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HomeMy WebLinkAboutCOUNCIL - COMPLETE AGENDA - 07/19/2022 - REGULAR MEETING City of Fort Collins Page 1 Jeni Arndt, Mayor Emily Francis, District 6, Mayor Pro Tem Susan Gutowsky, District 1 Julie Pignataro, District 2 Tricia Canonico, District 3 Shirley Peel, District 4 Kelly Ohlson, District 5 City Council Chambers City Hall 300 LaPorte Avenue Fort Collins, Colorado Cablecast on FCTV Channel 14 on Connexion Channel 14 and 881 on Comcast Carrie Daggett Kelly DiMartino Anissa Hollingshead City Attorney City Manager City Clerk Regular Meeting July 19, 2022 Spanish interpretation will now be available at all Regular Council meetings. El servicio de interpretación en español ahora será disponible en todas las reuniones estándares del Consejo Municipal. PUBLIC PARTICIPATION OPTIONS There will be four options for people who would like to participate in the meeting:  Live via the Zoom online meeting,  Live via the telephone,  Live in Council Chambers,  By submitting emails to Council at CityLeaders@fcgov.com. All options will be available for those wishing to provide general public comment, as well as public comment during individual discussion items. PUBLIC PARTICIPATION (ONLINE VIA ZOOM): Individuals who wish to address Council via remote public participation can do so through Zoom at https://zoom.us/j/98241416497. (The link and instructions are also posted at www.fcgov.com/councilcomments.) Individuals participating in the Zoom session should watch the meeting through that site, and not via FCTV, due to the streaming delay and possible audio interference. The Zoom meeting will be available beginning at 5:15 p.m. on the day of the meeting. Participants wanting to ensure their equipment setup is working should join prior to 6:00 p.m. For public comments, the Mayor will ask participants to click the “Raise Hand” button to indicate you would like to speak at that time. Staff will moderate the Zoom session to ensure all participants have an opportunity to address Council. In order to participate, you must:  Have an internet-enabled smartphone, laptop or computer. Using earphones with a microphone will greatly improve your audio experience.  Join the Zoom meeting using the link on the front page of the agenda or on the City’s home webpage at www.fcgov.com. City of Fort Collins Page 2  If you use the City’s home page, simply click on the “Participate remotely in Council Meeting” link shown near the top of the page. PUBLIC PARTICIPATION (VIA PHONE):  Dial the public participation phone number, 1-346-248-7799, and then enter the Meeting ID 982 4141 6497 followed by the pound sign (#).  The meeting will be available beginning at 5:15 p.m. Please call in to the meeting prior to 6:00 p.m., if possible. For public comments, the Mayor will ask participants to indicate if you would like to speak at that time – phone participants will need to press *9 to do this. Staff will be moderating the Zoom session to ensure all participants have an opportunity to address Council. When participating online or by phone, DO NOT Watch/stream FCTV at the same time due to streaming delay and possible audio interference. PUBLIC PARTICIPATION (IN PERSON): To participate in person, individuals should be prepared to follow strict social distancing, sanitizer and facial covering guidelines.  A limited number of individuals may be allowed in Council Chambers. Therefore, staging for individuals who wish to speak will occur in the City Hall lobby and outside (weather permitting).  Individuals may be required to wear masks while inside City Hall and any other City buildings being utilized.  Individuals who wish to speak will line up at one of the two podiums available in Council Chambers, maintaining physical distancing.  Once a speaker has provided comments, they may be asked to leave Council Chambers to make room for the next speaker. PUBLIC PARTICIPATION (VIA EMAIL): Individuals not comfortable or able to access the Zoom platform or participate by phone are encouraged to participate by emailing general public comments to CityLeaders@fcgov.com. If you have specific comments on any of the discussion items scheduled, please make that clear in the subject line of the email and send prior to the meeting Tuesday evening. WATCH THE MEETING Anyone can view the Council meeting live on Channels 14 and 881 or online at www.fcgov.com/fctv. Note: Only individuals who wish to address Council should use the Zoom link or call in by phone. Anyone who wants to watch the meeting, but not address Council, should view the FCTV livestream. Documents to Share: If residents wish to speak to a document or presentation, the City Clerk needs to be emailed those materials by 4 p.m. the day of the meeting. Persons wishing to display presentation materials using the City’s display equipment under the Public Participation portion of a meeting or during discussion of any Council item must provide any such materials to the City Clerk in a form or format readily usable on the City’s display technology no later than two (2) hours prior to the beginning of the meeting at which the materials are to be presented. NOTE: All presentation materials for appeals, addition of permitted use applications or protests related to election matters must be provided to the City Clerk no later than noon on the day of the meeting at which the item will be considered. See Council Rules of Conduct in Meetings for details. Upon request, the City of Fort Collins will provide language access services for individuals who have limited English proficiency, or auxiliary aids and services for individuals with disabilities, to access City services, programs and activities. Contact 970.221.6515 (V/TDD: Dial 711 for Relay Colorado) for assistance. Please provide 48 hours advance notice when possible. A solicitud, la Ciudad de Fort Collins proporcionará servicios de acceso a idiomas para personas que no dominan el idioma inglés, o ayudas y servicios auxiliares para personas con discapacidad, para que puedan acceder a los servicios, programas y actividades de la Ciudad. Para asistencia, llame al 970.221.6515 (V/TDD: Marque 711 para Relay Colorado). Por favor proporcione 48 horas de aviso previo cuando sea posible. City of Fort Collins Page 3 A) Proclamations and Presentations 5:00 p.m. A. Proclamation Declaring August 2, 2022 as Neighborhood Night Out. Regular Meeting 6:00 p.m. B) CALL MEETING TO ORDER C) PLEDGE OF ALLEGIANCE D) ROLL CALL E) AGENDA REVIEW: CITY MANAGER  City Manager Review of Agenda.  Consent Calendar Review including removal of items from Consent Calendar for individual discussion. F) PUBLIC COMMENT ON ANY TOPIC OR ITEMS (including requests for Council to remove an item from the Consent Calendar for individual discussion.) Individuals may comment regarding any topics of public concern, whether or not included on tonight’s agenda. Comments regarding land use projects for which a development application has been filed should be submitted in the development review process** and not to Council.  Those who wish to speak are asked to sign in at the table in the lobby (for recordkeeping purposes).  Each speaker will be allowed to speak one time during public comment. If a speaker comments on a particular agenda item during general public comment, that speaker will not also be entitled to speak during discussion of the same agenda item.  All speakers will be asked by the presiding officer to identify themselves by raising their hand (in person or using the raise hand option on Zoom), and then will be asked to move to one of the two lines of speakers (or to a seat nearby, for those who are not able to stand while waiting).  The presiding officer will determine and announce the length of time allowed for each speaker.  Each speaker will be asked to state their name and general address for the record, and, if their comments relate to a particular agenda item, to identify the agenda item number. Any written comments or materials intended for the Council should be provided to the City Clerk.  A timer will beep one time and turn yellow to indicate that 30 seconds of speaking time remain and will beep again and turn red when a speaker’s time to speak has ended. [**For questions about the development review process or the status of any particular development, consult the Development Review Center page on the City’s website at fcgov.com/developmentreview, or contact the Development Review Center at 970.221.6760.] G) PUBLIC COMMENT FOLLOW-UP H) COUNCILMEMBER REMOVAL OF ITEMS FROM CONSENT CALENDAR FOR DISCUSSION City of Fort Collins Page 4 Consent Calendar The Consent Calendar is intended to allow Council to spend its time and energy on the important items on a lengthy agenda. Staff recommends approval of the Consent Calendar. Agenda items pulled from the Consent Calendar by either Council or the City Manager will be considered separately under M) Consideration of items removed from consent calendar for individual discussion. Items remaining on the Consent Calendar will be approved by Council with one vote. The Consent Calendar consists of: ● Ordinances on First Reading that are routine; ● Ordinances on Second Reading that are routine; ● Those of no perceived controversy; ● Routine administrative actions. 1. Second Reading of Ordinance No. 083, 2022, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Property Rights Necessary for Phase 2 (Construction) and Phase 3 (Operations and Maintenance) of the Halligan Water Supply Project. This Ordinance, unanimously adopted on First Reading on July 5, 2022, authorizes the use of eminent domain to acquire property rights for construction (Phase 2) and long-term maintenance and operations access (Phase 3) to the Halligan Water Supply Project (Halligan Project) across private property that provides the primary access point to Halligan Reservoir. This property is jointly owned by Geo A. Henderson Co., Inc. and Chris Vandemoer (collectively, Vandemoer), and is encumbered by two conservation easements held by The Nature Conservancy (TNC). The parties are currently in eminent domain litigation for Phase 1 of the Project and have had productive conversations regarding a global settlement for all three phases of the Halligan Project. The acquisition will include: a temporary access easement for construction a permanent access easement for ongoing maintenance and operations  a permanent easement for flood/high water events fee title to approximately 5.48 acres of land for inundation To meet near-term project timelines, prompt acquisition of the property rights is necessary. Staff fully intends to continue negotiating in good faith with the affected property owners and is requesting authorization to, in consultation with the City Attorney’s Office, use eminent domain as necessary to acquire the needed property rights. To effectuate a possible global settlement in the City’s eminent domain litigation with Vandmoer, the City needs Council’s authorization of eminent domain to include Phase II and Phase III, so that all property rights needed from Vandemoer for the entire project can be acquired at one time. This action ensures the City can secure all access rights required to complete the final two phases of the Halligan Project over the primary access route to the Halligan Dam and Reservoir:  Phase 1 - permitting and design (site visits and data collection related to permitting processes and preliminary design work for the reservoir enlargement and for the diversion structure replacement)  Phase 2 - construction (construction work related to replacement of dam and diversion structure)  Phase 3 - long-term maintenance and operations of the dam and reservoir (including permanent maintenance of measuring devices on the reservoir and diversion structure and environmental monitoring requirements under governmental permits) 2. Second Reading of Ordinance No. 084, 2022, Amending the City of Fort Collins District-Precinct Map Following the Decennial Census. This Ordinance, unanimously adopted on First Reading on July 5, 2022, amends the City’s Council district boundaries following the decennial census in compliance with Section 7-87 of the City Code, including aligning City precinct boundaries with County precinct boundaries. City of Fort Collins Page 5 3. Second Reading of Ordinance No. 085, 2022, Making Supplemental Appropriations of Grant Funds from the Pools Special Initiative 2022 Program. This Ordinance, unanimously adopted on First Reading on July 5, 2022, appropriates funding received from the Colorado Department of Local Affairs to recruit and retain public swimming pool employees. 4. First Reading of Ordinance No. 087, 2022, Authorizing the Exchange of Stormwater Easements Between the City of Fort Collins and Sun Foothills Fort Collins, LLC The purpose of this item is to authorize the conveyance of a stormwater drainage easement to Sun Foothills Fort Collins, LLC (“Sun”) on undeveloped City-owned real property located south of Trilby Road and east of South College Avenue (Assessor’s Parcel No. 9613200927). This easement is necessary for Sun to develop its property adjacent and to the north of the City’s property. In exchange, Sun will convey to the City a stormwater drainage easement on its property that will allow the City, or future owner, to use Sun’s property for stormwater drainage from the City’s property when developed. The execution of the Reciprocal Stormwater Drainage Easement Agreement will effectuate the reciprocal conveyances. 5. Resolution 2022-072 Approving the 2022 Certification to the Larimer County Assessor Pursuant to Colorado Revised Statutes Section 31-25-807(3)(a)(IV)(B) for the Downtown Development Authority Property Tax Increment. The purpose of this item is to certify to the Larimer County Assessor the percentages of property tax distributions to be allocated for the Downtown Development Authority by the Assessor as tax increment from the 2022 property taxes payable in 2023 to the City and to all other affected taxing entities. 6. Items Relating to Various Appointments to Boards and Commissions. A. Resolution 2022-073 Making an Appointment to the Affordable Housing Board. B. Resolution 2022-074 Making Appointments to the Building Review Commission. C. Resolution 2022-075 Making an Appointment to the Cultural Resources Board. D. Resolution 2022-076 Making Appointments to the Human Relations Commission. E. Resolution 2022-077 Making Appointments to the Land Use Review Commission. F. Resolution 2022-078 Making an Appointment to the Parks and Recreation Board. The purpose of this item is to fill vacancies on various boards and commissions. END OF CONSENT CALENDAR I) ADOPTION OF CONSENT CALENDAR J) CONSENT CALENDAR FOLLOW-UP This is an opportunity for Councilmembers to comment on items adopted or approved on the Consent Calendar. K) STAFF REPORTS - None L) COUNCILMEMBER REPORTS M) CONSIDERATION OF ITEMS REMOVED FROM CONSENT CALENDAR FOR INDIVIDUAL DISCUSSION City of Fort Collins Page 6 N) Discussion Items The method of debate for discussion items is as follows: ● Mayor introduces the item number, and subject; asks if formal presentation will be made by staff ● Staff presentation (optional) ● Mayor requests public comment on the item (three minute limit for each person) ● Council questions of staff on the item ● Council motion on the item ● Council discussion ● Final Council comments ● Council vote on the item Note: Time limits for individual agenda items may be revised, at the discretion of the Mayor, to ensure all have an opportunity to speak. If attending in person, please sign in at the table in the back of the room. The timer will buzz when there are 30 seconds left and the light will turn yellow. It will buzz again at the end of the speaker’s time. 7. Items Relating to a City-Initiated Charter Amendment Relating to Residency Requirements. (staff: Teresa Roche; 5 minute presentation; 15 minute discussion) A. Possible Public Hearing and Motion(s) Regarding Protest(s) of Ballot Language. B. First Reading of Ordinance No. 089, 2022, Submitting to a Vote of the Registered Electors of the City of Fort Collins Proposed Amendments to the City Charter Concerning the Requirement that Certain Employees Live in or Near Fort Collins. At the June 28 Work Session, Council directed staff to bring forward potential ballot options to amend the City Charter to remove requirements that certain employee positions live in or near Fort Collins, allowing City Council to establish any residency requirements by ordinance. Currently, a vote of the registered electorate is required to amend the Charter language that specifies City positions that must live in or near Fort Collins. The purpose of this item is to minimize residency as a barrier to employment in leadership positions in the City of Fort Collins and to recognize the world of work has changed significantly. Any protest of the proposed ballot language must be received no later than Monday, July 18, at noon. Protest(s) shall be heard, considered, and resolved by the Council prior to adoption of the related Ordinance. If protests are received, copies will be included in Council's "Read Before the Meeting" packet. 