HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/09/2008 - TRASH SERVICES STUDY DATE: December 9, 2008 WORK SESSION ITEM
STAFF: Ann Turnquist FORT COLLINS CITY COUNCIL
Susie Gordon
SUBJECT FOR DISCUSSION
Trash Services Study.
EXECUTIVE SUMMARY
Original Problem Statement:
"In what ways can the City reduce the impacts of trash collection services in Fort
Collins, addressing issues of the cost of street wear, air quality, neighborhood
aesthetics, noise, and other neighborhood impacts? Are there ways that the City
might also improve diversion rates for recyclables?"
On September 23,2008,City Council and staff met for the third work session on this topic to review
policy alternatives developed from the Trash Services Study. Council was asked to review several
implementation alternatives for which staff could develop detailed proposals. Council directed staff
to develop two alternatives for further consideration:
1. Additional requirements of haulers that will improve recycling diversion rates and improve
the pricing incentives of the Pay-as-you-throw Ordinance; and
2. Alternative market scenarios including continuing the current open competitive market for
trash services, a citywide contract for services, or a districted trash system.
Options for Council Consideration:
Staff has prepared one basic approach to changing the regulatory environment for trash collection
in Fort Collins which is targeted at improving diversion rates, plus an additional three alternatives
to consider regarding the structure of the market in which trash service will operate. Council could
chose to implement any or all of the proposed hauler requirements,and may also consider changing
the market structure for residential trash hauling (district or single hauler.)
December 9, 2008 Page 2
Trash Service Alternatives
Basic Proposal: Additional Requirements of Trash
Haulers
D. Recycling Requirements
E. Truck Impact Requirements
F. Improved Oversight
Market Option A: Market Option B: Market Option C:
Open Competitive Districted Trash Single Hauler,
Market (Status Service, Multiple Exclusive Contract
Quo) Haulers thru for Service thru
Competitive Competitive
Bidding Bidding
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. Which, if any, of the 12 proposed regulatory changes in the "Basic Proposal" does City
Council wish to pursue?
2. Which of the three Market Options does City Council wish to pursue: Current Open
Competitive Market, Districted Trash Service, or Single Bidder Exclusive Contract?
BACKGROUND
City Council established a goal to divert 50% of the community's waste stream from landfill
disposal by 2010. Council also has expressed specific interest in improving the Pay-as-you-throw
Ordinance.
Some of the goals of the original problem statement could be achieved by implementing various
strategies from the draft 2006 Strategic Plan for Solid Waste Diversion. These are consistent with
Council's goals set forth in the Trash Services Study problem statement, including improving the
community's diversion rate and reducing the impact of trash trucks on residential streets.
Staff s basic proposal for Council consideration at this work session implements a variety of new
requirements on residential trash haulers. These regulatory requirements could be implemented in
the context of any market scenario,including the current open competitive market,a single citywide
contract for service or a districted trash system.
December 9, 2008 Page 3
I. Basic Proposal: Additional Requirements for Trash Haulers:
The regulatory changes fall into three general categories.
A. Additional requirements to improve recycling:
A-1 Pay-as-you-throw Ordinance Enhancements
A-2 Require haulers to offer yard waste collection service
A-3 Require haulers to offer large, single-stream recycling toters
A-4 Establish a recycling education partnership with haulers
A-5 Ban the disposal of corrugated cardboard from the waste stream
A-6 Licensing Fee Increase
A-7 Recycling Program Fee per trash account
B. Additional requirements to limit impact of vehicles
B-1 Establish vehicle specifications designed to minimize the impact of vehicles on
residential streets
B-2 Establish a system for monitoring vehicle loads for solid waste hauling vehicles
C. Additional requirements to improve oversight
C-1 Establish additional reporting requirements for residential haulers
C-2 Additional Enforcement
C-3 General Regulation Changes
II. Market Options
In addition to the Basic Proposal, staff has outlined three options that prescribe the competitive
market structure for trash service in Fort Collins.
• Market Option A: Open Competitive Market(Status Quo)
• Market Option B: Districted Trash Service
• Market Option C: Single Bidder Exclusive Contract
City Council could choose to implement any or all of the components of the Basic Proposal to add
new requirements for Trash haulers. Separately, the Council can also consider any of the three
Market Structures. The additional requirements can be implemented either in the current Open,
Competitive market or within the requirements of a Contract for Services(single hauler or districted
system.)
Staff met with the current residential trash haulers to review the proposed options to be considered
at this work session. Staff has included feedback regarding a number of the alternatives which
reflect the comments of the haulers. Though the haulers have expressed concern about several of
the additional requirements in the Basic Proposal, they have also expressed support for some of
them. As might be expected,they also remain seriously concerned about the option to change from
an Open Competitive Market to either a Districted Trash System or Single Hauler Exclusive
contract. Haulers' specific concerns are noted in the "pros and cons" analysis of each alternative.
December 9, 2008 Page 4
A detailed analysis of the proposed options, both regulatory and market options is included in the
attached report(Attachment 1). Following is a summary of the alternatives.
I. BASIC PROPOSAL: ADDITIONAL REQUIREMENTS FOR TRASH HAULERS
A. Additional requirements to improve recycling
Proposed Requirement A-1:
Modified Pay-as-you-throw (PAYT) Ordinance
Revise the current PAYT Ordinance to further create price incentives for recycling.
Currently, haulers charge customers for residential trash service based on a formula which
is set forth in the City Code. It requires that each unit of trash (bag, gallons, cans, etc.) be
charged an equal price. This proposal would change the pricing structure set forth in the
ordinance to make larger volumes of trash more expensive per unit than the first 33-gallon
unit.
Proposed Requirement A-2:
Require Haulers to offer Yard Waste Collection Service
Require all residential haulers to offer optional curbside yard waste collection subscription
services to residential customers upon request. Collection will occur during the growing season
(April — October) and yard waste must be delivered to a certifiable composting facility. The
cost to customers cannot be greater than that customer's cost of a comparable volume of
disposed amount of land filled solid waste. Haulers are free to determine the type of container
to be used for yard waste,including specialized carts/toters,regular waste cans(marked as yard
waste) or compostable yard waste bags.
Proposed Requirement A-3:
Require Haulers to offer laree single-stream Recvcline Toters
Require haulers to provide 65 or 95 gallon recycling toters to all residential customers.
Customers who do not desire to have the large toter because of storage space issues could opt out
of receiving the container. Customers who opt out of the larger containers would be allowed to
continue to use existing 18 gallon containers. Haulers may charge customers for the cost of the
larger toter through a minimal monthly charge on their bill. Haulers must be prepared to provide
documentation that an individual customer has been provided with the opportunity to subscribe
to the service, and to document any customer opt-out of receiving the larger container.
Haulers would be allowed to move to bi-weekly or bi-monthly collection of recyclables after the
large toters are in place for all customers who do not opt to forego them.
December 9, 2008 Page 5
Proposed Requirement A- 4
Require Haulers to participate in Recycling Education Partnership
Require haulers to encourage recycling in the community through several strategies:
1. Haulers must provide regular employee training to ensure that customer service
representatives and drivers are educated in the requirements of the Pay-as-you-throw
(PAYT) Ordinance when providing verbal or written information about service.
2. Haulers must provide City-authored communication to customers regarding the PAYT
Ordinance when providing verbal or written information about service.
3. Haulers must provide "Oops" notices to customers who either include non-recyclable
materials in their recycling container("contaminate"the recyclables) or obviously place
recyclable materials in the trash.
Proposed Requirement A-5:
Ban the Disposal of Corrugated Cardboard (OCC) in the Waste Stream
• Prohibit the residential and commercial customers of trash hauling companies from
placing corrugated cardboard(OCC) in the trash bin.
Require all residential and commercial haulers to decline to accept any OCC that is set out
for collection in the trash disposal system.
Residential customers will continue to have the option of either placing OCC in the
curbside recycling bins or to use a recycling drop-off site(currently there are two publicly
available locations in Fort Collins).
• Commercial trash customers will have the option of either self-hauling OCC to a
recycling center or using the recycling services of their contracted trash hauler.
• Upon implementation of the OCC ban, if customers place the banned material in waste
containers,the hauler will be required to remove the materials from the waste stream and
notify the customer that the material must be recycled.
• The OCC ban would possibly be adopted with a provision to delay implementation of its
start date to give haulers and customers sufficient time to create OCC recycling programs.
Proposed Requirement A-6:
Licensing Fee Changes
Increase the Trash Hauler Licensing Fee from$30 per trash or recycling hauling vehicle per year
to $100 per truck per year to defray the City's costs of providing licensing oversight and
administration.
December 9, 2008 Page 6
Proposed Requirement A-7:
Recycling Program Fee per Trash Account
Establish a monthly recycling program fee which would be charged to each residential trash
customer. The fee would be levied by the City, collected by the trash haulers on their quarterly
bill and remitted to the City on a quarterly basis. The fee of$.25 to $.50 per account per month
would be used to fund City recycling programs which could include programs such as:
o Community recycling education
o Recycling drop off sites
0 Household hazardous waste and electronic waste collection
o Composting
o Construction and demolition materials recycling
0 Other programs as they are created
The fee would generate $75,000 to $150,000 per year.
B. Additional requirements to limit impact of vehicles
Proposed Requirement B-1:
Fleet Specifications
Establish fleet specifications designed to minimize the impact of vehicles on residential streets,
including:
• Prohibit the addition of newly acquired vehicles that were manufactured before 1994 to
a company's fleet inventory.
• Explore requiring use of tag axles on vehicles which have one fixed rear axle.
• Require that vehicles added to hauler fleets (new or used) have two fixed rear axles.
Proposed Requirement B-2:
Monitor vehicle loads for solid waste hauling vehicles
Establish a system for monitoring vehicle loads for solid waste hauling vehicles. Provide
additional funding to Police Services for operation of the mobile truck enforcement unit.
December 9, 2008 Page 7
C. Additional requirements to improve oversight
Proposed Requirement C- 1:
Additional Reporting Requirements
Require that haulers provide significantly greater data regarding their customers and that the data
be reported on an annual basis, including:
• Number of customers by level of service subscription (33, 65, 95 gallon, or pre-paid
bags)
• Detailed tonnage data for recyclables,yard waste, and trash volumes
• HOA contract statistics and service area detail
• Rate data
• Verify tons per yard data
• Accurately report number of trucks/vehicles during licensing process
Require haulers to provide information to the City which has been audited for accuracy by an
independent, certified auditor. The auditor would be hired by and paid by the trash haulers as
a condition of licensing.
Proposed Requirement C-2:
Additional Enforcement
Focus additional staff effort on compliance with a variety of hauler and customer requirements.
Additional enforcement could focus on the following areas:
• Ensuring compliance with the Pay-as-you-throw (PAYT) Ordinance by Homeowner
Associations (HOAs) participating in group accounts. This can include both education
and auditing of group accounts.
• Enable Health and Safety Inspectors to enforce Chapter 15, Article XV, "Solid Waste
Collection and Recycling Services"by expanding their commissions. Enforcement could
include such areas as electronic waste disposal, compliance with recycling regulations,
commingling ofwaste and recyclables by haulers,licensing requirements,hours of service
limits, etc.
Proposed Requirement C-3:
General Regulation Changes
Other miscellaneous changes to City Code regarding solid waste collection, recycling and
disposal (Chapters 12 and 15)will include:
• Change recycling code to prohibit commingling trash and recyclables
• Require haulers to clearly mark any vehicles being used for collection of recyclable
materials with the term"Recycling"
December 9, 2008 Page 8
II. Market Options
In addition to the Basic Proposal, staff has outlined 3 options for the competitive market for trash
service in Fort Collins.
• Market Option A: Open Competitive Market(Status Quo)
• Market Option B: Districted Trash Service
• Market Option C: Single Bidder Exclusive Contract
The Council can consider any of the three Market Structures. The additional requirements of the
Basic Proposal can be implemented either in the current open, competitive market or within the
requirements of a Contract for Services (single hauler or districted system.)
In order to change the market structure for trash service,the City could either develop two or more
trash districts for the community or develop a citywide Contract for Trash Services. The City would
offer private trash haulers the opportunity to competitively bid on providing trash and recycling
services either to the entire community or districts within the community. Haulers would be
required to meet a number of standards for service level, compliance with local requirements and
customer service. The contract(s)would be awarded for the right to provide exclusive trash service
either to the entire City or district(s) based on price and qualification. The City could determine
which accounts would be included in the contract (all residential customers or all customers not
currently within a HOA with a trash service contract)
In exchange for the exclusive contract for service, haulers would be required to meet a set of
conditions that the City would provide. Conditions could include achieving goals for excellence in
customer service, setting minimum diversion rates for recyclables, methods for ensuring
compliance with vehicle weigh limits, and/or other conditions that achieve City defined goals.
A detailed description of these market alternatives and an analysis of their effectiveness of meeting
Council's goals is included in the attached memorandum.
ATTACHMENTS
1. Memorandum: Trash Services Study Alternatives: December 9 Work Session.
2. Other Emerging Issues.
3. Summaries from work sessions on January 8,July 8, September 23,2008 and Work Session
Follow-up Memo of October 9, 2008.
4. Powerpoint presentation.
City Manager's Office
City of City Hall
F6rt I LaPorte Ave.
POCOsPO Box 580
Fort Collins, CO 80522
970,221 ,6505
970.224.6107 - fax
fcgov. com
Attachment 1
MEMORANDUM
TO : City Council Members
FROM : Ann Turnquist, Policy and Project Manager
Susie Gordon, Senior Environmental Planner
THRU: Darin Atteberry, City Manager
Diane Jones, Deputy City Manager
John Stokes, Natural Resources Director
RE : Trash Services Study Alternatives : December 9 Work Session
DATE : December 9, 2008
Original Problem Statement.
