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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/12/2022 - SINGLE FAMILY TRASH, RECYCLING AND COMPOST CONTRACDATE: STAFF: April 12, 2022 Sylvia Tatman-Burruss, Sr. Project Manager Jackie Kozak-Thiel, Chief Sustainability Officer WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Single Family Trash, Recycling and Compost Contracting. EXECUTIVE SUMMARY The purpose of this item is to address Council’s priority (“Explore a Districted System for Garbage, Recycling and Compost”) by providing Council with an overview of trash, recycling and compost contracting for single family homes, an update on community engagement conducted thus far, and seek feedback on next steps for this topic. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Do Councilmembers want staff to continue to pursue contracting? If so, which goals would Councilmembers prioritize? 2. Do Councilmembers have any feedback about the process ahead? 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.” PAST COUNCIL ACTION Council has explored contracting at least twice in Fort Collins: • 1998: Council directed staff to analyze feasibility of waste reduction through trash contracting. • 2008: Council directed staff to again analyze feasibility of waste reduction through districting/contracting. A pilot district was developed, and the project was paused indefinitely before implementation. Elements that have changed since past studies: 1998 2008 Today Number of residential haulers operating in Fort Collins 6 3 4 Ownership Mix of local and nationally-owned Mix of local and nationally-owned Three nationally-owned; one new locally-owned starting service in May Status of consideration Study only Study; pilot district developed and then stopped Under review ALIGNMENT WITH ADOPTED GOALS AND PLANS Contracting would enable actions critical 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 Resident ial B.3 Packet Pg. 87 April 12, 2022 Page 2 Diversion rate was 29% and the Community Diversion Rate (combining residential, commercial, and industrial materials) was 52%. Contracting for trash and recycling aligns with several adopted plans and other Council priorities. Those plans include: • Our Climate Future Big Move 2: Zero Waste Neighborhoods • City Plan Principle ENV 5: Create a Zero Waste System • Strategic Plan Environmental Health 4.3 Zero Waste Contracting for single family home trash, recycling and compost also supports the following adopted Council Priorities: • Advance Regionalism: Fort Collins is part of the Regional Wasteshed Intergovernmental Agreement (IGA), which commits partner communities to adopt policies to support waste diversion infrastructure that Larimer County will construct. A facility for yard trimmings and food scraps composting and construction and demolition recycling facility are critical paths to meeting Fort Collins’ Zero Waste and Climate Action goals. We are exploring the possibility that a contract could include flow control to the Larimer County Landfill, which would guarantee our region continues to have access to a public landfill and is also a baseline commitment for Larimer County to construct the compost and construction and demolition recycling facilities. • Accelerate Composting: o A contract provides opportunity for additional yard trimmings collection in Fort Collins. ▪ As noted in the Council materials for the Our Climate Future update (also discussed this same night), composting, or community-wide organic waste diversion, is a critical path for meeting climate goals ▪ Food scraps can be addressed in a contract in the future as the timing for regional food waste composting infrastructure becomes clearer • Flow control supports construction of compost facilities as noted above. • Improve Air Quality: fewer trucks driving along residential roads reduces related air emissions and greenhouse gas emissions • Enhanced Recycling Education: Fort Collins could include educational requirements in a contract for residential trash, recycling, and compost service. It wo uld also ensure all residents could have access to the same educational resources and programs. TRASH CONTRACTING OVERVIEW Types of Trash and Recycling Collection Systems There are four primary systems for residential trash and recycling collection. A s ummary of trash and recycling systems (Attachment 1) includes more details about each type of service: • Pure Open Market: Each household chooses their own hauler for trash and recycling collection. Local government does not play a role in this system. • Open Market with Licensing (Fort Collins’ current system): Each household chooses their own licensed hauler for trash and recycling collection. The local government issues the licenses and may include requirements such as offering recycling and compost collection. • Contracted System (system being considered for Fort Collins): A local government contracts with one or more companies to provide residential trash and recycling collection. • City Hauling Utility: A city owns and operates their own hauling utility using city staff, resources, and equipment. B.3 Packet Pg. 88 April 12, 2022 Page 3 Across the U.S., City Hauling Utilities or Contracted Systems are by far the most common system for single family trash and recycling