmosphere we are all in big trouble. Without a healthy environment/zero waste there will be nowhere safe to live. We have to take care of our earth! Key Findings ●Making progress towards zero waste and environmental goals was the top priority for respondents. Comment in the survey, online, and through email expressed the urgency of taking action to address climate change. ●Reducing air pollution from trash trucks was of high importance to many respondents, with an average rating of 4.28 out of a possible five. Renters and respondents under 30 gave this a higher priority ranking. ●Consistent recycling education was also a relatively high priority (4.2 out of 5). 5 DRAFT Improved Customer Experience “I want the best possible pickup service and a customer service dept. that is staffed with friendly, helpful and knowledgeable employees to solve pickup problems in a timely manner.” “The present system is the best I have dealt with in the many communities I have lived in. I have lived in communities with community run trash collection and it was very poor compared to service in communities with private servers.” It’s important to me to be able to speak with a local representative…. I like smaller businesses because I feel the service is better, all-around. Key Findings ●Current experiences of customer service were mixed. Just over half of respondents had a positive experience with customer service. Respondents to the targeted survey were slightly more likely to have had a negative customer service experience. ●Consistent, quality customer service was a high priority, particularly for respondents over 60. Respondents rated the overall quality of the service as more important than a dedicated local line, but many comments noted benefits of local customer service. Lowest Price Trash is an essential service, and I think that having the lowest price possible will help reduce cost burdens on low-income families. “To me, the lowest-cost solution is most important.. Please do not shift to a city contracting system, as it places everyone at risk for hiked rates due to low competition and squeezes out true market competition that keeps prices low.” Key Findings ●Low prices were extremely important, particularly for low-income households. ●In the targeted survey, stable rates were a higher priority than low-income rates, even though many respondents may qualify for a low-income rate. Some respondents over 60 shared that they were on a fixed income, and expressed concern about rising prices. ●When asked to choose between lower prices or more services, two-thirds of respondents chose lower prices. 80% of renters prioritized lower prices over more services. 6 DRAFT More Services “ I live alone and have very little trash, but must pay as much as those who have four times as much.” I would love for the City to contract for city-wide waste hauling service that includes yard waste and food scrap waste for everyone. I don't like that yard waste is presently a separate charge…and is more expensive than trash service, which does nothing to encourage people to adopt the habit of composting food scraps. Key Findings ●Most respondents had traditional curbside trash and recycling service. Few had existing service for yard trimmings (20%) or food waste (5%). ●Some commenters who received contracted service through their HOA wanted to keep their existing contracts and not participate in a Citywide contract. ●Additional pickup services for yard trimmings and bulky items were only moderately important for survey respondents. Commenters were more supportive of additional services, particularly food waste pickup/composting services. ●Options for “low-generators” were not highly prioritized in most survey responses, but were extremely important for commenters. They emphasized that a low-generating option was important for fairness, keeping costs low, and meeting zero waste goals. ●Approximately 60% of respondents preferred an “opt-in” model for things like bulky items and yard trimmings. There was slightly more support for bundled service for bulky items, especially among respondents to the targeted survey. Access for Underserved Populations Without first addressing the underlying inequity in society, I fear that we won't be able to successfully tackle issues like reducing environmental waste, etc. I find that the underserved get a raw deal in Fort Collins. I'm new to [the] area. Also zero waste and environment are crucial for me. Key Findings ●Renters and respondents under 30 prioritized services for vulnerable and underserved populations more highly than other respondents. ●Access for non-English speaking households was a moderate priority for respondents. On average respondents rated it a 3.46 out of 5, though this was higher among respondents under 30 and those renting their homes. 7 DRAFT Personal Choice “The personal choice for which company picks up our trash should be ours to make. We do not need more government telling us as citizens who live in a free country who we can hire to handle our trash collection.” “The right to choose the company of our choice for this service is important. Freedom of choice is necessary, especially for individuals on fixed incomes!" Key Findings ●Personal choice was the lowest priority for most survey respondents, but people over 60 on average ranked it fourth out of the six priorities. ●In questions about services, respondents generally preferred to choose or “opt-in” to expanded services rather than bundle them or have the option to opt-out. ●Potential opt-out fees sparked strong negative reactions among some commenters who felt it punished choice. Comments in favor or undecided also worried that “opt-outs” would water down potential environmental benefits. ●Commenters felt that the current system was the best way to maintain competitive pricing and incentivize good customer service because it allowed for choice. ●Comments about personal choice were also closely linked to ideas about the role of government. Commenters felt that a contracted system was outside the scope of local government, and did not trust the City to execute a contract well. Conclusion Respondents identified progress towards environmental goals, quality customer service, and low, stable pricing as top priorities for trash and recycling services. The emphasis on quality and cost was also found among commenters, and many who opposed a contracted system did so because they were worried it would affect the quality and cost of their services (though some were opposed to any increased government role in curbside services). Tensions remain between increasing services to better meet zero waste goals and keeping costs low. While some have strong feelings about personal choice of hauler, more seem to prioritize choice in the services that they receive, preferring “opt-in” services and different sizes of services that allow them to customize their service to their needs and budget. If a contracted system is implemented, it may be wise to offer different “packages” that meet the needs of low-generators, budget-conscious, and environmentally conscious households. Ultimately, though cost is an important component of these services, responses suggested that this decision is not just a matter of economics. It is important to recognize that, while most people likely do not think about their trash/recycling service on a daily basis, people still place a great priority on these services and want to be deeply involved in decision-making to ensure their values and priorities are accurately reflected in their services. 