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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/06/2004 - ITEMS RELATING TO SOLID WASTE COLLECTION AND RECYCAGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL ITEM NUMBER: 30 A-B DATE: April 6, 2004 STAFF: Susie Gordon SUBJECT Items Relating to Solid Waste Collection and Recycling Service. RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. The Natural Resources Advisory Board has recommended these Code changes. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 025, 2004, Amending Chapter 15, Article XV of the City Code Relating to Solid Waste Collection and Recycling Services. B. First Reading of Ordinance No. 053, 2004, Amending Chapter 12, Article II of the City Code Relating to Collection of Garbage and Refuse. 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. Clarification of the Code language 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. By including group accounts in the PAYT Ordinance, staff estimates 10,000 more residences (approximately 19% of residences in Fort Collins) will participate in the unit-based trash system, preventing up to 15,000 cubic yards of municipal solid waste from being sent to local landfills for disposal. Staff also expects to see a 4-6% increase in recycling in these residences. Code language is also being added to Chapter 12, requiring that persons arranging group accounts for trash service do so in a manner consistent with the PAYT requirements. BACKGROUND In 1995, the City of Fort Collins adopted a PAYT trash requirement for trash haulers (Section 15- 412 of the City 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 April 6, 2004 -2- Item No. 30 A-B 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 Resources 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 developed amendments to the PAYT requirement during 2003, with input from interested citizens and the private sector. The proposed changes were discussed by the City Council on February 3, 2004, and the first reading of this Ordinance was postponed to allow staff to respond to Council direction. In response to direction given at that meeting, staff has drafted two additional amendments: 1. Revisions to Ordinance No. 025, 2004, (shown in bold faced type) to: a. clarify that inspection or audit of records will occur at the hauler's place of business or other reasonably convenient location designated by the hauler; b. provide additional procedures to protect confidential records from release; and c. clarify that haulers may not be unfairly targeted for inspections. 2. Ordinance No. 054, 2004, enacting a new Article in Chapter 12 of the City Code to require that representatives of group accounts who negotiate for consolidated trash services must also comply with the PAYT provisions (in addition to the regulated trash hauling industry); and The Natural Resources Advisory Board considered the proposed PAYT revisions on November 5, 2003, and recommended approval of the revisions. The NRAB had also inquired about holding those who arrange group accounts responsible for compliance with the requirements. The proposed amendments to Chapter 12 address those concerns. Most recently, staff met with representatives of local trash haulers on March, 25, 2004, and has modified the proposed City Code language to address concerns noted by the haulers at that time. 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. 1 Until January 1, 2007, the performance of legally binding arrangements for the provision of solid waste collection services to group accounts that: (1) were in effect as of the effective date of Ordinance No. 025, 2004, and (2) do not offer choice of volume based service levels to individual residential customers, shall be deemed not to violate the terms of Section 15-412 for so long as and to the extent that the existing contractual obligations preclude the solid waste collector from modifying the rates or terms of such services to offer choice of level of service to individual residential customers in compliance with the requirements of Section 15-412. . . . . . Group account shall mean a customer account for solid waste haulingcollection 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 (1) Any person licensed to operate as a solid waste collector within the city shall charge all single-family and two-familyresidential 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 theeach 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 sucheach residential 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-familyresidential 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 formula used to determine group account rate schedules. 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) AllEach solid waste collector licensed by the city shall make available to theirits 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 commercialcustomers 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, allEach solid waste collectors licensed by the city shall provide to each single-family and two-familyresidential 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. For group accounts, the notices required hereunder may be sent to the group representative for said account, provided that such notice shall further notify said representative of its obligation to annually notify all individual residential customers within the group of the availability of recycling services and the terms of variable rate service options, pursuant to§ 12-19(a)(2). The collector shall deliver to the city's Natural Resources Director a true and correct copy of the each 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, such as the formula used to set volume based rates for any group accounts, and the methods used to offer and account for the volume-based charges. Section 5. That Section 15-418(b), (c) 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. (c) Promptly upon a request by the City Manager in connection with an audit or other investigation he or she has initiated, a licensee shall