"In what ways can the City reduce the impacts of trash collection services in
Fort Collins, addressing issues of the cost of street wear, air quality,
neighborhood aesthetics, noise, and other neighborhood impacts? Are there
ways that the City might also improve diversion rates for recyclables?"
On September 23 , City Council and staff met for the third work session on this topic to review
policy alternatives developed from the Trash Services Study. Council was asked to review
several implementation alternatives for which staff could develop detailed proposals . Council
directed staff to develop two alternatives for further consideration:
1 . Additional requirements of haulers that will improve recycling diversion rates and
improve the pricing incentives of the Pay-as-you-Throw Ordinance; and
2 . Alternative market scenarios including continuing the current open competitive market
for trash services, a districted trash system, or a city-wide contract for services.
Options for Council Consideration .
Staff has prepared one basic approach to changing the regulatory environment for trash
collection in Fort Collins which is targeted at improving diversion rates, plus an additional three
alternatives to consider regarding the structure of the market in which trash service will operate.
Council could chose to implement any or all of the proposed hauler requirements, and may also
consider changing the market structure for residential trash hauling (district or single hauler.)
Fort Collins
Trash Services Alternatives
L Basic Proposal : Additional Requirements of Trash Haulers
A. Recycling Requirements
Be Truck Impact Requirements
C . Improved Oversight
IL Market Option A : 11. Market Option Be H. Market Option C :
Open Competitive Districted Trash Single Hauler,
Market (Status Quo) Service, Multiple Exclusive Contract
Haulers thru for Service thru
Competitive Bidding Competitive Bidding
Trash Services Study Work Session December 9, 2008 Page 2
Fort Collins
I . Basic Proposal Summary :
Additional Requirements for Trash Haulers
A. Additional requirements to improve recycling .
A- 1 Pay as You Throw Ordinance Enhancements
A-2 Require haulers to offer yard waste collection service
A-3 Require haulers to offer large, single-stream recycling toters
A-4 Establish a recycling education partnership with haulers
A-5 Ban the disposal of corrugated cardboard from the waste stream
A-6 Licensing Fee Increase
A-7 Recycling Program Fee per trash account
B. Additional requirements to limit impact of vehicles
B- 1 Establish fleet specifications which minimize the impact of vehicles on residential
streets
B-2 Establish a system for monitoring vehicle loads for solid waste hauling vehicles
C . Additional requirements to improve oversight
C- I Establish additional reporting requirements for residential haulers
C-2 Additional Enforcement
C-3 General Regulation Changes
Trash Services Study Work Session December 9, 2008 Page 3
Fort Collins
I. Basic Proposal General Description .
Additional Requirements for Residential Trash Haulers
Goals Achieved
Cost of street wear (through monitoring
weights/overloading)
Air quality
Neighborhood aesthetics
Other neighborhood impacts
Diversion rates for recyclables
City Council established a goal to divert 50% of the community' s waste stream from landfill
disposal by 2010 . Council also has expressed specific interest in improving the Pay-as-you-
Throw Ordinance.
Some of the goals of the original problem statement could be achieved by implementing
various strategies from the draft 2006 Strategic Plan for Solid Waste Diversion. If the City
were to adopt this package of regulatory changes, it could achieve several of the goals set
forth in the problem statement, including improving the community' s diversion rate and
somewhat reducing the impact of trash trucks on residential streets .
The regulatory changes fall into three general categories.
I. Basic Proposal : Additional Requirements for Trash Haulers :
A. Additional requirements to improve recycling
A- 1 Pay-as-you- Throw Ordinance Enhancements
A-2 Require haulers to offer yard waste collection service
A-3 Require haulers to offer large, single-stream recycling toters
A-4 Establish a recycling education partnership with haulers
A-5 Ban the disposal of corrugated cardboard from the waste stream
A-6 Licensing Fee Increase
A-7 Recycling Program Fee per trash account
Be Additional requirements to limit impact of vehicles
B- I Establish fleet specifications designed to minimize the impact of vehicles
on residential streets
B-2 Establish a system for monitoring vehicle loads for solid waste hauling
vehicles
Trash Services Study Work Session December 9, 2008 Page 4
Fort Collins
co Additional requirements to improve oversight
C- 1 Establish additional reporting requirements for residential haulers
C-2 Additional Enforcement
C-3 General Regulation Changes
II. Market Options
In addition to the Basic Proposal, staff has outlined three options that prescribe the
competitive market structure for trash service in Fort Collins .
• Market Option A : Open Competitive Market (Status Quo)
• Market Option B : Districted Trash Service
• Market Option C : Single Hauler, Exclusive Contract
City Council could choose to implement any or all of the components of the Basic Proposal
to add new requirements for Trash Haulers. Separately, the Council can also consider any of
the three Market Structures . The additional requirements can be implemented either in the
current Open, Competitive market or within the requirements of a Contract for Services
(single hauler or districted system.)
Staff met with the current residential trash haulers to review the proposed options to be
considered at this Work Session. This document includes feedback regarding a number of
the alternatives which reflect the comments of the haulers. Though the haulers have
expressed concern about several of the additional requirements in the Basic Proposal, they
have also expressed support for some of them. As might be expected, they also remain
seriously concerned about the option to change from an open competitive market to either a
districted trash system or single hauler exclusive contract. Where haulers had specific
concerns, key issues are noted in the "pros and cons" analysis of each alternative .
Trash Services Study Work Session December 9, 2008 Page 5
Fort Collins
Basic Proposal Detailed Description :
Additional Requirements for Trash Haulers
A : Additional requirements to improve recycling
Proposed Requirement A4
Modified Pay-as-you-Throw WAYT) Ordinance
Revise the current PAYT Ordinance to further create price incentives for recycling.
Currently, haulers charge customers for residential trash service based on a formula which
is set forth in the City Code . It requires that each unit of trash (bag, gallons, cans, etc .) be
charged an equal price. This proposal would change the pricing structure set forth in the
ordinance to make larger volumes of trash more expensive per unit than the first 33 -gallon
unit.
Proposal : Haulers may charge rates to residential customers according to the following
formula:
• Base rate = 50% : 1 — 33 gallon container per week; plus
50% : Base service fee (includes weekly service, recycling)
• Additional waste = the cost of each additional 33 gallon container must be at least
125 % of the cost of the first 33 gallon container
Example :
Base Rate : $ 5 . 00 per month first 33 gallon container
$ 5 . 00 per month flat fee (includes weekly service, recycling)
$ 10. 00 per month total cost for single 33 gallon container service
Second $ 6 .25 per month Second 33/35 gallon container
Third $ 6 .25 per month Third 33/35 gallon container
$22 . 50 per month total for 95 gallon container service
In this example, a customer who wishes to have minimal trash service (one can, bag,
or 33 gallon equivalent) would pay the base rate of $ 10 per month. This base rate
would apply regardless of how many times per month the customer actually puts trash
at the curb for collection and would include their recycling service . The base rate
covers the service provided by the hauler who drives by the customer' s house each
week for trash and recycling, regardless of whether the hauler collects any trash or
recyclables.
In this example, a customer who wishes to contract for 95 gallon per week service (3
cans, bags or a 95 gallon equivalent) would pay the base rate plus two additional units
at $6 .25 each.
Trash Services Study Work Session December 9, 2008 Page 6
F�or_ t Collins
The pricing incentive to reduce trash and increase recycling is greater under this
proposal, as the price for 95 gallon service ranges from $ 10 per month basic service
to $22 . 50 per month for the larger volume .
Actual prices for each of the units would be set by the individual hauler. Open
competition in the trash hauling business is maintained as individual haulers
determine their own cost and prices and compete for customers based on the rates that
they offer.
Total = $22 . 50
Pay as you Throw Trash Pricing
C:::: With Additional Units at 125 %
(Example)
$6.25 Third Unit (95 gallon total)
Second Unit (65 gallon total)
$6.25
Base rate + First 33 gallon unit
$5 +$5 = $ 10
Additional requirements for the haulers under the modified PAYT Ordinance would include :
1 . Haulers would be required to train their staffs about the PAYT system. This training
would include customer service representatives and drivers . The purpose of the
training would be to ensure that customer service representatives explain entire range
of services available to new customers, that drivers understand their responsibility
under the ordinance to ensure that customers pay for extra materials that are placed
out for collection. The hauler is responsible for ensuring that these employees operate
in compliance with the requirements of the ordinance.
2 . The City will provide haulers with a specific verbal and written text to provide to
customers which details the requirements of the ordinance and how it applies to them
in order to ensure that a clear and consistent message is uniformly delivered to
customers .
Trash Services Study Work Session December 9, 2008 Page 7
Fort Collins
Additional Hauler Requirements : PAYT Ordinance Changes
Financial Benefits : Costs:
• Savings to customers through effective use of • City administrative costs for enforcement,
PAYT pricing auditing and hauler education and monitoring
• Reduced hauler tipping fees as recycling = cost range to be determined
increases Increased cost for customers who do not reduce
waste
Achieves : Shortcomings :
• Increased diversion through education • Haulers do not believe that this level of pricing
message will change customer behavior
• Reduced CO2 emissions through improved Increasing cost for larger families which
diversion rates, achieving goals of Climate generate greater waste per household may be
Action Plan regressive
• Preserves customer choice • City administrative costs for enforcement,
auditing and hauler education and monitoring
$259000 - $509000
• Improved diversion through stronger price • Increases government requirements
message
Trash Services Study Work Session December 9, 2008 Page 8
Fort Collins
Proposed Requirement A-2 :
Require Haulers to offer Yard Waste Collection Service
Require all residential haulers to offer optional curbside yard waste collection subscription
services to residential customers upon request. Collection will occur during the growing
season—April — October, and yard waste must be delivered to a certifiable composting
facility. The cost to customers cannot be greater than that customer' s cost of a
comparable volume of disposed solid waste. Haulers are free to determine the type of
container to be used for yard waste, including specialized carts/toters, regular waste cans
(marked as yard waste) or compostable yard waste bags .
According to the Larimer County Landfill ' s 2007 Two-Season Waste Composition Study, 30% of
the waste stream currently going to the landfill is compostable (food waste, processed wood, and
yard waste .) A total of 8 .4% of land-filled materials are yard waste, which is composed of grass
clippings, branches, brush, garden waste and leaves. This data is based on a two-season study
(winter and summer,) so the amount of materials is likely even greater than the 8 .4% statistic,
since spring and fall seasons tend to produce a significant amount of "clean-up" material,
especially fall leaves. By reducing or eliminating the yard waste that goes to the landfill, the
community could make significant progress toward achieving the City' s 50% diversion goal.
In 2006, the City' s Strategic Plan for Solid Waste Diversion recommended the addition of yard
waste composting service as a key strategy for achieving the overall 50% diversion rate . The
Strategic Plan included a survey of the community to evaluate the likelihood of success of such a
service. Findings included:
"A total of 39 percent of respondents report that they put yard waste out with the trash.
About 113 of respondents report that they would use a community composting facility
even if there was a small fee. Demand is greater for curbside pickup of yard waste; over
half would be "very likely " or "somewhat likely " to use the service, even if there was a
small fee. "
In many areas, the disposal of yard waste in a landfill is prohibited. According to a 2008 Study
by Skumatz Economic Research Associates, Inc . , (SERA) the City' s consultant on the Strategic
Plan for Solid Waste Diversion, 24 states have a yard waste ban already in place. In those areas,
composting facilities are in place to receive yard waste from residents.
Trash Services Study Work Session December 9, 2008 Page 9
Fort Collins
Additional Hauler Requirements--Yard Waste Collection Service
Financial Benefits : Costs :
• Reduced hauler tipping fees as recycling • Yard Waste = would be the same cost as
increases comparable amount of trash collected for
• Reduced trash expenses for customers who customers who choose service
successfully reduce trash in favor of organics • Added cost for haulers to acquire additional
recycling equipment appropriate for providing the service
Achieves : Shortcomings :
• Increased diversion through education and • Relies on the continued availability of private
organics recycling organics recycling facilities in the area
• Reduced CO2 emissions through improved • Doesn't focus on encouraging mulching-
diversion rates, achieving goals of Climate mower use on lawns rather than disposing of
Action Plan grass clippings as yard waste
• Preserves customer choice • Increases government requirements
Trash Services Study Work Session December 9, 2008 Page 10
Fort Collins
Proposed Requirement A-3 :
Require Haulers to offer large, single-stream Recycling Toters
Require haulers to provide 65 or 95 gallon recycling toters to all residential customers.
Customers who do not desire to have the large toter because of storage space issues could
opt out of receiving the container. Customers who opt out of the larger containers would
be allowed to continue to use existing 18 gallon containers . Haulers may charge
customers for the cost of the larger toter through a minimal monthly charge on their bill.
Haulers must be prepared to provide documentation that an individual customer has been
provided with the opportunity to subscribe to the service, and to document any customer
opt-out of receiving the larger container.
Haulers would be allowed to move to bi-weekly or bi-monthly collection of recyclables
after the large toters are in place for all customers who do not opt to forego them.
As the market for a wider variety of recyclable materials has improved, recycling processors
have begun to accept a greater variety of materials in the single-stream curbside recycling
program. Corrugated cardboard and paperboard (e. g. cereal boxes) were added to the list of
recyclables collected at curbside in 2006, and in 2008 haulers began collecting lower grade
consumer plastics marked with the recycling logo as plastics 3 -7 .
Haulers are currently required to provide a recycling container to all customers who wish to
receive recycling services . With these increases in materials accepted through the recycling
program, customers are increasingly finding that the current 18 gallon recycling box is no longer
adequate for containing all of their recyclable materials. When customers overfill the 18 gallon
box, materials may be more susceptible to wind, and customers may be more likely to put extra
recyclable materials in the trash, rather than saving them for future pickup or adding another box.
In other communities, the use of larger 65 or 95 gallon single stream toters has increased overall
recycling by 34 %. (SERA, Inc . data) The ease of use of the larger containers and the greater
capacity encourages greater diversion and also send a stronger message to customers that they
have greater potential for recycling than is suggested by the much smaller container.