8 Economic Health Office 300 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.221.6505 970.224.6107 – fax fcgov.com MEMORANDUM DATE: June 27th, 2022 TO: Mayor and Councilmembers CC: Kelly DiMartino, Interim City Manager; Josh Birks, Economic Health and Redevelopment Director FROM: Renee Walkup, Chair – Economic Advisory Board; John Parks, Vice-Chair – Economic Advisory Board; and Members, Economic Advisory Board for 2022 RE: SUPPORTING A SINGLE CONTRACTED PROVIDER RESIDENTIAL WASTE & RECYCLING SYSTEM On April 20th and June 15th, 2022 the Economic Advisory Board received presentations from city staff about the proposed residential contracting proposal for waste and recycling service providers. We were pleased by the findings of the city staff about the advantages of this proposed system. As community members, we have been concerned and somewhat perplexed by the plurality of trash and recycling hauler services that frequent our neighborhoods. We also recognize that making real progress on the road to Zero Waste is one of the priorities of Council. Reducing the number of trash haulers has been proposed several times before, and now is the time to implement it. Therefore, the members of the Fort Collins Economic Advisory Board support the proposal of adopting a single provider contracted residential waste and recycling system for the following reasons: 1.The city would save roughly $600,000 in annual road repairs. 2.It would reduce the GHG emissions from redundant waste and recycling trucks. 3.The city could control the rates that the provider charges customers. 4.Increased road and pedestrian safety from redundant trucks. 5.Decreased noise from redundant trucks. 6.There is the potential for more feedback from the provider to customers in terms of recycling protocols to avoid contamination. Additionally, the contracted system bundled with yard waste has the additional benefits of increasing residential participation in the yard waste program dramatically, which would divert a considerable amount of waste as well as reduce waste related emissions. If bundling the yard waste in the contracted system is found to be economically feasible, we would also recommend the inclusion of this option. Adopting the single provider contracted residential waste and recycling system bundled with yard waste would help to attain the following city goals: •2020 Strategic goal: Environmental Health 4.3 o Enhance efforts to achieve 2030 zero waste goals •2021 Our Climate Future Big Move 2: Zero Waste Neighborhoods ATTACHMENT 6 MEMORANDUM NATURAL RESOURCES ADVISORY BOARD DATE: July 6, 2022 TO: Mayor and City Council Members FROM: Natural Resources Advisory Board SUBJECT: Contracting of Waste Pick-Up and Hauling Proposal Dear Mayor and Councilmembers, On June 15, 2022, Kira Beckham, Lead Specialist for Waste Reduction and Recycling, presented on the council priority of exploring a districted system for garbage, recycling, and compost, and the subsequent recommendations for a single-hauler contracted system. The purpose of this memo is to express the Board’s support for the proposed single-hauler contracted system for waste pick-up and hauling. The Board further supports the adoption of Package B, the diversion-focused option. As a Board that prioritizes the conservation of natural resources and the impact they have on the future of our community, we see the single-hauler contracted system as beneficial because it foremost allows for fewer haulers to be on the road. The benefits of this include: ●A decrease in greenhouse gas and other harmful emissions ●An improvement in air quality to benefit public health ●A decrease in street maintenance costs associated with having fewer haulers on the streets ●An increase in safety for all users of city streets, especially within our neighborhoods The Board supports the diversion-focused option, or Package B, and promotes the inclusion of the following items that will provide additional environmental and social benefits to Fort Collins community members: ●Yard trimmings to be bundled with waste/recycling ●Addition of composting when available ●Bulky waste collection by request ●Low-income program ●Alley and valet service 1 ATTACHMENT 7 Additionally, the Board would like to advocate for lower and zero-emission vehicle options as it pertains to the review process of future and/or continued contracts for a single-hauler system. We see this as instrumental in achieving Our Climate Future goals, particularly as it pertains to the “Big Move 2: Zero Waste Neighborhoods” and additional environmental health goals outlined in the City’s strategic plan. Thank you for your time and consideration on this issue and its future implications for the community. Very Respectfully, Dawson Metcalf, MS Chair, Natural Resources Advisory Board 2 ECONOMIC ADVISORY COMMISSION TYPE OF MEETING – REGULAR June 15, 2022 4:00 – 6:00 pm Via Zoom 06 /15 /22 – MINUTES Page 1 *** MINUTES ABBREVIATED TO ONLY INCLUDE ITEMS RELATED TO TRASH AND RECYCLING CONTRACTING CONVERSATION***** 1.CALL TO ORDER 4:07 pm 2.ROLL CALL •List of Board Members Present o Renee Walkup o Blake Naughton o Aric Light o Mistene Nugent o John Parks o Thierry Dossou •List of Board Members Absent – Excused or Unexcused, if no contact with Chair has been made. o Brauilo Rajoas o Denny Coleman o Jeff Havens •List of Staff Members Present o Shannon Hein, Acting Staff Liaison, Economic Sustainability o Kellie Falbo, Executive Director, Sustainable Living Association o Dustin Spears, Program Assistant, Sustainable Living Association o Pete Iengo, Community Engagement, Utilities o Javier Echeverria Diaz, Sr Analyst, Finance o Sylvia Tatman-Burruss, Sr Project Manager, City Manager’s Office 3.NEW BUSINESS ATTACHMENT 8 NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 0 6 /1 5 /22 – MINUTES Page 2 • Single Family Trash, Recycling, and Compost Contracting − Presentation from Sylvia Tatman-Burruss. − This fits into our adopted plans and it is a Council priority. It is part of Our Climate Future and the big move zero waste neighborhoods that creates a zero-waste system in the City plans and part of the City Strategic plan. − There are multiple types of systems. Pure open markets do not have regulations. Open market with licensing, which is how the City is currently operating. It requires haulers to be licensed with the City. In Fort Collins, we currently require recycling to be bundled with trash services. There are some things that can be required under a licensed system but essentially still open because the haulers can operate on the same street. HOAs can opt into a contract where their trash is paid through their HOA dues. − The City is looking at a contracted system. Multiple municipalities have gone to this type of system. It is done through a competitive RFP process. It could be for multiple haulers within a districted system or one hauler. A lot of communities our size go with one hauler. This is different from a municipal hauling system. Loveland is the closest community that has municipal hauling. − Fewer trucks in the neighborhoods is one of the elements that is specifically addressed by contracting. Neighborhood HOAs that contract would likely stay the same. − Q (Mistene) Will you allow the HOA’s to continue as they are? − A (Sylvia) That will be a conversation with Council. That is one option. It is one we are leaning towards because a lot of peer communities do that, and it can be contentious for neighborhoods that want to stay with their hauler that already have a contract. − Q (Mistene) So haulers with HOA contracts would be grandfathered in? − A (Sylvia) They could be. We will discuss it with council. They could continue their current contract. We could require them to come onto the City’s contract once theirs is over, so they won’t be penalized for breaking a contract. We could essentially allow them to be grandfathered in and just stay with their contract. We would hope that we could incentivize them into the City’s contract by the economy of scale and that it would be cheaper for them to come on with the City. − Q (Renee) Would the HOA just