HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/03/2004 - FIRST READING OF ORDINANCE NO. 025, 2004, AMENDINGAGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL
ITEM NUMBER: 35
DATE: February 3, 2004
STAFF: Susie Gordon
SUBJECT
First Reading of Ordinance No. 025, 2004, Amending Chapter 15, Article XV of the City Code
Relating to Solid Waste Collection and Recycling Services.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading. On November 5, 2003, the Natural
Resources Advisory Board voted unanimously to recommend adoption of the Ordinance.
EXECUTIVE SUMMARY
Since it was adopted in 1996, the pay-as-you-throw (PAYT) Code provisions governing the
provision of solid waste collection services have been implemented by trash haulers as a condition
of their City license, with one amendment made in March 2000 to establish an audit system for the
City’s use.
At a Council review in 2002, staff was requested to improve the effectiveness with which the PAYT
Code provisions are applied. Clarification to the language in the Code is proposed to specifically
state that all single family and two-family residences in Fort Collins are subject to unit-based
(PAYT) trash rates, including those participating in group accounts for trash service. The proposed
changes remove any ambiguity in the existing requirement, and do not introduce a new or different
approach. Specifically, the proposed changes would:
1. Require haulers to list unit-based prices for all levels of service (i.e., for one-,
two-, three-can per week service) in written format when bidding services for
consolidated accounts, and expressly require haulers to retain records of any
contracts they are awarded (to provide trash hauling services to group
accounts), including prices, for three years as part of existing recordkeeping
requirements.
2. Require haulers to publicize unit-based prices to individual residents who
participate in group accounts and to allow residents to choose their level of
service, and to be billed according to that service level price thereafter. This
would prohibit haulers from providing a single level of service for all
residents in a group, unless it can be documented that every resident selected
that level of service.
Staff estimates that up to 10,000 residences (approximately 19% of residences in Fort Collins) are
currently participating in group accounts and are not receiving unit-based trash rates. If PAYT is
February 3, 2004 -2- Item No. 35
applied to these residences, staff estimates a savings of 15,000 cubic yards of municipal solid waste
that would otherwise be landfilled. Staff also expects to see a 4-6% increase in recycling in these
residences.
BACKGROUND
In 1995, the City of Fort Collins adopted a PAYT trash requirement for trash haulers (Section 15-
412 of the Municipal Code). By requiring that haulers charge a variable rate for trash, the PAYT
system provides economic incentives for single-family and two-family residences to reduce their
household waste and increase efforts to recycle. The City requires trash hauling companies to apply
these variable rates as a condition of their license to provide residential trash services.
The Natural Resource Department continues to work at the request of the City Council to ensure that
the PAYT program is effective. One issue that has been brought to staff’s attention is the difficulty
of applying variable rates in situations where property management companies, homeowner
associations (HOAs), neighborhood associations, or other intermediaries negotiate with trash haulers
for group service and rates.
The City continues to endorse the practice of consolidated trash collection accounts because of their
positive environmental benefits (less damage to roads, traffic, noise, and pollution). However, in
some cases staff has found that individual customers in group accounts are not being given their
choice of trash service level with unit-based rates. For example, an HOA may negotiate a contract
whereby all homes receive the same 90-gallon container per week and are billed the same base rate,
and the option of choosing a lower service level (e.g., 30-gallon or 60-gallon) is not available. This
situation negates the economic incentive of the PAYT system and reduces its effectiveness.
Staff considered several options including the proposed amendments to the PAYT requirement:
1. No action:
This option was ruled out as staff believes the effectiveness of PAYT can be
improved, as directed by City Council.
2. Execute enforcement action based on existing Code requirements:
Staff believes that the existing Code provisions require that individual volume-based
service be made available to all single family residences, including those receiving
service through a group account. However, enforcement practices to date have not
forced this issue, and there were indications that one or more of the city’s licensed
trash haulers considered the Code provisions to be unclear in this regard. As a result,
staff chose to seek clarification of the language prior to stepping up enforcement on
these issues.
3. Clarify existing ordinance to remove any ambiguity about its applicability to group
accounts:
Staff feels this is the best option, as it merely clarifies existing language without
affecting the overall intent of the Council in adopting the PAYT requirements while
putting the trash haulers on clear and specific notice of the way the requirements
apply to group accounts.