If the larger containers are provided, haulers could be allowed to change to bi-weekly or bi-
monthly recycling service. With the containers 3 to 5 times larger than the 18 gallon box,
customers would have substantially greater capacity for recyclable storage, allowing for less
frequent pick up . Less frequent pick up would reduce the impact of trucks on residential streets
and reduce vehicle miles traveled for recycling.
An additional benefit of the use of the larger containers would be improved aesthetics with larger
recycling containers that are less susceptible to spilling and wind blown recyclables .
A significant issue for the trash haulers will be the expense of providing the larger containers.
With cost estimates between $45 and $75 per unit, this will represent a significant capital outlay
for the haulers . While moving to a bi-weekly or bi-monthly collection system will improve the
Trash Services Study Work Session December 9, 2008 Page 11
/,.,Fo t Collins
hauler' s efficiency and reduce costs for collecting recyclables, staff does acknowledge that the
toters may increase overall costs for the haulers . The proposal includes the option for haulers to
pass the cost of the toters on to the customers through a minimal monthly charge to be set by the
haulers according to market forces .
Additional Hauler Requirements-- Large, single-stream Recycling Toters
Financial Benefits: Costs :
• Reduced hauler tipping fees as recycling • Single stream containers = $ 45 - $75 each,
increases cost would likely be passed on to customers on
• Reduced trash expenses for customers who monthly bills ; monthly rate to be set by
successful reduce trash in favor of additional competitive market
recycling
• Savings to customers through effective use of
PAYT pricing
• Significant operational cost savings to haulers
if recycling changed to bi-weeklyservice
Achieves : Shortcomings :
• Increased diversion through education and • 65/95 gallon recycling containers will be costly
large single-stream containers for haulers to provide, though cost would be
recoverable over time through monthly charge
• Reduced CO2 emissions through improved • Requires haulers to offer opt-out provisions for
diversion rates, achieving goals of Climate customers who do not want to use a larger
Action Plan recycling container (e.g. if there is not adequate
storage space for a larger container or
customers do not participate in the curbside
program.)
• Alternate week recycling would reduce some • Increases government requirements
truck traffic in neighborhoods, damage to
streets and vehicle miles traveled by recycling
trucks
• Improved aesthetics with larger recycling
containers that are less susceptible to spilling
and wind blown rec clables
• Preserves customer choice of size of recycling
container
Trash Services Study Work Session December 9, 2008 Page 12
Fort Collins
Proposed Requirement A- 4
Require Haulers to participate in Recycling Education Partnership
Require haulers to encourage recycling in the community through several strategies :
1 . Hauler must provide regular employee training to ensure that customer service
representatives and drivers are educated in the requirements of the Pay-as-you-
Throw (PAYT) ordinance when providing verbal or written information about
service
2 . Haulers must provide City authored communication to customers regarding the
PAYT ordinance when providing verbal or written information about service
3 . Haulers must provide "Oops" notices to customers who either include non-
recyclable materials in their recycling container ("contaminate" the recyclables)
or obviously place recyclable materials in the trash
Trash haulers are on the front line of implementing the City' s goals of increasing recycling in the
community. Haulers have direct communications with trash customers each quarter through
their billing statements and newsletters . Drivers are in the best position to see when customers
are recycling inappropriately as they collect recyclables . Customer Service representatives have
the opportunity to talk to new customers about how the PAYT ordinance is structured and the
cost savings they can realize through recycling . Creating a partnership with the haulers to reach
customers with information about recycling and the PAYT Ordinance allows the City to more
effectively reach the 50% diversion goal.
Elements of the Education program include :
• Require trash hauler' s employees to participate in a regular training session regarding
both recycling programs and the Pay-as-you-throw ordinance. Participants will include
customer service representatives and drivers . Haulers will be required to demonstrate that
the training covers topics including strategies for encouraging customers to recycle,
explaining the purpose and structure of the PAYT ordinance and reviewing the haulers
obligations under the City' s recycling and PAYT ordinances . The City will provide a
script for use by the customer service representatives in describing customer options for
various service levels .
• Each year during the first quarter, the City will provide each hauler with "camera ready"
information regarding current recycling options, PAYT rate structures, and current
information about solid waste regulations . Haulers will be required to include this
information to all customers as an insert in at least one quarterly billing statement per
year. Haulers will be allowed to add logo or company identification on the flyer, if
desired.
• Haulers must provide "Oops" notices to customers who either include non-recyclable
materials in their recycling container ("contaminate" the recyclables) or obviously place
recyclable materials in the trash
Trash Services Study Work Session December 9, 2008 Page 13
Fort Collins
Additional Hauler Requirements-- Recycling Education Partnership
Financial Benefits: Costs :
• City takes advantage of existing mailings and • City administrative costs for enforcement,
phone communication by haulers to provide auditing and hauler education and monitoring
educational materials to trash customers = Cost range to be determined
• Reduced trash expenses for customers who • Cost to haulers for producing and distributing
successfully reduce trash in favor of additional "Oops" Notices
recycling
Achieves : Shortcomings :
• Increased diversion through education • Haulers concerned about the cost of providing
large numbers of "Oops" notices each week
• Reduced CO2 emissions through improved • Haulers are concerned about the effectiveness
diversion rates, achieving goals of Climate of "Oops" notices which are currently provided
Action Plan
• Preserves customer choice • Increases government requirements
• Allows City to create messages regarding • Increased administrative costs
recycling targeted at both current issues and
themes which reinforce other City recycling
efforts
• Increases effectiveness of PAYT ordinance by
encouraging customer service and driver
implementation
Trash Services Study Work Session December 9, 2008 Page 14
Fort Collins
Proposed Requirement A-5 :
Ban the disposal of corrugated cardboard (OCC) in the waste stream
• Prohibit the residential and commercial customers of trash hauling companies
from placing corrugated cardboard (OCC) in the trash bin.
• Require all residential and commercial haulers to decline to accept any OCC that is
set out for collection in the trash disposal system.
• Residential customers will continue to have the option of either placing OCC in
the curbside recycling bin, or to use a recycling drop-off site (currently two
publicly available locations in Fort Collins) .
• Commercial trash customers will have the option of either self-hauling OCC to a
recycling center or using the recycling services of their contracted trash hauler.
• Upon implementation of the OCC ban, if customers place the banned material in
waste containers, the hauler will be required to remove the materials from the
waste stream and notify the customer that the material must be recycled.
• The OCC ban would possibly be adopted with a provision to delay implementation
of its start date, to give haulers and customers sufficient time to create OCC
recycling programs.
According to a waste characterization study by Larimer County in 2006, an estimated 18 ,225
tons of corrugated cardboard enter the landfill each year. Overall, this is 8% of the materials
which are sent to Larimer County Landfill . For residential customers, corrugated cardboard
accounts for 6% of materials sent to the landfill, and for commercial customers it accounts for
13 . 6% of the waste stream.
Corrugated cardboard is a relatively valuable recyclable commodity collected. Because of its
volume and the fact that it is frequently placed in trash containers without being broken down or
flattened, removing it from the waste stream creates great potential for reducing trash volumes
for both residential and commercial customers .
This change in the materials that are banned from collection as trash is a significant change both
for residential and commercial customers . In 2007 , the City banned the collection of electronic
waste (E-Waste) for disposal in the landfill, but all other recycling activities in the community
have been voluntary. The addition of another "banned" material to the recycling program could
be an issue of concern for residential and commercial customers and could be quite
controversial.
Trash Services Study Work Session December 9, 2008 Page 15
Fort Collins
Additional Hauler Requirements-- Ban the disposal of corrugated cardboard (OCC)
Financial Benefits : Costs :
• Due to its bulkiness, OCC is very expensive to • Businesses that don 't already use a recycling
landfill; businesses and residents that service will have a new cost to pay for OCC to
divert/recycle OCC will reduce trash volumes be collected separately if they contract a hauler
and bills. and will need to train employees to collapse
• Using 80% success estimate, 16,000 tons OCC cardboard boxes for handling purposes .
could be diverted if a ban is adopted. • Businesses that elect to self-haul cardboard will
= At landfill costs of $5 .04 - $5 . 81 / yd39 pay for employee ' s time to ensure cardboard
avoided costs for diverting OCC from boxes are collapsed and separated; then to
disposal would be approximately $ 1 deliver to drop-off site.
million (not including hauling costs) . • Trash haulers will lose lucrative income as a
= At current market prices of $7/ton, the result of eliminating a bulky item from the
value of recycled OCC would be $ 112,000. Dumpsters, which may not be compensated by
= Total monetary savings at least $ 1 . 1 income from collecting of OCC as a recyclable
million. (perceived to be less lucrative by haulers) .
Achieves : Shortcomings :
• Of the 18 ,225 tons OCC that enter the landfill, • Businesses with space constraints may have
16,000 tons could be diverted by 2012, difficulty storing flattened OCC separately from
increasing waste diversion from current level trash until it' s collected.
of 27% to 31 %.
• Greater recycling for other materials occurs • Haulers will have more work expanding
when a business starts recycling OCC (and recycling for commercial customers and shifting
may enhance single-stream option for resources (trucks, bins, personnel) from trash to
commercial customers). recycling
• Greenhouse gas reductions for diverting • Ban creates bigger role for government and
16,000 tons of OCC result in savings of 64,000 more requirements - a negative for some.
tons of CO2e.
• Lower volumes of OCC in the waste stream • May require Fort Collins to expand local
will extend landfill lifespans. collection site infrastructure for accepting OCC
from self-haul residents/businesses.
• May result in business development of more One hauler is concerned about customer
OCC collection infrastructure/opportunities. compliance with their request/requirement to cut
down cardboard into 2 foot by 2 foot sections
Trash Services Study Work Session December 9, 2008 Page 16
Fort Collins
Proposed Requirement A-6 :
Licensing Fee Changes
Increase the Trash Hauler Licensing Fee from $30 per trash or recycling hauling vehicle per
year to $ 100 per truck per year to defray the City ' s costs of providing licensing oversight and
administration.
Each trash and recycling vehicle used by the trash haulers for collection is required to have a
license from the City. The fee for this license was set by code in 1990 at $30 per vehicle per
year. The fee has not been adjusted since then. Currently, the City issues 12 licenses to Fort
Collins trash hauling companies, including commercial-only service providers . The fee is
assessed for each truck that is used to provide trash collection or recycling collection within Fort
Collins .
Staff estimates that licensing and oversight of trash haulers currently costs the City
approximately $25 ,000 per year. The City currently collects approximately $ 3 ,750 in trash truck
license fees. Under the proposed fee, approximately $ 12,500 would be collected. These fees
would help cover more of the costs of issuing licenses, follow-up on applications, verify data,
monitor licensees, etc . Current fees cover only a very minor portion of the total cost of this
licensing and oversight. Staff believes that increasing this fee from $ 30 per truck to $ 100 per
truck would still only cover a portion of the costs, but does cover a greater percentage of these
costs . Comparative fees in the area range from $50 to $ 100 per vehicle (not including other
application and licensing fees that other communities may charge.) Staff proposes that this fee
be updated to be more similar to other communities and to better cover the costs of administering
the licensing program.
Additional Hauler Requirements-- Licensing Fee Changes
Financial Benefits: Costs:
• Total revenue from licensing fees would • Increased cost to haulers of $ 70 per truck
increase from $3 ,750 per year to $ 12, 500 per
year,
Achieves : Shortcomings :
• Could generate City revenue from license fees • Increases government requirements
to use in administering programs
Trash Services Study Work Session December 9, 2008 Page 17
Fort Collins
Proposed Requirement A-7 :
Recycling Program Fee per Trash Account
Establish a monthly recycling program fee which would be charged to each residential
trash customer. The fee would be levied by the City, collected by the trash haulers on
their quarterly bill and remitted to the City on a quarterly basis . The fee of $ .25 to $ . 50
per account per month would be used to fund City recycling programs which could
include programs such as :
• Community recycling education
• Recycling drop off sites
• Household hazardous waste and electronic waste collection
• Composting
• Construction and Demolition materials recycling
• Other programs as they are created
The fee would generate $ 75 ,000 to $ 150,000 per year.
The City currently provides a variety of recycling programs which are funded through General
Fund resources . Community education and drop-off recycling sites are key components of the
City ' s efforts to encourage recycling and waste diversion.
Additional programs to encourage or facilitate recycling efforts could be developed and
implemented by the City, if a revenue stream were available . Programs which have been
discussed in the past include a compost facility, a construction and demolition recycling
program, and a household hazardous waste program.
The level of the fee could be set based on the programs which Council wishes to fund. The
amount of the fee would be based on the cost of the programs to be funded and the revenues
from the fee would need to be earmarked for those programs .
If the City asks the trash haulers to include a Recycling Program Fee on their customer bills , it
might be worthwhile to consider allowing the haulers to retain a portion of the fee in payment for
their efforts at collecting and remitting the fee. This provision would be similar to the Vendor
Fee which is provided to sales tax licensees who collect the sales tax on behalf of the City.
Trash Services Study Work Session December 9, 2008 Page 18
Fort Collins
Additional Hauler Requirements-- Recycling Program Fee per Trash Account
Financial Benefits : Costs :
• Creates revenue which could be used for • All customers would pay the fee, regardless of
recycling promotion and hauler incentives to their use of the recycling program
increase diversion rates • Increased fee increases the cost of service for
all customers
Achieves : Shortcomings :
• Reduced CO2 emissions through improved • Haulers are concerned about collecting this fee
diversion rates, achieving goals of Climate
Action Plan
• Increased diversion through education • Haulers are concerned about their
responsibility to collect the fee on bills which
are not paid by the customer
• Haulers believe that the City should collect
such a fee on City Utility Bills
• Increased governmental requirements
Trash Services Study Work Session December 9, 2008 Page 19
Fort Collins
Be Additional Requirements—Limit Truck Impact
Proposed Requirement B- I :
Fleet Specifications
Establish Fleet Specifications designed to minimize the impact of vehicles on residential
streets, including :
• Prohibit the addition of newly acquired vehicles that were manufactured before
1994 to a company ' s fleet inventory
• Explore requiring use of tag axles on vehicles which have one fixed rear axle .