service. In Colorado, the Pure Open Market is the most common system. This combination of pure open market and very inexpensive landfilling drive Colorado’s low diversion overall. Contracting is found in an increasing number of Colorado communities. Colorado state law allows local governments to contract for single family residential service (defined as having 7 or fewer units). In Colorado, local governments cannot contract for commercial, industrial, or multi-family (defined as having 8 or more units) trash and recycling service. Learnings from Peer Communities City staff researched communities in Colorado which either have explored or have a contracted trash and recycling service in place. Given that contracted service is very common across the U.S., staff focused on Colorado examples since they operate under the same state requirements that would apply to Fort Collins. The one exception is that staff also researched Portland, OR and St. Paul, MN as examples of districted systems since there are few districted examples in Colorado. Specific examples of peer cities researched include: • Colorado communities with contracted single-family trash and recycling service: Arvada, Commerce City, Edgewater, Englewood, Golden, Johnstown, Lafayette, Louisville • Colorado communities that have explored contracted service: Lakewood, Westminster • Additional communities explored for districted examples: Portland, OR and Saint Paul, MN Intended outcomes and benefits of a contracted system identified by these communities include: • Fewer trucks on residential streets resulting in less wear-and-tear on streets • Improved air quality through lower emissions due to reduced trips and truck traffic in neighborhoods • Improved customer service due to the City managing the hauling contract and enforcing performance measures • More recycling and composting options that can be detailed and required through the RFP process • Access to uniform and predictable pricing for a set number of years Potential disadvantages identified include: • Households must pay an opt-out fee if they want to choose their own service provider. • A variety of perspectives exist in the community about the ideal role of local government and some community members do not support this role. • The shift to implement an administrative role in trash hauling for the city o rganization. Most peer communities shifted from a pure open market system to a contract, so they did not have existing staff with this area of specialty. Depending on the way the contract is set up, the city may also manage billing, customer service, and/or trash and recycling bins, which requires transition time and logistics. • Logistics of a districting approach, which would include logistics of creating districts, managing multiple RFP processes, navigating pricing differences between districts, etc. B.3 Packet Pg. 89 April 12, 2022 Page 4 Elements Achieved via Licensing vs Contracting Licensed System Contracted System Recycling and Composting Volume-based pricing for trash service Y X Recycling bundled with trash service for no additional charge Y X Opt-in yard trimmings collection Y X Potential for increased yard trimmings collection (opt-out or bundled service) and future food scraps collection P X Potential for more and consistent recycling education X Fewer Trucks in Residential Neighborhoods Street Maintenance Savings X Improved Neighborhood Aesthetics, e.g., less noise, one day of service per neighborhood X Increased safety X Reduced greenhouse gas emissions X Improved air quality X Pricing Predictable consistent pricing across community X Potential service cost reduction due to efficiencies of servicing every home on the street X Equity & Customer Service Leverage for customer service requirements with metrics and penalties for non-compliance X Enhance equity in trash and recycling service in the community, e.g., enhance communication options for all languages spoken in Fort Collins, develop programs to support low-income community members, provide arrangements for less able-bodied residents X Connection with Other Council Priorities Advance Regionalism: Flow control supports public landfill and is baseline for compost and construction & demolition recycling facilities P X Accelerate Compost: Potential for additional yard trimmings compost options P X Improve Air Quality: Reduction in trucks in residential neighborhoods reduces related emissions X Y = in place in Fort Collins current licensed system P = possible in Fort Collins current licensed system but would require additional policy adoption X = possible in a contracted system in Fort Collins Timeline A contracted project could follow the timeline below, if consistent with Council direction. B.3 Packet Pg. 90 April 12, 2022 Page 5 • April - August, 2022: o Engage with community on contract details until mid -June. A community engagement summary will be provided at the next Council work session. o Work Session to discuss details of a contracted system and outline process for next steps with Council. • August, 2022 - January, 2023: o Staff would develop the Request for Proposal (RFP) with consultant support. o The RFP would be issued and haulers would draft proposals. o Staff would review proposals and negotiate a contract. • 2023 and Beyond: o Staff would