February 3, 2004 -3- Item No. 35
4. Consider other options besides PAYT to reach Council’s adopted goals for recycling
levels and waste diversion:
Staff’s opinion is that the next best option for reaching the City’s recycling and solid
waste diversion goals would be some form of districting. Given that in 1998, the City
Council chose a different course of action—specifically, to direct staff to find other
ways besides districting to reach the City’s goals—staff felt that this was an option
of last resort. If the City Council decides not to amend the PAYT Code provisions,
staff would recommend revisiting the issue of districting.
Staff conducted extensive public outreach efforts while working on the proposed amendments:
• 7/21/2003 - Letter sent to all licensed trash haulers informing them of scope of ordinance
amendments and inviting their feedback at a meeting on 8/5/2003.
• 8/5/2003 - Meeting with licensed trash haulers (RAM Waste, Inc., and Waste Management,
Inc. attended).
• 8/12/2003 - Meeting with Gallegos Sanitation, Inc. (special meeting scheduled as they did
not attend the 8/5/2003 meeting).
• 9/19/2003 - PAYT Public Open House at the Lincoln Center.
- "Let's Talk Trash" 3 col. X 4 in. advertisement ran in Colorodoan 9/15/2003 and
9/17/2003
- Invitation letters were mailed to all licensed trash haulers, individuals who had
expressed interest in the issue, and a list of property management companies and
homeowner's associations (HOAs) received from the City's Neighborhood Resources
office.
• 10/1/2003 - Reviewed PAYT options with the Natural Resources Advisory Board.
• 10/13/2003 - Completed telephone calls to all property management companies listed in the
Fort Collins yellow pages to solicit their input on the issue.
• 10/14/2003 - "PAYT Update" letters were mailed to all property management companies,
trash haulers, and individuals that expressed interest in the issue (including some HOAs).
• 10/14/2003 - Met in person with representatives from Faith Property Management to receive
their input.
• 11/5/2003 – Reviewed current staff recommendation with the Natural Resources Advisory
Board. Received unanimous support for the proposal from the Board.
Further background information and discussion will be included in staff’s presentation to City
Council.
Council consideration of this item was postponed from December at the request of interested trash
haulers.
ORDINANCE NO. 025, 2004
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 15, ARTICLE XV
OF THE CODE OF THE CITY OF FORT COLLINS RELATING
TO SOLID WASTE COLLECTION AND RECYCLING SERVICES
WHEREAS, in 1964, the City first enacted licensure requirements for solid waste collection
services with the adoption of Ordinance No. 42, 1964; and
WHEREAS, in the intervening years, those licensure provisions have since been modified,
and repealed and reenacted, and are now set out in Chapter 15, Article XV of the Code of the City
of Fort Collins; and
WHEREAS, in June 1995, the Council enacted Ordinance No. 58, 1995, requiring residential
trash haulers in Fort Collins to apply variable rates ("pay-as-you-throw") and provide curbside
recycling services at no extra charge, in order to encourage the reduction and diversion of solid
waste in residential households; and
WHEREAS, in March 2000, the Council adopted Ordinance No. 22, 2000, updating the
provisions of Chapter 15, Article XV of the Code in order to provide for more effective enforcement
mechanisms, including recordkeeping and audit requirements; and
WHEREAS, since that time, staff has worked to review and monitor the effectiveness of the
pay-as-you-throw system, and has determined that compliance with those requirements in group
residential accounts has been very limited; and
WHEREAS, in order to clarify the application of the pay-as-you-throw system to group
accounts, and to provide more specific guidance as to how group accounts must be administered in
order to accomplish the pay-as-you-throw objectives embodied in the Code, staff is recommending
that the Council adopt the proposed amendments to the existing Code provisions, as set forth herein.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Section 15-411 of the Code of the City of Fort Collins be amended to
read as follows:
Sec. 15-411. Definitions.
The following words, terms and phrases, when used in this Article, shall have the
meanings ascribed to them in this Section:
. . . . .
Communal system for the collection of waste shall mean an arrangement for the
collection of waste from multiple properties or residences using collection containers
shared by those properties or residences.
. . . . .
Group account shall mean a customer account for solid waste hauling services
that provides for collection of waste from multiple residential customers, regardless
of the method by which such services are contracted or arranged. An account for
service arranged by a single property owner for collection of solid waste from
multiple locations owned by that property owner shall not constitute a group account
for the purposes of this Article.
. . . . .