• Require that vehicles added to hauler fleets (new or used) have two fixed rear
axles .
The Trash Services Study reviewed several issues related to the impact of vehicles on City
streets and on air quality. Of particular concern were overweight vehicles, the impact of older
vehicles and vehicles which have only one fixed rear axle.
One suggestion from the Study was to require replacement of older trash vehicles with newer
models that have a higher level of pollution control. Specifically, the study recommends that the
"City could ban the registration of any truck prior to 1994, in order to remove some of the
dirtiest, most polluting engines from the road." (See Study, page 2- 11 ) Though this action would
not require haulers to replace their fleets with vehicles that comply with the higher 2010 EPA
Emission Standards, it would speed that process somewhat.
Further, the Trash Services Study notes :
" One hauler uses vehicles with a single fixed rear axle and a pusher axle. The impact of
those vehicles increases significantly if the pusher axle is not used during collection
operations. Also pusher and tag axles generally have two tires per axle rather than four,
which also increases the impacts relative to a fixed rear axle with four tires. "
The consultant notes that when these vehicles are operated with only one axle, they create a
greater impact on residential streets.
The consultant recommends that the City require haulers to obtain for service in the City only
new trash and recycling vehicles that have two fixed rear axles . They further recommend that
the City explore appropriate means of requiring full time use of pusher or tag axles on existing
trash hauling and recycling vehicles with a single fixed rear axle .
Trash Services Study Work Session December 9, 2008 Page 20
Fort Collins
Additional Hauler Requirements-- Vehicle Specifications
Financial Benefits: Costs :
• Potential street maintenance savings to City if • Higher costs to haulers for replaccment vehicles
overloaded trash vehicles limited possible
Achieves : Shortcomings :
• Addresses air quality • Haulers are concerned that requirements
regarding the use of tag axles is duplicative of
DOT vehicle operation requirements
• Addresses impact of trucks on streets or • Does not address impacts of multiple trash
neighborhoods trucks in neighborhoods including air quality,
noise, street wear and aesthetics
• May improve CO2 emissions achieving goals • Haulers are concerned that this restriction of
of Climate Action Plan the type of vehicles (2 rear axles) does not take
into account that a properly operated lighter
vehicle could be more appropriate in certain
areas.
• Increases government requirements
Trash Services Study Work Session December 9, 2008 Page 21
Fort Collins
Proposed Requirement B-2
Monitor vehicle loads for solid waste hauling vehicles
Establish a system for monitoring vehicle loads for solid waste hauling vehicles . Provide
additional funding to Police Services for operation of the mobile truck enforcement unit.
The Trash Services Study notes that vehicle weights are a major contributor to damage to
residential streets . It notes that:
"The impact that a vehicle exerts on a section of pavement is related to the vehicle 's axle
weights. As axle weight increases the impact increases at a rate much greater than
proportionally. As such, overweight vehicles exert a significantly greater pavement
maintenance impact than that same vehicle at or below its legal weight, in addition to
presenting a potential safety hazard.
"A trash truck operating at one (1) ton over a legal payload of 10 tons (10% overweight)
exerts an impact approximately 50% more than a vehicle loaded to its legal weight. That
same vehicle operating at two (2) tons (20% overweight) over its legal payload exerts an
impact approximately 100% higher than when loaded to its legal weight.
"The fact that the Larimer County Landfill, and certain other neighboring landfills, do
not have scales and charge haulers based on volume presents a potential incentive for
haulers to maximize vehicle payloads. This may foster the overloading of vehicles. While
this potential may exist, it does not necessarily mean that haulers are overloading their
vehicles, which can cause increased vehicle wear-and-tear. "
The most direct strategy for dealing with potentially overweight vehicles would be for Larimer
County to install scales at its landfill. The City and County have discussed this option, but
several issues have prevented progress on this decision.
Installing scales at the landfill would be a financial issue for the City and Larimer County.
Purchasing and installing scales is projected to cost between $55 ,000 and $ 150,000 . Larimer
County does not have funding available for this purchase.
Larimer County has not previously installed scales because it has based its tipping fee price
structure on volumes rather than weights . The County ' s philosophy for establishing these prices
has been that the weight of materials was not as relevant to its operations as the volume of
materials to be disposed of and covered.
Larimer County staff is concerned that the addition of scales may slow the entry of vehicles into
the landfill, especially on days when large numbers of self-haulers enter the landfill. The
location of the gatehouse, near Taft Hill Road, makes it critical that vehicles can enter the landfill
quickly and not back up onto the roadway. If scales are installed, operational issues regarding
Trash Services Study Work Session December 9, 2008 Page 22
/. Fit Collins
which vehicles are weighed and whether the information is used to charge fees based on weight
rather than volume must be resolved.
As an enterprise fund, the County Solid Waste Department recognizes that by creating a possible
time delay for haulers who take trash to the landfill, or other deterrents associated with scales,
they may cause their customers to patronize other area landfills . The City might consider
seeking a State legislative change that could require all landfills in the state to install scales.
Such a State requirement would "level the playing field" between all of the landfills.
Short of adding scales at the Larimer County Landfill, staff suggests that the City increase its
enforcement efforts to ensure that trucks, as well as other heavy vehicles, are not operating over
their legal weight limits within the City. During the 2008-09 Budgeting for Outcomes process,
Police Services made a budget offer to increase its truck enforcement efforts . The net cost, after
fine revenue, was projected to be approximately $25 ,000 per year.
Increasing truck enforcement would have the benefit of ensuring overweight trash trucks were
not causing excess damage to residential streets, while also benefiting the community as a whole
by removing dangerous vehicles from the street.
Police Services is likely to re-present the Vehicle Enforcement offer during the 2010- 11
Budgeting for Outcomes process, set to begin in the 2nd Quarter of 2009 .
Additional Hauler Requirements -- Monitor vehicle loads
Financial Benefits: Costs:
• Potential street maintenance savings to City if • Monitoring overweight vehicles through
overloaded trash vehicles limited portable scales or landfill scales = $ 150,000
capital; could be cost to haulers for more
landfill trips if not currently meeting legal load
limits
• City administrative costs for enforcement,
auditing and hauler education and monitoring
$2500 - $5000
• Cost to haulers for lost productivity time
Achieves : Shortcomings :
• Addresses impact of trucks on streets or • Increases government requirements
neighborhoods
• Addresses safety issues • Increased administrative costs and cost of
vehicle weight monitoring to City
• Creates opportunity for haulers to readily •
obtain accurate weight data for loads of trash,
which is the metric required by the City for
analyzing waste reduction and diversion
programs ' effectiveness.
Trash Services Study Work Session December 9, 2008 Page 23
Fort Collins
C : Additional Requirements—Improved Oversight
Proposed Requirement G 1 :
Additional Reporting Requirements
Require that haulers provide significantly greater data regarding their customers reported
on an annual basis, including :
• Number of customers by level of service subscription (33 , 65 , 95 gallon,
or pre-paid bags)
• Number of customers by category of subscription (residential, multi -
family or commercial)
• Detailed tonnage data for recyclables, yard waste, and trash volumes
• HOA contract statistics and service area detail
• Verify tons per yard data
• Accurately report number of trucks/vehicles during licensing process
Require haulers to provide information to the City which has been audited for
In developing the Trash Services Study, Council and Staff found that much of the data that
would have been useful in evaluating the efficiency of the community' s trash system and
estimating the impacts of the system on street damage, air quality, noise, and aesthetics was
unavailable. With few requirements for data to be provided to the City regarding their
operations, haulers neither collect nor make available this information. These requirements
would create an obligation for the haulers to provide more data to the City as a condition of their
license. The data collected might become the basis upon which to make future decisions
regarding the trash system if Council ' s desired goals are not met.
Additional data requirements will include :
■ Number of customers by volume service (35 , 65 , 95 gallon, or pre-paid bags)
■ Detailed diversion data for recyclables
■ Calculated average diversion rate per residential customers
■ HOA contract statistics and service area detail
■ Verification of "tons per yard" data by providing certified weight slips for each trash
vehicle on a quarterly basis
■ Accurately report number of vehicles during licensing process
By requiring haulers to provide information to the City which has been audited for accuracy by
an independent certified auditor, the City could more effectively ensure that the data is correct,
and would not require the City to use its Sales Tax Auditors for this oversight function.
Trash Services Study Work Session December 9, 2008 Page 24
Fort Collins
Additional Hauler Requirements--Additional Reporting Requirements
Financial Benefits : Costs :
■ Reduced City cost for auditing • City administrative costs for enforcement,
auditing and hauler education and monitoring
= Cost range to be determined
• Cost to haulers for engaging independent
auditor
Achieves : Shortcomings :
• Provides data upon which to make future • Increases government requirements
decisions re: trash system requirements, if
desired goals are not met.
• Difficult to audit routes that are a mix of City
and County customers
Trash Services Study Work Session December 9, 2008 Page 25
Fort Collins
Proposed Requirement C- 2
Additional Enforcement
Focus additional staff effort on compliance with a variety of hauler and customer
requirements . Additional enforcement could focus on the following areas :
• Ensuring compliance with the Pay as you Throw (PAYT) Ordinance by
Homeowner' s Associations (HOAs) participating in group accounts . This can
include both education and auditing of group accounts.
• Enable Health and Safety Inspectors to enforce Chapter 15 , Article XV, "Solid
Waste Collection and Recycling Services" by expanding their commissions .
Enforcement could include such areas as electronic waste disposal, compliance
with recycling regulations, commingling of waste and recyclables by haulers,
licensing requirements , hours of service limits, etc .
The City passed ordinance changes in 2004 which explicitly extended the application of the
PAYT ordinance to HOAs which participate in group accounts . Staff believes that additional
outreach and enforcement of these provisions would be both timely and effective . This proposal
is to refocus staff s efforts on this need. Education of HOAs , followed by enforcement auditing
will be the focus of these efforts . This work can be accomplished with existing staff resources .
Effective enforcement of other solid waste code sections has been difficult without field staff
from the Natural Resources Department. Staff proposes that the City' s Health and Safety
Inspectors be commissioned to enforce Chapter 15 , Article XV, "Solid Waste Collection and
Recycling Services . " This expansion of their current commission would allow them to enforce
such code provisions as electronic waste disposal, compliance with recycling regulations,
commingling of waste and recyclables by haulers, licensing requirements, hours of service
limits, etc . The Chief of Police could commission the Health and Safety Inspectors to perform
these duties, and staff will be requesting these commissions in the coming weeks . No Council
action would be required for these commissions to be made.
Additional Hauler Requirements-- Additional enforcement
Financial Benefits: Costs:
• Capitalizes on existing resources to increase • City administrative costs for enforcement,
enforcement auditing and hauler education and monitoring
= Cost range to be determined
Achieves : Shortcomings :
• Effective implementation and enforcement of • Increases government requirements
existing codes
Trash Services Study Work Session December 9, 2008 Page 26
Fort Collins
Proposed Requirement G3 :
General Regulation Changes
Other miscellaneous changes to the City' s code regarding solid waste collection, recycling
and disposal (Chapters 12 and 15) will include :
• Change recycling code to prohibit commingling trash and recyclables
• Require haulers to clearly mark any vehicles being used for collection of
recyclable materials with the term "Recycling"
Two miscellaneous code changes may be timely, if other sections of the Solid Waste code are
amended at this time . The first amendment would be to change the code to prohibit the
commingling of trash and recyclables . The current code makes it a violation to "dispose" of
recyclables in the landfill . Technically, this violation would occur outside the City limits,
making enforcement difficult for the City. This change would create a prohibition from
commingling the trash and recyclables—the violation that could occur within the City.
Second, the City has received several complaints recently where residents believe that a trash
hauler is collecting recyclables in a trash vehicle . In discussing this with the haulers, they have
shared that they sometimes use a trash truck to collect a load of recyclables and deliver the
materials to the recycling facility. This cross-use of equipment may create confusion with
residents who believe that their recyclables are being treated as trash. The requirement that
vehicles being used for collecting recyclables be clearly marked as such would eliminate this
confusion and ensure that commingling regulations could be better enforced.
Additional Hauler Requirements-- General Regulation Changes
Financial Benefits Costs
• Cost to haulers to create and use placards for
trash trucks used as recycling vehicles
Achieves : Shortcomings :
• More effective enforcement
• More effective communication with residents
about the destination of their recyclables
Trash Services Study Work Session December 9, 2008 Page 27
Fort Collins
Market Strategies
Market Option A : Open Competitive Market (Status Quo)
Market Option Be Districted Trash Service
Market Option C : Single Hauler, Exclusive Contract
Trash Services Study Work Session December 9, 2008 Page 28
Fort Collins
Market Strategies
In addition to the Basic Proposal, staff has outlined options for the competitive trash service
market:
• Market Option A. Open Competitive Market (Status Quo)
• Market Option B . Districted Trash Service
• Market Option C . Single Hauler, Exclusive Contract
The Council can consider any of the three Market Structures . The additional requirements of the
Basic Proposal can be implemented either in the current open, competitive market or within the
requirements of a Contract for Services (single hauler or districted system.)
In order to change the market structure for trash service, the City could either develop two or
more trash districts for the community or develop a single City-wide Contract for trash services .
The City would offer private trash haulers the opportunity to competitively bid on providing
trash and recycling services either to the entire community or districts within the community.
Haulers would be required to meet a number of standards for service level, compliance with local
requirements and customer service . The contract(s) would be awarded for the right to provide
exclusive trash service based on price and qualification. The City could determine which
accounts would be included in the contract (all residential customers, or all customers not
currently within a pre-established and on-going trash service group contract such as HOAs) .