pay the City? NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 0 6 /1 5 /22 – MINUTES Page 3 − A (Sylvia) It could be individuals, or we could work with the hauler. That is something we would need to figure out depending on which way Council wants to go. − Presentation There could also be predictable pricing. There probably would be escalations or ways they could increase pricing for things like gas or changes we don’t have control over, but it would be more predictable. Equity and customer service is something that would also be addressed with a contract. There could be a low-income program. We could also require a valet service for people who qualify for the driver to go get their bin and bring it to the curb and then back. − The contract would only apply to single family homes, duplexes, townhomes, condos, and multifamily complexes of 7 units or fewer. That is a State law requirement that it cannot apply to multifamily complexes of 8 of more, businesses, construction sites or industrial. We might be able to offer it to them if they want to opt in. Contracts may apply to HOAs that are contracted for trash and recycling services now. − Q (Mistene) What is the rationale for the exclusions. − A (Sylvia) That is State law that it can only apply to single family homes. We could offer it to them if they want it. Haulers get a lot of revenue from those, so I think the State wants to protect those industries. − Q (Mistene) Do you have any information on what year that law was passed? − A (Sylvia) I am sure Caroline does but that is something I can find out for you. I am not sure if trash contracting was always allowed. I think that has changed to allow municipalities to do what we are trying to do. I am not sure on the history of it. − Presentation We did studies for the waste truck impacts in terms of road maintenance, greenhouse gas emissions, noise, and safety. Our current system is costing the maintenance fund and community around one million dollars. A hauler truck is about the equivalent of 1200 cars on a street if they are at legal weight. − Q (Renee) So one trip is 1200 cars? − A (Sylvia) Yes so you can imagine if there are three haulers on one street picking up trash, recycling, and maybe yard waste every week, that is where the impact is coming from. These are some general numbers from the impacts on our roads. We cold get more specific but NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 0 6 /1 5 /22 – MINUTES Page 4 if you were to move up to more haulers, that could increase. If we go with one hauler in the contracted system, we will get to a much smaller number around $300k instead. − Comment (Renee) I didn’t see these numbers on the slide and would recommend you relay that information to Council in writing. − Comment (Sylvia) There is a slide coming up with those numbers. − Comment (Renee) That is what is costing us money, it’s the damage on the streets. − Presentation We also did a pricing study, we know that our neighbor could be paying a different price for the same service with the same hauler. We collected bills from employees of the City and then the community. We are still doing the data but the range for the small cart is $10-16/month. We learned that the $10 is from the new hauler Mountain High and we think they have that price set to start trying to get in the market share, but they would likely raise that to be more average. The $16 is from our mor established haulers. − Q (Mistene) So the smallest size is the ones you buy at Home Depot, not the ones the haulers provide? − A (Sylvia) 32 Gallons is the smallest size you see. 96 gallons is the big size that you see that the recycling bins also are. − Presentation The $23-36/month is for the mid-size and the larger size is $20-45/month. Now most people pay these as a quarterly payment. Yard waste is only offered by one hauler and that is $13-18/month. − Q (John) Did you get a decent number of bills? − A (Sylvia) We did get a decent number. We received a lot from employees and then the public. I don’t know the exact number, but it does give us a good range and understanding for the RFP. − Presentation These numbers are going to be compared to a single hauler with diesel trucks. Annual maintenance costs would save us ore than $600K. Green house gasses would decrease by 1200 for MTCO2e. A benefit to the contracted system is the ability to require things like compressed natural gas or electric vehicles, which would then save more. The large nationally owned haulers are better able to do that. − Q (Mistene) Is there a concern at the City level if they are a “small guy”? − A (Sylvia) It is interesting timing for this process because pretty much all the haulers that operate now are nationally owned. Even the new NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 0 6 /1 5 /22 – MINUTES Page 5 hauler is technically not locally owned. Their company is run out of Kansas City. There isn’t necessarily a small guy. − Q (Renee) What about Ram? − A (Sylvia) I don’t believe they are, but Caroline would know. I believe part of the timing is that there are not longer any of those small local haulers. They are accustomed to these RFPs and contracted systems. I think last time Gallegos was struggling with this because they were a local hauler, but they were bought out by Republic. − Presentation We are also looking at elements like noise reduction and even more if we require electric. Safety increases in neighborhoods due to less trucks. Again, there is the figure of one truck at the normal allowance of legal weight is equivalent to 1,250 cars. A lot of the trucks weight a lot higher than that. − Comment (Renee) If you multiple that by three for the waste, recycling and possible yard waste over two hours that is on one street… − Q (John) and they must go down both sides of the street. Is 1,250 when the truck is full or at its average weight? − A (Sylvia) I would need to look but believe it is average, not full, or empty. It also depends on the cars as well, are you looking at a smart car or truck? I think it is the average overall. − Comment (John) It would be nice to have that for Council. − Comment (Sylvia) We do have the reports from a third-party company in the packets for them. There would probably still be those three trucks going down the street every week each side because of the three different services but you won’t have to multiple that by three or four haulers. They currently must go down the street even if there is one person being serviced. − Q (Renee) I know this portion has not been presented to Council yet, but have you gotten any idea as to appetite on Council’s idea? − A (Sylvia) Because it is a priority of theirs, they have said we want to do trash contracting. This is not a staff led effort, it is Council telling us to do it. That is part of the messaging in the community too as to why we are doing it now. They see the benefit of it and want to get it done within their term and to get it done right. − Presentation Some other potential benefits include a yard waste opt in. We get about 15% of residential yard waste that is already being diverted. If we NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 0 6 /1 5 /22 – MINUTES Page 6 do a spring and fall pick up, assuming 50-60% of residential waste could be diverted we would see a 5-6% reduction in waste emission. If it is bundled, which is what we are recommending, assuming 85-90% could be diverted, we could see a 9-10% reduction in waste emissions. There is not a lot of people getting yard waste. − Comment (John) It would be nice to have the bundled option because I have neighbors who want it but don’t want to spend the extra money. − Comment (Sylvia) We would hope that with the economies of scale, for the RFP process and it being City wide, you would get the price reduction in trash services so