make records retained pursuant to subsection 15-417(b) available, at its place of business or in such other in a reasonably convenient location as the licensee shall specify, for review by the City Manager, the Financial Officer or his or her designee, or an officer of the city charged with the investigation of potential violations of the Code, for the purpose of enforcing the requirements of this Article. Any such information constituting confidential customer records or financial proprietary information and identified as such by the licensee shall be maintained as confidential by the city, unless otherwise required by court order or as agreed by the relevant party-in-interest. If the city receives a request for public inspection or a request for release of any of said information to a third party, the city shall provide timely notice of such request to the licensee. . . . . . (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-family andresidential, multifamily residentialand 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. Section 6. That Section 15-422 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 15-422. Investigation of reports, records and other items relating to compliance with this Article. For the purpose of ascertaining the correctness of any reports, plans or other documents submitted or required to be prepared and maintained by a licensed collector pursuant to this Article, or for the purpose of determining compliance with any requirements of this Article of any person, whether or not the same is licensed under this Article, the City Manager may hold investigations, including audits, and hearings concerning any matters covered by this Article, and may examine any relevant books, papers, records or memoranda of any such person and may require the attendance of such person, or any officer or employee of such person, or of any person having knowledge of transactions involved, and may take testimony and proof of the information. The City Manager shall have the power to administer oaths to such persons. Except for routine or random audits, any such investigation shall be based upon a complaint or other reasonable suspicion of a violation as determined by the City Manager. The City Manager shall provide advance notice to the affected solid waste collector of his or her intent to conduct an investigation under this Section, unless the City Manager determines that provision of such notice may compromise the purpose of the investigation. Introduced, considered favorably on first reading, and ordered published this 6th day of April, A.D. 2004, and to be presented for final passage on the 20th day of April, A.D. 2004. Mayor ATTEST: City Clerk Passed and adopted on final reading this 20th day of April, A.D. 2004. Mayor ATTEST: City Clerk ORDINANCE NO. 053, 2004 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 12, ARTICLE II OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO COLLECTION OF GARBAGE AND REFUSE 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 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 in Ordinance No. 025, 2004, presented for Council approval of even date herewith; and WHEREAS, in connection with its initial consideration of proposed Ordinance No. 025, 2004, the Council determined that the purposes of that Ordinance would be furthered by enacting a Code provision affirmatively requiring persons arranging for group accounts for solid waste hauling services to arrange those accounts in a manner consistent with the volume based service requirements of Chapter 15 of the City Code. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 12-17 of the Code of the City of Fort Collins be amended to read as follows: Sec. 12-17. Purpose and policy. The purpose of this Article is to protect the public health, safety and welfare by regulating the accumulation, storage, transportation and disposal of refuse and rubbish to prevent conditions that may create fire, health or safety hazards, harbor undesirable pests or impair the aesthetic appearance of the neighborhood, and to further the volume-based service requirements for collection of solid waste set forth in Article XV of Chapter 15 of this Code. The City Council shall use every means at its disposal, including its police powers, for the enforcement of this Article. Section 2. That a new Section 12-19 be added to Chapter 12, Article II of the Code of the City of Fort Collins, to read as follows: Sec. 12-19. Group accounts for collection. (a) No person who solicits solid waste collection services from a solid waste collector for residential customers through a group account shall: (1) fail to arrange for service in a manner that offers residential customers: (i) choices from amongst volume capacity categories of the containers of solid waste that are placed for collection by the residential customer; and (ii) charges to residential customers that are based upon such volume capacity categories; or (2) fail to provide reasonable notice of such volume capacity categories and volume based rates to all residential customers served through the group account once such volume capacity categories and related rates have been provided by a solid waste collector; or (3) in any way discourage, or provide disincentives to, any current or prospective residential customer served through a group account who wishes to select a volume capacity category that is different from that selected by other residential customers served through such account. (b) For the purposes of this Section, the terms contained herein shall have the same meaning as in § 15-411. Section 3. That all remaining sections of Article II of Chapter 12 of the Code of the City of Fort Collins be renumbered accordingly. Introduced, considered favorably on first reading, and ordered published this 6th day of April, A.D. 2004, and to be presented for final passage on the 20th day of April, A.D. 2004. Mayor ATTEST: City Clerk Passed and adopted on final reading this 20th day of April, A.D. 2004. Mayor ATTEST: City Clerk