As part of the scope of services contract for service, haulers would be required to meet a set of
conditions that the City would outline in its Request for Proposals . Conditions could include
setting minimum diversion rates for recyclables, methods for ensuring compliance with vehicle
weigh limits, and/or other conditions that achieve City defined goals .
State law sets parameters for how the City can become involved in the delivery of trash service .
The law allows the City to impose a fee for provision of the service in all or a portion of the
community. Under the Fort Collins City Charter can establish a City utility to provide the
service or to create a City enterprise fund--actions that could require that the City submit the
decision about contracted service to voters. Voters would need to approve an amendment to the
Charter. As Council proceeds on the decision making process about contracting for service, staff
will continue to work with the City Attorney ' s Office to evaluate under what circumstances an
election would be required.
The City of Lafayette recently moved from an open, competitive market for trash service to a
single contract for service . Lafayette issued an REP for service providers and contracted with
one hauler. The hauler provides trash and recycling service, customer service and billing. The
City did not take the policy decision to voters for approval.
State law also requires a fairly lengthy notice period to haulers if a municipality moves to a
contracted system. If Council desires to select either market option B or C, the City will need to
provide a 6 month notice to haulers that the contracted system will be implemented. During that
period, the City could issue an RFP, negotiate a contract and work though implementation issues.
It may be advisable to contract with an outside consultant to assist with this process to ensure a
workable system.
Trash Services Study Work Session December 9, 2008 Page 29
Fort Collins
Market Option A : Open Competitive Market (Status Quo)
Goals Achieved
Cost of street wear (through monitoring
weights/overloading)
o Air quality
o Neighborhood aesthetics
o Other neighborhood impacts
o Diversion rates for recyclables
Implement no major changes to the trash system. Minor changes which could be implemented
either within existing staff resources or through future budget offers could include :
■ Increase distribution of an HOA/neighborhood kit to provide tools and advice for
contracting for consolidated neighborhood trash service
■ Legislative lobbying for state changes to methods available to regulate commercial
trash haulers within Fort Collins
■ Overloaded truck monitoring—Provide additional funding to Police Services to
monitor trash trucks to ensure they are not overloaded, or work with Larimer County
and the City of Loveland to purchase and install truck scales at the Larimer County
Landfill . ($ 55 ,000 to $ 150,000 one-time for scales)
Open Competitive Market (Status Quo)
Financial Benefits: Costs :
• Possible savings in street maintenance costs if • Incidental cost for distributing information
overweight vehicles eliminated. about how to consolidate service
• Landfill scales = $55 ,000 to $ 150,000 one-time
+ ongoing operational costs
• Overloaded vehicle monitoring = $25 ,000 per
2008-09 budget offer for truck enforcement
Achieves Shortcomings
• May increase voluntary trash services • Does not address impacts of multiple trash
consolidation by neighborhoods trucks in neighborhoods including air quality,
noise, street wear and aesthetics
• May help create opportunities to regulate • Increased governmental requirements
commercial trash hauling in the future
• May reduce street damage if trash trucks are • Increased administrative costs and cost of
found to be running overweight vehicle weight monitoring to City
• Addresses safety issues created by overweight • Requires additional administrative and
trucks on City streets operational work by Larimer County if scales
are installed
Trash Services Study Work Session December 9, 2008 Page 30
Fort Collins
Market Option B : Districted Trash Service
Develop a trash districting system for the community. The City would offer private trash haulers
the opportunity to competitively bid on providing trash and recycling services under contract
with the City to districts within the community. The community would be divided into two or
more geographic districts and the City would issue an exclusive contract for service for all
residential customers (single family dwellings and multi-family dwellings of 8 residences or less)
within each of those districts . Districts will be defined by the boundaries of current City Council
districts (e.g. Solid Waste District A Council District 1, 2 and 3; Solid Waste District B
Council Districts 4, 5 and 6) Current haulers would be able to compete for one or more districts .
The City would offer no guarantee that any of the current haulers would receive a contract for
service.
Haulers would be required to meet a number of standards for service level, compliance with local
requirements and customer service . The contracts would be awarded for the right to provide
trash service to either or both districts based on price and qualification. The City could
determine which accounts would be included in the contract (all residential customers or all
customers not currently within a HOA with a trash service contract.) The City would establish
the fees for service based on the costs of contracting with the haulers providing service.
In contracts for service, haulers would be required to meet a set of conditions that the City would
provide. Conditions could include setting minimum diversion rates for recyclables, methods for
ensuring compliance with vehicle weigh limits, and/or other conditions that achieve City defined
goals . Under this option the City may be required to take over customer billing to allow it to
establish a uniform City-wide rate structure . Billing would present a significant additional cost
to the City, but one that could be covered by the fees charged for service.
A significant portion of the efficiency savings from a districted trash system would likely accrue
to the residential customers, since many are likely to find that their monthly trash rates will
decrease when the haulers have more consolidated routes . For example, in Lafayette, individual
customers who contracted for trash service outside of an HOA agreement typically paid $ 15 - 18
per month for their basic service. Under the districted model, customer rates are now $ 13 per
month, and include curbside recycling services which were not previously provided in the
community. If, as the haulers have asserted, 50% of residences are currently served under an
HOA consolidated service agreement, the remaining 50% of households in Fort Collins would
likely see their monthly charges decrease . This could total $3 -5 per month, times the remaining
20 ,000 residential customers, for a community savings of $ 720,000 — $ 1 ,200,000 per year.
Actual savings could only be calculated when bids are received and reviewed.
The analysis of the costs and benefits of a city-wide contract for service or a districted system
has been stymied by the unwillingness of the trash haulers to provide more data about HOA
accounts and routing than is currently required for their license. Without detailed information
about routes and HOA/neighborhood contracts, the City is unable to conduct a detailed
cost/benefit analysis of this option. City Staff and the consultant have both asked for this type of
Trash Services Study Work Session December 9, 2008 Page 31
/. Foor- t Collins
data from the haulers, but they are not required to provide this information to the City. The
haulers consider this data to be proprietary business information.
Terms of the contract for service could include (but are not limited to) provisions such as :
a. For each Trash Service District, the City will issue an exclusive contract for providing
service to all residential customers (single family dwellings and multi-family
dwellings of eight residences or less) within the City limits.
b. The Contract will be for a term of 5 years
c . The successful hauler will be required to provide curbside solid waste collection
service on a weekly basis, in compliance with the City' s current Pay-as-you-Throw
ordinance .
d. The hauler will provide 65 -gallon recycling toters, and single-stream curbside
recycling service on a semi-monthly (2 times per month) basis, on the same day of the
week as solid waste service is provided, in compliance with the City' s current Pay-as-
you-Throw ordinance.
e . The hauler will provide curbside yard waste recycling service to customers upon
request.
f. The hauler may provide all billing, customer service, and recycling containers .
g. The hauler will routinely provide educational materials regarding PAYT and
recycling programs, material accepted for recycling, and preparation of materials .
h. The hauler will provide specific recycling education information to individual
customers when that customer fails to properly prepare or set out recyclable materials
(e. g. "Oops" notices for a customer who places non-recyclable materials into the
recycling container, or places recyclable materials in the trash container) .
i. The hauler will be required to meet a minimum recyclable material diversion rate of
20% of the residential waste collection, and/or a pre-established decrease in the
amount of trash collected, per residential customer.
j . The hauler will ensure that all collection vehicles are in safe operating condition,
meet DOT standards, and be operated according to manufacturers specifications for
loading (e .g. use of tag axles .)
k. The contract for service will include performance standards for the haulers,
addressing such issues as billing for service, customer service, missed pick ups etc .
Districted Trash Service
Financial Benefits: Costs :
• Savings to City for street maintenance = • City implementation costs = $75 ,000 — $ 150,000
$ 170,000+
• Potential savings to at least half of the City ' s • Ongoing City administrative costs = $25 ,000 -
residents = lower monthly rates with increased $50,000 annually; not including City billing
efficiency of system (based on experience of costs, if required
other communities)
Achieves : Shortcomings
• Reduced Truck Traffic Fear of cost increases causes concern for some
=> $ 170,000 + savings in street maintenance residents. Actual cost of service under revised
(could be more because we don't know system would be unknown until bids are
Trash Services Study Work Session December 9, 2008 Page 32
/. Foor- t Collins
how many trash vehicles are over legal solicited (though bids need not be accepted if
weight limits) offers represent significant cost increase)
=> 136 tons + in reduced CO2 emissions
=> Less fuel consumed by haulers
• Increased neighborhood aesthetics with fewer • Customers would be required to pay a City
days of trash cans on streets, more uniform service fee, and thus essentially lose choice of
containers and less noise haulers, which is an objection by many residents
who commented on the issue
• Increased safety with fewer trucks in • Bigger government and more governmental
neighborhoods requirements a negative for some
• More readily available tools for increased • Different prices in each district possible if there
diversion—could require successful bidder(s) is more than one contract awarded, and the City
to: does not equalize fees throughout the City. City
4 Achieve minimum diversion rates billing might be required to ensure the same
4 Provide 65 gallon single stream containers price for all residents resulting in higher
for recyclables which has led to increased administrative costs. These are costs that may
volumes in other communities be recovered through fees on customer bills or
4 Offer yard waste at additional charge with through increased licensing fees for haulers.
a set formula approved by the City
4 Build in requirement for audit/data
verification by independent auditor
approved by City
• Reduced overall cost with greater system • Haulers believe that price of service would go
efficiency due to economies of scale up under this model; particularly difficult for
Other communities pay less after contract lower income residents during current economic
for service established times .
Some in HOAs already enjoy these rates—
others could benefit too, creating more • Haulers concerned that a large, national
"social equity" company may make an artificially low initial bid
Increased operational efficiency for to receive the contracts, then increase prices in
haulers future years when local businesses no longer
Competition preserved when bidding on able to compete.
contract
• Greater leverage to guarantee no overweight • If require large single stream recycling
vehicles if include contractual requirement for containers, requires added cost for customers to
random weighing of trash trucks pay either through City charge or hauler fee.
• One or more haulers may not be awarded a
district, depending on the outcome of
competitive bidding. This could significantly
impact a local business.
• Administrative costs for administrative staff,
program oversight, auditing, possibly billing
• Haulers believe that a contracted hauler system
would provide lower level of service because of
lack of day-to-day competition.
Trash Services Study Work Session December 9, 2008 Page 33
Fort Collins
Market Option Co. Single Hauler, Exclusive Contract for Service
Goals Achieved
Cost of street wear
Air quality
Neighborhood aesthetics
Other neighborhood impacts
Diversion rates for recyclables
Develop a City-wide Contract for Trash Services . The City would offer private trash haulers the
opportunity to competitively bid on providing trash and recycling services under contract with
the City to the entire community. Haulers would be required to meet a number of standards for
service level, compliance with local requirements and customer service . The contract would be
awarded for the selected hauler to provide trash service to the entire City based on price and
qualification. The City could determine which accounts would be included in the contract (all
residential customers or all customers not currently within a HOA with a trash service contract)
In the contract for service, haulers would be required to meet a set of conditions that the City
would provide . Conditions could include setting minimum diversion rates for recyclables,
methods for ensuring compliance with vehicle weigh limits, and/or other conditions that achieve
City defined goals .
One of the most significant changes that would occur under either the single hauler or districted
model for trash service would be a change in the rates charged by haulers and to customers .
Currently these rates vary greatly throughout the community. Staff has gathered information
from a variety of sources to develop a list of residential trash rates . Sources include information
provided by the haulers as a part of their annual licensing requirements, sample trash bills from
customers, and quotes gathered from phone calls to haulers .
The typical rates charged (quoted over the phone) for single subscribers are :
Hauler A = $ 10. 75 / month (one can per week) to $23 / month (three cans)
Hauler B = $ 11 . 95 / month (one can per week) to $23 . 95 / month (three cans)
Hauler C = $ 14 / month (one can per week) to $23 / month (three cans)
As noted above, HOA rates are very difficult for staff to extract from the haulers reports, but it
appears that for HOA residents, the respective special rates are approximately:
Hauler A = $7 / month (one can) to $ 14 .40 / month (three cans)
Hauler B = $ 8 / month (one can) to $ 16 / month (three cans)
Hauler C = $7 . 50 / month (one can) to $ 16 / month (three cans)
Trash Services Study Work Session December 9, 2008 Page 34
/. Fort Collins
Based on this data, a prediction of the savings that can be realized by HOA customers, on
average, is :
Hauler A = $3 . 75 / month to $ 8 . 60 (35 — 37% lower)
Hauler B = $3 .95 / month to $7 . 95 (33 % lower)
Hauler C = $6 . 50 / month to $7 (46% for lower level of service, 30% for higher level of
service customers)
A portion of the efficiency savings from a contracted trash system would likely accrue to the
residential customers, since many are likely to find that their monthly trash rates will decrease
when the haulers have more consolidated routes. For example, in Lafayette, individual
customers who contracted for trash service outside of an HOA agreement typically paid $ 15 - 18
per month for their basic service. Under the contracted model, customer rates are now $ 13 per
month, and include curbside recycling services which were not previously provided in the
community. If, as the haulers have asserted, 50% of residences are currently served under an
HOA consolidated service agreement, the remaining 50% of households in Fort Collins would
likely see their monthly charges decrease . This could total $3 -5 per month, times the remaining
20 ,000 residential customers, for a community savings of $ 720,000 — $ 1 ,200,000 per year.
Actual savings could only be calculated when bids are received and reviewed.
The analysis of the costs and benefits of a city-wide contract for service has been stymied by the
unwillingness of the trash haulers to provide more data than is currently required for their
license. Without detailed information about routes and HOA/neighborhood contracts, the City is
unable to conduct a detailed cost/benefit analysis of this option. City Staff and the consultant
have both asked for this type of data from the haulers, but they are not required to provide this
information to the City. The haulers consider this data to be proprietary business information.