Residential customers shall mean residential properties for which there is a
curbside collection system for the collection of solid wastea communal system for
the collection of waste is not employed.
. . . . .
Section 2. That Section 15-412(c) and (d) of the Code of the City of Fort Collins be
amended to read as follows:
Sec. 15-412. License requirement.
. . . . .
(c) Volume based rates.
(1) Any person licensed to operate as a solid waste collector within the city
shall charge all single-family and two-family residential customers,
including, but not limited to, residential customers provided service
through a group account, on the basis of the volume capacity (or volume
capacity category) of the containers of solid waste placed for collection by
the each residential customer. The amount to be charged for such
containers shall be determined by each solid waste collector; provided,
however, that no volume capacity category shall exceed a range of
variation in volume capacity of more than thirty-three (33) gallons. Said
charges need not be based upon the volume of solid waste actually
deposited within such containers by the residential customers. The charge
for additional containers of the same volume capacity (or volume capacity
category) shall not be less than the charge for the first such container.
(2) In order to further ensure that the charge for the collection of solid waste
is based upon volume as required above, any person licensed as a solid
waste collector shall, with respect to single-family and two-family
residential customers, provide to each residentialsuch customers disposable
bags, or labels to be attached to nondisposable containers showing the
volume capacity (or volume capacity category) of such containers, or shall
establish another system for accomplishing the same purpose which is
acceptable to the city. A solid waste collector shall arrange for provision
of service to each group account in a manner that results in an individual
selection by each individual residential customer of a level of service from
the full range of container sizes and levels of service offered by the hauler.
(3) In offering or arranging for services, a solid waste collector shall provide
reasonable notice of the full range of bag or container sizes or levels of
service offered by the hauler, and shall provide to each residential customer
that customer’s requested container size or level of service.
(4) It shall be unlawful for any person to knowingly attach any such label to
a container exceeding in volume the volume capacity (or volume capacity
category) shown on, or represented by, such label, and to place said
container for collection.
(5) No solid waste collector shall collect or transport solid waste which has not
been placed for collection through such system or in bags or containers
upon which such labels have been attached. Upon emptying any such
containers, the collector shall remove or otherwise void all such labels.
(6) The provisions of this subsection shall not be construed as prohibiting any
collector from also establishing rules and regulations regarding the
maximum weight of containers of solid waste and/or recyclable materials.
(d) Flat monthly fee. In addition to the volume-based rates required pursuant
to paragraph (c) above, solid waste collectors may, but are not required to, establish
a flat monthly fee which may be charged to single-family and two-family residential
customers for the purpose of covering the fixed operational costs of doing business
of such solid waste collectors. If a solid waste collector elects to charge such flat
monthly fee, said fee shall not exceed fifty percent (50%) of the aggregated customer
cost (the combination of the flat monthly fee plus the monthly volume rate charged
pursuant to paragraph (c) above, assuming the collection of one [1] container per
week). Said flat monthly fee shall be based upon the following formula:
Flat monthly fee < .50 x C
Where:
C = aggregated customer cost (flat monthly fee + 4.33 x volume rate charged
per container)
In the event that a solid waste collector elects to establish a flat monthly fee, all bills
for services provided by such collector to single-family and two-family residential
customers shall clearly show both the flat monthly fee and the volume-based rate.
Additionally, in the event that a solid waste collector elects to establish a flat
monthly fee, such collector shall, within ten (10) calendar days after establishing
such fee and on or before January 1 of each ensuing year, deliver to the City's
Natural Resources Director a true and correct copy of such solid waste collector's
rate schedule, including, but not limited to, each group account rate schedule.
Section 3. That Section 15-413(a) and (d) of the Code of the City of Fort Collins be
amended to read as follows:
Sec. 15-413. Recycling requirement.
(a) Curbside/on-site collection.
(1) All Each solid waste collectors licensed by the city shall make available to
their its multifamily and commercial customers, and other customers
receiving solid waste collection services through a communal system of
waste collection, at the customer's option, curbside collection of recyclable
materials as said materials are designated from time to time by the City
Manager as provided in § 15-414 of this Article. Notwithstanding the
foregoing, the collection of recyclable materials from multifamily and/or
commercial customers pursuant to this Subsection (1) shall not be required
if the collector determines that there is not sufficient space available to
allow the placement of recycling containers without encroaching on needed
parking areas or on the sidewalk or street, or without impairing or
impeding bicycle, pedestrian or vehicular traffic. The provisions of this
subparagraph (1) as they apply to single-family and two-family residential
customers shall terminate and be of no further force or effect commencing
October 1, 1995.