the yard waste could then be added at a lower rate than what people are currently paying. − Presentation Food scraps is a future program as we don’t have the infrastructure for large scale composing in the region. I think Boulder might have the ability but that is too far. It is in the works and once it comes online, we could include it in the next contract as part of the service. − Q (Renee) what kind of composting, only certain foods? − A (Sylvia) It would depend on the facility and how they break it down. In communities in Seattle, you can put everything in there and if it ends up in your trash you can be fined. That is not something we could offer this round, but we could get 75% effectiveness we could see an 8% reduction in waste emissions if everyone has the option to divert their food scraps. − Presentation With a contracted system you can have a base and then work off it as other services become available like electric vehicles and food scraps. It would also help air quality because of the methane that comes off it. − Comment (John) Methane from landfills is a concern, but in our arid climate it is not as big as in a humid climate. The methanogens need an anerobic environment to do their thing, which is when they are wet. It makes me wonder just thinking about total volume waste diversion might be another useful metric. − Comment (Sylvia) We threw it out there since it is not something we can do right now but that is something we could say as a future savings benefit. − Comment (Mistene) I don’t see anything on recycling specifically. − Comment (Sylvia) That is because we already require it. − Q (Mistene) Does anyone have any feel for recycling from a market NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 0 6 /1 5 /22 – MINUTES Page 7 standpoint on if its really happening right now? − A (Sylvia) That would be a great question for Caroline as she has a better understanding of how much is getting recycled and where. − Comment (Mistene) We were at Taste of Fort Collins and there were not recycling bins, so my guess is it is not happening. − Comment (John) There was a recent study in the Guardian that said in the US 5% of plastics are getting recycled. There was also a recent bill passed at the state level that the producers are responsible for recycling. I am not sure how that will play into the full question, but it will take the burden off the municipalities and put it on the producers. − Comment (Renee) My husband volunteers at the recycling center and he reports numbers about it. He was telling me how cardboard is profitable, and plastic is not. He knew some of the numbers of what they get back vs what is costing them. Most of it costs the City money, but some of it doesn’t. I don’t know the numbers, but they are available. − Comment (Mistene) It also changes with the market right now. I used to work at a paper shredding company and sometimes they would make more money recycling the paper but sometimes they didn’t, and it would go to the trash. − Comment (Renee) The critical thing is where is the contamination? Let’s say its cardboard and its highly profitable and then someone throws a greasy pizza box in there, it can mess up the equipment. I don’t know what happens to everything, but they can take trips to the processing plants and see how it can mess up the machines and wholesale product. What makes me crazy is I look in the recycling bins and anything is in there. − Comment (Mistene) I have teenagers in my house, and it happens to me too. − Comment (John) That is something I would like to see come out of this is more of an educational piece. I get the feeling since there is market competition that there is no feedback from the haulers to their customers. − Comment (Mistene) I am skeptical, I think it is just going to the trash. I feel like I put all of my stuff in the recycling bin to make me feel better, but it doesn’t matter because nothing is getting recycled. − Comment (John) Republic is using the normal trash trucks to collect NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 0 6 /1 5 /22 – MINUTES Page 8 recycling. − Comment (Mistene) At least we have the façade because the recycling truck comes by. − Comment (Sylvia) I wish Caroline was here because she is very passionate about this, and she could answer that. We can get that from her because there is something within our licensed system that recyclers and haulers are required to report contamination rates and where it is going. They must go to particular places with the current licensing. Now where it ends up, I am not sure, but we could ask Caroline. − Comment (John) It just seems to me that if there is contracting then they are not concerned about losing customers and they could say this is contaminated we are going to note that to the customer and next time we won’t take it or something similar. − Comment (Sylvia) Part of the contracted system is some more control like that. There would be requirements for education, customer service, reporting or etc. more than what we have with the licensed system. We could also get more requirements in the licensed system, but I think you are right that there would be some benefit to contracted and having one hauler. − Comment (Renee) These are national companies so they might be working with cities like Seattle that are more particular and diligent. They would know what is accepted and not. − Comment (Sylvia) There are those benefits with national haulers and having the requirements in other communities. − Presentation Haulers that are not awarded a contract would continue to serve commercial, multifamily, and construction site customers. It could continue to service existing HOA contracts. They could shift staff; in the RFP we could require them to hire folks that were laid off. It is not necessarily something we will do. They would also have 12-18 months to plan for the adjustments. Companies like Republic are accustomed to this in other communities. It doesn’t mean there isn’t an impact on the nationally owned haulers, certainly each one wants the contract. I am sure they might prefer a districted system but there is a lot to that. − For the RFP we would have these different items that needed to be priced out. Within the RFP we ask for certain things. One of those is pay as you throw which is volume-based, based on the size of your cart. Recycling would also still be bundled with trash. Both are currently required under the licensed NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 0 6 /1 5 /22 – MINUTES Page 9 system for us. We are required by state law to have an opt out option which would look like an opt out fee. This is so we don’t get a bunch of folks opting out and going with a different hauler, because that would defeat the purpose. We are recommending a fee equivalent to the smallest trash cart service cost. These are things recommended to Council, but they could decide something else. That is particularly true in the districted decision. A lot of peer communities our size go with one district and that is for a lot of reasons. Billing is easier because if you have two different haulers you may have to charge a fee to level out the differences in pricing. The City would probably not do billing, it would be the hauler doing the billing. Managing two contracts is also a lot. We would need staff to manage two separate contracts with the different reporting requirements and things like that. We are recommending one district. Council could decide to do something else. I think we could look at an admin fee for reimbursement to fund the contract management. We could have a way or opt in option to offer service multifamily and commercial locations. There would also be requirements for GHG reduction and safety improvements. We are under review for what those percent reduction requirements might be. These