Terms of the contract for service could include (but are not limited to) provisions such as :
a. City will issue an exclusive contract for service for all residential customers (single
family dwellings and multi-family dwellings of eight residences or less) within the
City limits .
b. The Contract will be for a term of 5 years
c . The successful hauler will be required to provide curbside solid waste collection
service on a weekly basis .
d. The hauler will provide 65 -gallon recycling toters, and single-stream curbside
recycling service, in compliance with the City ' s current Pay-as-you-Throw
ordinance, on a semi-monthly (2 times per month) basis, on the same day of the
week as solid waste service is provided.
e . The hauler will provide curbside yard waste recycling service to customers upon
request.
f. The hauler may provide all billing, customer service, and recycling containers .
g. The hauler will provide semi-annual educational materials regarding recycling
programs, material accepted for recycling, and preparation of materials .
h. The hauler will provide specific recycling education information to individual
customers when that customer fails to properly prepare or set out recyclable
materials (e. g. "Oops" notices for a customer who places non-recyclable materials
into the recycling container, or places recyclable materials in the trash container) .
Trash Services Study Work Session December 9, 2008 Page 35
/. Fit Collins
i. The hauler will be required to meet a minimum recyclable material diversion rate of
20% of the residential waste collection, and/or a pre-established decrease in the
amount of trash collected, per residential customer.
j . The hauler will ensure that all collection vehicles are in safe operating condition,
meet DOT standards, and be operated according to manufacturers specifications for
loading (e. g. use of tag axles .)
k. The contract for service will include performance standards for the haulers,
addressing such issues as billing for service, customer service, missed pick ups etc .
The City of Lafayette exempted HOAs with existing written contracts for services when it
implemented a single contract for city-wide trash service. This alternative is not built into the
proposal as written, but it could be added at Council ' s request. Lafayette ' s experience was that,
despite being excluded from the City-wide contract for service, many of the HOAs later
requested to participate in the City ' s program because of better pricing and less administrative
work for the HOA. Administrative issues in pursuing this option would include identifying and
defining eligible HOAs, determining the applicability of the exemption to "informal" voluntary
consolidations, maintaining the inventory of HOAs exempt from the ordinance, and on-going
administration of the exemption. Staff is also concerned about the effectiveness of the bidding
process when a significant number of neighborhoods may choose to opt-out. Such uncertainty
may lead the haulers to bid a higher overall price for the service because they will not clearly
know how many accounts will be available to them in a districted or city-wide contract.
Single Hauler, Exclusive Contract for Trash Service
Financial Benefits : Costs :
• Savings to City for street maintenance = • City implementation costs = $75 ,000 —
$ 170,000+ $ 150,000
• Potential savings to residents = lower • Ongoing City administrative costs = $25 ,000
monthly rates for at least half of Fort - $50,000 annually; not including City
Collins households with increased billing costs, if required
efficiency of system (based on experience
of other communities)
Achieves : Shortcomings
• Reduced Truck Traffic • Fear of cost increases causes concern for
=> $ 1701000 + savings in street some residents . Actual cost of service under
maintenance (could be more because revised system would be unknown until bids
we don't know how many trash are solicited (though bids need not be
vehicles are over legal weight limits) accepted if offers represent significant cost
=> 136 tons + in reduced CO2 emissions increase)
=> Less fuel consumed by haulers
• Increased neighborhood aesthetics with • Customers are required to pay for City
fewer days of trash cans on streets, more service and thus essentially lose choice of
uniform containers and less noise haulers, which is an objection by many
residents who commented on the issue
• Increased safety with fewer trucks in • Bigger government and more governmental
neighborhoods requirements a negative for some
Trash Services Study Work Session December 9, 2008 Page 36
/,.,Fo t Collins
• More readily available tools for increased • Only one of the existing haulers (or
diversion—could require successful conceivably, none, if a new-to-town
bidder(s) to : company wins the contract) will receive the
Achieve minimum diversion rates contract based on the outcome of
Provide 65 gallon single stream competitive bidding. This could
containers for recyclables which has significantly impact local businesses.
led to increased volumes in other
communities
Offer yard waste at additional charge
with a set formula approved by the City
Build in requirement for audit/data
verification by independent auditor
approved by City
• Reduced overall cost with greater system Administrative costs for administrative staff,
efficiency due to economies of scale program oversight, auditing, possible billing
Other communities pay less after
contract for service established
Some in HOAs already enjoy these
rates—others could benefit too,
creating more "social equity"
Increased operational efficiency for
haulers
Competition preserved when bidding
on contract
• Greater leverage to guarantee no • If require large single stream recycling
overweight vehicles if include contractual containers, requires added cost for customers
requirement for random weighing of trash to pay either through City charge or hauler
trucks fee.
• Haulers believe that a contracted hauler
would provide lower level of service
because of lack of day-to-day competition.
• Haulers believe that price of service would
go up under this model; particularly difficult
for lower income residents during current
economic times.
• Haulers concerned that large, national
company may make an artificially low initial
bid to receive the contract, then increase
prices in future years when local businesses
no longer able to compete.
Trash Services Study Work Session December 9, 2008 Page 37
Natural Resources
c$ of 215 N Mason
PO Box 580
Fort Collins Port Collins 0 80521
970.224-6177
• ��� fcgov. 46177-fax
lcgov.com
Attachment 2
MEMORANDUM
TO: City Council Members
FROM: Ann Tumquist, Policy and Project Manager
Susie Gordon, Senior Environmental Planner
RE: Trash Services Study Supplemental Information: Emerging Issues
DATE: December 3, 2008
Like the rest of the economy, the scrap/recycling industry is currently suffering from a dramatic
reduction in commodity prices for all types of materials. That, and fluctuating prices for vehicle
fuel, have significant impacts on local trash/recycling companies. While the City continues to
closely monitor the situation and to look for ways to ensure that local recycling programs are
managed with as much efficiency and sensitivity to costs as possible, it needs to be taken into
• consideration during discussions about the Trash Services Study.
1. Commodities Markets for Recyclables
Global declines in the value of recycling commodities have occurred in recent months.
Nationally, the average value for baled paper dropped from $103 per ton in June to $6 per ton in
November; steel has dropped in the past 90 days by more than 85%; and, scrap plastic buyers
have been slashing prices. At the Larimer County recycling plant, the $18 /ton rebate that was
paid in October for commingled (single-stream)recyclables has been eliminated.
Product manufacturing and sales are down, as is the demand for recycled feedstock from paper
and other recyclable materials. China, the destination for much of our scrap in recent years,
suddenly stopped purchasing plastic,recycled cardboard and paper from the US, and recyclable
materials are becoming stockpiled at processing plants.
This is not a new scenario; prices were also down in the early 90's, and the recycling industry is
familiar with cyclical markets. Experienced brokers who have weathered previous fluctuations
remain confident that prices will rebound eventually,but for at least the next six months and
possibly longer, the City needs to be aware that rebates will be considerably lower for paper/fiber
commodities and that for low-grade materials, the prices have dropped to zero.
The City will continue to prudently manage local recycling programs in cooperation with local
• hauling companies so that we don't lose ground during these depressed commodities markets.
Fort Collins
We are also providing the following suggestions to the public about how to help support
recycling:
• Consumer power. Support products with recycled-content material. Ask manufacturers
with virgin-only content to switch.
• Recycle right. Recycle accepted and commingled materials only, and carefully follow
preparation guidelines that help protect their market values.
• Be world class, sort your glass. Take clean, separated glass to glass-only recycling
centers in Fort Collins or Loveland; that way,high levels of the glass get manufactured
back into bottles, plus it raises the quality of the other materials in curbside bins.
2. Fuel Surcharges
Two years ago, some local trash haulers began adding a fuel surcharge to customers' trash bills
(as have many other trucking related businesses) to help cover the volatile cost of diesel fuel.
However, the City's Pay-as-you-throw Ordinance specifies that only two line items may be
included in trash bills. The City recently communicated to the haulers that additional charges
dilute the effectiveness of the PAYT ordinance, and therefore any additional costs for fuel must
be incorporated into either the unit cost of the trash itself, or in the monthly fee that haulers are
permitted to charge to cover costs of operations. The fuel surcharge as a stand-alone item on
trash bills must be discontinued.
The haulers in Fort Collins recently asked the City to consider amending the PAYT Ordinance to
allow a fuel surcharge to bills. The suggestion is to allow a surcharge that could be tied to a
fluctuating standard such as the U.S. Department of Energy Weekly Retail On-Highway Diesel
Prices Index. As prices rise or fall, the surcharge would vary. As an example, the following
calculation that is currently used by one hauler is described on their company's website:
"The fuel surcharge calculation is tied directly to the national average price of diesel
fuel as reported weekly by the Energv Information Administralion of'the US.
Department ofEnergy ("FIA/DOE') in its Weekly Retail On-Highway Diesel prices
Index. This index is objective,publicly available and ividely recognized in the trucking
and transportation industries. This change will ensure that you, our valued customer,
ivill pay a fuel surcharge that is currently adjusted, easy to calculate, and equitable to
you and the Company.
The EIAIDOE average is published each Monday and will be used for all invoices
created during that week. The "Flauler's" Collection Fuel Surcharge Table or "Hauler"
Disposal Fuel Surcharge 'fable shows ivhat thefuel surcharge, as a percentage ol'your
monthly or other periodic invoice charges, before taxes, would be based upon the last
reported EIAIDOE national diesel price index prior to your invoice date. "
A change in the ordinance to allow for fuel surcharges needs further examination by staff to
make sure that does not undermine the overall goal of the PAYT ordinance. Staff will continue
to discuss this issue with both haulers and the City Attorney's Office
- 2 -
ATTACHMENT
City Manager's Office
300 LaPorte Avenue
PO Box 580
CitV of Port Collins Fart Collins,5 ao5zz
970.221.8505
970.224.6107-fax
/cgov.com
MEMORANDUM
TO: City Council Members
FROM: Ann Ttiumquist,Policy and Project Manager
THRU: Darin Atteberry, City Manager
Diane Jones,Deputy City Manager
RE: Work Session Follow-up: Trash Services Study
DATE: January 9, 2008
On January 8, City Council and staff met in Work Session to review the proposed project scope and
timeline for the Trash Services Study which will be completed during 2008.
Council gave staff direction to proceed with the Study, including a range of options from the null
alternative to districted trash service. Council generally agreed that it did not wish to pursue a
municipally owned trash utility. Council also asked staff to develop alternatives that made
improvements to the system without harming existing haulers.
Council provided direction to staff to eliminate the proposed survey from the scope of work and to
instead pursue other avenues of public involvement. A series of forums was suggested as a way to
both provide information and gather feedback from community members. Council Members also
suggested that staff might consider doing a survey or poll once options have been developed,rather
than in advance of the data collection and analysis.
In addition to the issues outlined in the staff report, Council Members asked staff to explore several
other issues in the Study, including:
• In what ways can the pay-as-you-throw trash ordinance be made more effective, including
more auditing of trash haulers?
• What detailed information about Fort Collins' recycling and waste diversion rates(including
compost and construction debris) can be provided? Consider applying a"mass balance"or
systems-based approach to analyzing local waste. Explain what is included in the definition
of"waste diversion rate".
• What new concepts could be employed to increase recycling and diversion rates?
• What public/private partnerships might be possible to enhance waste diversion?
where renewal is a way of life
City Council Members
Re: Work Session Follow-up: Trash Services Study
January 9, 2008
Page 2
• What impacts do emerging hazardous waste needs have on trash service(mercury,light
bulbs,televisions, etc.)?
• How many street miles which are built to the new higher standards? Provide a map.
• How many HOAs are in the City;how many participate in consolidated trash agreements,
and how many do not? How many lane miles does this cover? How many of those HOAs
that have agreements still have a few residents who choose not to participate?
• Has more staff been added to recycling/solid waste programs in recent years?
• What technology options might be employed by haulers to address the issues without moving
to a districted model?
• Find out what other communities are doing about trash and recycling. Check with National
League of Cities on the number of cities that do their own trash collection, or that contract it
out.
• How would Vehicle Miles Traveled(VMTs)change under a districted system(i.e.will they
really decrease?)
• How is the impact of trash trucks different from the impact of other large vehicles such as
delivery trucks,recycling trucks,busses, compost trucks,mail trucks,etc?
What is the affect on air quality from the acceleration/deceleration of trash trucks versus the
amount of VMT that occurs?
• How do we protect our streets assets?
• How do vehicle weights impact the calculations of trash truck damage to City streets? Does
the City track violations of over-weight vehicles?
• If there are things that we are doing well,include that information in the report.
Staff will develop and issue the Request for Proposals for the Study with the goal of having a
consultant working on the project as soon as possible.
G:IMG=0081CMO Meefbgs101y CouneffWa$Session Smsmm W10108 Tmsh Sludy.dx
City Manager's Office
City of City Hall
300 LaPorte Ave.
PO Box ort Collins 80
Fort . .0080522
970.2222105
970.22465.6107-tax
fcgov.com
MEMORANDUM
TO: City Council Members
FROM: Ann Turnquist, Policy and Projects Manager
THRU: Darin Atteberry, City Manager D-
RE: Work Session Follow-up: Trash Services Study Update
DATE: July 10, 2008
On July 8, City Council, staff and the City's trash consultant R3 Consulting met in Work Session
to provide an update on the progress of the Trash Services Study. The following summarizes the
discussiun and follow-up questions that staff will answer.
R3 Consulting Group has completed its Trash Services Study report, including an analysis of
Fort Collins' current open competitive trash system and a large number of alternative solutions
which address the problem statement offered by the City. The problem statement that staff and
the consultant have been addressing includes:
"In what ways can the City reduce the impacts of trash collection services in Fort Collins,
addressing issues of the cost of street wear, air quality, neighborhood aesthetics, noise,
and other neighborhood impacts? Are there ways that the City might also improve
diversion rates for recyclables?"
Council's feedback regarding the study included the following:
• Council directed staff to ensure that the project thoroughly addresses diversion issues,
in addition to the collection system issues.
• An overarching concern of Council was to ensure that all policy options need to be
considered as a cost/benefit analysis. Is the net improvement of any action
(regulatory, education, data collection, etc.)great enough to offset the cost to the city,
the hauler and the customers?
• In several cases, Council asked for additional data regarding the current trash hauling
system. Data needs included the number of residential customers served through
HOA contracts, definitive data regarding actual weights of materials sent to the
Fort Collins
landfill, detailed current diversion rates, the value of materials that could be diverted
in the future, and the cost of collecting data.
• An issue that the consultant emphasized and Council supported was the concept that
any action toward increasing diversion must target both incentives to customers to
reduce land filled materials (i.e. through Pay-as- you-throw ordinance) and incentives
to haulers to maximize diversion. Council discussed the concept that haulers could
benefit if the City ensures a level playing field where all haulers are implementing the
PAYT effectively and incentives are created for performance.
■ Council noted that residential waste is only part of the issue because the commercial
customers account for 70%of the community's waste stream. Council also took note
that state law limits much of the regulation of commercial waste collection.
• Council Members generally agreed that regulations regarding trash truck appearance
shouldn't be considered. This hasn't been an issue in Fort Collins.
Council asked for additional information about a number of questions. Staff will gather this
information and provide it back to Council under separate cover.
Study Data:
1. Explain in more detail the ESAL calculations for street wear caused by trash trucks.
How is a trip in each direction considered to cause twice as much wear as one trip?
How do we analyze the difference between five trucks serving neighborhoods all over
the city versus 5 trucks that each work in their own area?
2. Review the CO2 emissions calculations. Detail the impact of stops which are spread
out widely across the community versus routes which are clustered together.
3. Can we provide more detailed data regarding the number of HOAs which participate
in consolidated trash service and the percentage of total household that this
represents?
4. Provide more information about the average weight of trash trucks.
Diversion Issues:
5. Provide more emphasis on recycling and diversion rates. Better emphasize the
benefits of increased diversion. Why is it important? What is the impact on air and
water quality? What is the scientific basis for why diversion is good for the
community?
6. Clarify how the 7% total for hauler controlled curbside recycling fits into the overall
27% community diversion rate.
7. Provide the analysis of diversion by method as a pie chart.
8. What is the value of the recyclable material which is currently ending up in the
landfill?
9. Are the current residential haulers asking for a fee or deposit for their recycling tubs?
10. What recycling education do haulers currently provide to customers?
11. Are haulers effectively complying with the Pay-as-you-throw ordinance when they
work with HOAs? Are they offering different size containers with different pricing?
12. What ideas would the haulers have for ways they can control increasing diversion
rates?
13. What are the costs of increased diversion,both to haulers and customers?
�.F�ort Collins
Other:
14. Provide some information about the future of the Larimer County Landfill. Do we
have data regarding the number of trash trucks that go into the Landfill from the City?
How can we standardize the information from haulers to learn accurate weights for
the materials entering the landfill?
15. What percentage of trucks operated by local haulers are already compliant with 2010
EPA standards?
Staff will proceed with its outreach to the community regarding the proposed policy changes.
Based on the feedback from Council, Staff will focus on three alternatives during this outreach:
Should the City create Trash Districts for residential trash service?
■ Should the City increase regulation of haulers to address issue of noise, air
pollution, overloaded vehicles,enhanced Pay-as-you-throw requirements,yard
waste within the curbside recycling program and other actions that would reduce
the impact of trash trucks on residential neighborhoods?
■ Does the community desire additional programs and/or regulations which would
encourage or require increased residential recycling?
On September 23, Council will again consider this subject. Staff will present the community
feedback that has been gathered over the next two months along with staff recommendations for
next slap,W. be pursued.
city ManoWs ores 3
City 300 of LsP
rts oo uPo Ave.
Fort Collins PO Box 660
Fort Collins,CO 806Y2 r
970.22 .60
970.224.8107 fax
kgov.00m
MEMORANDUM
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TO: City Council Members i
FROM: Ann Tumquist,Policy and Project Manager,'-
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THRU: Darin Attebeny,City Manager
Diane Jones,Deputy City Manager
RE: Work Session Follow-up: Trash Services Study Update,September 23,2008
DATE: September 25,2008
On September 23,Council and staff met in Work Session to review the Trash Services Study and
discuss several strategies for addressing the Council's problem statement:
"In what ways can the City reduce the impacts of trash collection services in Fort Collins,
addressing issues of the cost of street wear,air quality,neighborhood aesthetics,noise,
and other neighborhood impacts? Are there ways that the City might also improve
diversion rates for recyclables?"
Council was asked to review five implementation alternatives for which staff will develop
detailed proposals. The five alternatives included:
Option 1: City-wide Contract for Service or Districted Trash Service(includes Pay as You
Throw Ordinance and Recycling Enhancements)
Option 2: Additional License Requirements without Districting
Option 3: Implementation of Recycling Strategies
Option 4: Additional License Requirements_and Implementation of Recycling Strategies
. without Districted Trash Service
Option 5: Null Altemative No Legislative Changes
Council directed staff to develop two alternatives for further consideration: Options 1 and 4
above. Council also asked staff to schedule an additional work session before the end of 2008 to i
review specific proposals. Therefore, Staff has added the Trash Services Study to the December
9 work session agenda
Council asked for additional information about several questions:
1. What rates do haulers currently charge for residential trash service?How are rates
different for HOA contracts?
2. When will the landfill have scales? What issues have prevented the Larimer County j
Landfill from having scales in the past?
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City Council Members
Work Session Follow-up: Trash Services Study Update
'September 25,2008
Page 2
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3. What methods might be available to increase hauling densities by voluntary consolidation
of more neighborhoods?
4. Could the City charge a truck mileage fee,wherein trash trucks are charged for the miles
that they travel? Would this help pay for the impact of trucks and change the haulers {
routing? 1
5. Is it possible to regulate where haulers serve in a way that takes into account where their
current mutes are and only allowing them to serve neighborhoods where they have a
certain level of density
a
Staff will address these questions in a follow-up memorandum. Please let us know if you have c
any additional questions.
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City Manager's Office
City of City Hall
300 LaPorte Ave.
PO Box Fort Collins Forts 80522
�rYy� 970.22221505
970.224.6.6.6107-fax
fcgov.com
MEMORANDUM
TO: City Council Members
FROM: Ann Turnquist, Policy and Project Manager
Susie Gordon, Sr. Environmental Planner
THRU: Darin Atteberry, City Manager
Diane Jones, Deputy City Manager
RE: Work Session Follow-up: Trash Services Study Update, September 23,2008
DATE: October 9, 2008
On September 23, Council and staff met in Work Session to review the Trash Services Study and
asked for additional information about several questions:
1. What rates do haulers currently charge for residential trash service? How are rates
different for HOA contracts?
Staff has gathered information from a variety of sources to develop a list of residential trash
rates. Sources include information provided by the haulers as a part of their annual
licensing requirements, sample trash bills from customers, and quotes gathered from phone
calls to haulers.
The entire range of subscription rates offered by haulers is $4 /month(one 33 gallon can
per week)to $28 /month(three 33 gallon cans per week or one 95 gallon toter.) Staff is
unable to tell whether the extremely low rate of$4 is actually in effect anywhere. We think
it could be a special price that the reporting company offers, for instance to seniors or
military customers. Same goes for the higher rates of$28 - although it is reported to us by
one of the companies,we don't actually know if it is applied to any customers.
The typical rates charged (quoted over the phone) for single subscribers are:
Hauler A=between $10.75 /month (one can per week) to $23 /month(three cans)
Hauler B =between $11.95 /month(one can per week)to $23.95 /month(three cans)
Hauler C =between $14 /month(one can per week) to $23 /month (three cans)
HOA rates are very difficult for us to extract from the reports, but it appears that for HOA
residents, the respective special rates are approximately:
Hauler A= $7/month(one can)to $14.40/month(three cans)
Hauler B = $8 /month (one can) to $16/month (three cans)
Hauler C= $7.50/month (one can) to $16/month(three cans)
City Council Members
Work Session Follow-up: Trash Services Study Update
September 25, 2008
Page 2
Based on this data, the savings that can be realized by HOA customers, on average, is:
Hauler A= $3.75 /month to $8.60 (35 - 37% lower)
Hauler B = $3.95 /month to $7.95 (33% lower)
Hauler C = $6.50/month to $7 (46% for lower level of service, 30%for higher level
of service customers)
2. When will the landfill have scales? What issues have prevented the Larimer County
Landfill from having scales in the past?
Installing scales at the landfill will be a financial issue for the City and Larimer County.
Purchasing and installing scales is projected to cost between $55,000 and $150,000.
Larimer County does not have funding available for this purchase.
Larimer County has not previously installed scales because it has based its tipping fee price
structure on volumes rather than weights. The County's philosophy for establishing these
prices has been that the weight of materials was not as relevant to its operations as the
volume of materials to be disposed of and covered.
Larimer County staff is concerned that the addition of scales may slow the entry of vehicles
into the landfill, especially on days when large numbers of self-haulers enter the landfill.
The location of the gatehouse, near Taft Hill Road, makes it critical that vehicles can enter
the landfill quickly and not back up onto the roadway. If scales are installed, operational
issues regarding which vehicles are weighed and whether the information is used to charge
fees based on weight rather than volume must be resolved.
As an enterprise fund,the County Solid Waste Department recognizes that by creating a
possible time delay for haulers who take trash to the landfills, or other deterrents associated
with scales, they may cause their customers to patronize other area landfills.
3. What methods might be available to increase hauling densities by voluntary
consolidation of more neighborhoods?
Currently, City staff strongly encourages new developments to establish cooperative
agreements for consolidated trash services as a part of their HOA, starting as early as the
conceptual review stage for new housing subdivisions. This process has been successful in
ensuring that many new neighborhoods have only one hauler providing services to all
residents. Staff from the Natural Resources Department is in the midst of conducting a
survey of known HOAs to determine the number and location of consolidated hauling
agreements.
The Neighborhoods Division has worked with the Natural Resources Department to
encourage neighborhood groups to establish voluntary agreements regarding trash hauling
in areas where HOAs do not exist. The attached handout has been provided to
neighborhood groups to highlight the benefits of voluntary consolidation and working
City Council Members
Work Session Follow-up: Trash Services Study Update
September 25, 2008
Page 3
together to reduce the number of trash trucks in individual neighborhoods. See Attachment
A.
In the future, if a districted or contracted City-wide service is not pursued, staff will renew
its work with neighborhoods to provide tools for creating voluntary consolidated service.
Handouts that include suggestions for how to establish a consolidated contract will be
provided to all known neighborhood groups and staff will seek opportunities such as
Neighborhood Night Out to circulate information about voluntary consolidation.
Information can also be posted on the City's web site and publicized occasionally to
encourage groups to form voluntary agreements.
4. Could the City charge a truck mileage fee,wherein trash trucks are charged for the
miles that they travel? Would this help pay for the impact of trucks and change the
haulers routing?
Some communities, primarily in California,have imposed"refuse vehicle impact fees"
based on deterioration caused by the size and weight of solid waste vehicles. These
communities all seem to operate under franchise agreements for the provision of a City-
wide trash service. The fee is imposed on the hauler as a condition of the contract for
service. An example of such a fee from Livermore, CA is included as Attachment B. The
City's ability to charge a similar fee under Colorado law would need to researched and
evaluated by the City Attorney's Office.
Staff believes that charging a fee based on mileage would be difficult to administer because
existing haulers provide service both inside and outside the city limits, often with the same
trucks on the same run. They also mix residential and commercial loads. If the goal is to
ensure that the haulers have the most efficient routes possible to minimize unnecessary
trips, staff believes that the effect of high diesel fuel prices over recent months are a
significant incentive to be efficient. If the goal is to create a revenue stream to cover street
damage, alternatives might include revisiting the Transportation Maintenance Fee (TMF)
last considered by City Council in 2005 or pursuing changes to the trash haulers licensing
fee. Either of these options would require a careful analysis of the fee level and the nexus
between the fee and the City's costs.
5. Is it possible to regulate where haulers serve in a way that takes into account where
their current routes are and only allowing them to serve neighborhoods where they
have a certain level of density?
Colorado State Statues outline a method for local governments to use in regulating the
residential trash hauling market which is geared toward the competitive practice of trash
districting or providing a city-wide contract for service. In the 1970s, efforts to informally
divide up the community based on where various haulers had the greatest number of
customers were met with legal challenges from the State and charges of collusion and price
City Council Members
Work Session Follow-up: Trash Services Study Update
September 25, 2008
Page 4
fixing. Staff believes that the City's options for regulating where haulers serve are limited
to the awarding of contracts through a competitive process.
6. Is it possible to divide the city into the EXISTING HOA"trash districts," plus one?
Each HOA or neighborhood group that is already contracting with a single hauler
would become a district. If other HOAs or neighborhood groups want to constitute
themselves into a trash district, let them do that. Could the city then set up rules,
extending those we already have, about PAYT, recycling, etc., for all hauling? Could
we consider the HOAs to be commercial accounts?
The Trash Services Study consultant, R3 Consulting, has advised us that the difficulty for
the City in managing multiple contracts, which is considerable, should only be undertaken
for three or fewer "districts." In fact,the optimal system to achieve council's objectives
would be a single-contract agreement. The more districts created,the lower the economies
of scale and the more administrative requirement. Staff strongly feels that it would be
impractical to create "mini-districts," each of which would require City administration and
oversight.