8. Resolution 2022-079 Directing the Design and Issuance of a Request for Proposals for a Residential Waste Services Program Within the Boundaries of the City (staff: Lindsay Ex, Caroline Mitchell, Sylvia Tatman-Burruss; 10 minute presentation; 30 minute discussion) The purpose of this item is to consider a Resolution that outlines elements of a contracted residential waste and recycling program that will be used to inform development and issuance of a Request for Proposals for a service provider for that program. This action aligns with the Council Priority to explore a districted system for garbage, recycling and compost for single family homes and multifamily residences of seven or fewer units. O) OTHER BUSINESS A. Possible consideration of the initiation of new ordinances and/or resolutions by Councilmembers. (Three or more individual Councilmembers may direct the City Manager and City Attorney to initiate and move forward with development and preparation of resolutions and ordinances not originating from the Council's Policy Agenda or initiated by staff.) City of Fort Collins Page 7 B. Consideration of a motion to cancel the August 2, 2022, Council Meeting, as permitted under Section 2-28 of the City Code, due to Neighborhood Night Out Community Events. “I hereby move to cancel the August 2, 2022 Council meeting as permitted under section 2-28 of the City Code, due to Neighborhood Night Out community events that evening.” P) ADJOURNMENT Every regular Council meeting will end no later than midnight, except that: (1) any item of business commenced before midnight may be concluded before the meeting is adjourned and (2) the Council may, at any time prior to adjournment, by majority vote, extend a meeting beyond midnight for the purpose of considering additional items of business. Any matter that has been commenced and is still pending at the conclusion of the Council meeting, and all matters scheduled for consideration at the meeting that have not yet been considered by the Council, will be deemed continued to the next regular Council meeting, unless Council determines otherwise. PROCLAMATION WHEREAS, the first Tuesday night in August is celebrated across the nation as National Night Out; and WHEREAS, the City of Fort Collins sponsors a unique community celebration on August 2, 2022 called “Neighborhood Night Out;” and WHEREAS, “Neighborhood Night Out” provides an exceptional opportunity for residents throughout the city to join their neighbors in promoting community through welcoming and safe neighborhoods; and WHEREAS, the City of Fort Collins plays a vital role in assisting with neighborhood community building and quality of life within Fort Collins by supporting “Neighborhood Night Out”; and WHEREAS, it is essential that all residents of Fort Collins be aware of the importance that their participation can have on the vitality and enjoyment of their neighborhood; and WHEREAS, I, along with the entire City Council, encourage Fort Collins residents to help make our community a welcoming and enjoyable place to live, work and play. NOW, THEREFORE, I, Emily Francis, Mayor Pro Tem of the City of Fort Collins, do hereby proclaim Tuesday, August 2, 2022, as NEIGHBORHOOD NIGHT OUT IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this the 19th day of July, A.D. 2022. __________________________________ Mayor Pro Tem ATTEST: _________________________________ City Clerk Packet Pg. 8 Agenda Item 1 Item # 1 Page 1 AGENDA ITEM SUMMARY July 19, 2022 City Council STAFF Tawnya Ernst, Sr. Real Estate Specialist Jason Graham, Director of Water Utilities Ryan Malarky, Legal SUBJECT Second Reading of Ordinance No. 083, 2022, Authorizing the Acquis ition by Eminent Domain Proceedings of Certain Property Rights Necessary for Phase 2 (Construction) and Phase 3 (Operations and Maintenance) of the Halligan Water Supply Project. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on J uly 5, 2022, authorizes the use of eminent domain to acquire property rights for construction (Phase 2) and long-term maintenance and operations access (Phase 3) to the Halligan Water Supply Project (Halligan Project) across private property that provides the primary access point to Halligan Reservoir. This property is jointly owned by Geo A. Henderson Co., Inc. and Chris Vandemoer (collectively, Vandemoer), and is encumbered by two conservation easements held by The Nature Conservancy (TNC). The parties are currently in eminent domain litigation for Phase 1 of the Project and have had productive conversations regarding a global settlement for all three phases of the Halligan Project. The acquisition will include: • a temporary access easement for construction • a permanent access easement for ongoing maintenance and operations • a permanent easement for flood/high water events • fee title to approximately 5.48 acres of land for inundation To meet near-term project timelines, prompt acquisition of the property rights is necessary. Staff fully intends to continue negotiating in good faith with the affected property owners and is requesting authorization to, in consultation with the City Attorney’s Office, use eminent domain as necessary to acquire the needed property rights. To effectuate a possible global settlement in the City’s eminent domain litigation with Vandmoer, the City needs Council’s authorization of eminent domain to include Phase II and Phase III, so that all property rights needed from Vandemoer for the entire project can be acquired at one time. This action ensures the City can secure all access rights required to complete the final two phases of the Halligan Project over the primary access route to the Halligan Dam and Reservoir: • Phase 1 - permitting and design (site visits and data collection related to permitting processes and preliminary design work for the reservoir enlargement and for the diversion structure replacement) • Phase 2 - construction (construction work related to replacement of dam and diversion structure) • Phase 3 - long-term maintenance and operations of the dam and reservoir (including permanent maintenance of measuring devices on the reservoir and diversion structure and environmental monitoring requirements under governmental permits) 1 Packet Pg. 9 Agenda Item 1 Item # 1 Page 2 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, July 5, 2022 (w/o attachments) (PDF) 2. Ordinance No. 083, 2022 (PDF) 1 Packet Pg. 10 Agenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY July 5, 2022 City Council STAFF Tawnya Ernst, Sr. Real Estate Specialist Jason Graham, Director of Water Utilities Ryan Malarky, Legal SUBJECT First Reading of Ordinance No. 083, 2022, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Property Rights Necessary for Phase 2 (Construction) and Phase 3 (Operations and Maintenance) of the Halligan Water Supply Project. EXECUTIVE SUMMARY The purpose of this item is to seek authorization from Council to use eminent domain to acquire property rights for construction (Phase 2) and long-term maintenance and operations access (Phase 3) of the Halligan Water Supply Project (Halligan Project) across private property that provides the primary access point to Halligan Reservoir. This property is jointly owned by Geo A. Henderson Co., Inc. and Chris Vandemoer (collectively, Vandemoer), and is encumbered by two conservation easements held by The Nature Conservancy (TNC). The parties are currently in eminent domain litigation for Phase 1 of the Project and have had productive conversations regarding a global settlement for all three phases of the Halligan Project. The acquisition will include: •a temporary access easement for construction •a permanent access easement for ongoing maintenance and operations •a permanent easement for flood/high water events •fee title to approximately 5.48 acres of land for inundation To meet near-term project timelines, prompt acquisition of the property rights is necessary. Staff fully intends to continue negotiating in good faith with the affected property owners and is requesting authorization to, in consultation with the City Attorney’s Office, use eminent domain as necessary to acquire the needed property rights. To effectuate a possible global settlement in the City’s eminent domain litigation with Vandmoer, the City needs Council’s authorization of eminent domain to include Phase II and Phase III, so that all property rights needed from Vandemoer for the entire project can be acquired at one time. This action would ensure the City can secure all access rights required to complete the final two phases of the Halligan Project over the primary access route to the Halligan Dam and Reservoir: •Phase 1 - permitting and design (site visits and data collection related to permitting processes and preliminary design work for the reservoir enlargement and for the diversion structure replacement) •Phase 2 - construction (construction work related to replacement of dam and diversion structure) •Phase 3 - long-term maintenance and operations of the dam and reservoir (including permanent maintenance of measuring devices on the reservoir and diversion structure and environmental monitoring requirements under governmental permits) ATTACHMENT 1 COPY1.1 Packet Pg. 11 Attachment: First Reading Agenda Item Summary, July 5, 2022 (w/o attachments) (11798 : SR 083 Halligan Eminent Domain) Agenda Item 9 Item # 9 Page 2 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In the Halligan Project, the City seeks to enlarge the Halligan Reservoir to meet treated water demands of future Utilities customers and provide added reliability for all Utilities customers, in case of prolonged drought and uncertainties such as wildfires or infrastructure failures. Halligan Reservoir is located on the North Fork of the Cache la Poudre River, about 25 miles northwest of Fort Collins. To enlarge the Reservoir, the dam will be reconstructed. The City does not currently own all property rights necessary to complete the design, construction, and operations and maintenance of the Halligan Project. The primary property rights the City needs to acquire for the life of the project are access rights and inundation rights. However, this authorization request is specific to Phases 2 and 3 and includes temporary and permanent access easements across a property that encompasses the primary access route to the dam and reservoir. Council has already authorized eminent domain for access rights needed from Vandemoer to ensure Phase 1 activities, including data collection and surveying, can be conducted in a timely manner. The access sought for Phases 2 and 3 would allow for construction and operations and maintenance. Staff from Real Estate Services and Utilities, with support from the City Attorney’s Office, has been working with the landowners in varying capacities during the past six years. The City currently has an executed possession and use agreement for access during design and permitting (Phase 1) over this property. Staff, the City Attorney’s Office, and outside legal counsel are currently negotiating a settlement with Vandemoer to resolve and finalize not only Phase 1 access, but also property rights needed for Phases 2 and 3 as well. If a settlement is not reached, this authorization would allow the City to pursue eminent domain on the property for Phases 2 and 3. Recommendation Staff recommends that City Council authorize the use of eminent domain to provide a process that will allow the City to meet project deadlines while ensuring fair and equitable treatment of the landowners. The eminent domain process provides a tool for staff to meet project deadlines while ensuring all property owners are fairly compensated for the property rights acquired by the City. Condemnation will only be used if necessary and if the City is unable to reach an agreement with the landowners in a timely manner that would avoid the need for eminent domain. In summary, obtaining eminent domain authority for Phase 2 and Phase 3 activities on the primary access route to the dam/reservoir will: • Allow staff to develop the schedule for design activities with more certainty. • Ensure adherence to the planned property acquisition schedule, reducing the risk and cost of possible future delays related to access. • Ensure consistent treatment to affected property owners. • Meet procedural requirements to address a conservation easement over the land for all phases of the project. • Allow staff to pursue a global settlement for property rights from Vandemoer for all three phases of the project. CITY FINANCIAL IMPACTS Both staff and the landowners have invested a considerable amount of time discussing access needs and compensation for the Halligan Project. Real estate acquisition costs are anticipated to comprise less than one percent of the total cost of the Halligan Water Supply Project, which was estimated at a probable cost of $120M. COPY1.1 Packet Pg. 12 Attachment: First Reading Agenda Item Summary, July 5, 2022 (w/o attachments) (11798 : SR 083 Halligan Eminent Domain) Agenda Item 9 Item # 9 Page 3 This cost is being updated to a 30% design estimate and will be available early Q1 2023. This Council action will not authorize any new funding for the Halligan Project. The use of eminent domain provides a process for staff to control real estate acquisition costs and minimize risks to the project associated with access needs. PUBLIC OUTREACH Staff has been actively engaged with the landowners since 2016. ATTACHMENTS 1. Halligan Area Landownership Map (PDF) COPY1.1 Packet Pg. 13 Attachment: First Reading Agenda Item Summary, July 5, 2022 (w/o attachments) (11798 : SR 083 Halligan Eminent Domain) -1- ORDINANCE NO. 083, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE ACQUISITION BY EMINENT DOMAIN PROCEEDINGS OF CERTAIN PROPERTY RIGHTS NECESSARY FOR PHASE 2 (CONSTRUCTION) AND PHASE 3 (OPERATIONS AND MAINTENANCE) OF THE HALLIGAN WATER SUPPLY PROJECT WHEREAS, by the adoption of Resolution 2003-121, City Council authorized the City Manager to proceed with investigation, planning, regulatory review processes, site acquisition, design, and construction of the Halligan Reservoir Enlargement Project, now referred to as the Halligan Water Supply Project (the “Project”); and WHEREAS, the City is proceeding with Phase 1 of three phases of the Project, which will include site visits and data collection related to the permitting and design work for the reservoir enlargement and replacement or modification of the dam and diversion structures; and WHEREAS, to accomplish the work of Phase 1, the City needs access to Halligan Reservoir; and WHEREAS, City Council authorized the use of eminent domain for property rights associated with Phase 1 of the Project by adopting Ordinance No. 013, 2020, on January 21, 2020; and WHEREAS, the City has negotiated with the property owners in good faith for the acquisition of the property rights addressed by Ordinance No. 013, 2020; and WHEREAS, the negotiations with particular property owners have led to the possible settlement of access across certain property for all three phases of the Project; and WHEREAS, to effectuate that settlement in the pending court case with those property owners, it is necessary that the City Council’s previous eminent domain authorization be expanded to include Phase 2 and Phase 3 of the Project, so that all property rights needed from these owners for the entire Project can be addressed at one time; and WHEREAS, the additional property rights needed for Phases 2 and 3 are described on Exhibits “A” through “D”, attached hereto and incorporated herein by this reference (the “Property Rights”); and WHEREAS, the City will continue to negotiate in good faith for the acquisition of the Property Rights from the owners thereof; and WHEREAS, the acquisition of these additional Property Rights is desirable and necessary for the construction, long-term maintenance and operation of the Project, is in the City’s best interest, and enhances public health, safety, and welfare because it is in furtherance of the Project, which will meet the demands of future Fort Collins Utilities customers and provide added reliability for all Utilities customers; and 1.2 Packet Pg. 14 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) -2- WHEREAS, the acquisition of the Property Rights may, by law, be accomplished through eminent domain. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determination and findings contained in the recitals set forth above. Section 2. That the City Council hereby finds and determines that it is necessary in the public interest to acquire the Property Rights described herein for the purpose of the permitting and design, construction, and operations and maintenance of the Project. Section 3. That the City Council hereby authorizes the City Attorney and other appropriate officials of the City to acquire the Property Rights for the City by eminent domain proceedings. Section 4. That the City Council hereby authorizes the Interim City Manager, in consultation with the City Attorney, to provide terms and conditions of any conveyance as she may determine to be appropriate; and to hereafter amend, adjust, or clarify the Property Rights and the extent or nature of the interests to be acquired so that the City may acquire all property interests necessary for the Project; and to delay or forego pursuing eminent domain based upon the status of negotiations and any litigation. Section 5. That the City Council further finds that, in the event acquisition by eminent domain of the Property Rights or any of them is commenced, immediate possession is necessary for the public health, safety, and welfare. Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2022, and to be presented for final passage on the 19th day of July, A.D. 2022. Mayor ATTEST: City Clerk 1.2 Packet Pg. 15 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) -3- Passed and adopted on final reading this 19th day of July, A.D. 2022. Mayor ATTEST: City Clerk 1.2 Packet Pg. 16 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT A 1.2 Packet Pg. 17 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT A 1.2 Packet Pg. 18 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT A 1.2 Packet Pg. 19 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT A 1.2 Packet Pg. 20 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT A 1.2 Packet Pg. 21 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT A 1.2 Packet Pg. 22 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT A 1.2 Packet Pg. 23 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT A 1.2 Packet Pg. 24 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT A 1.2 Packet Pg. 25 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT A 1.2 Packet Pg. 26 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT A 1.2 Packet Pg. 27 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT B 1.2 Packet Pg. 28 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT B 1.2 Packet Pg. 29 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT B 1.2 Packet Pg. 30 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT B 1.2 Packet Pg. 31 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT B 1.2 Packet Pg. 32 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT B 1.2 Packet Pg. 33 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT B 1.2 Packet Pg. 34 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT B 1.2 Packet Pg. 35 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT B 1.2 Packet Pg. 36 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT B 1.2 Packet Pg. 37 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) EXHIBIT B 1.2 Packet Pg. 38 Attachment: Ordinance No. 083, 2022 (11798 : SR 083 Halligan Eminent Domain) Agenda Item 2 Item # 2 Page 1 AGENDA ITEM SUMMARY July 19, 2022 City Council STAFF Anissa Hollingshead, City Clerk Rita Knoll, Chief Deputy City Clerk Carrie Daggett, City Attorney SUBJECT Second Reading of Ordinance No. 084, 2022, Amending the City of Fort Collins District-Precinct Map Following the Decennial Census. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on July 5, 2022, amends the City’s Council district boundaries following the decennial census in compliance with Section 7 -87 of the City Code, including aligning City precinct boundaries with County precinct boundaries. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, July 5, 2022 (w/o attachments) (PDF) 2. Ordinance No. 084, 2022 (PDF) 2 Packet Pg. 39 Agenda Item 18 Item # 18 Page 1 AGENDA ITEM SUMMARY July 5, 2022 City Council STAFF Anissa Hollingshead, City Clerk Rita Knoll, Chief Deputy City Clerk Carrie Daggett, City Attorney SUBJECT First Reading of Ordinance No. 084, 2022, Amending the City of Fort Collins District-Precinct Map Following the Decennial Census. EXECUTIVE SUMMARY The purpose of this item is to amend the City’s district boundaries following the decennial census in compliance with Section 7-87 of the City Code, including aligning City precinct boundaries with County precinct boundaries. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading with the Council’s selected option for district boundary map. BACKGROUND / DISCUSSION Adjustment of City district boundaries (aka redistricting) must occur following certain triggers in the City Charter, including the decennial census. The deadline to complete this process is 180 days prior to the next regular City election (currently scheduled in April 2023). The City Clerk’s Office has prepared a report outlining the process followed in 2022. (Attachment 1) The Council’s Election Code Committee has been considering options prepared by the City’s GIS Division. Materials first provided at the April 18 Election Code Committee meeting included two initial options for potential new district boundaries. After an initial review, the committee opted to continue consideration of these options at the May 9 meeting, at which time additional reports were provided from the City Clerk outlining the redistricting process and from the Colorado Municipal League on considerations for municipal redistricting in Colorado. The number of options the City’s GIS division was able to produce for consideration was constrained by the requirements of the Charter and Code, including the requirement to use general election precincts established by Larimer County as the building blocks for districts. The two options initially presented were believed to be the only viable alternatives meeting requirements. In re-precincting following the 2020 census, Larimer County created all new (larger) precincts, significantly reducing the total number of precincts within Fort Collins. This reduced number of precincts has been the biggest constraint on developing district options that maintain required population balance. At the May 9 meeting, a third option for district boundaries was presented by a resident and all three map options were reviewed by the Committee. Interest in considering the third option was generally indicated. An additional meeting of the Committee was scheduled for May 31 to allow for further analysis of that option by the City’s GIS, Legal, and City Clerk staff. Following additional analysis, GIS also prepared a fourth option based upon the third option with a shift to one precinct that borders two districts. Option 4 changes the placement of precinct 362 in District 6 for purposes of increased contiguity. (All four options are included as exhibits to the Ordinance. ATTACHMENT 1 COPY2.1 Packet Pg. 40 Attachment: First Reading Agenda Item Summary, July 5, 2022 (w/o attachments) (11799 : SR 084 Redistricting) Agenda Item 18 Item # 18 Page 2 Late in the process of overall analysis, GIS identified additional issues for the redistricting process with the way the general election precincts were established. In addition to not following City limit boundaries, precincts also divide census blocks in several instances, making obtaining accurate population counts challenging. Because of the timing of this discovery, analysis of the impacts on population totals was not complete prior to the May 31 ECC meeting, requiring the scheduling of another special ECC meeting and a shift to the date for full Council consideration of redistricting to July 5. After GIS completed its review of the precincts that include one or more split census blocks and developed the most accurate population estimates possible with available data, all four options were reevaluated and found to still be within the maximum range of deviation permitted under Charter and Code for population balance. The Election Code Committee has reviewed the four options and forwarded them to the full Council for consideration and selection of the final district boundaries. CITY FINANCIAL IMPACTS There is not anticipated to be a direct financial impact related to the selection at this point of new district boundaries. BOARD / COMMISSION RECOMMENDATION The Election Code Committee has forwarded the four potential district boundary options it considered to the full Council for its determination of which option to select as part of this first reading. (Attachment 2) PUBLIC OUTREACH Public outreach around redistricting has included publication of materials for the Election Code Committee and committee discussion, as well as public comment periods at ECC meetings. The proposed options for district boundaries have also been published on the City’s website, and public notice of the Council’s consideration of these options has occurred consistent with the requirements of City Code. ATTACHMENTS 1. 2022 Redistricting Report (PDF) 2. Election Code Committee Minutes (PDF) 3. Powerpoint Presentation (PDF) COPY2.1 Packet Pg. 41 Attachment: First Reading Agenda Item Summary, July 5, 2022 (w/o attachments) (11799 : SR 084 Redistricting) -1- ORDINANCE NO. 084, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING THE CITY OF FORT COLLINS DISTRICT-PRECINCT MAP WHEREAS, Article II, Section 1 of the City Charter requires that the City be divided into six contiguous, reasonably compact City Council districts, each of which shall consist of contiguous, undivided general election precincts, and, to the extent reasonably possible, an equal number of inhabitants; and WHEREAS, pursuant to City Charter, redistricting must be completed not less than 180 days before the next regular election; and WHEREAS, pursuant to City Code Section 7-87(b), not more than 18 months after the official decennial publication of the United States Census concerning the population of Fort Collins, the City Clerk must recommend to the City Council any district boundary changes necessary to ensure that, to the extent reasonably possible, there is no more than a ten-percent (10%) deviation between the most populous and the least populous City Council districts; and WHEREAS, in light of the legal precedents and guidance related to determining voter districts, communities of interest and impacts to ethnic and racial populations are also taken into account in redistricting decisions; and WHEREAS, in light of significant changes to the Larimer County general election precincts, upon which the Council District map must be based, staff recently completed a review of the adjustments required to existing districts to incorporate those changes, seeking to minimize the deviation between the most and least populous City Council districts based on the population data available this year from the 2020 Census; and WHEREAS, pursuant to the above-referenced provisions, the City Clerk presented alternative district boundary changes to the Election Code Committee for consideration and comment, and based on the Committee’s discussion, has presented four alternative district boundary changes for the City Council's consideration; and WHEREAS, from those four alternatives, the City Council has selected an alternative that it believes best serves the interests of the residents of the City and comports with the requirements of the City Charter and Code; and WHEREAS, the district boundary changes are consistent with Larimer County’s general election precinct boundaries as required; and WHEREAS, the City Clerk caused the publication of notices of proposed district boundary amendments to be made in accordance with the requirements of City Code Section 7-87; and WHEREAS, the new Council district-precinct map attached as Exhibit “A” depicts adjusted precinct boundaries and adjusted Council district boundaries. 2.2 Packet Pg. 42 Attachment: Ordinance No. 084, 2022 (11799 : SR 084 Redistricting) -2- NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the district-precinct map dated July 5, 2022, a copy of which is attached as Exhibit “A” and incorporated herein by this reference, is hereby adopted and shall be in effect for the following purposes: (1) determining eligibility for City Council offices for the 2023 regular municipal election; and (2) determining eligibility of any interim appointments to fill any City Council vacancies which may occur following the effective date of this Ordinance. Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2022, and to be presented for final passage on the 19th day of July, A.D. 2022. Mayor ATTEST: City Clerk Passed and adopted on final reading this 19th day of July, A.D. 2022. Mayor ATTEST: City Clerk 2.2 Packet Pg. 43 Attachment: Ordinance No. 084, 2022 (11799 : SR 084 Redistricting) ^ ^ ^ ^ ^ ^S COLLEGE AVE W HORSETOOTH RD W MULBERRY ST S SHIELDS STLAPORTE AVE S TIMBERLINE RDS LEMAY AVESTRAUSSCABIN RDZIEGLERRDRIV E R S ID E AV E S OVERLAND TRLW DRAKE RD E PROSPECT RD W WILLOX LN S TAFT HILL RDW VINE DR COUNTRY CLUB RD E V INE DR RICHARDS LAKE RD W MOUNTAIN AVE E W I LLOXLN E TRILBY RD W PROSPECT RD E COUNTY ROAD 38 E MULBERRY ST JE F F E R S O N S T E DOUGLAS RD COUNTY ROAD 54G N LEMAY AVEN COLLEGE AVEWCOUNTYROAD 38E E COUNTY ROAD 50MOUNTAIN V I S T A D R N TIMBERLINE RDTERRYLAKERDG R E G O R Y R D KECHTER RDN SHIELDS STS COUNTY ROAD 5E HORSETOOTH RD STATE HIGHWAY 392 W HARMONY RD W DOUGLAS RDN U S H I G HW A Y 2 8 7 NOVERLANDTRLE COUNTY ROAD 36 MAIN STW TRILBY RD E DRAKE RD E L I NC O L N A VE S COUNTY ROAD 13CARPENTER RD E COUNTY ROAD 52 S COUNTY ROAD 11S SUMM I T V I E W D R S US HIGHWAY 287N COUNTY ROAD 17E COUNTY ROAD 48 N COUNTY ROAD 5NTAFTHILLRDS COUNTY ROAD 19S COUNTY ROAD 9E COUNTY ROAD 54 N COUNTY ROAD 9E HARMONY RD District 2 District 5 District 4 District 6 District 1 District 3 407 400 690 355 490 390 368 369 301 603 606 600 601 602 205 693 103 206 343 306 300 104 309 311 329 336 335 328 330 334 326348 349 337 338 314327 315 352 351 353 354 331 332 333 356 357 350 347 365 364 360 345 342 346 340 321 341 322 211 209 210 325 317 316324 366 358 359 367 307 310 313 312 308 323 339 362 344 363 361 303 320 319 318 305 304 302 Exhibit A Printed: June 08, 2022 Redistricting Option 3 District 1 District 2 District 3 District 4 District 5 District 6 County Precinct ^Council Member Locations 1 28302 28675 101.3%1.3% 2 28302 28504 100.7%0.7% 3 28302 27343 96.6%-3.4% 4 28302 29229 103.3%3.3% 5 28302 28807 101.8%1.8% 6 28302 27252 96.3%-3.7% District Ideal Population Total Population Percentage of Ideal Percentage From Ideal 169,810 28,302 -3.7%3.3%7% Total Population Ideal District Populaion Lowest Change Highest Change Maximum Deviation 362PrecinctID: 2.2 Packet Pg. 44 Attachment: Ordinance No. 084, 2022 (11799 : SR 084 Redistricting) Agenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY July 19, 2022 City Council STAFF LeAnn Williams, Recreation Director Ingrid Decker, Legal SUBJECT Second Reading of Ordinance No. 085, 2022, Making Supplemental Appropriations of Grant Funds from the Pools Special Initiative 2022 Program. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on July 5, 2022, appropriates funding received from the Colorado Department of Local Affairs to recruit and retain public swimming pool employees. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, July 5, 2022 (w/o attachments) (PDF) 2. Ordinance No. 085, 2022 (PDF) 3 Packet Pg. 45 Agenda Item Item # Page 1 AGENDA ITEM SUMMARY July 5, 2022 City Council STAFF LeAnn Williams, Recreation Director SUBJECT First Reading of Ordinance No. 085, 2022, Making Supplemental Appropriations of Grant Funds from the Pools Special Initiative Program Grant. EXECUTIVE SUMMARY The purpose of this item is to appropriate funding received by the Colorado Department of Local Affairs to recruit and retain public swimming pool employees. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION On June 21, 2022, Governor Polis announced the Special Pools Initiative Program. On July 1, 2022, the City received confirmation of a grant award in the amount of $12,500 for the recruitment and retention of public swimming pool employees. Grant funds will be spent on costs associated with the recruitment and retention of public swimming pool employees. Eligible expenses include but are not limited to: 1.Any expense related to the recruitment of public swimming pool employees such as marketing and advertising, job board fees and referral bonuses; 2.Any expenses related to the retention of public swimming pool employees such as pay increases, signing bonuses, fringe benefits, team building opportunities and employee appreciation expenses. Grant funds are not to be used for utilities, pool supplies, pool equipment, furniture, maintenance expenses or recruitment and retention for non-swimming pool employees. The grants do not require the City to sign a post-award agreement. Funds must be fully spent by September 20, 2022. Reporting of grant funds is required. All expenses are one-time and will not cause new expenses to be added to future City budgets. There is no City match requirement. Grant funds expire September 30, 2022. CITY FINANCIAL IMPACTS City resources will be increased by $12,500 within the Recreation Fund. These funds will be received from the State of Colorado and spent on the recruitment and retention of lifeguards. ATTACHMENT 1 COPY3.1 Packet Pg. 46 Attachment: First Reading Agenda Item Summary, July 5, 2022 (w/o attachments) (11800 : SR 085 Pools Special Initiative Program) Agenda Item Item # Page 2 ATTACHMENTS 1. PSI 22-029 award letter (PDF) 2. PSI 2022 ADVANCE FORM.docx (PDF) 3. PSI 2022 FINAL REPORT FORM.docx (PDF) COPY3.1 Packet Pg. 47 Attachment: First Reading Agenda Item Summary, July 5, 2022 (w/o attachments) (11800 : SR 085 Pools Special Initiative Program) -1- ORDINANCE NO. 085, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING SUPPLEMENTAL APPROPRIATIONS OF GRANT FUNDS FROM THE POOLS SPECIAL INITIATIVE 2022 PROGRAM WHEREAS, on June 21, 2022, Governor Polis announced the Pools Special Initiative 2022 program for local governments to support the operations of public swimming pools across the state for the 2022 summer season; and WHEREAS, this one-time grant program, administered by the Colorado Department of Local Affairs (“DOLA”) is intended to provide incentives to attract and retain public swimming pool employees through the summer and ensure adequate staffing levels that will allow swimming pools to be open at maximum capacity; and WHEREAS, On July 1, 2022, the City received confirmation from DOLA that it would receive a grant in the amount of $12,500; and WHEREAS, the City’s application and the DOLA award letter constitute the grant agreement; and WHEREAS, these funds must be appropriated promptly so that they can be spent on the recruitment and retention of lifeguards during the funding period, which runs from July 1, 2022 through September 30, 2022; and WHEREAS, this appropriation benefits the public health, safety and welfare of the residents of Fort Collins and serves the public purpose of ensuring that City pools can maintain adequate staffing levels to stay open during the summer; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make a supplemental appropriation by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriation, in combination with all previous appropriations for that fiscal year, do not exceed the current estimate of actual and anticipated revenues and all other funds to be received during the fiscal year; and WHEREAS, the Interim City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the Recreation Fund and will not cause the total amount appropriated in the Recreation Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this Fund during this fiscal year. WHEREAS, Article V, Section 11 of the City Charter authorizes the City Council to designate in the ordinance when appropriating funds for a federal, state or private grant that such appropriation shall not lapse at the end of the fiscal year in which the appropriation is made, but continue until the earlier of the expiration of the federal, state or private grant or the City’s expenditure of all funds received from such grant; and 3.2 Packet Pg. 48 Attachment: Ordinance No. 085, 2022 (11800 : SR 085 Pools Special Initiative Program) -2- WHEREAS, the City Council wishes to designate the appropriation herein for the Pools Special Initiative 2022 grant program as an appropriation that shall not lapse until the earlier of the expiration of the grant or the City’s expenditure of all funds received from such grant. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That there is hereby appropriated from new revenue or other funds in the Recreation Fund the sum of TWELVE THOUSAND FIVE HUNDRED DOLLARS ($12,500) to be expended for the recruitment and retention of lifeguards. Section 3. That the appropriation herein for the Pools Special Initiative 2022 program is hereby designated, as authorized in Article V, Section 11 of the City Charter, as an appropriation that shall not lapse at the end of this fiscal year but continue until the earlier of the expiration of the grant or the City’s expenditure of all funds received from such grant. Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2022, and to be presented for final passage on the 19th day of July, A.D. 2022. Mayor ATTEST: City Clerk Passed and adopted on final reading this 19th day of July, A.D. 2022. Mayor ATTEST: City Clerk 3.2 Packet Pg. 49 Attachment: Ordinance No. 085, 2022 (11800 : SR 085 Pools Special Initiative Program) Agenda Item 4 Item # 4 Page 1 AGENDA ITEM SUMMARY July 19, 2022 City Council STAFF Keith Hanson, Real Estate Manager Sue Beck-Ferkiss, Social Policy and Housing Programs Manager Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 087, 2022, Authorizing the Exchange of Stormwater Easements Between the City of Fort Collins and Sun Foothills Fort Collins, LLC EXECUTIVE SUMMARY The purpose of this item is to authorize the conveyance of a stormwater drainage easement to Sun Foothills Fort Collins, LLC (“Sun”) on undeveloped City-owned real property located south of Trilby Road and east of South College Avenue (Assessor’s Parcel No. 9613200927). This easement is necessary for Sun to develop its property adjacent and to the north of the City’s property. In exchange, Sun will convey to the City a stormwater drainage easement on its property that will allow the City, or future owner, to use Sun’s property for stormwater drainage from the City’s property when developed. The execution of the Reciprocal Stormwa ter Drainage Easement Agreement will effectuate the reciprocal conveyances. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The City owns the 17-acre property located south of Trilby Road and ea st of South College Avenue (Assessor’s Parcel No. 9613200927) as part of the City’s Affordable Housing Land Bank Program for the future development of affordable housing. Sun is developing housing directly to the north and adjacent to the City’s property. As part of the development requirements, Sun must maintain a retainage pond on 7.84 acres of its property. Historically, stormwater has naturally drained from Sun’s property onto the inner northern edge of the City’s property. To maximize drainage efficiency, Sun desires to use this same drainage path through an area of 1.07 acres on the City’s property to reach the retainage pond (see attached map). Since Sun’s development will increase the water flow in this path beyond historic, natural volumes, a drainage easement from the City is necessary if this same path is to be utilized. When the City’s property develops into affordable housing, it too, will need to create and maintain a retainage pond on its property for the increased stormwater drainage volume. However, this requirement can be avoided if the City is able to divert the stormwater to a retainage pond on someone else’s property via a drainage easement. Without a retainage pond requirement, and by using the pond on Sun’s property, more land will be available for the construction of more affordable units. Therefore, the City and Sun have negotiated the Reciprocal Stormwater Drainage Easement Agreement that allows Sun to increase stormwater drainage across the City’s property, and the City w ill be able to use Sun’s retainage pond for stormwater drainage associated with the development of future affordable housing on the 4 Packet Pg. 50 Agenda Item 4 Item # 4 Page 2 City’s property. Sun will design and construct the retainage pond now so it will accommodate both its current housing development and the future maximum development of the City’s property. Additionally, Sun will be responsible for all maintenance costs associated with both easements; the City will not be responsible for any cost. CITY FINANCIAL IMPACTS There is no financial impact to the City. The exchange of easements (the City’s granting of 1.07 acres on its property for acquiring the use of Sun’s 7.84-acre retainage pond) and Sun’s responsibility for all maintenance costs for both easements, is considered a mutual and beneficial equal value exchange for both parties. ATTACHMENTS 1. Vicinity Map (PDF) 4 Packet Pg. 51 ATTACHMENT 14.1Packet Pg. 52Attachment: Vicinity Map (11817 : Sun Foothills - Fiber Optics) -1- ORDINANCE NO. 087, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE EXCHANGE OF STORMWATER EASEMENTS BETWEEN THE CITY OF FORT COLLINS AND SUN FOOTHILLS FORT COLLINS, LLC WHEREAS, the City is the owner of a parcel of undeveloped real property located south of Trilby Road and east of South College Avenue as shown and described on Exhibit “A”, attached and incorporated herein by reference, that is part of the City’s Affordable Housing Land Bank Program (the “City Property”); and WHEREAS, Sun Foothills Fort Collins, LLC (“Sun”) intends to develop housing on a parcel of land directly to the north and adjacent to the City Property as shown and described on Exhibit “B”, attached and incorporated herein by reference (the “Sun Property”); and WHEREAS, Sun has requested a stormwater drainage easement on a 1.07 acre portion of the City Property where stormwater has historically flowed, as shown and described on Exhibit “C”, attached and incorporated herein by reference (the “Sun Easement”), because Sun’s development will increase the water flow in this path beyond the historic volumes; and WHEREAS, to obtain its development approvals Sun is also required to construct a stormwater retention pond on 7.84 acres of the Sun Property; and WHEREAS, the purpose of the Affordable Housing Land Bank Program is to acquire and hold land for future development of affordable housing; and WHEREAS, when the City Property eventually develops, it will also need to provide stormwater retention; so, in exchange for the City conveying a stormwater easement to Sun, Sun has agreed to convey an easement to the City for the benefit of the City Property, that will allow the City Property to divert stormwater into the pond on the Sun Property, as shown and described on Exhibit “D”, attached and incorporated herein by reference (the “City Easement”), leaving more land available for development on the City Property; and WHEREAS, as part of this easement exchange Sun will maintain its pond as well as its stormwater drainage improvements on the City Property; and WHEREAS, the value of the City Easement is at least equal to if not exceeding the value of the Sun Easement, so no additional compensation from Sun to the City for the Sun Easement is required; and WHEREAS, Section 23-111(a) of the City Code authorizes the City Council to sell, convey, or otherwise dispose of any interest in real property owned by the City, provided that the City Council first finds, by ordinance, that such sale or other disposition is in the best interests of the City. Packet Pg. 53 -2- NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby finds that the conveyance of the Sun Easement in exchange for the City Easement on the terms and conditions described herein is in the best interests of the City. Section 3. That the City Council hereby authorizes the Mayor to execute a Reciprocal Stormwater Drainage Easement Agreement to convey the Sun Easement to and accept the City Easement from Sun, on terms and conditions consistent with this Ordinance, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary or appropriate to protect the interests of the City, including, but not limited to, any necessary changes to the legal descriptions of the Easements, as long as such changes do not materially increase the size or change the character of the interests to be conveyed. Introduced, considered favorably on first reading and ordered published this 19th day of July, A.D. 2022, and to be presented for final passage on the 16th day of August, A.D. 2022. Mayor ATTEST: City Clerk Passed and adopted on final reading this 16th day of August, A.D. 2022. Mayor ATTEST: City Clerk Packet Pg. 54 Agenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY July 19, 2022 City Council STAFF Travis Storin, Chief Financial Officer Matt Robenalt, DDA Executive Director Kristy Klenk, DDA Financial Coordinator John Duval, Legal SUBJECT Resolution 2022-072 Approving the 2022 Certification to the Larimer County Assessor Pursuant to Colorado Revised Statutes Section 31-25-807(3)(a)(IV)(B) for the Downtown Development Authority Property Tax Increment. EXECUTIVE SUMMARY The purpose of this item is to certify to the Larimer County Assessor the percentages of property tax distributions to be allocated for the Downtown Development Authority by the Assessor as tax increment from the 2022 property taxes payable in 2023 to the City and to all other affected taxing entities. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION In 2008, the Fort Collins, Colorado Downtown Development Authority (“DDA”) was in the final ten years of its original 30-year period (the “Original TIF Term”) during which property tax increment funds (“TIF”) could be allocated to and, when collected, paid to the City for deposit into a special fund to be used for DDA projects as provided in Colorado Revised Statues (“C.R.S.”) Section 31-25-807(3)(a)(II) (“TIF Fund”). Pursuant to C.R.S. Section 31-25-807(3)(a)(IV)(A), in the final ten years of the Original TIF Term, Council had the authority to extend by ordinance such term by one additional 20-year period (the “TIF Extension Period”), provided that: (i) on the first day of the TIF Extension Period, the established base year for the allocation of property taxes is advanced by ten years, and (ii) upon the completion of the first ten years of the TIF Extension period, the base is advanced by one year for every additional year through the final ten years. Also, under C.R.S. Section 31-25-807(3)(a)(IV)(B), Council had the authority to allocate more than 50% of property taxes levied by the City to be allocated and paid into the TIF Fund. On July 10, 2008, the DDA approved i ts Resolution 2008-06 (the “DDA Resolution”), recommending to Council: (i) approval of the TIF Extension Period, and (ii) the allocation of 100% of the City’s property tax increment into the TIF Fund (the 100% City TIF Allocation). 5 Packet Pg. 55 Agenda Item 5 Item # 5 Page 2 On September 2, 2008, Council adopted Ordinance No. 101, 2008, (the “2008 Ordinance”) approving the TIF Extension Period and, consistent with the August 19, 2008, Agenda Item Summary accompanying such ordinance and the DDA Resolution, approved the 100% City TIF Allocation. Also, on February 15, 2011, Council, as the ex-officio Board of Directors of General Improvement District No. 1 (“GID Board”), adopted Ordinance No. 060 (the “2011 GID Ordinance”) allocating 100% of the tax increment revenue from the Fort Collins General Improvement District No. 1 to the DDA Tax Increment Fund for the TIF Extension Period, with the seventh recital of the 2011 GID Ordinance confirming that the 2008 Ordinance had approved the 100% City TIF Allocation. Pursuant to C.R.S. Section 31-25-807(3)(a)(IV)(B), an annual certification to the Larimer County Assessor is required by August 1 of each calendar year, which certification needs to include the allocations of tax increment for that year of all affected taxing entities, including the City. The pr oposed Resolution reaffirms Council’s previous actions in the 2008 Ordinance, acknowledges the actions taken as the GID Board in the 2011 GID Ordinance, and provides the Assessor with Council’s 2022 certification pursuant to C.R.S. Section 31-25-807(3)(a)(IV)(B). It also directs the City’s Financial Officer to provide this certification to the Assessor by August 1, 2022. CITY FINANCIAL IMPACTS There are no changes in the financial or economic impacts to the City as they currently exist. 5 Packet Pg. 56 -1- RESOLUTION 2022-072 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE 2022 CERTIFICATION TO THE LARIMER COUNTY ASSESSOR PURSUANT TO COLORADO REVISED STATUTES SECTION 31-25-807(3)(a)(IV)(B) FOR THE DOWNTOWN DEVELOPMENT AUTHORITY PROPERTY TAX INCREMENT WHEREAS, in 2008, the Fort Collins, Colorado Downtown Development Authority (“DDA”) was in the final ten years of its original 30-year period (“Original TIF Term”) during which property tax increment funds (“TIF”) could be allocated to and, when coll ected, paid to the City of Fort Collins (“City”) for deposit into a special fund to be used for DDA projects, as provided in Colorado Revised Statutes (“C.R.S.”) Section 31-25-807(3)(a)(II) (“TIF Fund”); and WHEREAS, pursuant to C.R.S. Section 31-25-807(3)(a)(IV)(A), in the final ten years of the Original TIF Term, the Fort Collins City Council had the authority to extend by ordinance such term by one additional 20-year period (the “TIF Extension Period”), provided that (i) on the first day of the TIF Extension Period the established base year for the allocation of property taxes is advanced by ten years, and (ii) upon the completion of the first ten years of the TIF Extension period, the base is advanced by one year for every additional year through the final ten years; and WHEREAS, pursuant to C.R.S. Section 31-25-807(3)(a)(IV)(B), the City Council also had and continues to have the authority to commit more than 50% of the property taxes levied by the City to be allocated and paid into the TIF Fund; and WHEREAS, on July 10, 2008, the DDA approved its Resolution 2008-06 (the “DDA Resolution”) recommending to the City Council (i) approval of the TIF Extension Period, and (ii) the allocation of 100% of the City’s property tax increment into the TIF Fund (th e “100% City TIF Allocation”); and WHEREAS, on September 2, 2008, the City Council adopted Ordinance No. 101, 2008 (the “2008 Ordinance”) approving the TIF Extension Period and, consistent with the August 19, 2008 Agenda Item Summary accompanying such ordinance and the DDA Resolution, approved the 100% City TIF Allocation; and WHEREAS, on February 15, 2011, the City Council, as the ex-officio Board of Directors of General Improvement District No. 1 (“GID Board”), adopted Ordinance No. 060 (“2011 GID Ordinance”) allocating 100% of the tax increment revenue from the Fort Collins General Improvement District No. 1 to the DDA Tax Increment Fund for the TIF Extension Period, with the seventh recital of the 2011 GID Ordinance confirming that the 2008 Ordinance had approved the 100% City TIF Allocation; and WHEREAS, pursuant to C.R.S. Section 31-25-807(3)(a)(IV)(B), an annual certification to the Larimer County Assessor (“Assessor”) is required by August 1 of each calendar year, which certification needs to include the allocations of tax increment for that year of all affected taxing entities, including the City; and Packet Pg. 57 -2- WHEREAS, the purposes of this Resolution are to reaffirm the Council’s previous actions in the 2008 Ordinance, to acknowledge the actions it took as the GID Board in the 2011 GID Ordinance, and to provide the Assessor with the City Council’s 2022 certification pursuant to C.R.S. Section 31-25-807(3)(a)(IV)(B). NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby reaffirms its previous actions in the 2008 Ordinance, acknowledges the actions it took as the GID Board in the 2011 GID Ordinance, and certifies to the Assessor, pursuant to C.R.S. Section 31-25-807(3)(a)(IV)(B), that for 2022 property taxes payable in 2023, the City and the Fort Collins General Improvement District No. 1 continue to allocate 100% of their available property tax increment from their mill levies to the DDA tax increment fund, but that all other affected taxing entities are allocating only 50% of their property tax increment, and directs the City’s Financial Officer to provide this certification to the Assessor by August 1, 2022. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July, A.D. 2022. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 58 Agenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY July 19, 2022 City Council STAFF Anissa Hollingshead, City Clerk Carrie M. Daggett, Legal SUBJECT Items Relating to Various Appointments to Boards and Commissions. EXECUTIVE SUMMARY A. Resolution 2022-073 Making an Appointment to the Affordable Housing Board. B. Resolution 2022-074 Making Appointments to the Building Review Commission. C. Resolution 2022-075 Making an Appointment to the Cultural Resources Board. D. Resolution 2022-076 Making Appointments to the Human Relations Commission. E. Resolution 2022-077 Making Appointments to the Land Use Review Commission. F. Resolution 2022-078 Making an Appointment to the Parks and Recreation Board. The purpose of this item is to fill vacancies on various boards and commissions. STAFF RECOMMENDATION Staff recommends adoption of the Resolutions. BACKGROUND / DISCUSSION These Resolutions appoint 14 individuals to fill vacancies due to resignations or term expirations of previous board and commission members. These appointments will begin and expire as noted next to each recommended name shown below and in each Resolution. Affordable Housing Board Appointments Term Effective Date Expiration of Term Sheila Seaver-Davis (Seat A) Replacing Tatiana Zentber who resigned 6/5/2022 Immediately upon approval of this resolution 12/31/2022 Building Review Commission Appointments Term Effective Date Expiration of Term Gabriel Dunbar (Seat B) Immediately upon approval of this resolution 12/31/2025 Ronnie Zimmerman (Seat C) Immediately upon approval of this resolution 12/31/2025 6 Packet Pg. 59 Agenda Item 6 Item # 6 Page 2 Cultural Resources Board Appointments Term Effective Date Expiration of Term Timothy Vavra (Seat D) Immediately upon approval of this resolution 12/31/2025 Human Relations Commission Appointments Term Effective Date Expiration of Term Torin Kaletsky (Seat A) Replacing Jean Runyon who resigned on 4/27/2022 Immediately upon approval of this resolution 12/31/2023 Benjamin Teramoto (Seat H) Immediately upon approval of this resolution 12/31/2023 Coronda Ziegler (Seat I) Immediately upon approval of this resolution 12/31/2024 Land Use Review Commission Appointments Term Effective Date Expiration of Term Katie Vogel (Seat B) Immediately upon approval of this resolution 12/31/2025 Nathaniel Coffman (Seat A) Immediately upon approval of this resolution 12/31/2025 Parks and Recreation Board Appointments Term Effective Date Expiration of Term Nick Armstrong (Seat C) Immediately upon approval of this resolution 12/31/2024 Meghan Willis (Seat A) Replacing Mike Tupa who resigned 3/25/2022 Immediately upon approval of this resolution 12/31/2022 Paul Baker (Seat E) Replacing Jesse Scaccia who resigned 5/23/2022 Immediately upon approval of this resolution 12/31/2024 Marcia Richards (Seat H) Immediately upon approval of this resolution 12/31/2022 John Corley (Seat I) Immediately upon approval of this resolution 12/31/2022 6 Packet Pg. 60 -1- RESOLUTION 2022-073 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING AN APPOINTMENT TO THE AFFORDABLE HOUSING BOARD WHEREAS, the Affordable Housing Board has a vacancy due to the resignation of Tatiana Zentner on June 5, 2022; and WHEREAS, Councilmembers interviewed candidates for this appointment on June 30, 2022; and WHEREAS, the City Council desires to make an appointment to fill this vacancy on the Affordable Housing Board. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the following named person is hereby appointed to fill the open vacancy on the Affordable Housing Board with a term to begin and expire as noted below next to the appointee’s name. Affordable Housing Board Appointments Term Effective Date Expiration of Term Sheila Seaver-Davis (Seat A) Replacing Tatiana Zentber who resigned 6/5/2022 Immediately upon approval of this resolution 12/31/2022 Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July, A.D. 2022. ________________________________ Mayor ATTEST: ________________________ City Clerk Packet Pg. 61 -1- RESOLUTION 2022-074 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING APPOINTMENTS TO THE BUILDING REVIEW COMMISSION WHEREAS, the Building Review Commission has had vacancies open for an extended amount of time; and WHEREAS, Councilmembers interviewed candidates for these appointments on July 1, 2022; and WHEREAS, the City Council desires to make appointments to fill these vacancies on the Building Review Commission. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the following named persons are hereby appointed to fill the open vacancies on the Building Review Commission with a term to begin and expire as noted below next to each appointee’s name. Building Review Commission Appointments Term Effective Date Expiration of Term Gabriel Dunbar (Seat B) Immediately upon approval of this resolution 12/31/2025 Ronnie Zimmerman (Seat C) Immediately upon approval of this resolution 12/31/2025 Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July, A.D. 2022. ________________________________ Mayor ATTEST: ________________________ City Clerk Packet Pg. 62 -1- RESOLUTION 2022-075 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING AN APPOINTMENT TO THE CULTURAL RESOURCES BOARD WHEREAS, the Cultural Resources Board has a vacancy that has been open for an extended amount of time; and WHEREAS, Councilmembers interviewed candidates for these appointments on June 27, 2022; and WHEREAS, the City Council desires to make appointments to fill this vacancy on the Cultural Resources Board. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the following named person is hereby appointed to fill the open vacancy on the Cultural Resources Board with a term to begin and expire as noted below next to the appointee’s name. Cultural Resources Board Appointments Term Effective Date Expiration of Term Timothy Vavra (Seat D) Immediately upon approval of this resolution 12/31/2025 Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July, A.D. 2022. ________________________________ Mayor ATTEST: ________________________ City Clerk Packet Pg. 63 -1- RESOLUTION 2022-076 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING APPOINTMENTS TO THE HUMAN RELATIONS COMMISSION WHEREAS, the Human Relations Commission has a vacancy due to the resignation of Jean Runyon and others vacancies that have been open for an extended amount of time; and WHEREAS, Councilmembers interviewed candidates for these appointments on June 30, 2022; and WHEREAS, the City Council desires to make appointments to fill these vacancies on the Human Relations Commission. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the following named persons are hereby appointed to fill the open vacancies on the Human Relations Commission with a term to begin and expire as noted below next to each appointee’s name. Human Relations Commission Appointments Term Effective Date Expiration of Term Torin Kaletsky (Seat A) Replacing Jean Runyon who resigned on 4/27/2022 Immediately upon approval of this resolution 12/31/2023 Benjamin Teramoto (Seat H) Immediately upon approval of this resolution 12/31/2023 Coronda Ziegler (Seat I) Immediately upon approval of this resolution 12/31/2024 Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July, A.D. 2022. ________________________________ Mayor ATTEST: ________________________ City Clerk Packet Pg. 64 -1- RESOLUTION 2022-077 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING APPOINTMENTS TO THE LAND USE REVIEW COMMISSION WHEREAS, the Land Use Review Commission has vacancies that have been open for an extended amount of time; and WHEREAS, Councilmembers interviewed candidates for these appointments on June 29, 2022; and WHEREAS, the City Council desires to make appointments to fill these vacancies on the Land Use Review Commission. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the following named persons are hereby appointed to fill the open vacancies on the Land Use Review Commission with a term to begin and expire as noted below next to each appointee’s name. Land Use Review Commission Appointments Term Effective Date Expiration of Term Katie Vogel (Seat B) Immediately upon approval of this resolution 12/31/2025 Nathaniel Coffman (Seat A) Immediately upon approval of this resolution 12/31/2025 Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July, A.D. 2022. ________________________________ Mayor ATTEST: ________________________ City Clerk Packet Pg. 65 -1- RESOLUTION 2022-078 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING APPOINTMENTS TO THE PARKS AND RECREATION BOARD WHEREAS, the Parks and Recreation Board has vacancies due to resignations and other seats that have been vacant for an extended amount of time; and WHEREAS, Councilmembers interviewed candidates for these appointments on June 27 and 30, 2022; and WHEREAS, the City Council desires to make appointments to fill these vacancies on the Parks and Recreation Board. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the following named persons are hereby appointed to fill the open vacancies on the Parks and Recreation Board with a term to begin and expire as noted below next to each appointee’s name. Parks and Recreation Board Appointments Term Effective Date Expiration of Term Nick Armstrong (Seat C) Immediately upon approval of this resolution 12/31/2024 Meghan Willis (Seat A) Replacing Mike Tupa who resigned 3/25/2022 Immediately upon approval of this resolution 12/31/2022 Paul Baker (Seat E) Replacing Jesse Scaccia who resigned 5/23/2022 Immediately upon approval of this resolution 12/31/2024 Marcia Richards (Seat H) Immediately upon approval of this resolution 12/31/2022 John Corley (Seat I) Immediately upon approval of this resolution 12/31/2022 Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July, A.D. 2022. ________________________________ Mayor ATTEST: Packet Pg. 66 -2- ________________________ City Clerk Packet Pg. 67 Agenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY July 19, 2022 City Council STAFF Teresa Roche, Human Resources Executive Jenny Lopez Filkins, Legal Carrie Daggett, City Attorney SUBJECT Items Relating to a City-Initiated Charter Amendment Relating to Residency Requirements. EXECUTIVE SUMMARY A. Possible Public Hearing and Motion(s) Regarding Protest(s) of Ballot Language. B. First Reading of Ordinance No. 089, 2022, Submitting to a Vote of the Registered Electors of the City of Fort Collins Proposed Amendments to the City Charter Concerning the Requirement that Certain Employees Live in or Near Fort Collins. At the June 28 work session, Council directed staff to bring forward potential ballot options to amend the City Charter to remove requirements that certain employee positions live in or near Fort Collins, allowing Council to establish any residency requirements by ordinance. Currently, a vote of the registered electorate is required to amend the Charter language that specifies City positions that must live in or near Fort Collins. The purpose of this item is to minimize residency as a barrier to employment in leadership positions in the City of Fort Collins and to recognize the world of work has changed significantly. Any protest of the proposed ballot language must be received no later than Monday, July 18, at noon. Protest(s) shall be heard, considered, and resolved by the Council prior to adoption of the related Ordinance. If protests are received, copies will be included in Council's "Read Before the Me eting" packet. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Requirements that certain City employee positions must live in or near Fort Collins were adopted in 1985 and last reviewed in 2001. With advances in technology, the changing nature of our workforce, and the intention to make more opportunities available for diverse talent, management staff has witnessed internal talent not applying for promotional opportunities as often their spouse/p artner and family members are established in their current location for employment, education, and proximity to others, which impacts the internal mobility of our City talent. Additionally, there is increasing concern about external candidates withdrawing from consideration due to the current residency requirement. This trend will continue and impact the City’s ability to attract, retain and promote talent to serve the community. The Ordinance prepared for this item includes optional Charter language in br ackets that requires any ordinance changing residency requirements to be approved by two -thirds (2/3) of those Councilmembers present and voting. N.7 Packet Pg. 68 Agenda Item 7 Item # 7 Page 2 ATTACHMENTS 1. Organizational Chart (PDF) 2. Powerpoint Presentation (PDF) N.7 Packet Pg. 69 ATTACHMENT 1 N.7.1 Packet Pg. 70 Attachment: Organizational Chart (11802 : Residency Requirement - Charter Amendment) City-Initiated Charter Amendment Relating to Residency Requirements 07/19/2022 Te resa Roche, Human Resources Carrie Daggett, Legal Jenny Lopez-Filkins, Legal ATTACHMENT 2 N.7.2 Packet Pg. 71 Attachment: Powerpoint Presentation (11802 : Residency Requirement - Charter Amendment) 2Discussion Outline •Restate the purpose of this recommendation. •Review the positions with residency requirements. •Reflect on the history of changes from 1985 to 2001. •React to the proposed change to the Charter. ATTACHMENT 2 N.7.2 Packet Pg. 72 Attachment: Powerpoint Presentation (11802 : Residency Requirement - Charter Amendment) 3Why This, Why Now? Minimize residency as a barrier to employment in leadership positions in the City of Fort Collins and recognize the world of work has changed significantly. ATTACHMENT 2 N.7.2 Packet Pg. 73 Attachment: Powerpoint Presentation (11802 : Residency Requirement - Charter Amendment) 4Context for Proposed Recommendation •Currently, a vote of the registered electorate is required to amend the Charter language that specifies City positions that must live in or near Fort Collins. •Staff is recommending that residency requirements that apply to City employees should be established by written agreement with an employee or in the Fort Collins Municipal Code, which would allow for the City Council to set the requirements by ordinance. •City Manager recommends which positions are subject to a residency requirement and Council approves. •The Ordinance prepared for this item includes optional Charter language in brackets that requires any ordinance changing residency requirements to be approved by two-thirds (2/3) of those Councilmembers present and voting. ATTACHMENT 2 N.7.2 Packet Pg. 74 Attachment: Powerpoint Presentation (11802 : Residency Requirement - Charter Amendment) ORGANIZATION CHART Can reside outside the Urban Growth Area,but within 5 miles of City limits Reside within the Fort Collins Urban Growth Area Reside witin the City Wednesday,July 13,2022 FORT COLLINS RESIDENTS CITY COUNCIL JENI ARNDT, MAYOR EMILY FRANCIS,MAYOR PRO TEM,DISTRICT 6 SUSAN GUTOWSKY,DISTRICT 1 JULIE PIGNATARO,DISTRICT 2 TRICIA CANONICO,DISTRICT 3 SHIRLEY PEEL,DISTRICT 4 KELLY OHLSON,DISTRICT 5 EMILY FRANCIS,DISTRICT 6 CITY ATTORNEY CARRIE DAGGETT CITY MANAGER KELLY DIMARTINO ASSISTANT CITY MANAGER RUPA VENKATESH DIVERSITY.EQUITY & INCLUSION OFFICE CLAUDIA MENENDEZ CITY CLERK'S OFFICE ANISSA HOLLINGSHEAD FINANCIAL SERVICES TRAVIS STORIN BUDGET LAWRENCE POLLACK SAFETY,SECURITY &RISK MANAGEMENT CLAIRE GOODWIN PURCHASING GERRY PAUL ACCOUNTING &TREASURY BLAINE DUNN REVENUE JENNIFER POZNANOVIC FINANCIAL PLANNING & ANALYSIS DAVID LENZ CITY GIVE NINA BODENHAMER HUMAN RESOURCES TERESA ROCHE POLICE SERVICES JEFF SWOBODA ADMINISTRATION GREGORY YEAGER PATROL KRISTY VOLESKY INFORMATION SERVICES JUSTIN ALLAR INVESTIGATIONS TIMOTHY DORAN COMMUNITY &SPECIAL SERVICES JOHN FEYEN BROADBAND CHAD CRAGER DEPUTY CITY MANAGER TYLER MARR (interim) SUSTAINABILITY SERVICES JACQUELINE KOZAK THIEL SOCIAL SUSTAINABILITY BETH YONCE ENVIRONMENTAL SERVICES LINDSAY EX ECONOMIC HEALTH OFFICE JOSH BIRKS PLANNING,DEVELOPMENT & TRANSPORTATION SERVICES CARYN CHAMPINE STREETS MALLORY GALLEGOS (Interim) PDT ADMINISTRATION DEAN KLINGNER TRANSFORT&PARKING SERVICES DREW BROOKS COMMUNITY DEVELOPMENT &NEIGHBORHOOD SERVICES PAUL SIZEMORE COMMUNITY SERVICES SEVE GHOSE PARKS MIKE CALHOON NATURAL AREAS KATIE DONAHUE PARK PLANNING & DEVELOPMENT KURT FRIESEN CULTURAL SERVICES JAMES MCDONALD RECREATION LEANN WILLIAMS INFORMATION &EMPLOYEE SERVICES AMANDA KING (Interim) OPERATION SERVICES TRACY OCHSNER (Interim) COMMUNICATION &PUBLIC INVOLVEMENT AMANDA KING INFORMATION TECHNOLOGY KEVIN WILKINS UTILITY SERVICES KENDALL MINOR UTILITYSTRATEGIC FINANCE LANCE SMITH CUSTOMER CONNECTIONS GRETCHEN STANFORD LIGHT &POWER OPERATIONS ADAM BROMLEY (Interim) WATER JASON GRAHAM EMERGENCY PREPAREDNESS JIM BYRNE CHIEF JUDGE JILL HUESER BOARDS &COMMISSIONS Please Note:This chart represent only those positions subject to a residency requirement. ATTACHMENT 2 N.7.2 Packet Pg. 75 Attachment: Powerpoint Presentation (11802 : Residency Requirement - Charter Amendment) 6History of Changes 1985 Amendments to the Charter of the City of Fort Collins which would require the City Clerk, Directors of Departments, and Chiefs of Divisions to live within the Fort Collins Urban Growth Area (UGA) if appointed after March 5, 1985. 1997 Adding the requirement that deputy city managers and assistant city managers reside within the Fort Collins UGA and eliminating the requirement that the city attorney and the municipal judge reside within the UGA. 2000 UGA residency requirement contained in Article IV, Section 3 of the Charter be retained only for deputy and assistant city managers and service area directors (previously referred to in the City Charter as department heads). The City Council believes that while residency requirements serve an important public purpose at certain levels of management, they also tend to restrict the pool of qualified applicants for employment with the City and adversely affect the possibility of internal promotions. 2001 City division heads appointed after March 6, 1985, may live outside the UGA during their tenure if their residences are within five miles of the city limits, as measured by a straight line connecting the parcel of property upon which the residence is situated to the nearest boundary line of the city. ATTACHMENT 2 N.7.2 Packet Pg. 76 Attachment: Powerpoint Presentation (11802 : Residency Requirement - Charter Amendment) "Service area" means a major city administrative unit designated as a service area by the City Council by ordinance. “Department" means a primary subdivision of a service area headed by a person who, regardless of title, is directly responsible to the director of the service area. "Fort Collins Urban Grow th Area" means that geographical area within and adjacent to the City of Fort Collins identified by Intergovernmental Agreement between the City of Fort Collins and Larimer County as that area identified for annexation and urbanization by the City of Fort Collins including the Urban Growth Area as it exists on March 5, 1985, together with any amendments or changes thereto. 7Definitions in the Charter ATTACHMENT 2 N.7.2 Packet Pg. 77 Attachment: Powerpoint Presentation (11802 : Residency Requirement - Charter Amendment) 8Proposed Ballot Language CITY-INITIATED PROPOSED CHARTER AMENDMENT NO. 4 (Residency Requirements) Shall the Charter of the City of Fort Collins,specifically Article I,Section 12,Article III,Section 1, and Article IV,Section 3,regarding residency requirements,be amended to remove specific requirements that City employees in certain positions live in or near Fort Collins,which currently may only be amended by the electorate,and instead allow the City Council to establish such requirements by ordinance [approved by two-thirds (2/3) of those present and voting].? Ye s/For No/Against ATTACHMENT 2 N.7.2 Packet Pg. 78 Attachment: Powerpoint Presentation (11802 : Residency Requirement - Charter Amendment) 9Questions 1.Do Councilmembers wish to consider a ballot measure for the November Municipal election asking voters to amend the Charter to modify the residency requirements for employees? 2.If so, what are Councilmembers’reactions to the proposed ballot language being offered? ATTACHMENT 2 N.7.2 Packet Pg. 79 Attachment: Powerpoint Presentation (11802 : Residency Requirement - Charter Amendment) For Questions or Comments, Please Contact: THANK YOU! Te resa Roche, Carrie Daggett and Jenny Lopez-Filkins ATTACHMENT 2 N.7.2 Packet Pg. 80 Attachment: Powerpoint Presentation (11802 : Residency Requirement - Charter Amendment) -1- ORDINANCE NO. 089, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS SUBMITTING TO A VOTE OF THE REGISTERED ELECTORS OF THE CITY OF FORT COLLINS PROPOSED AMENDMENTS TO THE CITY CHARTER CONCERNING THE REQUIREMENT THAT CERTAIN EMPLOYEES LIVE IN OR NEAR FORT COLLINS WHEREAS, Article IV, Section 8 of the Charter of the City of Fort Collins (the “Charter”) provides that the Charter may be amended as provided by the laws of the State of Colorado; and WHEREAS, Section 31-2-210, Colorado Revised Statutes, provides that Charter amendments may be initiated by the adoption of an ordinance by the City Council submitting a proposed amendment to a vote of the registered electors of the City of Fort Collins; and WHEREAS, Article II, Section 12 of the Charter requires that the City Clerk reside in the Fort Collins Urban Growth Area while serving as the City Clerk; and WHEREAS, Article III, Section 1 of the Charter requires that the City Manager reside in the city limits of Fort Collins while serving as the City Manager; and WHEREAS, Article IV, Section 3 of the Charter concerns a residency requirement that applies to directors of City service areas or groups of City service areas, deputy city managers, and assistant city managers and compels such employees to reside within the Fort Collins Urban Growth Area; and WHEREAS, Article IV, Section 3 of the Charter also concerns a residency requirement that applies to City department heads and compels department heads to live within five miles of the City limits as measured in a prescribed manner; WHEREAS, the COVID-19 pandemic disruption to how work is performed has led to massive shifts in the way that employees and their employers think about work and the way that work is now performed; and WHEREAS, the City Council is of the opinion that more flexibility is warranted for the City’s workforce than the current residency requirements allow and that some high level City positions should be required to live within or in close proximity to the City; and WHEREAS, the City Council is of the opinion that residency requirements that apply to City employees should be established by written agreement with an employee or in the Fort Collins Municipal Code, which would allow for the City Council to set the requirements by ordinance; and WHEREAS, accordingly, the City Council desires to submit to the Fort Collins electors the Charter amendment below. Packet Pg. 81 -2- NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the following proposed changes to Article II, Section 12, Article III, Section 1, and Article IV, Section 3, of the City Charter shall be submitted to the reg istered electors of the City as “Proposed Charter Amendment No. 4” at the November Election: ARTICLE II. CITY COUNCIL . . . Section 12. City Clerk. With the approval of the Council, the City Manager shall appoint a City Clerk who shall act as Clerk of the Council and who while so employed shall be a resident of the Fort Collins Urban Growth Area. The City Clerk shall: (1) give notice of Council meetings; (2) keep a journal of Council proceedings; (3) authenticate by his or her signature and permanently record in full all ordinances and resolutions; and (4) perform other duties required by this Charter or by the City Manager. . . . ARTICLE III. CITY MANAGER Section 1. Appointment, qualifications. The Council shall appoint and fix the compensation of a City Manager, who shall be the chief executive officer and head of the administrative branch of the city government. The City Manager shall be appointed on the basis of his or her executive and administrative qualifications, with special reference to actual experience in and knowledge of accepted practice in respect to the duties of the office. Prior to appointment, the City Manager need not be a resident of the city, but during his or her tenure in office the City Manager shall reside within the city. No member of Council shall be appointed City Manager during the term for which he or she has been elected nor within one (1) year after the expiration of such term. . . . ARTICLE IV GENERAL PROVISIONS . . . Section 3. – Residency requirement Packet Pg. 82 -3- Directors of a city service area or a group of city service areas, deputy city managers, and assistant city managers shall reside within the Fort Collins Urban Growth Area during their tenure in office, but need not reside within the Fort Collins Urban Growth Area prior to their appointment. City department heads may live outside the Urban Growth Area during their tenure in office, but only if their places of residence are within five miles of the city limits, as measured by a straight line connecting the parcel of property upon which the residence is situated to the nearest boundary line of the city. City department heads appointed prior to March 6, 1985, shall not be subject to this residency requirement. The City Council may establish any residency requirement that applies to one or more specified City employee positions by ordinance [approved by two -thirds (2/3) of those present and voting]. . . . Section 3. That the following ballot title, with its title and submission clause, is hereby adopted for submitting Proposed Charter Amendment No. 4 to the voters at the November Election: CITY-INITIATED PROPOSED CHARTER AMENDMENT NO. 4 (Residency Requirements) Shall the Charter of the City of Fort Collins, specifically Article II, Section 12, Article III, Section 1, and Article IV, Section 3, regarding residency requirements, be amended to remove specific requirements that City employees in certain positions live in or near Fort Collins, which currently may only be amended by the electorate, and instead allow the City Council to establish such requirements by ordinance [approved by two-thirds (2/3) of those present and voting].? Yes/For _____ No/Against Packet Pg. 83 -4- Introduced, considered favorably on first reading and ordered published this 19th day of July, A.D. 2022, and to be presented for final passage on the 16th day of August, A.D. 2022. Mayor ATTEST: City Clerk Passed and adopted on final reading this 16th day of August, A.D. 2022. Mayor ATTEST: City Clerk Packet Pg. 84 Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY July 19, 2022 City Council STAFF Caroline Mitchell, Environmental Sustainability Manager Jackie Kozak-Thiel, Chief Sustainability Officer Tyler Marr, Interim Deputy City Manager Ted Hewitt, Legal Judy Schmidt, Legal SUBJECT Resolution 2022-079 Directing the Design and Issuance of a Request for Proposals for a Residential Waste Services Program Within the Boundaries of the City EXECUTIVE SUMMARY The purpose of this item is to consider a Resolution that outline s elements of a contracted residential waste and recycling program that will be used to inform development and issuance of a Request for Proposals for a service provider for that program. This action aligns with the Council Priority to explore a districted system for garbage, recycling and compost for single family homes and multifamily residences of seven or fewer units. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. 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. In order to ensure the broadest possible conversation in the community, the term “contracting” has been used throughout this process. Past Council Feedback April 12th Work Session <https://citydocs.fcgov.com/?cmd=convert&vid=72&docid=3526466&dt=AGENDA+ITEM&doc_downloa d_date=APR-12-2022&ITEM_NUMBER=03> • 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 R equest for Proposal development • Present options for elements of a contracted system at the July 12 Council Work Session N.8 Packet Pg. 85 Agenda Item 8 Item # 8 Page 2 July 12th Work Session <https://citydocs.fcgov.com/?cmd=convert&vid=72&docid=3527096&dt=AGENDA+ITEM&doc_downloa d_date=JUL-12-2022&ITEM_NUMBER=01> • Draft a Resolution that directs staff to develop and issue an RFP that reflects the staff recommendations and Council discussion at the July 12 work session • Bring the Resolution for Council’s consideration at its July 19 meeting Alignment with Adopted Goals and Plans Contracting would enable actions essential to meeting Fort Collins’ adopted goal to produce zero waste by 2030. Fort Collins 2020 Community Diversion Rate goal was 75%, which was not achieved. In 2020, the Residential Diversion rate was 29% and the Community Diversion Rate (combining residential, commercial and industrial materials) was 52%. Increased composting is also a critical pat h to achieving our climate goals. Contracting for trash and recycling aligns with several adopted plans and other Council priorities. Those plans include: • Our Climate Future https://ourcity.fcgov.com/ourclimatefuture Big Move 2: Zero Waste Neighborhoods • City Plan <https://www.fcgov.com/cityplan/files/city-plan.pdf?1577727132>, Principle ENV 5: Create a Zero Waste System • Strategic Plan <https://www.fcgov.com/citymanager/files/20-22326-2020-strategic-plan- document_final.pdf>, Environmental Health 4.3 Zero Waste Contracting for single family home trash, recycling and compost also supports the following adopted Council Priorities: • Advance Regionalism • Accelerate Composting • Improve Air Quality • Enhanced Recycling Education Recommended Elements to Include in the Residential Waste and Recycling Program The chart below outlines the recommendation for the program elements of a contracted syst em that will inform development of a Request for Proposals for Fort Collins. These elements are reflected in Resolution 2022 -079. Further information about each of the elements and alternative options are included in Attachment 1. N.8 Packet Pg. 86 Agenda Item 8 Item # 8 Page 3 Materials to be Collected and How Material Recommendation Why Yard Trimmings Service type: Request two versions of pricing for optional and bundled pricing to find optimal balance of highest diversion for lowest price. Service frequency: Weekly collection from April - Nov Requesting pricing for both service types allows for understanding of pricing impacts for both options to make informed decision. Optional service type allows choice for those who don’t want / need the service; residents would be signed up for the service automatically, but could decline the service and not have to pay for it. Bundled service type is generally lowest price for service, but doesn’t allow households to lower their bill if they decline yard trimmings service. Bulky Waste (Items too large to fit in 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 all applicable requirements, including Pay-As-You- Throw requirements. Can join City contract if they prefer 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 Allows for cart purchase without the opportunity cost of using City funds. N.8 Packet Pg. 87 Agenda Item 8 Item # 8 Page 4 System Design Element Recommendation Why the end of the contract. . 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 service cost in current system. Cart maintenance: Provided by hauler and funded in trash rate on resident bills. 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. Ownership and logo: Hauler-owned carts with City logo at households. Cart ownership transfer to City at end of contract. 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 13) 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 N.8 Packet Pg. 88 Agenda Item 8 Item # 8 Page 5 System Design Element Recommendation Why 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 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, Pricing Context The impacts and benefits of a contracted system as well as current pricing in Fort Collins compared with other peer community systems are included in the agenda item summary from the July 12 work session. (Attachment 6) NEXT STEPS If Resolution 2022-079 is adopted, staff will: • 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 prepare proposals • Conduct a competitive purchasing process review of hauler proposals • If a satisfactory contract for services can be negotiated, develop proposed municipal code change s necessary to enact a contracted residential collection program and present those proposed changes for City Council consideration in late 2022 or early 2023 or, if no proposal is sufficient or satisfactory, report that outcome to the City Council by April 15, 2023. 