share the outcome of the RFP with City Council and community. o Staff would work with the community to prepare for the contracted service rollout. o Service would begin 12-18 months after contract execution. Engagement Phase I Engagement (beginning of project to now): Focus on understanding the goals, priorities and concerns our community has when exploring the idea of contracting for household trash and recycling service. • The general level of engagement along the International Association for Public Participation (IAP2) spectrum is “Consult” with aspects of “Involve” present where goals and proposed outcomes are discussed. o Examples of “consult” tools include seeking public comment on proposed action, presentations to neighborhood groups, HOAs, Boards & Commissions and hosting Open Houses o Examples of “involve” tools include workshops, stakeholder meetings and focus groups to gather in-depth feedback on specific topics within a project. Phase II Engagement (mid-April - mid-June): Focus on the details of a contracted trash and recycling collection system. • Will continue to inform community members on next steps and engage with them on potential options for contracting as the conversation moves forward. • Engagement would take place through the OurCity online engagement platform, online and in -person workshops, and focus groups with disproportionately impacted groups (i.e., seni ors, lower-income residents, non-English-speaking residents, etc.). • A summary of engagement would be shared at the next City Council Work Session. Groups engaged so far: • Community Members • Environmental Groups • Low-Income Housing Organizations • Focused Community Groups • Boards and Commissions • Waste Haulers Community Engagement Summary Over 1,400 community members have spoken with staff, attended one of two virtual Community Conversations, answered questionnaires, sent emails, or left comments on social media or on the Contract for Trash project page letting staff know their goals, priorities, concerns, and thoughts on a communitywide contract for household trash and recycling collections. (Attachment 2) The themes from this engagement are summarized below: B.3 Packet Pg. 91 April 12, 2022 Page 6 Perspectives about concerns expressed by community members: • Prices going up / affordability: A contract can ensure a community-wide price based on efficient service delivery. Cost increases would only be within the terms agreed to in the contract. There are no cost increase protections in a licensed open market system. • A decrease in service levels: A contract could include strict trash / recycling / compost collection service and customer service requirements with penalties for the hau ler not meeting those requirements. There are no such requirements or penalties in an open market system other than a customer choosing to hire a different hauler. • Effects of a monopoly / lack of competition: There is competition in a contracted system, but it happens at the community (or district) level rather than the household-by-household level. In a contracted system, each hauler creates a proposal to match the services requested by the community. These proposals are analyzed based on the cost of service, quality of service and other elements. The contract includes service requirements and the contract can be cancelled if those requirements are not being met by the hauler. Other haulers will continue to service their commercial, multi-family and construction and demolition (and perhaps some homeowner association) customers, so will continue to be in the market to submit competitive proposals for future contracts. In peer city research, other Colorado communities noted they have seen continued competitive proposals when issuing request for proposals at the end of a contract. • Lack of choice in selecting service provider: A household can continue to select their own hauler but would have to pay an opt-out fee. • Impact to haulers that are not awarded a contract: Haulers would have 12-18 months after a contract decision to plan and adjust before the contract went into effect. Potential shifts in service could include the following: o Existing nationally-owned haulers • Could continue to service existing commercial, multi-family and construction site customers • Could continue to service existing HOA contracts (even if HOAs roll into contract at end of current term) • 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 staff o New locally-owned hauler • Could adjust business model to service other Northern Colorado communities B.3 Packet Pg. 92 April 12, 2022 Page 7 Hauler Engagement Fort Collins has seen many changes in residential haulers in the past few years: • At the end of 2020, locally-owned hauler Gallegos Sanitation was purchased by nationally-owned hauler Republic Services • At the end of 2021, locally-owned hauler Ram Waste was purchased by nationally-owned Waste Connections • Locally-owned Timberline Hauling started service in the last few years and opted to close their business and give their customers to Ram Waste / Waste Connections in February 2022 • A new locally-owned hauler, Mountain High Disposal, has formed and plans to start service in Fort Collins in May 2022 City staff has engaged with haulers serving Fort Collins and other area