The City of Lafayette used a different approach than creating separate districts for HOAs
by exempting HOAs with existing written contracts for services. Lafayette's experience
was that, despite being excluded from the City-wide contract for service, many of the
HOAs later requested to participate in the City's program because of better pricing and less
administrative work for the HOA. Administrative issues in pursuing this option would
include identifying and defining eligible HOAs, determining the applicability of the
exemption to "informal" voluntary consolidations, maintaining the inventory of HOAs
exempt from the ordinance, and on-going administration of the exemption. Staff is also
concerned about the effectiveness of the bidding process when a significant number of
neighborhoods may choose to opt-out. Such uncertainty may lead the haulers to bid a
higher overall price for the service because they will not clearly know how many accounts
will be available to them in a district or city-wide contract.
Categorizing HOAs as commercial accounts and exempting them from the City contract
presents several significant issues. In 2004,the City amended the Pay-as-you-Throw
ordinance to clarify that HOA accounts are to be considered residential, not commercial
accounts. This enables the City to apply PAYT provisions to HOAs. Previously,haulers
often chose not to offer PAYT opportunities to those customers who participated in
consolidated accounts. If the City reverts to classifying HOAs as commercial customers,
then the city would need to again amend the PAYT ordinance to include commercial
customers. Staff is certain that if the City attempts to change the rate structure for
commercial customers it is likely to raise significant objections from trash haulers and
commercial customers - possibly even litigation.
7. If Council decides to go with some sort of organization based on geography, can we
require commercial accounts to use the hauler assigned to their area? More
City Council Members
Work Session Follow-up: Trash Services Study Update
September 25, 2008
Page 5
generally, could someone offer us a one-pager on what rules we can and cannot
impose on collection of trash from businesses and apartment houses?
Staff s understanding of the State legislation regarding regulation of commercial trash
hauling is that, while the City can become involved in commercial hauling regulations, it
may not regulate rates impose mandatory fees for government provided services or require
commercial/multi-family trash customers to use the City's trash services over the services
of a ovate trash hauler. Staff believes that requiring commercial customers to use a
specific hauler could be in conflict with State requirements.
Staff does believe that the City could create requirements regarding trash and recycling
collection that would be applicable to both residential and commercial customers. Such
requirement might include requiring PAYT pricing structures (not the specific rates),
requiring the haulers to offer recycling services to commercial customers as a part of the
base pricing, or other requirements aimed at increasing recycling rates (e.g., corrugated
cardboard ban.)
On December 9, Council and staff will meet again in Work Session to further discuss several
options for managing trash services in Fort Collins. Options may include the following:
o Additional Hauler Requirements
■ Pay as you Throw Ordinance Changes
■ Yard Waste
■ Large, Single-stream Recycling Toters
■ Recycling Education Partnership
• Licensing fees per Account
• VehicIe Specification
■ Corrugated Cardboard Ban
o Districted Trash Collection Contracts for Service with Additional Hauler
Requirements
o City-wide Trash Collection Contract for Service with Additional Hauler
Requirements
Staff looks forward to discussing these options in greater detail on December 9.
Attachment A
Community Planning and Environmental Services iJ necadawe.
Natural Resources Department
P.
City of Fort Collins
Idea ��
«rs
.k
i
For information on trash and recycling consolidation, contact the
City of Fort Collins Natural Resources Department at 221-6600.
191 AI I"'nll...... A.... . On n...,cOn . C.._a
i
d Define the boundary areas of a neighborhood you want to consolidate. Others have
defined their area from as little as a street or two, to several blocks.
d Call several of the trash haulers in Fort Collins to find out their interest and terms for
working with your neighborhood to consolidate trash and recycling services. Haulers
will often give you a price quote for consolidated services, generally depending upon
the size of your neighborhood.
d Contact the people in your defined neighborhood. Provide information about the
benefits of consolidating, the terms expressed by the hauler you have chosen and how
to sign-up for the service.
d Follow-up with neighborhood residents to answer questions, provide additional
information etc.
d Provide new people moving into the neighborhood information about consolidated trash
and recycling services and encourage them to sign-up with the 'neighborhood hauler.'
d Celebrate your neighborhood's success. This can be as simple as a 'Thank you' note or
as elaborate as a block party.
NOTES:
e Homeowner associations sometimes develop a written contract with a hauler for
consolidated services. In these instances, the membership of the homeowners'
association has agreed to consolidate as an association.
® Sometimes it takes several months for people to switch haulers because they have
prepaid for service.
2
Fo ies
BFI Waste Systems
223-0154
Dick's Trash Hauling Service
482-1674
Gallegos Sanitation, Inc.
484-5556
Ram Waste Systems, Inc.
226-3396
S & S Sanitation
482-9093
Waste Management of Northern Colorado
482-6319
144
Larimer County Landfill
498-5770
City of Fort Collins Natural Resources Department
221-6600 (provides information on precycling, grasscycling, recycling and composting)
City of Fort Collins Neighborhood Resources Department
221-6091
3
(Modify according to your specific needs)
(Date)
Dear Neighbor:
Did you know... '
# The impact of one trash truck on a residential street is equal to approximately 300 to 400 cars?
# An average of six trash trucks travel on our residential streets every week?
0 Nearly one third of our city's neighbors voluntarily consolidate trash and
recycling services?
0 Over two thirds of communities that have tried voluntary trash
and recycling consolidation services are successful?
Until recently, I didn't.
It makes sense for us as a neighborhood to consolidate trash and recycling services with one company.
Some of the benefits of reducing to a single trash collection service include: Increased residential safety,
especially to children, less traffic congestion and noise, enhanced air quality and decreased wear and tear
on road surfaces caused by heavy vehicles.
I have contacted several trash hauling agencies about working with our neighborhood. The most
economical company is 'XYZ'. Specifically, each bag or container of trash would cost $X and curbside
recycling is provided at no extra charge. In order to receive this price, at least xx% of our neighborhood
must sign with 'XYZ' company.
Improving the aesthetics of our neighborhood is an additional benefit as the number of days trash cans will
be visible on the street is greatly reduced. You can see why my goal is 100% participation over the next
fews months. If you have not signed-up with 'XYZ' company, I urge you to register. Hopefully, we will
reach our goal soon!
If you have any questions, please don't hesitate to call me at#555-1234.
Sincerely,
W. J. Trash
4
City Council Members
Work Session Follow-up: Trash Services Study Update
September 25, 2008
Page 6
Attachment B
City of Livermore, CA
Article X. Refuse Vehicle Impact Fee
8.08.900 Purpose of article and findings.
The city council hereby finds and declares as follows:
A. Traffic associated with solid waste,recycling and yard waste collection vehicles (refuse
vehicles) places a significant burden on city streets and is a significant cause of street damage; and
B. The city council finds that unless certain actions are taken, pavement damage related to refuse
vehicles will result in adverse impacts including accelerated deterioration of pavement conditions
on city streets, reduced ride quality, increased vehicle repairs, increased energy consumption, and
disruption to traffic flow. Implementation of the refuse vehicle impact fee will prevent these
undesirable consequences, allowing the city to maintain the streets and roads in a good condition
and avoid the deterioration of pavement to the point where extensive rehabilitation or
reconstruction becomes necessary at a higher cost; and
C. The city council also finds that, in the absence of this chapter imposing a refuse vehicle impact
fee, existing and future sources of revenue will be inadequate to fund a substantial portion of
pavement repair for the city's streets and roads necessary to avoid unacceptable pavement
condition indexes in the city created by refuse vehicle impacts; and
D. Accordingly, it is the intent of the city council to adopt by this chapter a fair and equitable
method of securing some of the funds necessary to repair the damage caused to city streets and
roads as a result of refuse vehicles to preserve acceptable pavement conditions throughout the city;
and
E. The city commissioned an independent study that determined the annual street repair costs
attributable to damage caused by refuse vehicles is approximately $838,000 annually; and
F. The city council has considered that independent study analyzing the cost to repair street
damage caused by refuse vehicles; and
G. The city council has determined that the cost incurred by the city for such street repair resulting
from refuse vehicles should be defrayed by the imposition of fees charged by the city's franchised
solid waste services provider to cover at least a portion of those costs; and
City Council Members
Work Session Follow-up: Trash Services Study Update
September 25, 2008
Page 7
H. The city council has determined that the following fees will cover a portion of the costs to the
city for its street repair costs resulting from refuse vehicles; and
I. The city council is aware of and understands the preemption issue presented by California
Vehicle Code Section 9400.8; and
J. The fee imposed by this chapter is distinguishable from the fee found to be preempted by
"County Sanitation District No. 2 v. the County of Kern" in that the refuse vehicle impact fee is
based on reasonable costs of repairing and restoring streets to previous levels whereas the county
of Kern imposed its fee pro rata based on the number of tons hauled in the county; and
K. The refuse vehicle impact fee is a regulatory fee imposed for the general welfare of the city and
as an exercise of the city's police power pursuant to Article XI, Section 7 of the California
Constitution; and
L. The city does not grant privileges for using city streets. City streets are open to all members of
the driving public generally; and
M. Refuse vehicles have the same right as any other vehicle to drive over city streets; and
N. This chapter may not be enforced by an injunction which prevents a construction vehicle from
driving over city streets until payment of the fee is made; and
O. The proposed refuse vehicle impact fee has been noticed consistent with California Government
Code Section 66018 and a hearing was held on the matter on June 25, 2007. (Ord. 1818 § 1, 2007)
8.08.901 Fees.
A. An annual refuse vehicle impact fee of$838,000 shall be assessed to the city's franchised solid
waste collection services provider and remitted to the city on a monthly basis. The fee may be
amended from time to time by resolution of the city council.
B. Character of Fee. The city council has determined that the fee is related to the cost of repairs
provided and shall not exceed the estimated reasonable costs of the repair. This fee is not imposed
as an incident of property ownership within the meaning of Proposition 218, California
Constitution, Article XIIID, Section 6.
C. Collection. Each owner and occupant of the city receiving waste collection services from the
franchisee shall be billed by the franchisee a fee for refuse vehicle impact in accordance with the
rates established by the city council. The fee shall be collected by the franchisee as part of the solid
waste collection fee, in conformance with LMC 8.08.130. (Ord. 1818 § 1, 2007)
City Council Members
Work Session Follow-up: Trash Services Study Update
September 25, 2008
Page 8
8.08.902 Transfer, deposit, use and accounting of fees.
A. Transfer. The franchisee shall convey the refuse vehicle impact fee to the city in accordance
with the franchise agreement on a monthly basis.
B. Deposit. When conveyed to the city, the fees shall be kept in a separate line item account
together with any interest earned.
C. Use of Fee. The fees shall be used only to defray the costs of street repair associated with refuse
vehicular impact. (Ord. 1818 § 1, 2007)
Tras ervices
Stud
December 9 , 2008
Ann Turnquist , Policy and Project Manager
F�t\ oll ns
Trash Services S dy Project
Statu
• January 8 Work Session—Council direction on goals
• July 8 Work Session—Reviewed Trash Services Study
• September 23 Work Session— Narrowed Options
• December 9 — Direction re : Options
F�t_ [tins
Origi
" In what ways can the City reduce the impacts of trash
collection services in Fort Collins , addressing issues
of the cost of street wear, air quality , neighborhood
aesthetics , noise , and other neighborhood impacts?
"Are there ways that the City might also improve
diversion rates for recyclables ?"
[ins
Basic Proposal : Additional Hauler Requirements
Recycling Requirements; Truck Impact Requirements; Improved Oversight
" Basic Plus " : Market Options
Option A: Option B : Option C .
Open Competition Districted Trash Single Hauler,
(Status Quo) Service, Multiple Exclusive Contract
Haulers thru for Service thru
Competitive Bidding I Competitive Bidding
Basic Proposal : Highlights
• Change the " Pay as You Throw" trash rates to
encourage more recycling
• More Curbside Yard Waste Collection
• Larger, Single -stream Recycling Carts
• Ban Cardboard from Trash
• Other ( Recycling Education Partnership , Monthly
Recycling Program fee per Account, Additional
Reporting Requirements )
Pay-as -you -Throw Ordinance
Total = $z2.so
Pay as you Throw Trash Pricing
With Additional Units at 125 %
Third Unit (95 gallon total)
Adjusts the PAYT
Formula
Second Unit (65 gallon total)
Base rate + First 33 gallon unit
1
F�tf�
Yard Waste
• Require residential haulers to offer yard waste
collection services
• Material composted
• April to October
• Same price as equal volume as trash
* r City of
F6rt Collins
Large , Single Stream Recycling Containers
• Haulers must offer 65 or 95 gallon recycling
containers
• Can charge for equipment
• Consider moving to bi -weekly collection
• Allow opt-out for customers _ __
Ban Cardboard from Waste Stream
Prohibit the residential •
commercial customersof trash
hauling companies from placing
corrugated cardboard (OCC ) in the
trash bin
All customers choose to either use
hauler for recycling of OCC or self-
haul
City of
- - - - -
_- -
EW
9 -
Other Options
• Education Partnership
• fee per Account
9 Additional Reporting Requirements
9 Truck Requirements
jjjjjj,,.IF.=6rftoI[[ins
10
5
Market Options
➢ Current Open Competitive Market
➢ Districted Trash Service
➢ Single Hauler Exclusive Contract
INININI&FtCollins
A : Current Open Competitive Market
• Customer Choice
• Open Competition
• Encourage additional neighborhoods to begin group
contracts
F�t_f
B . Districted Trash Service
• Two or more Trash Hauling districts
• City issues RFP for service to districts
• City contracts with haulers
• Contract for term of 5 years
• Can include any new requirements from Basic
Proposal
[tins
C . Single Hauler Exclusive Contract
• One Trash Hauler providing all residential trash
service
• City issues RFP for service to city
• City contracts with haulers
• Can include any new requirements from Basic
Proposal
• Contract for term of 5 years
F�t_ [tins
Questions for Council
1 . Which , if any , of the 12 proposed regulatory
changes in the " Basic Proposal " does City Council
wish to pursue ?
2 . Which of the three Market Options does City Council
wish to pursue :
Current Open Competitive Market
Districted Trash Service
Single Hauler Exclusive Contract?
[tins