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 time for community outreach, cart sign-up and cart distribution. CITY FINANCIAL IMPACTS The Resolution under consideration does not impact City finances. The residential waste and recycling program would be funded by user fees paid directly to the hauler. The hauler would provide the funding for equipment necessary to offer the service. The City role in managing the program would be reimbursed through an administrative fee on hauling bills. N.8 Packet Pg. 89 Agenda Item 8 Item # 8 Page 6 Program Element Entity Carts purchase Hauler, reimbursed over life of contract from user fees City contract management Funded from administrative fee within user fees Billing Hauler Customer Service Hauler Savings on Street Maintenance City BOARD / COMMISSION RECOMMENDATION • Economic Advisory Board: Supports a single provider contracted system with bundled yard waste collection if economically feasible; recommends taking action to reduce the number of trucks in neighborhoods now. (Attachment 3) • Natural Resources Advisory Board: Supports a single-hauler contracted system with focus on diversion options and advocates for lower and zero-emission vehicles. (Attachment 5) PUBLIC OUTREACH Staff has engaged with community members, stakeholders, boards and commissions, and haulers throughout this project. (Attachment 9) ATTACHMENTS 1. Chart of All Element Options in Contracted System (PDF) 2. Economic Advisory Board Recommendation (PDF) 3. Economic Advisory Board Minutes (PDF) 4. Natural Resources Advisory Board Minutes (PDF) 5. Natural Resources Advisory Board Recommendation (PDF) 6. July 12 Work Session Agenda Item Summary (PDF) 7. The Recycling Partnership Letter of Support (PDF) 8. Fort Collins Pricing Study for Trash July 2022 (PDF) 9. Contracting Engagement Summary (PDF) 10. Curbside Contracting Engagement Report (PDF) 11. Refuse Vehicle Emission Noise Safety Analysis June 2 022 (PDF) 12. Refuse Vehicle Street Maintenance Impact Study (PDF) 13. Multiple District Considerations (PDF) 14. Powerpoint Presentation (PDF) Single Family Tr ash, Recycling and Compost Contracting July 19, 2022 City Council Regular Session Caroline Mitchell Lindsay Ex Additional project team members: Kira Beckham Sylvia Tatman-Burruss Ashley Pace Sheela Backen Te ssa Dieter Molly Saylor ATTACHMENT 14 N.8.1 Packet Pg. 91 Attachment: Powerpoint Presentation (11812 : Trash and Recycling Contracting) 2Strategic 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) N.8.1 Packet Pg. 92 Attachment: Powerpoint Presentation (11812 : Trash and Recycling Contracting) 3Systems for Tr ash and Recycling Collection City RolePure Open Market Each household chooses their own hauler for trash and recycling collection. No role of local government. Municipal Hauling Utility A m unicipality owns and operates their own hauling utility using city staff, resources and equipment. Open Market with Licensing Each household chooses their own licensed hauler for trash and recycling collection. City license can support safety requirements and/or policy goals like including recycling. This is Fort Collins’current system. Contracted System A m unicipality contracts with one or more companies to provide residential trash and recycling collection. This is the system under consideration. N.8.1 Packet Pg. 93 Attachment: Powerpoint Presentation (11812 : Trash and Recycling Contracting) 4Contracting vs Open Market M M M M M M M M M W T F F M TW Open Market System: multiple haulers, serviced on different days of the week Contract System: single hauler, serviced on same day of the week N.8.1 Packet Pg. 94 Attachment: Powerpoint Presentation (11812 : Trash and Recycling Contracting) 5Impacts of an open market hauling system Fort Collins’open market trash and recycling hauling system creates an estimated: $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 N.8.1 Packet Pg. 95 Attachment: Powerpoint Presentation (11812 : Trash and Recycling Contracting) 6Pricing 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 N.8.1 Packet Pg. 96 Attachment: Powerpoint Presentation (11812 : Trash and Recycling Contracting) 7Fort 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 (w/o yard trimmings) $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 N.8.1 Packet Pg. 97 Attachment: Powerpoint Presentation (11812 : Trash and Recycling Contracting) 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 Also continued engagement with haulers: •3 support exploring contracted system •1 prefers current system N.8.1 Packet Pg. 98 Attachment: Powerpoint Presentation (11812 : Trash and Recycling Contracting) 9Recommended Elements to be Included in Resolution Material Recommendation Ya rd Trimmings Weekly collection from April –Nov Request pricing for optional, 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; Can choose to join City contract 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 N.8.1 Packet Pg. 99 Attachment: Powerpoint Presentation (11812 : Trash and Recycling Contracting) 10Staff Recommendation Adopt Resolution 2022-079 confirming elements of a contracted system for residential waste and recycling collection, which will be included in a Request for Proposals (RFP) N.8.1 Packet Pg. 100 Attachment: Powerpoint Presentation (11812 : Trash and Recycling Contracting) N.8.1 Packet Pg. 101 Attachment: Powerpoint Presentation (11812 : Trash and Recycling Contracting) 12Differences 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 N.8.1 Packet Pg. 102 Attachment: Powerpoint Presentation (11812 : Trash and Recycling Contracting) 13What 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 N.8.1 Packet Pg. 103 Attachment: Powerpoint Presentation (11812 : Trash and Recycling Contracting) 14Multiple 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 N.8.1 Packet Pg. 104 Attachment: Powerpoint Presentation (11812 : Trash and Recycling Contracting) 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 N.8.2 Packet Pg. 105 Attachment: Chart of All Element Options in Contracted System (11812 : Trash and Recycling 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 ATTACHMENT 1 N.8.2 Packet Pg. 106 Attachment: Chart of All Element Options in Contracted System (11812 : Trash and Recycling 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 ATTACHMENT 1 N.8.2 Packet Pg. 107 Attachment: Chart of All Element Options in Contracted System (11812 : Trash and Recycling 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 ATTACHMENT 1 N.8.2 Packet Pg. 108 Attachment: Chart of All Element Options in Contracted System (11812 : Trash and Recycling 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 ATTACHMENT 1 N.8.2 Packet Pg. 109 Attachment: Chart of All Element Options in Contracted System (11812 : Trash and Recycling 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 2 N.8.3 Packet Pg. 110 Attachment: Economic Advisory Board Recommendation (11812 : Trash and Recycling Contracting) 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 3 N.8.4 Packet Pg. 111 Attachment: Economic Advisory Board Minutes (11812 : Trash and Recycling Contracting) NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 06/15 /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? ATTACHMENT 4 N.8.4 Packet Pg. 112 Attachment: Economic Advisory Board Minutes (11812 : Trash and Recycling Contracting) NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 06/15 /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 ATTACHMENT 4 N.8.4 Packet Pg. 113 Attachment: Economic Advisory Board Minutes (11812 : Trash and Recycling Contracting) NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 06/15 /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 ATTACHMENT 4 N.8.4 Packet Pg. 114 Attachment: Economic Advisory Board Minutes (11812 : Trash and Recycling Contracting) NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 06/15 /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 ATTACHMENT 4 N.8.4 Packet Pg. 115 Attachment: Economic Advisory Board Minutes (11812 : Trash and Recycling Contracting) NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 06/15 /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 ATTACHMENT 4 N.8.4 Packet Pg. 116 Attachment: Economic Advisory Board Minutes (11812 : Trash and Recycling Contracting) NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 06/15 /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 ATTACHMENT 4 N.8.4 Packet Pg. 117 Attachment: Economic Advisory Board Minutes (11812 : Trash and Recycling Contracting) NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 06/15 /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 ATTACHMENT 4 N.8.4 Packet Pg. 118 Attachment: Economic Advisory Board Minutes (11812 : Trash and Recycling Contracting) NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 06/15 /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 ATTACHMENT 4 N.8.4 Packet Pg. 119 Attachment: Economic Advisory Board Minutes (11812 : Trash and Recycling Contracting) NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 06/15 /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. ATTACHMENT 4 N.8.4 Packet Pg. 120 Attachment: Economic Advisory Board Minutes (11812 : Trash and Recycling Contracting) NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 06/15 /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. ATTACHMENT 4 N.8.4 Packet Pg. 121 Attachment: Economic Advisory Board Minutes (11812 : Trash and Recycling Contracting) NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 06/15 /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. ATTACHMENT 4 N.8.4 Packet Pg. 122 Attachment: Economic Advisory Board Minutes (11812 : Trash and Recycling Contracting) NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 06/15 /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 ATTACHMENT 4 N.8.4 Packet Pg. 123 Attachment: Economic Advisory Board Minutes (11812 : Trash and Recycling Contracting) 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 4 N.8.5 Packet Pg. 124 Attachment: Natural Resources Advisory Board Minutes (11812 : Trash and Recycling Contracting) NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 06/15/2022 – 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 ATTACHMENT 5 N.8.5 Packet Pg. 125 Attachment: Natural Resources Advisory Board Minutes (11812 : Trash and Recycling Contracting) NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 06/15/2022 – 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 ATTACHMENT 5 N.8.5 Packet Pg. 126 Attachment: Natural Resources Advisory Board Minutes (11812 : Trash and Recycling Contracting) NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 06/15/2022 – 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, ATTACHMENT 5 N.8.5 Packet Pg. 127 Attachment: Natural Resources Advisory Board Minutes (11812 : Trash and Recycling Contracting) NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 06/15/2022 – MINUTES Page 5 and budget review. 3. ADJOURN - 8:52 pm ATTACHMENT 5 N.8.5 Packet Pg. 128 Attachment: Natural Resources Advisory Board Minutes (11812 : Trash and Recycling Contracting) 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 5 N.8.6 Packet Pg. 129 Attachment: Natural Resources Advisory Board Recommendation (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 6 N.8.6 Packet Pg. 130 Attachment: Natural Resources Advisory Board Recommendation (11812 : Trash and Recycling Contracting) DATE: 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 ATTACHMENT 6 N.8.7 Packet Pg. 131 Attachment: July 12 Work Session Agenda Item Summary (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 6 N.8.7 Packet Pg. 132 Attachment: July 12 Work Session Agenda Item Summary (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 6 N.8.7 Packet Pg. 133 Attachment: July 12 Work Session Agenda Item Summary (11812 : Trash and Recycling Contracting) 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. ATTACHMENT 6 N.8.7 Packet Pg. 134 Attachment: July 12 Work Session Agenda Item Summary (11812 : Trash and Recycling Contracting) 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. ATTACHMENT 6 N.8.7 Packet Pg. 135 Attachment: July 12 Work Session Agenda Item Summary (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 6 N.8.7 Packet Pg. 136 Attachment: July 12 Work Session Agenda Item Summary (11812 : Trash and Recycling Contracting) 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. ATTACHMENT 6 N.8.7 Packet Pg. 137 Attachment: July 12 Work Session Agenda Item Summary (11812 : Trash and Recycling Contracting) 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) ATTACHMENT 6 N.8.7 Packet Pg. 138 Attachment: July 12 Work Session Agenda Item Summary (11812 : Trash and Recycling Contracting) 125 Rowell Court Falls Church, VA 22046 RECYCLINGPARTNERSHIP.ORG Caroline Mitchell, Waste Reduction and Recycling Manager City of Fort Collins, Colorado PO Box 580 Fort Collins, CO 80521 July 12, 2022 Dear Ms. Mitchell, The Recycling Partnership is a national nonprofit organization working to grow residential recycling in the United States. I am writing to present the City of Fort Collins, Colorado with this letter expressing our support for the City’s efforts to enhance its public recycling efforts by moving towards a single hauler, municipally organized curbside recycling program. The Recycling Partnership works with communities across the country, and we have found that municipally organized curbside recycling programs that contract with one hauler and automatically provide residents with a recycling cart and collection service are the best way to maximize the performance of public recycling programs. A municipally organized universal curbside recycling program is associated with the following benefits: •Maximized collection system efficiency through scale; •Creating a single system where service is automatically available maximizes participation and the diversion of materials from disposal; •Enables the opportunity for single-source consistent recycling education and program messaging; •Provides opportunity for local government to control and focus on customer service, placing a premium on delivering value to citizens; •Results in reduced truck traffic by eliminating different recycling service providers serving households on the same street. This also creates additional associated benefits such as reduced roadway wear and tear, decreased collection vehicle emissions, and smaller greenhouse gas footprint. As the City of Fort Collins evaluates its options, we hope that City leaders will decide to move forward with a universal public curbside recycling program. The Recycling Partnership believes that this represents the City’s best path for maximizing public recycling. The decision to implement a single-hauler curbside recycling program will send a strong signal to your residents that your community supports efficient and robust recycling while setting a powerful example for other communities in the region. Should the City decide to implement a universal, single-hauler, cart-based curbside recycling program, The Partnership is prepared to work with the City to provide additional support that would include grant funding and technical assistance to help enhance the City’s curbside recycling program. General grant support for a program like Fort Collins is considering could include the following: •Cash Grant to purchase recycling carts – The Partnership provides up to $15 per cart for cities or haulers to purchase carts as they establish universal curbside recycling. While a best management practice is for ATTACHMENT 7 N.8.8 Packet Pg. 139 Attachment: The Recycling Partnership Letter of Support (11812 : Trash and Recycling Contracting) RECYCLINGPARTNERSHIP.ORG the local government to purchase and own the recycling carts, The Partnership is able to grant the hauler selected by the City as long as the hauler is able to pass the savings on to the residents. •Cash Grant for education support: The Partnership offers $1 per house for printing, postage and digital education to accompany cart distribution and roll out of the new service. •In-Kind Assistance and Support: In addition to the cash grant described above, The Recycling Partnership is offering to provide no-cost in-kind technical assistance beyond the cash grant, to include the following elements: •Access to Recycling Partnership outreach campaign materials as well as technical support and assistance with the design, planning and implementation of a recycling outreach campaign; and •Technical assistance to the community’s team as needed to help project the impact of transitioning to a universal cart-based curbside recycling program that provides weekly or every-other-week collection service. For more detailed information about The Recycling Partnership cart grants, our formal request for proposals for cart grants is located on The Recycling Partnership website: Residential Curbside Recycling Cart Grant Request for Proposals. Improved recycling supports industry and employment across the U.S., protects the environment and enhances the cleanliness and sustainability of our communities. The Recycling Partnership is supportive of the City of Fort Collins’ consideration of this important transition to a single-hauler collection system and ready to help through technical assistance and granting. We look forward to working with you to advance recycling in your community! Sincerely, Rob Taylor, Senior Director of Grants and Community Development The Recycling Partnership Email: rtaylor@recyclingpartnership.org Phone: 919-777-3964 ATTACHMENT 7 N.8.8 Packet Pg. 140 Attachment: The Recycling Partnership Letter of Support (11812 : Trash and Recycling Contracting) 1 Fort Collins Residential Waste and Recycling Pricing Study Initial Summary July 2022 Key initial takeaways Pricing varies significantly for the same size trash cart service within Fort Collins o $10 - $15 per month; $120 - $180 per year Pricing varies even in the same area of town and for service provided by the same company Why Conduct a Pricing Study When connecting with peer communities, City of Fort Collins staff learned that residents in open market trash and recycling collection systems often pay different prices for the same service. To understand the current state in Fort Collins and determine if the same variability exists in this community, City staff initiated a pricing study in May 2022. Methodology City staff requested residents share their residential trash and recycling service cost either via sharing their actual invoices or by reporting the information through an online form. As of July 1, 2022, 53 responses had been received and are reflected in the following summary. City staff will continue to keep the request for pricing information open to further understand average pricing and variability in pricing within the community. $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; Data Recieved as of July 2022 Average $10 (100%) difference $13 (50%) difference $15 (48%) difference ATTACHMENT 8 N.8.9 Packet Pg. 141 Attachment: Fort Collins Pricing Study for Trash July 2022 (11812 : Trash and Recycling Contracting) Residential Waste and Recycling Contracted Hauling Engagement Summary Engagement The general level of engagement along the International Association for Public Participation (IAP2) spectrum is “Consult” with aspects of “Involve” where goals and proposed outcomes are discussed. Examples of “consult” tools include seeking public comment on proposed action, presentations to neighborhood groups, Homeowners’ Associations (HOAs), Boards & Commissions and hosting Open Houses. Phase I Engagement (prior to April 12, 2022 work session): Focused on understanding the goals, priorities and concerns our community has when exploring the idea of contracting for household trash and recycling service. Staff connected with ~1,770 community members using engagement tools including a page on Our City, a general online survey and two virtual community conversations communicated via City platforms, social media, press releases and newsletters, and through paid third-party advertisements including radio, print, and social media. Phase II Engagement (April 2022 work session to now) focused on the details and tradeoffs within options of a contracted trash and recycling collection system. 