residential haulers and have learne d: • The nationally-owned haulers that currently service Fort Collins and a locally-owned regional hauler have expressed support for contracting or continuing the current licensing system. • The new locally-owned hauling company does not support a contr acted system and recommends Fort Collins continue in a licensed system. • All haulers have expressed appreciation for having been engaged early in the process. NEXT STEPS If consistent with feedback from Council at the April 12 Work Session, staff will: • Continue analysis of the contracting project; • Begin Phase II of community engagement, focused on the details of a contracted residential trash and recycling system; and • Return to discuss contracting details with Council at a future Work Session. ATTACHMENTS 1. Types of Trash and Recycling Systems (PDF) 2. Contracting Community Engagement (PDF) 3. Natural Resources Advisory Board (excerpt) (PDF) 4. Powerpoint Presentation (PDF) B.3 Packet Pg. 93 Page 1 of 5 Details of Systems for Single-Family Trash and Recycling Service in Colorado Type of Single-Family Trash and Recycling Collection System Pure Open Market Licensed Open Market Contracted Municipal Hauling Utility Local Example •Wellington •Estes Park •Fort Collins’ current system •Boulder •System Fort Collins is considering •Johnstown •Golden •Loveland •Longmont Hauling System Details Open Market system with no local government involvement Haulers must obtain a license from the local government to provide trash and recycling service Local government contracts with one hauler for the whole community or one per district to provide trash and recycling service City employees in City-owned vehicles collect trash and recycling and yard trimmings Trash and Recycling Service Details Often focused on larger trash carts or unlimited trash service for a fixed price; recycling opt-in for an extra fee Local government can determine some elements of service. In Fort Collins, our license requires a Pay-As-You- Throw system, meaning trash pricing is based on size of trash cart subscription and up to two 96-gallon recycling carts are included for no additional charge Service details are part of the contract for service. It can include a Pay-As-You- Throw system, meaning trash pricing is based on size of trash cart subscription and up to two 96-gallon recycling carts are included for no additional charge Local government determines the services provided to the community and at what cost. Loveland and Longmont have Pay-As-You-Throw volume based pricing for trash service, bundle in recycling service, and offer optional yard trimmings collection service (Longmont’s service also includes food scraps) Typical participation in recycling and yard trimmings collection programs in this system 15-20% of residents typically opt-in and pay extra for recycling or yard trimmings service In Fort Collins, 95% of residents select recycling service as it is bundled with trash service. Fort Collins has opt-in yard trimmings service for an extra fee with ~15% of residents participating. In a contract system, Fort Collins would continue to bundle recycling with trash Fort Collins would need to determine if it wants to continue yard trimmings service as opt-in or shift to opt-out or bundled service (85-95% of residents typically select services that are bundled with trash. 15-20% of residents typically opt-in and pay extra for services) 85-95% of residents typically select services that are bundled with trash. 15-20% of residents typically opt-in and pay extra for services. ATTACHMENT 1 B.3.1 Packet Pg. 94 Attachment: Types of Trash and Recycling Systems (11417 : Single Family Trash, Recycling and Page 2 of 5 Type of Single-Family Trash and Recycling Collection System Pure Open Market Licensed Open Market Contract Municipal Hauling Utility Who selects the hauler Each household selects their own household and negotiates pricing individually Each household selects their own household and negotiates pricing individually Local government selects the hauler Residents can utilize a different hauler and would be subject to an opt-out fee Details: Local government drafts a Request for Proposals that describes the details of service for their community. Haulers then draft proposals to match that request and compete based on price, quality of service and other elements Local government is the hauler Residents can utilize a different hauler and would be subject to an opt-out fee How pricing is determined Pure open market; tends to be higher pricing and/or less recycling / yard trimmings service offered Hauler determines pricing per household through licensing requirements (for example, Fort Collins requires a volume-based pricing for trash with bundled recycling, but each hauler determines their own rates within that structure) Price is determined through a competitive purchasing process to secure “bulk purchase” pricing Pricing is then set for the duration of the contract with increases only allowed under pre-determined circumstances Through local government systems to determine cost for providing service Who negotiates pricing Each household Each household Local government Determined by local government Level at which haulers compete Household by household Household by household Community- or