are some of the base recommendations we are looking at there are some differences between program options. − We are recommending package A with the other pieces. We would look at yard timing to be either bundled all year, seasonally, or have an opt in option. Food scraps to be added when infrastructure is available. For bulky waste collection, we don’t want people just dumping those items, but we don’t want to encourage people to off load a bunch of waste, so we are looking at 1-3 bulky items per year by request and might have a size limitation. − Q (Renee) So like one sofa per year? − Comment (Mistene) Our neighborhood does a dumpster for three days following our garage sale − A (Sylvia) Yes that is one way to do it. I think there is a little bit of concern there if we do it City wide, its different equipment that brings out the dumpster. − Comment (Mistene) And could you even monitor what is going in the dumpster? − Comment (Sylvia) Right, it could be great for certain neighborhoods, and we could price out some roll off dumpsters, but it may not fit within out waste reduction goals, and so we are trying to find a middle ground. − Presentation (Sylvia) Carts are a big deal. I think it would cost around $11 NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 0 6 /1 5 /22 – MINUTES Page 10 million to buy carts initially. That is typical and could be financed as a fee that folks would pay. It could then go down to a maintenance fee after a certain amount of years. The City would own them, and the hauler would maintain them. That way if you switch haulers in a different contract, you won’t have to go pick them all up and redeploy them. You just keep your cart and if you wanted to switch sizes or needed another one, they could do that. − We would probably look at a low-income program, depending on the price we got back. That would be for people who either qualify for SNAP benefits or some median income percentage. That would be a qualify only program. We would also look at alley and valley services. We do have alleys within Fort Collins, and they are serviced different so we would want to include them. The valet service is for folks with physical impairment that cannot get their cart out to the street. − Q (Renee) So when it’s a residential alley, I wouldn’t think those vehicles can get in the alleys, are they wide enough. − A (Sylvia) I think with old town they are serviced by those trash trucks now, but we would want to make sure those are priced into the system. I am not sure how they are serviced now if it’s a different truck or someone hops off and manually loads it. − Presentation For HOA’s we are recommending them be able to opt in or they can remain on their own contract if they follow our requirements with recycling bundled and volume-based pricing. − We have an option B to show Council some differences but there are not many differences between them. − Comment (John) It sounds like it might be nice for us to put together a memo for Council for June 28th. − Comment (Sylvia) The next work session is on July 12th and the regular session is on July 19th. That is basically the resolution that Council uses to have us move forward with the RFP. We would move forward with decision making in December. − Comment (Mistene) It sounds like its not a formal yes or no but we are going to do this. The real decision will be the bundles and options. − Comment (Sylvia) July 12th will be a conversation around priorities and pieces they want. Then they will direct us through the process. They could later decide they don’t like any submissions and they are not going to do this or they will do it again. So, the decision to move forward with the RFP process is what we are looking for on July 19th. NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 0 6 /1 5 /22 – MINUTES Page 11 − Q (Mistene) Are you only submitting the RFP to providers that are already in our market? − A (Sylvia) No, I don’t think so. I think it is required to go out to everyone. − Comment (Sylvia) As a group for you could recommend anything from these things. You could weigh in on whether to move forward with the contract or if you support what we have right now. We could offer our team to come back with any details you might need. − Comment (Renee) Usually as a board we create our recommendation, which is usually in alignment with staff and then we polish it and send it off. We don’t have quorum anymore so we can just discuss. − Comment (John) I would support drafting a memo to support the districting/contracting. What is everyone’s thoughts − Q (Mistene) I say keep it simple for efficiency for the City. Are you saying districted or one hauler? − A (Sylvia) So the contract is either districted or one hauler. Contracted is different from licensing. Right now, we are licensed; contracting would be moving to either one hauler or districted. Districted would be potentially 2 or more districts. It is a bit confusing. − Comment (Renee) I see districting as geographic − Comment (Sylvia) Yes so it would be breaking up the City into districts. − Q (John) So if we say we support districting that would mean supporting either one hauler or multiple haulers? − A (Sylvia) It would be more if you say I support a City contracted system and then we either do or do not support districting. Districting would be breaking the City up into two or more areas. A contracted system could be done with one hauler. A contracted system could also be done with multiple haulers and then it would be a districted, contracted system. − Comment (Shannon) And that would dictate the RFP process and how it is flushed out. − Comment (Sylvia) Yes Council could say structure the RFP to be contracted and districted. Here is the map of the districts. − Comment (Renee) So we should tell Council that we support, keep it simple. NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 0 6 /1 5 /22 – MINUTES Page 12 − Comment (Mistene) The question is what do we support? It sounds like we are moving to contracting so for us to say we support contracting doesn’t add value. − Comment (Renee) Well it is not decided. Council has a priority, they take it to the City and the City says we will do research, investigate and then make a recommendation. That is what they are doing. As a board and we don’t have to agree with everything, but if we think it is a good idea, we send a memo to Council saying we support this and here is why. They can listen or the don’t have to. It is a way for us to have some input − Comment (Mistene) So we would say we support contracting, should we take it to the next level and say we support districting or one hauler? − Q (Renee) We could say one hauler, right? − Q (John) What would you support? − A (Renee) I know there are restrictions, but I would say we support one hauler per district to help with street repairs, traffic, safety. It doesn’t make sense to have 2 haulers per neighborhood due to impact. − Q (John) Based on your presentation, what are you moving towards? − A (Sylvia) We are moving towards a single hauler as a recommendation because of the efficiencies it creates. But the districting could include more than one hauler. The Mayor has asked about it from a City management of the contract perspective. We see it would require more resources to do. − Comment (John) I would support contracted single hauler. I think it makes the greatest amount of savings. − Comment (Renee) I agree − Comment (John) I see no reason to have a choice for your hauler. − Comment (Mistene) It is trash and it’s costing us a lot of money. − Comment (Renee) Legally though people must have a choice. − Comment (Sylvia) You must have an opt out and we would recommend it being an opt out fee. The fee would be the lowest level of service, so you might as well just have the service. − Comment (Mistene) The market will take care of