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 using engagement tools including a page on Our City, a general online survey and targeted online survey (both requiring a login to ensure one response per participant), two virtual community conversations, and tabling at community events and facilities. Engagement tactics were communicated via City platforms, social media, press releases, newsletters, and a utility bill insert as well as through community partner orga nizations. This list represents a comprehensive set of community members and organizations staff members have connected within the process since the start of the project. Some conversations have been in -depth while others have been simpler touchpoints, e.g., replies to emails or a commitment on behalf of an organization to share out the opportunities with their networks. Community Members •Over 2,000 community members engaged in one or multiple of the platforms including social media messaging, virtual community conversations (open houses), online website and message boards, email, phone calls, and surveys. •Worked with community partners and third- party advertisers to promote Spanish language survey to Latino/Latina/Latinx community members. Environmental Groups •Sustainable Living Association •CSU Zero Waste Club •Next Level Neighborhoods •Vindeket Foods Low-Income Organizations •CARE Housing •Housing Catalyst •Harmony Village Mobile Home Park •Larimer County Food Bank Focused Community Groups •Chamber of Commerce: Local Legislative Affairs Committee (LLAC) •Downtown Development Authority (declined a meeting) •Black and African American Cultural Center •Queen’s Legacy Foundation •Nonprofit Human Service Grantees •Disable Resource Services NoCo •Fort Collins Habitat for Humanity •Northern Colorado A Little Help •La Cocina •Project Self Sufficiency Boards and Commissions: •Natural Resources Advisory Board •Economic Advisory Board Homeowners Associations •Meeting with Clarendon Hills HOA Waste Haulers •Republic Services •Waste Management •Waste Connections •Mountain High Disposal ATTACHMENT 9 N.8.10 Packet Pg. 142 Attachment: Contracting Engagement Summary (11812 : Trash and Recycling Contracting) DRAFT 1 ATTACHMENT 10 N.8.11 Packet Pg. 143 Attachment: Curbside Contracting Engagement Report (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 11 N.8.11 Packet Pg. 144 Attachment: Curbside Contracting Engagement Report (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 11 N.8.11 Packet Pg. 145 Attachment: Curbside Contracting Engagement Report (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 11 N.8.11 Packet Pg. 146 Attachment: Curbside Contracting Engagement Report (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 11 N.8.11 Packet Pg. 147 Attachment: Curbside Contracting Engagement Report (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 11 N.8.11 Packet Pg. 148 Attachment: Curbside Contracting Engagement Report (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 11 N.8.11 Packet Pg. 149 Attachment: Curbside Contracting Engagement Report (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 11 N.8.11 Packet Pg. 150 Attachment: Curbside Contracting Engagement Report (11812 : Trash and Recycling Contracting) 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 11 N.8.12 Packet Pg. 151 Attachment: Refuse Vehicle Emission Noise Safety Analysis June 2022 (11812 : Trash and Recycling Contracting) Ms. Kira Beckham 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. ATTACHMENT 11 N.8.12 Packet Pg. 152 Attachment: Refuse Vehicle Emission Noise Safety Analysis June 2022 (11812 : Trash and Recycling Contracting) Ms. Kira Beckham 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 ATTACHMENT 11 N.8.12 Packet Pg. 153 Attachment: Refuse Vehicle Emission Noise Safety Analysis June 2022 (11812 : Trash and Recycling Contracting) Ms. Kira Beckham 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 ATTACHMENT 11 N.8.12 Packet Pg. 154 Attachment: Refuse Vehicle Emission Noise Safety Analysis June 2022 (11812 : Trash and Recycling Contracting) Ms. Kira Beckham 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 ATTACHMENT 11 N.8.12 Packet Pg. 155 Attachment: Refuse Vehicle Emission Noise Safety Analysis June 2022 (11812 : Trash and Recycling Contracting) Ms. Kira Beckham 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. ATTACHMENT 11 N.8.12 Packet Pg. 156 Attachment: Refuse Vehicle Emission Noise Safety Analysis June 2022 (11812 : Trash and Recycling Contracting) Ms. Kira Beckham 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. ATTACHMENT 11 N.8.12 Packet Pg. 157 Attachment: Refuse Vehicle Emission Noise Safety Analysis June 2022 (11812 : Trash and Recycling Contracting) Ms. Kira Beckham 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/ ATTACHMENT 11 N.8.12 Packet Pg. 158 Attachment: Refuse Vehicle Emission Noise Safety Analysis June 2022 (11812 : Trash and Recycling Contracting) Ms. Kira Beckham 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. ATTACHMENT 11 N.8.12 Packet Pg. 159 Attachment: Refuse Vehicle Emission Noise Safety Analysis June 2022 (11812 : Trash and Recycling Contracting) 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 12 N.8.13 Packet Pg. 160 Attachment: Refuse Vehicle Street Maintenance Impact Study (11812 : Trash and Recycling Contracting) 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. ATTACHMENT 13 N.8.13 Packet Pg. 161 Attachment: Refuse Vehicle Street Maintenance Impact Study (11812 : Trash and Recycling Contracting) 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. ATTACHMENT 13 N.8.13 Packet Pg. 162 Attachment: Refuse Vehicle Street Maintenance Impact Study (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 13 N.8.13 Packet Pg. 163 Attachment: Refuse Vehicle Street Maintenance Impact Study (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 13 N.8.13 Packet Pg. 164 Attachment: Refuse Vehicle Street Maintenance Impact Study (11812 : Trash and Recycling Contracting) 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. ATTACHMENT 13 N.8.13 Packet Pg. 165 Attachment: Refuse Vehicle Street Maintenance Impact Study (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 13 N.8.13 Packet Pg. 166 Attachment: Refuse Vehicle Street Maintenance Impact Study (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 13 N.8.13 Packet Pg. 167 Attachment: Refuse Vehicle Street Maintenance Impact Study (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 13 N.8.13 Packet Pg. 168 Attachment: Refuse Vehicle Street Maintenance Impact Study (11812 : Trash and Recycling Contracting) 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$ ATTACHMENT 13 N.8.13 Packet Pg. 169 Attachment: Refuse Vehicle Street Maintenance Impact Study (11812 : Trash and Recycling Contracting) 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. ATTACHMENT 13 N.8.13 Packet Pg. 170 Attachment: Refuse Vehicle Street Maintenance Impact Study (11812 : Trash and Recycling Contracting) 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 ATTACHMENT 13 N.8.13 Packet Pg. 171 Attachment: Refuse Vehicle Street Maintenance Impact Study (11812 : Trash and Recycling Contracting) 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 AATTACHMENT 13 N.8.13 Packet Pg. 172 Attachment: Refuse Vehicle Street Maintenance Impact Study (11812 : Trash and Recycling Contracting) 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 13 N.8.14 Packet Pg. 173 Attachment: Multiple District Considerations (11812 : Trash and Recycling Contracting) -1- RESOLUTION 2022-079 OF THE COUNCIL OF THE CITY OF FORT COLLINS DIRECTING THE DESIGN AND ISSUANCE OF A REQUEST FOR PROPOSALS FOR A RESIDENTIAL WASTE SERVICES PROGRAM WITHIN THE BOUNDARIES OF THE CITY WHEREAS, on December 17, 2013, City Council adopted Resolution 2013-011 recognizing that the City’s history of public education regarding recycling and solid waste reduction and waste reduction goals from 1985 through the adoption of Resolution 1999-139 and establishing the goal of diverting 50% of the community’s waste stream from landfill disposal by 2010; and WHEREAS, on January 15, 2019 City Council adopted Resolution 2019-010 supporting the Larimer County Solid Waste Infrastructure Master Plan (SWIMP) and on April 16, 2019 Council adopted Resolution 2019-047 authorizing the execution of an Intergovernmental Agreement in support of implementation of the SWIMP as a member of the North Front Range Regional Wasteshed Coalition, including adopting policies to support the development of the infrastructure identified in the SWIMP such as flow control of trash to the Larimer County Landfill; and WHEREAS, on October 21, 2014, City Council adopted Resolution 2014-098, establishing the City’s Waste Diversion Policy with the goal of achieving “zero waste” by 2030 (with interim goals) and recognizing the City’s “Road to Zero Waste” plan created to achieve this policy goal and the resulting direct economic and environmental benefits to the local and global community; and WHEREAS, on March 16, 2021, City Council adopted Resolution 2021-031 approving and adopting the Fort Collins Our Climate Future Plan as a combined and comprehensive update to the City’s Climate Action Plan, updated Energy Policy and Road to Zero Waste Plan articulating a commitment to mitigate climate change, and energy and waste reduction goals, including recycling and waste diversion as a vital strategy to reduce greenhouse gas emissions; and WHEREAS, by adoption of Resolution 2019-048 and Ordinance No. 040, 2020, City Council adopted the 2019 City Plan as the City’s comprehensive plan; and WHEREAS, the 2019 City Plan includes Principle ENV 5, which sets forth the City’s policies to create a Zero Waste System, and Policies ENV 5.1 through 5.5 calling for reduction and reuse, regional collaboration on infrastructure and policy development, landfill diversion, facilitation of efficient and sustainable practices and employment of a sustainable materials management approach to waste reduction and diversion; and WHEREAS, in 2021, the City Council directed City staff to examine ways to reduce the impacts of trash collection services in Fort Collins, including street wear, air quality, neighborhood aesthetics, noise, and other neighborhood impacts, and to identify ways to improve diversion rates for recyclable and compostable materials; and Packet Pg. 174 -2- WHEREAS, based on a study conducted by a contracted third party, having numerous heavy trash vehicles on City streets impedes the attainment of these goals and accelerates the deterioration of City streets, causing additional street maintenance costs of more than $600,000 per year; and WHEREAS, based on a study conducted by a contracted third party, having numerous trash vehicles on City streets impedes the attainment of greenhouse gas emission reduction goals by emitting an additional 1,200 metric tons of CO2e per year; and WHEREAS, at least four residential trash haulers currently provide service within the community, resulting in at least four trash trucks and four recycling trucks using residential streets to provide residential collection services each week, causing increased street wear, air pollution, noise, potential safety concerns, and other neighborhood impacts; and WHEREAS, analysis of open market residential trash bills in Fort Collins indicates that residents currently pay 50% - 100% different prices for the same service, even from the same company in the same area of town and a contracted system would provide predictable uniform rates across the community; and WHEREAS, additional yard trimmings collection is a key step to achieving climate and waste reduction goals and a contracted system allows for the opportunity to expand yard trimmings collection for a more affordable price than open market collection; and WHEREAS, at its April 12, 2022, Work Session, the City Council reviewed the goals and priorities for implementation of a contracted waste system and expressed interest in continued pursuit of feasibility and analysis for implementation of this service across the community; and WHEREAS, based on further discussion by the City Council at its July 12, 2022, Work Session, staff has prepared this Resolution to reflect the service elements and the structure of a residential waste program; and WHEREAS, the City Council desires to proceed with the next steps toward implementation of a system for City waste services, including trash and recycling collection services, for residential customers, excluding industrial, commercial or multifamily residences of eight or more units (“Residential Waste Services”) in the manner described and recommended by City staff. NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Section 2. That the Council hereby directs the City Manager to prepare a program description for a program to require use of and/or impose a fee for Residential Waste Services Packet Pg. 175 -3- provided by the City through one contractor within its boundaries (the “Residential Waste Program”), designed to meet the requirements of Colorado statute, including the following elements: (a) Trash collection, including volume-based pricing (based on size of cart, also known as Pay-As-You-Throw (PAYT)); (b) Recycling collection, bundled with trash collection service for no additional charge; (c) Yard trimmings collection, either bundled with trash collection service at no additional charge or as an optional service for a fixed price; (d) Bulky item collection, with either a-la-carte pricing or two pickups per year bundled with trash collection service; (e) An exemption during the term of an existing contract for homeowners’ associations with existing contracts in place for trash and recycling services, provided such contracts comply with the City’s Pay-As-You- Throw requirements and all other applicable requirements; (f) Carts provided and maintained by contracted hauler, which shall remain at households and become City property at the end of the Residential Waste Services contract; (g) Carts funded by a monthly fee to be collected by contracted hauler; (h) An “opt-out” fee for any resident declining Residential Waste Service, equivalent to the smallest trash cart service cost; (i) An administrative fee to fund the City’s role in managing the contract for Residential Waste Services; (j) Contracted hauler to provide customer service, alley service, valet service for disabled residents, and billing for Residential Waste Services; (k) A set price for dumpster service that multi-family and commercial customers can choose to use; and (l) Require contracted hauler to dispose of all waste and recycling collected at the Larimer County Landfill owned and operated by Larimer County (“flow control”). Section 3. That the City Council hereby directs the City Manager and City Attorney to: (a) Proceed to develop a Residential Waste Program that is generally consistent with the elements set forth in this Resolution and finalize and issue a request for proposals (RFP) for Residential Waste Services that is generally consistent with the Residential Waste Program elements described herein; (b) Publish notice of the City’s intent to provide Residential Waste Services within the boundaries of Fort Collins and charge a fee for such Services, in accordance with applicable Colorado statute, and meet any other applicable statutory requirements consistent with the purposes of this Resolution; Packet Pg. 176 -4- (c) Prepare, issue and review all proposals submitted in response to a Request for Proposals (RFP) for a Residential Waste Services Program as des cribed in this Resolution, with such additional terms and conditions or modifications as the City Manager, in consultation with the City Attorney, determines to be consistent with this Resolution and necessary or appropriate to protect the interests of the City or advance the objectives of the City Council; (d) If a satisfactory contract for services can be negotiated, develop Municipal Code changes necessary to enact a Residential Waste Services Program and fee to be imposed on residential properties within the City, and present those proposed changes and the proposed contract for City Council consideration or, if no proposal is sufficient or satisfactory, report that outcome to the City Council, no later than April 15, 2023. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July, A.D. 2022. Mayor ATTEST: City Clerk Packet Pg. 177