district-wide via competitive bidding process Service provided by local government B.3.1 Packet Pg. 95 Attachment: Types of Trash and Recycling Systems (11417 : Single Family Trash, Recycling and Page 3 of 5 Type of Single-Family Trash and Recycling Collection System Pure Open Market Licensed Open Market Contracted Municipal Hauling Utility How many haulers service each neighborhood As many haulers as have customers on that street. Can be multiple haulers providing service on multiple days of the week. As many haulers as have customers on that street. Can be multiple haulers providing service on multiple days of the week. The number of haulers tends to vary over time as new hauling businesses form and then often consolidate. Fort Collins has had as many as 6 and as few as 3 residential haulers. One hauler serves each district, so all trash, recycling and yard trimmings collection happens on one day in a neighborhood by one company, unless a resident on that street chooses to pay an opt-out fee and hire a different hauler (can be one or many districts in the community, but each is serviced by one hauler) Municipal hauling services all single family homes in the community, unless a resident on that street chooses to pay an opt-out fee and hire a different hauler Typical pricing Can be higher due to inefficiencies of customers being spread out. Can be higher due to inefficiencies of customers being spread out. Can provide lower service costs because fixed costs for providing service are spread among more customers and the greater efficiency of servicing every household on a neighborhood street Can provide lower service costs because fixed costs for providing service are spread among more customers and the greater efficiency of servicing every household on a neighborhood street Road maintenance impacts (wear and tear on a residential street of 1 trash truck is equivalent to 1200 passenger cars)* Potential for higher community road maintenance costs due to multiple trash and recycling trucks on residential streets each week Potential for higher community road maintenance costs due to multiple trash and recycling trucks on residential streets each week Potential for lower community road maintenance costs due to one trash and recycling truck on residential streets each week (estimated cost savings for Fort Collins in 2008: $170k / year) Potential for lower community road maintenance costs due to one trash and recycling truck on residential streets each week * Source: Trash Services Study Final Report, R3 Consulting 2008 B.3.1 Packet Pg. 96 Attachment: Types of Trash and Recycling Systems (11417 : Single Family Trash, Recycling and Page 4 of 5 Type of Single-Family Trash and Recycling Collection System Pure Open Market Licensed Open Market Contract Municipal Hauling Utility Air Quality and Climate impacts Potential for more greenhouse gas emissions and air quality impacts from multiple trash and recycling trucks in each neighborhood each week Potential for more greenhouse gas emissions and air quality impacts from multiple trash and recycling trucks in each neighborhood each week Potential for less greenhouse gas emissions and air quality impacts due to one trash and recycling truck in each neighborhood each week Additional opportunity for lower emissions because contracting provides leverage to request lower emission or electric vehicles to service neighborhoods Potential for less greenhouse gas emissions and air quality impacts due to one trash and recycling truck in each neighborhood each week Additional opportunity for lower emissions if municipality invests in lower emission or electric vehicles to service neighborhoods Customer Service requirement Customer service negotiated by each household with their hauler Customer service negotiated by each household with their hauler Customer service requirements included in the contract with penalties for non-compliance Customer service provided by the municipality Low income programs n/a n/a Potential for programs to support low-income community members Potential for programs to support low-income community members Homeowner’s Associations Many Homeowners Associations (HOAs) elect to use a contract system to achieve a lower price and other services for their HOA members rather than the open market system. Many Homeowners Associations (HOAs) elect to use a contract system to achieve a lower price and other services for their HOA members rather than the licensed open market system. This is the system many Homeowners Associations (HOAs) utilize to achieve a lower price and other services for their HOA members. A city-wide or district-wide contract could provide similar types of benefits. In a city contracted system, some cities allow HOAs to opt in to the city’s contract while others require HOAs join the city contract once their existing contract expires. Homeowners Associations are generally serviced by the municipality Number of districts n/a n/a Multiple districts allow multiple haulers to service single family homes in the community. It also introduces the possibility of different pricing in different parts of the community for the same service, among other detailed logistics. n/a B.3.1 Packet Pg. 97 Attachment: Types of Trash and Recycling Systems (11417 : Single Family Trash, Recycling