(2) Commencing October 1, 1995, aEachll solid waste collectors licensed by
the city shall provide to each single-family and two-family residential
customer in the city, as a part of any solid waste collection services
provided by such solid waste collector, both the collection at curbside of
solid waste, and recyclable materials as said materials are designated from
time to time by the City Manager as provided in § 15-414 of this Article.
No such collector shall be permitted to divide or diminish the provision of
said basic service at the request of such customer or for any other reason.
. . . . .
(d) Customer notification. Upon the initial provision of solid waste collection
services to new customers, and on or before December 31 of each year with respect
to existing customers, collectors shall notify in writing such customers of the
availability of the collection of recyclable materials, the materials designated for
recycling collection pursuant to § 15-414 and such rules and regulations as have been
established by the collector for the orderly collection of recyclable materials as
authorized pursuant to § 15-413(b)(2). Such notice shall further include notification
of the variable rate system employed by the solid waste collector, and shall be in a
form reasonably acceptable to the city to ensure that customers are fully informed
of the availability of recycling and level of service options. The collector shall
deliver to the city's Natural Resources Director a true and correct copy of the form
of each such notification sent on or before December 31 of each year.
Section 4. That Section 15-415(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 15-415. Application for license.
(a) Any person desiring to obtain a license to engage in the business of solid
waste collection shall make written application to the Financial Officer on forms
provided by the city. The application shall include, without limitation, the following
information:
(1) The name and address of the applicant;
(2) The principal place of business for the business to be conducted;
(3) A list of vehicles owned and/or operated by the applicant directly in the
collection of solid waste and/or recyclables, including vehicle make, color,
year, cubic yard capacity, Colorado license plate number and empty tare
weight.
(4) A description of the system to be used to account for and charge volume-
based rates, as required under § 15-412(c), and a plan describing the
structure and operation of the recycling collection services to be offered to
each customer class. The description of the system shall include a detailed
description of the means by which residential customers are notified of and
offered the full range of sizes of bags or containers provided. In addition,
the description shall provide sufficient detail to allow the Financial Officer
to determine the means by which volume-based rates are applied to
residential customers receiving waste hauling services through any group
account, and the methods used to offer and account for the volume-based
charges.
Section 5. That Section 15-418(b) and (e) of the Code of the City of Fort Collins is
hereby amended to read as follows:
Sec. 15-418. Plans, recordkeeping and reports.
. . . . .
(b) Each collector licensed pursuant to this Article shall maintain accurate and
complete records of the service provided to each residential customer, the charges
to such customer and payments received, the form and recipients of any notice
required pursuant to this Article, and any underlying records, including any books,
accounts, contracts for services, written records of individual level of service
requests, invoices, route sheets or other records necessary to verify the accuracy and
completeness of such records. It shall be the duty of each collector to keep and
preserve all such documents and records, including any electronic information, for
a period of three (3) years from the end of the calendar year of such records, except
for paper records of route sheets, which may be discarded one (1) year after the end
of the calendar year of such route sheets.
. . . . .
(e) All collectors shall accurately and completely report to the city the
following information:
(1) Number of tons or cubic yards of solid waste collected from all single-
family, two-familyresidential, and multifamily residential and commercial
customers.
(2) Number of tons of each type (as determined by the City Manager pursuant
to § 15-414) of recyclables collected through the commercial and
multifamily recyclables collection program.
(3) Number of tons of each type (as determined by the City Manager pursuant
to § 15-414) of household recyclables collected through the curbside
recyclables collection program.
(4) Number of tons of each type (as determined by the City Manager pursuant
to § 15-414) of household recyclables collected by drop-off system.
Such reports shall be made on forms to be provided by the city and shall be made
biannually for each full half-year of curbside collection performed by the collector.
A half-year shall mean January 1 through June 30 or July 1 through December 31.
All such reports shall be submitted to the City Manager no later than thirty (30) days
following the close of each half-year.
Introduced, considered favorably on first reading, and ordered published this 3rd day of
February, A.D. 2004, and to be presented for final passage on the 17th day of February, A.D. 2004.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 17th day of February, A.D. 2004.
Mayor
ATTEST:
City Clerk