itself. Someone is going to win he contract. We might have a few HOAs but even the ones with HOAs might not have enough business. NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 0 6 /1 5 /22 – MINUTES Page 13 − Comment (Renee) Multifamily housing too. − Comment (Mistene) It will play itself out. − Comment (John) The one with the contract will be more efficient than anyone else. − Q (John) Mistene, are you agreeing with one hauler? − A (Mistene) Yes. − Renee supports as well. − Sylvia mentioned they can add any of the details, like yard trimmings or anything important to them. Renee stated they like to keep it simple to better ensure it will be read. − Renee will send out an email to the Board that will include the presentation to get a vote with quorum for the memo. 4. ADJOURN - 6:00 pm NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR June 15, 2022 6:00 – 8:00 pm Via Zoom 06/15/2022 – MINUTES Page 1 *** MINUTES ABBREVIATED TO ONLY INCLUDE ITEMS RELATED TO TRASH AND RECYCLING CONTRACTING CONVERSATION***** CALL TO ORDER 6:02 pm ROLL CALL •List of Board Members Present – −Barry Noon −Dawson Metcalf - Chair −Drew Derderian −Victoria McKennan −Kevin Krause- Vice Chair −Danielle Buttke •List of Board Members Absent – Excused or Unexcused, if no contact with Chair has been made −Hillary Mizia −Avneesh Kumar •List of Staff Members Present −Honore Depew, Staff Liaison −John Phelan −Kira Beckham −Kelly Smith •List of Guests −none 1.NEW BUSINESS a.Contracting of Waste Pick-up and Hauling – Kira Beckham, Lead Specialist for Waste Reduction & Recycling, presented and discussed considerations for a contracted system of waste pick-up and hauling for households within the Fort Collins community and received feedback on options for the issuing a request for proposals ATTACHMENT 9 NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 0 6 /15/2022 – MINUTES Page 2 (RFP) and hauler selection process, prior to a July 12 Council Work Session. (Action) − Discussion | Q + A − Danielle – Q – I appreciate data where you can pinpoint wear and tear on the roads because of the multiple heavy trucks. Is there any data from other communities on a similar analysis regarding air pollution specifically thinking about diesel and being that it is one of the most harmful pollutants from a human health perspective? We are in one of the worst air quality cities in the nation and there are not that many diesel sources that are this heavy of use. Kira – A – We have come across that data and have looked at the overall emissions. What is interesting is when we looked at the emissions that are impacted, when you bump them up against the overall greenhouse gas inventory, they are a small percent of the overall picture. We see more measurable success when we start playing in the compost and waste diversion. The road maintenance becomes more quantifiable factor for us than the emissions themselves. Danielle – Comment – If you look specifically at black soot, PM2.5, and nitrous oxide, you might find more of a contribution from these trucks as those are unique to diesel trucks and are higher, the heavier the vehicle. Kira – Comment – One element we didn’t go into a lot of detail in because we are still exploring it is we can look to require moving toward compressed natural gas (CNG) or electric vehicles (EV). The big win with a contracted system is we can start small and grow overtime; it gives us the foundation we need to start to move in that direction. On one side you have price and the other hand the different attributes we can ask for. It will be a tradeoff. Danielle – Comment – I think that is also a great opportunity to think about those things. Middlebury, Vermont has trash haulers that use horse and buggy. It can be done and there are other options out there. I think incorporating language so that this can be flexible and adaptable based on regulations and technology as it comes out will be key. Kira – Comment – The contract terms then to be in the range of 3-7 years. − Danielle – Comment – There is always going to be this chicken and egg problem. There isn’t going to be a food scrap facility or service until you have people that are willing to bring it. Market players can have outsized impacts on development of new markets for these products or development of food scrap composing. I think that is another incentive point if you are looking at rating and ranking RFPs; one might have a relationship with a potential food scrap facility. Kira – Comment – Part of that discussion relates to the Larimer County Landfill, the Regional Wasteshed, and the capabilities new facilities may have. So we do have a team working closely with them to understand what will and will not be possible and how local flow control of various materials might influence that. They are very passionate about getting to NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 0 6 /15/2022 – MINUTES Page 3 haulers having those relationships or their own capabilities. It will be key. One question we have gotten a lot from the community is about what will happen to the haulers/owners that don’t get selected if we go with a one contract system. The contract wouldn’t be implemented for 12-18 months after a final decision has been made so there is time for the haulers to respond and adjust staffing levels. They will still have several HOA customers that are already contracted. Three out of four haulers are large national haulers that are used to these shifts at local markets and also service surrounding areas. − Kevin – Comment – I love this project and I think it’s so on point and big for the community based on the data and some of the goals. I just want to piggyback on Danielle’s point of not just looking at greenhouse gas emissions. The one thing that came to mind is tire particulate because that alone for a bunch of heavy trucks is not insignificant. There are a bunch of these layers that make it so obvious that this is a great path for our community, and I would love to see as many of those pointed out as possible. Just as far as other options for actual service for lessening waste in the community and increasing efficiency has been to do every other week option for trash; our small bin is still too big for us. Kira – Comment – Those are two things we have heard loud and clear from our community. They want that very low volume option, not only for pricing but because it is the right thing to do. We are looking at an individual bag capability and have explored the idea of every other week trash. Right now, our base model is assuming weekly trash and recycling and, if we bundle it, yard waste. The main reason for that is the efficiency’s but we are looking at all the considerations. I think that also becomes an even more viable solution as we get increased composting for food scraps because that eliminates a lot of concerns about rodents and smell that become a real factor when talking about what’s currently in people’s trash. − Kevin – Comment – I am curious if we talk about solar, paying your own way and equity, I am curious if you start to thread some of these things together. Let’s say I opt for a 75-gallon bin every week because I throw everything in the trash and don’t compost or reduce where I can versus being a really low trash user. Are the heavy trash users paying their own way in the community because they are increasing impacts on the roads, other facilities, and emissions? I think this is a bigger discussion for our board later, but it feels funny to me. Maybe the pricing and incentives will play out. There is the cost of the disposal but then there is an impact on city facilities like roads but just having more waste. Kira – Comment – We are looking at that, but it is a little tricky in terms of the pay as you throw design to charge more from a rate perspective for the heavy users directly. One of the other things that we have recognized with the increased price that is incurred from an open market NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 0 6 /15/2022 – MINUTES Page 4 system today is there are communities that charge a road impact fee because the city is subsidizing. So, there are considerations on a road maintenance fee and that fee shrinks a lot when you move to a contracted system because you have a lower impact on your roads. − Dawson – Q – What is the timeline on crafting a memo? Kira – A – The July 12th work session materials are due by Wednesday, June 6th. − Honore – Q – If the Board decides to act related to this item, I saw you presented on two options. Is there one that is a staff recommendation or are you presenting them side by side as optoins? I know this board tends to be concerned about overall ways to reduce waste, emissions and be efficient, so is there one option that would be more effective in advancing towards adopted goals? Kira – A – I think it really depends on which one you are homing in on. Whether you are focusing on diversion, equity, or something else. We have a recommended package but again that doesn’t narrow on things like yard trimmings, so I think I would almost suggest focusing more on some of those nuisances or in general in favor of a contracted system. I think it might be the independent elements that become more important to Council and speaks loudly. − Kira will share slides with Board. 2. OTHER BUSINESS a. Memo for Contracting for Waste Pick-up & Hauling − Danielle makes a motion that the Board approve a memo in support for the waste hauling plan that was presented with the addition of advocating for incentives to rate proposals that have either lower emissions, zero emissions, or future for lower emission vehicles and that allows for faster and/or more accessible food scrap pick up in the contract. Dawson Seconds. Passes 4-0- 1. − Dawson will work on the memo and will send it out to the Board. − The Board discussed the option to have an in-person board meeting as it would be nice to meet everyone in person but for environmental reason go back to virtual meetings after. They decided on an in-person meeting for their May 18th Board meeting. − Board members looked at upcoming subjects through the summer. There was interest shown in land use code, trash/recycling contracting, active modes plan draft recommendations, Halligan water supply project update, NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 0 6 /15/2022 – MINUTES Page 5 and budget review. 3. ADJOURN - 8:52 pm Single Family Tr ash, Recycling and Compost Contracting July 12, 2022 City Council Work Session Caroline Mitchell Lindsay Ex Additional project team members: Kira Beckham Sylvia Tatman-Burruss Ashley Pace Sheela Backen Molly Saylor ATTACHMENT 10 2Question for Council Do Councilmembers have feedback about the recommendations to be included in a contracted system for residential waste and recycling collection program, which will be included in a Request for Proposals (RFP)? •Materials Collected and How •System Design 3Strategic Alignment City Plan Council Priority: Explore Districted System for Garbage, Recycling and Compost Principle ENV 5: Create a Zero Waste system. Environmental Health 4.3 Zero Waste Strategic PlanCouncil Priority Our Climate Future Big Move 2: Zero Waste Neighborhoods Aligned: Advance Regionalism Accelerate Composting Improved Air Quality Enhanced Recycling Education Critical Path to Achieving Climate Goals (composting) 4Impacts of an open market hauling system Fort Collins’open market trash and recycling hauling system creates: $603,000 more street maintenance cost every year (67% more) $14 million of the $82M street maintenance backlog is due to open market system If there were 7 haulers in neighborhoods, would be $1.25 million more than single hauler 1200 MTCO2e greenhouse gas emissions from hauling Equivalent to the energy use of approximately 150 homes/year More noise More risk of accidents More vehicle emissions =1,250 150 Inequitable pricing some residents paying 100%more for same service differences from same companies in same area of town 5Pricing within Fort Collins Ta keaways: •Pricing varies significantly for the same trash cart size within Fort Collins ($10-$15 / mo., $120 -$180 / yr) •Pricing even varies with same hauler in same area of town $20 $39 $46 $18 $33 $38 $10 $26 $31 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 Small Medium Large Fort Collins Monthly Open Market Trash Price by Cart Size All Haulers Combined Average $10 (100%) difference $13 (50%) difference $15 (48%) difference 6Fort Collins Open Market Pricing Compared with Other Systems Fort Collins Open Market Fort Collins HOAs w contract Boulder Open Market Golden Single District Contract Lafayette Single District Contract Bundled services (no extra charge) Services by request / for extra charge To tal monthly cost (small trash + yard trims)$23 -38 $6-$11 (trash only – yard trimmings data unavailable) $35 $11.50 $20.50 Cost compared w FC open market -$4 to -$9 (40%-45% less) + $13 to -$3 (56% more to 8% less) -$11.50 to -$26.50 (50% to 70% less) -$2.50 to -$17.50 ($11% to 46% less) = recycling = yard trimmings = food scraps = bulky waste 7Diversion, Participation, & Greenhouse Gas Emissions Av erage Participation Rates: •Opt-in 15% •Opt-out 85% •Bundled 95% Diversion : •Would include some shift from drop-off programs to curbside programs •Would include new diversion as well Recommended options would increase yard trimmings collection participation and diversion Recommended options would decrease greenhouse gas emissions Details will be available by final decision-making time (later this year) 8Engagement Summary Priorities with the highest percentage of “extremely important” responses: 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Reducing Air Pollution Reasonable Costs Quality Customer Service Consistent Recycling Education Reducing Illegal Dumping Stable Uniform Rates All Responses Targeted Survey Input gathered via: •Virtual community meetings •Open community survey •Ta rgeted Survey Materials Collected and How Recommended Options 10Recommendations: Materials Collected and How Material Recommendation Why Ya rd Trimmings Weekly collection from April –Nov Request pricing for opt-out, bundled pricing ·Understand pricing impacts to make informed decision ·Opt-out allows choice for those who don’t want / need the service, removes barrier to sign up for service ·Bundled generally lowest price for service Bulky Waste (Items too large to fit in curbside cart) Request two versions of bulky waste pricing: a-la-carte (not in base trash charge) and 2 items / year included in base trash charge ·Understand pricing impacts to make informed decision ·Balances diversion focus with equity ·Options for people who don’t have trucks/trailers Tr ash Keep volume-based pricing ·Current System ·Best practice for waste reduction Recycling Pricing model: Bundled w trash service for no extra charge Service frequency: Request pricing for weekly and every-other-week service ·Current System ·Best practice for increased recycling ·Understand pricing to determine whether to keep every other week or shift to weekly service (which would likely increase recycling) Food Scraps Do not include in this contract ·Consider when infrastructure to process food scraps is near Fort Collins [ System Design Recommended Options 12Recommendations: System Design Element Recommendation Why Homeowner ’s Associations (HOAs) with current contracts for trash and recycling service Allow exemption if current contract meets Pay-As-Yo u Throw requirements ·Existing contracts already achieving the goals of a contracted system Carts •Purchased by hauler, reimbursed from fee on monthly bill •Utilize / seek grant funding to offset cost •Hauler maintains carts •Include City logo, become City property at end of contract ·Carts remain when next contract begins ·Provides level playing field for next contract process ·Creates community ownership of program ·Cart maintenance already a hauler proficiency ·After initial purchase, maintenance fee funds replacement of broken carts Opt-Out Fee Equal to smallest trash cart service cost ·Opt-out option permitted by State law ·Matches peer communities ·Preserves the benefits of the contracted system Districts One district ·Lowest price ·Most environmental benefits ·Successful in peer communities 13Multiple Districts vs. One Hauler Multiple Districts •Often perceived as “middle ground” between open market and single hauler •No successful models in Colorado •Dilutes the benefits of a contracted system •Complications: different prices between districts for the same service •Wo uld delay RFP release Single District •Lowest price •Most environmental benefits •Many successful models in Colorado •Haulers remain in community –continue to service other sectors in Fort Collins and adjacent areas •Continued low price, competitive proposals from many haulers Single Family Homes Contracted HOAs Construction and Demolition Sites Multi-Family and Commercial Sectors Serviced by Haulers in Fort Collins 14Recommendations: System Design Cont. Element Recommendation Why Flow Control Direct trash to Larimer County Landfill ·Supports Regional Wasteshed goals and a public landfill option ·Provides level playing field for hauler proposals Customer Service Conducted by hauler; Require Fort Collins-focused staff ·Aligns with hauler conducting billing ·Ensures most of calls answered by staff familiar w Fort Collins; allow roll-over to national customer service staff to allow for more customer service hours Admin Fee Include a fee to fund City role in contract management ·Best practice from peer communities ·City staff time investment will depend on final contract elements; will be clarified prior to contract adoption Alley Service Included ·Haulers provide service in alleys Va let Service Included ·Haulers take carts from home to curb for servicing and return the carts to the home for disabled residents Billing Conducted by hauler ·City cannot do billing in near future ·May consider City billing in next contract Multi-family & Commercial Dumpster Pricing Request pricing from haulers ·Would provide a fixed price for dumpster service for multi-family or commercial customers who would like to opt in to the program ·Has been successful in peer communities 15Recommendations: System Design Element Recommendation HOAs with current contracts Allow exemption if current contract meets Pay-As-Yo u-Throw requirements Carts •Purchased by hauler, reimbursed from fee on monthly bill •Utilize / seek grant funding to offset cost •Hauler maintains carts •Include City logo, become City property at end of contract Opt-Out Fee Equal to smallest trash cart service cost Districts One district Flow Control Direct trash to Larimer County Landfill Element Recommendation Customer Service Conducted by hauler; Require Fort Collins-focused staff Admin Fee Include a fee to fund City role in contract management Alley Service Included Va let Service Included Billing Conducted by hauler Multi-family / Commercial Dumpster Pricing Request pricing from haulers 16Timeline and next steps Involves Council and Community Apr–Jul City Staff Aug -Nov Involves Council and Community Nov+ •Issue RFP •Haulers draft responses •Review Proposals •Council vote on code changes for new program •Roll-out new service 12 -18 months after contract adoption •Community engagement •Clarity from Councilmembers at July 12 Work Session •July 19 Regular Session Resolution about policy elements of program 17Question for Council Do Councilmembers have feedback about the recommendations to be included in a contracted system for residential waste and recycling collection program, which will be included in a Request for Proposals (RFP)? •Materials Collected and How •System Design 18Recommended Elements to be Included in RFP Material Recommendation Ya rd Trimmings Weekly collection from April –Nov Request pricing for opt-out, bundled pricing Bulky Waste (Items too large to fit in curbside cart) Request two versions of bulky waste pricing: a-la-carte (not in base trash charge) and 2 items / year included in base trash charge Trash Keep volume-based pricing Recycling Pricing model: Bundled w trash service for no extra charge Service frequency: Request pricing for weekly and every-other-week service Food Scraps Do not include in this contract Materials to be Collected and How Element Recommendation HOAs with current contracts Allow exemption if current contract meets current requirements Carts •Purchased by hauler, reimbursed from fee on monthly bill •Utilize / seek grant funding to offset cost •Hauler maintains carts •Include City logo, become City property at end of contract Opt-Out Fee Equal to smallest trash cart service cost Districts One district Flow Control Direct trash to Larimer County Landfill System Design Element Recommendation Customer Service Conducted by hauler; Require Fort Collins- focused staff Admin Fee Include a fee to fund City role in contract management Alley Service Included Va let Service Included Billing Conducted by hauler Multi-family / Commercial Dumpster Pricing Request pricing from haulers 20Differences Between Contracted System and Monopoly Monopoly Contracted Trash and Recycling System No competition Competitive purchasing process with many haulers submitting proposals Unrestricted price increases Contract allows for price increases in predetermined manner for specific reasons Generally higher prices Generally lower prices No other service providers Haulers remain in community servicing commercial & multi- family, construction and demolition, Homeowners’Association customers Lack of choice for other options Can pay an opt-out fee and work with a different hauler 21What would happen to a hauler that wasn’t awarded a contract? •Existing nationally-owned haulers •Could continue to service commercial, multi-family and construction site customers (70% of market) •Could continue to service existing HOA contracts (10% of market) •Could shift staff to servicing accounts in adjacent communities •Is significant staff turnover now; possible that existing attrition over the 12-18 month roll-out period would prevent any jobs ending •Hauler awarded the contract would likely be adding staffing •New locally-owned hauler •Could adjust business model to service other Northern Colorado communities Haulers would have 12-18 months to plan and adjust Existing haulers have many other customers in Fort Collins and surrounding areas 22Multiple District Options and Tradeoffs Potential Goal Likely # of districts Considerations Maintain a “backup” hauler in the community 2 ·No matter the size of the district, haulers right-size staff and equipment to service needs in the community; if an issue arose with one hauler, it would still take time to increase capacity of another hauler to begin serving more areas ·Could incentivize negotiating to a higher price proposal Keep all haulers in the community active in the general residential market 4 ·Not possible to restrict competitive purchasing process to only existing haulers ·All haulers currently operating in the community will stay in the community as they continue to service their commercial, multi-family, construction and demolition and Homeowners’Association customers Make at least one district at a scale that could be won by a small hauler 2? ·Cannot guarantee district would be won by small hauler ·Smaller haulers are commonly purchased by large national haulers, so even if a small hauler won a district, it may not be serviced by a small hauler for the length of the contract