and Page 5 of 5 B.3.1 Packet Pg. 98 Attachment: Types of Trash and Recycling Systems (11417 : Single Family Trash, Recycling and Engagement Phase I Engagement (beginning of project to now): Focus on understanding the goals, priorities and concerns our community has when exploring the idea of contracting for household trash and recycling service. •The general level of engagement along the International Association for Public Participation (IAP2) spectrum is “Consult” with aspects of “Involve” present where goals and proposed outcomes are discussed. o Examples of “consult” tools include seeking public comment on proposed action, presentations to neighborhood groups, HOAs, Boards & Commissions and hosting Open Houses This list represents a comprehensive set of community members and organizations staff members have connected within the process thus far. 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 opportun ities with their networks. •Community Members o Engaged the broad Fort Collins community using multiple platforms including soc ial media messaging, virtual community conversations (open houses), online website and message boards, email, phone calls, and a survey. Over 1,400 community members engaged in one or multiple of the forms listed. o Used social media and radio to promote Spanish language survey to Latino/Latina/Latinx community members. •Environmental Groups: o Sustainable Living Association o CSU Zero Waste Club o Next Level Neighborhoods •Low-Income Housing Organizations: o CARE Housing o Housing Catalyst o Harmony Village Mobile Home Park Spring Cleanup Event (scheduled for 4/23) •Focused Community Groups: o Chamber of Commerce: Local Legislative Affairs Committee (LLAC) o Downtown Development Authority (declined a meeting) o Black and African American Cultural Center o Queen’s Legacy Foundation o Nonprofit Human Service Grantees •Boards and Commissions: o Natural Resources Advisory Board o Economic Advisory Board (visiting in phase II) o Downtown Development Authority (declined a meeting) o Homeowners Associations o Meeting with Clarendon Hills HOA 4/7 •Waste Haulers o Republic Services o Waste Management o Waste Connections o Mountain High Disposal ATTACHMENT 2 B.3.2 Packet Pg. 99 Attachment: Contracting Community Engagement (11417 : Single Family Trash, Recycling and Compost Contracting) Natural Resources Advisory Board March, 2022 Curbside Trash and Recycling Contract – Caroline Mitchell, Waste Reduction and Recycling Program Manager, shared work being done surrounding the Council priority to explore contracting for household trash and recycling services. City staff will ask what goals Councilmembers would prioritize in a contract during an upcoming work session on April 12. Discussion | Q + A 1.Victoria – Q – You mentioned that Fort Collins has a more robust licensing system, why is that and what makes Fort Collins unique in that? Caroline – A – The norm across the country is either have contracted services or municipal services. We are unique not only because we don’t do that, but because we also have a strong commitment to waste reduction. Fewer communities license their hau lers. 2.Hillary – When Golden was looking at the same process, Hillary was part of their Sustainability Advisory Board. It is a lot of work, so kudos to the team for moving that forward and it is exciting to think Fort Collins can take the next step as it h as been a long time coming. 3.Barry – Q – Has there been discussions with the individuals who drive and man the trucks who are local members of our community; what are their perspectives? If the city were to adopt, what would be the effects of the employment for these local people? Caroline – A – To clarify we are not discussing the City taking over the hauling business itself, but to issue a contract to haulers. One decision point is if it would be one contract or create districts and contract multiple haulers. We have not conducted engagement with drivers specifically. One key element is that these companies are nationally owned, so it is safe to say there are other communities in Northern Colorado that would continue to use their service. The specifics of what would happen to each company would vary. Barry wanted to express concern for the people who do the actual work and if their perspectives were being considered in the deliberation. 4.Hillary – Q – How do HOAs play into this and what about commercial recycling and trash? Caroline – A – Colorado State Law states that municipalities are not allowed to contract or service for commercial or multifamily structures of eight units or more. The contract would only apply to single family homes. We are gathering contact information for HOA’s who currently are contracted to get their feedback. We are thinking they could either opt in or just roll into the City once their current contracts expire. 5.Hillary – Q – What percentage of trash hauling is single family vs commercial and multifamily complexes? Caroline – A – We don’t have the number of locations, but volume-wise it is about 50/50. 6.Kevin – Q – Does that 50/50 still apply in terms of miles traveled? Caroline – A – We don’t have analysis of the numbers of miles traveled by the vehicles. We would have to dial in with traffic engineers to see if there is a way we could get that. Kevin would be interested to see if the numbers based on volume holds up against other impacts. 7.Drew – Q – What is the timeline to offer to Council, to switch to a contract? Caroline –A – We are working toward a decision on which hauler by the end of the year. There will be some gap time between making the decision and implementation as there are a lot of logistics involved. Based on conv ersations with haulers, we are looking at ATTACHMENT 3 B.3.3 Packet Pg. 100 Attachment: Natural Resources Advisory Board (excerpt) (11417 : Single Family Trash, Recycling and Compost Contracting) Natural Resources Advisory Board March, 2022 anywhere between six months and a one-year gap. 8. Victoria – Q – What is the best way to provide feedback. Caroline – A – For individual response I am happy to gather that now or you can through the questionnaire. I f you want to provide feedback as NRAB, that is usually shared with Council through a memo. Honore – This will not be the only opportunity to weigh in. Staff also tends to attach minutes to the materials for City Council to see thoughts and questions. 9. Barry – Speaking for himself: No strong perspectives right now. Trusts how staff and Council will approach this issue. 10. Kevin echoes Barry’s thoughts. The areas that are being focused on are appropriate and correlate to the City and Council’s goals. They are going in the right direction and supports those focus areas. Would be interested in weighing in once they get more feedback from the work session and when there are more specific things on the table. 11. Drew supports the general idea of pushing toward a contr act system. Recommends being cautionary in rushing the gap period, as a year seems quick. B.3.3 Packet Pg. 101 Attachment: Natural Resources Advisory Board (excerpt) (11417 : Single Family Trash, Recycling and Compost Contracting) Single Family Tr ash, Recycling and Compost Contracting April 12, 2022 City Council Work Session Caroline Mitchell Kira Beckham Sylvia Tatman-Burruss Ashley Pace DeAngelo Bowden Sheela Backen ATTACHMENT 4 B.3.4 Packet Pg. 102 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 2Questions for Council 1.Do Councilmembers want staff to continue to pursue contracting? If so, which goals would Councilmembers prioritize? 2.Do Councilmembers have any feedback about the process ahead? B.3.4 Packet Pg. 103 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 3Strategic Alignment City Plan Council Priority: Explore Districted System for Garbage, Recycling and Compost Principle ENV 5: Create a Zero Waste system. Environmental Health 4.3 Zero Waste Strategic PlanCouncil Priority Our Climate Future Big Move 2: Zero Waste Neighborhoods Aligned: Advance Regionalism Accelerate Composting Improved Air Quality Enhanced Recycling Education Critical Path to Achieving Climate Goals (composting) B.3.4 Packet Pg. 104 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 4Connection to Regional Collaborations Regional Wasteshed Implementation Larimer County Infrastructure: Supportive policies (contracting includes elements supportive of the wasteshed implementation) Partner Communities B.3.4 Packet Pg. 105 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 5 Municipal Hauling Utility Contracted System Open Market with Licensing Pure Open Market Systems for Tr ash and Recycling Collection City RoleEach household chooses their own hauler for trash and recycling collection.No role of local government. 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. A municipality contracts with one or more companies to provide residential trash and recycling collection. This is the system under consideration. A municipality owns and operates their own hauling utility using city staff,resources and equipment. B.3.4 Packet Pg. 106 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 6Contracting 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 B.3.4 Packet Pg. 107 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) Contracting Application 7 Contract WOULD apply to •Single family homes •Multi-family complexes of 7 units or fewer Contract would NOT apply to •Multi-family complexes of 8 units or more •Businesses •Construction sites, industrial recycling Contract MAY apply to •Homeowner’s associations (HOAs) that contract for trash & recycling service now •Could opt in to City contract at end of existing contract •City could require HOAs to join at end of existing contract B.3.4 Packet Pg. 108 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 8Past Fort Collins Consideration of Contracting 1998 2008 Now Number of residential haulers operating in Fort Collins 6 3 4 Local or nationally-owned haulers Mix Mix 3 nationally- owned, 1 new locally- owned Status of consideration Study only Study; pilot district developed and then stopped Under review Benefits identified Street maintenance savings ($170k+ / year in 2008) Fewer trucks, reduced emissions, reduced noise Updating benefits research B.3.4 Packet Pg. 109 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) Researched 12 communities that have or explored contracted systems. •Arvada •Commerce City •Edgewater •Golden •Johnstown •Lafayette •Louisville •Lakewood •Westminster •Englewood •Saint Paul, MN •Portland, OR Benefits identified by these communities: •Fewer trucks in neighborhoods •Improved air quality and lower truck emissions •Improved customer service •More recycling and composting options •Access to uniform pricing Disadvantages identified by these communities: •Households must pay opt- out fee if they want to choose their own provider •Perspectives about the ideal role of government •The shift to an administrative role of the city organization •Logistics of a districting approach 9Peer Community Findings B.3.4 Packet Pg. 110 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) What goals can be achieved with existing licensing system? •Currently have:Vo lume-based pricing for trash service;recycling bundled with trash for no additional charge;and opt-in yard trimmings collection •Potential to achieve with additional policy:Increased composting,e.g.,increased yard trimmings collection and future food scraps;advancing Council priorities such as regionalism (through flow control)and accelerated composting 10Elements Addressed by Contracting Fewer Trucks in Neighborhoods •Street maintenance savings •Improved neighborhood aesthetics •Less noise •One day of service / neighborhood •Increased safety •Reduced greenhouse gas emissions •Improved air quality Pricing •Predictable consistent pricing across community •Potential service cost reduction due to efficiencies of servicing every home on the street Customer Service •Leverage for customer service requirements •Metrics and penalties for non-compliance •Enhanced equity in service, e.g., low-income programs, increased accessibility, and more What can only be achieved via a Contracting system? Bottom Line: Many elements can only be achieved through contracting, though Council could address some of the goals, e.g., increased composting, in the licensed hauler system B.3.4 Packet Pg. 111 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 11CommunityEngagement Who we have engaged •Community members •Haulers •Chamber of Commerce •Downtown Development Authority •Natural Resource Advisory Board •Environmental Groups How we have engaged •Community Conversations •Questionnaire (1300 responses) •Presentations to groups •Individual conversations •Newsletters: CityNews, FortShorts, Climate Action etc. •Radio advertisements •Press release / newspaper article Engagement focus: What goals would you have for a contracted trash and recycling system? What concerns would you have about a contracted system? What do you prioritize in a trash and recycling hauler? B.3.4 Packet Pg. 112 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 12Feedback Heard So Far Goals of a contracted system •Fewer trucks in neighborhoods •Affordable, equitable pricing •Improve / maintain customer service •Increased yard trimmings collection Important when selecting a trash / recycling service provider •Consistent, reliable service •Affordable price •Responsive customer service •Service options that fit the household’s needs •Options for yard trimmings/compost collection Concerns with a contracted system •Prices going up/ affordability •A decrease in service levels •The effects of a monopoly / lack of competition •Lack of choice / being stuck with an unwanted service provider •Impact to haulers and their employees if not awarded a contract From Haulers •Existing haulers supportive of contracting or continued licensing system •New hauler prefers licensing system •Appreciate early and in-depth engagement B.3.4 Packet Pg. 113 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 13Next phase of engagement Next Phase of Engagement: Focused on Elements of Contracted Service One district or many? Ya rd trimmings collection service: include? Opt-in vs opt-out vs bundled service? Flow control of trash? Billing, customer service, carts: City-owned or hauler-owned? Share updated analysis re: air quality, street impacts of reduced truck traffic HOAs (homeowner associations): Include when current contracts expire? Low-income program options B.3.4 Packet Pg. 114 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 14Next Steps Involves Council and Community Apr–Aug City Staff Sep -Jan Involves Council and Community 2023+ •Engage with community re: contract details •Next Council Work Session re: contract details, including Council next steps •Develop RFP with consultant support •Issue RFP •Haulers draft responses •Review RFP •Negotiate and award contract •Share outcome of RFP process, prepare for new contracted service •Roll-out new service 12 -18 months after contract adoption B.3.4 Packet Pg. 115 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 15Questions for Council 1.Do Councilmembers want staff to continue to pursue contracting? If so, which goals would Councilmembers prioritize? -Increased composting -Fewer trucks in neighborhoods -More consistent pricing -Equity options -Customer service 2.Do Councilmembers have any feedback about the process ahead? B.3.4 Packet Pg. 116 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) B.3.4 Packet Pg. 117 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 17What 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 •Could continue to service existing HOA contracts (even if HOAs roll into contract at end of current term) •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 B.3.4 Packet Pg. 118 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting)