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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/22/2014 - COMMUNITY RECYCLING CENTERDATE: STAFF: April 22, 2014 Susie Gordon, Senior Environmental Planner Lucinda Smith, Environmental Sustainability Director Ethan Cozzens, Facilities Project Manager WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Community Recycling Center. EXECUTIVE SUMMARY The purpose of this item is to report on progress on building a Community Recycling Center (CRC) in 2013-14, including an unanticipated budget shortfall that limits construction to Phase 1 of the project, with Phase 2 remaining to be built in future, contingent on budget authorization. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does City Council have additional questions about the project? 2. Does City Council wish to consider providing additional funding now, in order to build Phase 2 of the Community Recycling Center? BACKGROUND / DISCUSSION Fort Collins has expended great effort and resources for three decades toward recycling and waste diversion. Notable accomplishments include adoption of a model pay-as-you-throw ordinance (1995), a public recycling drop-off recycling center (2002), advanced public education and outreach programs, and prohibitions on the disposal of cardboard and electronics in the waste stream, as well as creating best management practices that have dramatically reduced waste from municipal operations. In 2011-12, Keep Fort Collins Great funds were used to study designs for an expanded recycling facility that would further assist the community to divert materials from landfill disposal. The consultants reported that their estimate was $500,000 would be needed for land acquisition and improvements and another $237,000 would be needed for capital equipment costs. The resultant Integrated Recycling Facility Feasibility Analysis (http://www.fcgov.com/recycling/pdf/integrated-recycling-facility-feasibility-analysis.pdf?1329241951) was reviewed by Council two years ago, and led to a $750,000 allocation being made in the 2013-14 budget to construct a new (Phase 1 and Phase 2) Community Recycling Center (CRC). Over 20 properties were evaluated as potential locations for the CRC. Based on its central location, long-term possibilities for future expansion with a Phase 3 (energy recovery) project, and the option to use a City-owned property (thereby avoiding land purchase costs), a 7-acre parcel located at East Prospect and Timberline was selected as the optimal site. With assistance from a civil engineering company, plans for building the new facility on 3.4 acres of this undeveloped parcel were prepared and submitted. In August 2013, the Project Development Plan (PDP) was approved by the Planning and Zoning Board. A description and site analysis of this property is included in Attachment 1. Costs Over-run With the final version of the plan completed and approved by the Planning and Zoning Board, full costs to use the undeveloped Timberline property were then detailed. Staff found that costs were estimated to exceed the $750,000 budget that had been approved for the CRC by over $1M. April 22, 2014 Page 2 Other locations that would not be as expensive to develop were reconsidered, but due to high real estate prices in Fort Collins, none showed promise of real savings compared to using the City property on Timberline. The idea of postponing construction until after the next BFO was not treated as a viable option, since it would not be clear whether additional money would necessarily be awarded in the 2015-16 budget. Staff also explored whether a private entity would be willing to take over the project to build a CRC. Staff was unable to find anyone who considered the CRC to be a good business investment because the value of the materials that will be collected is generally low or even negative in value. Phase 1 Only - Revised Plan To address the shortfall, staff applied valued engineering, re-drew the plans and scaled the project back to build Phase 1 within the $750,000 budget. This enables the City to build a drop-off site that will be open to the public by mid-summer, accepting hard-to-recycle materials (metal items, aggregates such as concrete and asphalt, bulky corrugated cardboard, wood products and yard debris, and separated glass) for a fee. The plan is designed to accommodate construction of Phase 2 on the same parcel of ground at a future date, in combination with Phase 1. To help augment the budget, an application ($68,000) was submitted to the state RREO grant, which has received preliminary approval. An exemption was received from the $82,400 Street Expansion fee, which allows this money to be paid in five years, or when future phases of the project are built, instead of at initial development. An RFP was released in March for a construction company to do the grading, paving, fencing, and seeding for Phase 1, with a provision that work may be expanded to construct Phase 2 in the near-term. Development could, therefore, start by June and be finished by August. A recycling company has submitted an offer to operate and manage the Phase 1 facility under contract to the City. As written, the scope of work allows the City to contract the operator to manage a combined Phase 1 and Phase 2 facility at some point in the future; staff will be negotiating this contract in coming weeks. Benefits of Building Phase 1 Facility in 2014 According to analyses done in 2012, discarded wood and yard waste make up 17,000 tons (12%) of Fort Collins’ waste stream, and nearly 24% of what the community sends to landfills for disposal is generated by construction and demolition activities, including drywall, lumber, treated wood, rock/concrete, and asphalt shingles. Opening a recycling center to accept many of these types of materials (excluding drywall and shingles) will provide new ways for citizens to avoid a trip to the landfill. In particular, the construction industry will have the option of self-hauling material that is sorted on job sites to be recycled at the CRC. A CRC will create the convenience of a “one-stop-shop” for recycling a variety of diverse materials, and recover more materials of value for recycling that currently go to landfills for disposal. The consultants’ 2012 calculations showed that on an annual basis: Phase 1 diverts a total of 7,719 tons Phase 2 diverts a total of 15,438 tons A future Phase 3 will divert a total of 19,500 tons. Getting the CRC opened in 2014 delivers on a commitment that was made to the community, with the possibility of adding to the services as time and resources allow. A BFO offer has been submitted that would pay for construction of Phase 2. If approved, the City will move more quickly to expand the facility and begin to accept household hazardous wastes, including antifreeze, batteries, oil, and latex paint (ABOP). Also in Phase 2, the existing recycling center at Rivendell School will be moved to the Timberline site with an improved design for recycling bins to be “at grade” and therefore accessible for use by the disabled community. April 22, 2014 Page 3 Unanticipated Possibility for Additional Funding - Add Phase 2 In March, Council requested information about the possibility of providing additional funding to allow Phase 2 of the CRC to be built now, instead of waiting until funding may potentially be awarded in 2015 through the BFO process. New funding would allow completion of the original project that was proposed in the 2013-14 BFO process, which helps the City better meet the public’s interests and needs for recycling. Environmental protection will be better achieved with the establishment of new ABOP collection services. It also enables better response to new directions set by Council with the recent adoption of Zero Waste goals; while Phase 1 of the community recycling center will divert 7,719 tons of material from landfill disposal, the combined Phase 1 and 2 facility will divert twice as much. A clear benefit of enhancing the construction budget at this stage is that completing both phases together will save at least $297,135. (Staff notes that this number is highly subject to market conditions and could be higher depending on economic conditions, contractors’ schedules and labor forces issues in coming years.) Phase 1 only Phase 2 only Sum of 1 & 2 separately Combined Phases 1 & 2 Difference Design Services - Electrical Design $3,000 $4,500 $7,500 $4,500 $3,000 Design Services - Structural $5,000 $5,000 $5,000 $0 Engineering Services- Civil $75,400 $20,000 $95,400 $81,400 $14,000 Operations/Project Manager Services $60,000 $30,000 $90,000 $90,000 $0 Surveying Services, including Contractor Materials testing $10,300 $6,000 $16,300 $13,500 $2,800 Art in Public Places $7,500 $13,000 $20,500 $18,000 $2,500 Building Permits and Dev Fees $47,798 $117,478 $165,276 $172,605 -$7,329 Other Professional and Tech Services Total Indirect $203,998 $195,978 $399,976 $385,005 $14,971 Construction Cost $430,798 $955,796 $1,386,594 $1,176,458 $210,136 20% contingency $116,160 $221,159 $337,319 $265,292 $72,027 Total Direct $546,958 $1,176,955 $1,723,913 $1,441,749 $282,164 Project Total Budget $750,956 $1,372,933 $2,123,889 $1,826,754 $297,135 In summary: 1. If Phase 1 is completed first, as currently planned, the cost is anticipated to be $750,956. 2. If Phase 2 is completed at a later date, staff estimates it will cost a total of $1,372,933. 3. Therefore, if construction occurs at two separate times, total costs are calculated to be $2,123,889. 4. If Phase 1 and Phase 2 are constructed at the same time, the total cost is $1,826,75 (this would necessitate $1.08M to be added to the budget for the Community Recycling Center). April 22, 2014 Page 4 Other Benefits of Combining Phase 1 and 2 in 2014 Construction Project 1. Combining both phases prevents “lost investment” from work that will need to be reconstructed when Phase 2 is built, including: removing/repaving concrete and asphalt surfaces, reconfiguring the fence, and re- contouring stormwater detention. 2. Greater efficiency and use of staff time result from combining both phases and gets the project done at once instead of spreading assignments over two different years. 3. Avoided traffic impacts and environmental disturbance from conducting entire construction project at once instead of splitting it into two separate phases. a. Gets project done before Timberline Road expansion project begins in 2015-16 4. Savings in rent of $16,500/year at Rivendell Recycling Center once we move the current drop-off facility to the new community recycling center as part of Phase 2. 5. Achieves faster public recognition and awareness of the facility and therefore faster rate of adaption/usage for diverting hard-to-recycle materials from landfill disposal. 6. Prevents need to temporarily close Phase 1 facility when construction of Phase 2 occurs. ATTACHMENTS 1. Phase 1 Construction Update (PDF) 2. Triple Bottom Line Analysis (PDF) 3. Powerpoint presentation (PDF) Environmental Services 215 N. Mason PO Box 580 Fort Collins, CO 80522 970.221-6600 970.224-6177 - fax fcgov.com City Council Worksession April 22, 2014 Attachment 1 Community Recycling Center – Phase 1 Construction Update Summary of Construction Details and Site Plans Phase 1 Construction (only) - 400 linear feet of new sidewalk, curb & gutter along Timberline - New landscaping berm between Timberline and the site - 51 new plants and trees for Phase 1 - Site work on 3 acres - Detention pond to accommodate 3-acre site - Erosion control - 2,800 square yards of asphalt paving - Relocation of 21 existing trees - 640 linear feet of 6’ chain link fence - 2 – 28’ swing gate - $204,000 in soft costs alone Phase 2 Construction (additional elements) - Multiple landscaping berms between Timberline and the site - 57 additional new plants and trees for Phase 2 - Site work to accommodate 7-acre site - Detention pond to accommodate 7-acre site - 6,700 square yards of asphalt paving - 120 cubic yards of concrete paving - 230 linear feet of new retaining wall o ADA accessible recycling bins o Structural steel platforms to access recycling bins - New electrical for site o Power for compactors o New electrical panel  Lighting for site (site photometric , 10 new lights, light bases and poles) - 240 linear feet of chain link fence - 2 - 28’ swing gate - $181,000 in soft costs alone ATTACHMENT 1 2 Phase 1 Construction – Community Recycling Center 3 Phase 2 Construction – Community Recycling Center Project/Decision: Community Recycling Center – Phase 1 Construction Update Evaluated by: Susie Gordon (Environmental Services), Beth Rosen (Social Sustainability) SOCIAL ECONOMIC ENVIRONMENTAL Workforce Community Strengths Materials removed from the waste stream and repurposed as products or goods create revenue and jobs. More jobs are associated with locally handling materials for recycling or re-use when compared to the far fewer number of jobs created by landfill disposal. Phase 1 of CRC is anticipated to create 1-3 new jobs for managing the site and transporting materials to processing destinations by truck. Subsequent phases will create additional new jobs. The CRC will create new options for members of the construction industry to bring recyclables from jobs sites, thereby enabling greater levels of compliance with City building code requirements. Strengths By increasing options for yard debris to be removed from the waste stream and applied to composting, more local farming and home gardening projects using compost as a soil amendment are able to provide nutritious fruit and vegetables for consumption. Construction of the CRC will provide citizens with more convenient and accessible recycling services for a wider variety of recyclables. With relocation of Riverside Recycling Center over to the Timberline site (Phase 2) there will be at-grade access to recycling bins, which are currently inaccessible to disabled patrons at the Riverside facility due to stairways that must be climbed. Strengths The materials landfilled by the Fort Collins community each year are worth $6.5 M in value. The addition of a community recycling facility that accepts more types of materials that are currently “hard to recycle” means that more commodities will be diverted from landfills. New revenues from sales of commodities diverted from landfill disposal will stimulate the economy and additional jobs will be created that provide local employment. The community’s investment to replace aging landfills will be postponed or avoided through waste diversion efforts (estimated to range from $20-85M per site). Potential for several more new “green” jobs at the Community Recycling Center. Relocation of the Rivendell Recycling Center to the Timberline facility in Phase 2 will save the City $16,000 in rent currently paid to Rivendell School. Strengths The ability to recover forest products, plastics, and metals at the CRC and put them to New jobs will be low-to-medium pay scale, not necessarily competitive with higher paying jobs. Education must be continuously reinforced so people understand differences in grades of materials that are collected for recycling at the CRC and the critical role of recyclers in preparing materials properly; this “learning curve” normally takes extra time and effort on the part of facility managers and operators. New services to drop-off “hard-to-recycle” materials will be charged a fee, which may be difficult for some people to understand (some think all recycling should be free), and which may not be affordable for low- income residents. The cost to build Phase 1 of the Community Recycling Facility is $751,000 and the cost to build Phase 2 of the CRC is estimated to be up to $1.4 M. There is no guarantee that funding will be awarded in the 2015-16 budget for Phase 2 construction. Colorado’s low cost for landfilling, at $18/ton of trash (compared to $60-100 in other parts of the country), makes it difficult to justify costs of some recycling efforts. The cost to be set for a “gate fee” to drop off recyclables at the new CRC has not been finalized, pending further discussions with a private operator that has bid on the work; costs may not be easy to establish at initial stages of operations and may be higher than originally calculated by consultants ($3.75/yard). The operator’s bid on the CRC is under negotiation and there are still several “unknowns”/variables that will influence final decisions, such as how much usage the facility experiences (which is difficult to predict). The decision by the City to achieve greater composting levels by accepting yard debris and wood at the CRC is perceived as a business threat by a private sector interest. The CRC is a collection site where materials will be aggregated for delivery to processing facilities; therefore, it may be perceived as contributing to increased transport costs and impacts compared to simply making a short trip to local landfills for permanent disposal. Opportunities Work with local technical schools and community colleges to train new workers for waste diversion, recycling, and waste- to-clean-energy programs. Private companies and businesses that bring materials to the CRC for recycling will find new approaches to collecting job-site discards and transporting materials; potentially this represents a “niche” for salvagers and recycling specialists, especially in the construction industry. Company), where the glass will be made into new glass bottles. The CRC enables the City to develop partnerships, such as working with local breweries on glass bottle re-use or re-manufacturing, and with Colorado State University on pilot waste-to-clean-energy programs. Collaboration and partnership with the Colorado Clean Energy Cluster or like-kind businesses in a demonstration project, similar to Fort ZED. Being known as a leader in sustainability enables Fort Collins to attract more green businesses and start-ups. The future potential of the CRC to develop into a Resource Recovery Park creates opportunities to house and co-sponsor cutting edge technology for recovering more value from waste (including clean energy) and puts us on a par with some of the most- progressive and entrepreneurial communities in the country. environmental impacts. Having a greater amount and variety of commodities collected and available locally allows for more local manufacturing to take place, thereby reducing dependency on supplies of materials delivered to Fort Collins from long distances and reducing fuel usage and associated emissions. Threats Increased involvement by city government in the flow of materials in the waste stream could displace local entrepreneurship. Threats Costs are not finalized for the “gate fee” to be charged for bringing hard-to-recycle materials to the CRC; initially, they may be higher than originally estimated and dissuade people from patronizing the facility for recycling. Threats Risks are associated with assuming how/where the flow of waste materials will ultimately be established. By creating additional choices for recyclers for where to take materials such as yard debris, local companies may suffer declining levels of drop-off business. It is hard to accurately estimate the amount and type of materials that will be delivered to the site. Threats Recyclables are commodities and their value fluctuates as does the value of all commodities. During times of low commodity value, running recycling centers can be more challenging and potentially lead to closures. Notes: 1 Community Recycling Center Update Fort Collins City Council Worksession April 22, 2014 Susie Gordon, Sr. Environmental Planner Attachment 3 2 Background Early 1990’s thru 2010 – programs, ordinances, policies developed to promote waste reduction and recycling March 2012 –Integrated Recycling Facility Feasibility Analysis review (worksession) November 2012 – Budget Appropriation $750,000 for Phase 1 and Phase 2 design February-August 2013 – Finalized plan; neighborhood meeting; Planning & Zoning Board approval in August August-November 2013 – scaled back plan to fit budget 3 Current Status Budget ($750,000) covers Phase 1 construction • May / June construction; RFP closed this week • Negotiating now with operator to manage site • Target opening to public August / September • Budget proposal to construct Phase 2 in 2015 – Modular design adds on to Phase 1 4 Phase 1 Materials Accepted for Recycling • Scrap metal, both steel and non-ferrous – window frames, wiring, electric appliances etc. • Rubble (concrete, rock, brick, asphalt, toilets, tile) • Wood (dimensional lumber, fencing, etc.) • Green Waste (yard debris, tree trimmings) • Electronic Waste 5 Expanded Recycling Center Concept • Owned and overseen by City on City property • Operations will be contracted to private sector • Phases 1, 2, and 3 built over time – Ultimately provide Resource Recovery Park functions • Collect variety of ‘hard-to-recycle’ materials 6 Impacts & Benefits • Help reach Zero Waste diversion goals • Help accomplish Climate Action Plan goals for reducing greenhouse gas emissions • Close the gaps in infrastructure for recycling hard- to-recycle materials • Respond to citizens’ desire to divert more of the waste stream from landfills • Keep valuable commodities out of waste stream 7 22 Sites Originally Considered 8 Selected Location Timberline Road south of East Prospect • City owned, avoids cost of purchasing land • Large size (7.0 acres) for future expansion • Industrial zone, compatible land use • Not visible from any residential areas – Landscaping design for good aesthetic “fit” • Centrally located 9 Timberline Property Location North 10 Overall Development Parcel Owned by City skendall@fcgov.com North 11 Conceptual Rendering Timberline Road Electric Substation 12 Phase 1 - Site Plan 13 Combined Phase 1 & 2 - Site Plan 14 Phase 2 Opportunities • Move existing “Rivendell” Drop-off to new site – Creates convenient one-stop-shop – Saves $16,000 annually (rent at current site) • Accept broader range of materials, including: – Motor oil and anti-freeze, latex paint, batteries • More volume; Phase 1 facility up to 7,719 ton/year – Phase 2 will accept up to 15,438 ton/year • If financed now, saves money compared to building in 2 stages 15 Phase 2 Option: 2014 Construction Phase 1 completed first will cost $751,000 Phase 2 built later estimated to cost $1,373,000 Therefore, if construction occurs at two separate times, total costs are calculated to be $2,124,000 Phase 1 &d Phase 2 constructed at the same time will cost $1,826,754 (Savings of $297,246 to build both) 16 Questions for Council • Does City Council have additional questions about the project? • Does City Council wish to consider providing additional funding now in order to build Phase 2 of the Community Recycling Center along with Phase 1 construction? Since operations of the site will be by contract, local business(es) have the chance to diversify and create new business opportunities by bidding for and running the site. Collecting more materials locally creates new opportunities for local businesses to utilize recyclables as manufacturing “feedstock”. Opportunities The development of a large (>3 acre) CRC provides a location where new, as yet unplanned/unforeseen, activities can be staged for specialized recycling projects. For instance, collection days may be staged for packaging materials like Styrofoam and shrink wrap. More recycling infrastructure will increase community resilience to catastrophes that create debris (e.g., fires, floods, and tornadoes), whereby systems are in place to safely and expeditiously handle recyclable materials such as downed tree branches or flood-damaged wooden fencing. Volunteers can help to provide extra support for on-site activities at the Community Recycling Center (education, collection of food donations, special recycling events, etc.). Opportunities New businesses that patronize the CRC have opportunities to fill niches such as providing specialized collection services to customers. Cottage industries that use locally-sourced materials in manufacturing may be able to buy directly from the operator of the City’s CRC. Changes to the way glass is collected (in bulk, source- separated, at the CRC) will create higher-quality supplies of glass, of great usefulness to manufacturers of glass bottles. If in future the community’s curbside recycling system is forced to remove glass from the mix, per processing industry’s specifications, a large collection “bunker” at the CRC where glass can be aggregated for shipment to processors will help retain the community’s ability to recycle source-separated glass (materials remaining in single-stream recyclables that are collected without glass will improve in value). Local breweries will be able to use a glass collection “bunker” at the CRC that creates more efficiency and greater recovery rates for glass; aggregated loads will be taken to Wheat Ridge (Rocky Mountain Bottle Opportunities By creating better local infrastructure for collecting yard trimmings, options for composting become more feasible, and compost becomes more widely used as a soil supplement; landscaping and gardening efforts are rewarded by increased water retention and lower irrigation needs, healthier plants, and less reliance on chemical fertilizers. Development of a CRC (and ultimately a Resource Recovery Park) creates a single destination for a variety of materials to be sent for remanufacturing, reuse, composting, and potentially waste-to-clean-energy, etc. A single destination will also reduce vehicle emissions. Local recycling activities help “close the loop” on commodity materials, better enabling the US to keep resources from being transported overseas or to distant plants and reducing fuel needs. Reducing waste to local landfills postpones the need to create new landfills and associated beneficial use dramatically reduces “upstream” impacts caused by destructive mining and logging practices, drilling and resource extraction; and, industrial production activities such as chemical treatment and smelting. (For every ton of goods landfilled, an average of 70 tons of waste was created during the manufacture of those goods.) Less energy and water is used when making goods from recycled materials than when using virgin materials, as well as less air and water pollution and solid and hazardous wastes. Scarce forest and jungle ecosystems can be conserved when minerals and elemental metals that have already been removed by mining are introduced back into manufacturing. Greenhouse gas emissions are avoided by recycling activities; it reduces landfill methane emissions, as well as energy and non-energy related emissions from extraction and transportation of raw materials, from manufacturing and transportation of products, and from reduced carbon sequestration. The Community Recycling Center will accept materials that were not previously collected for recycling in Fort Collins, in addition to increasing the overall amount of materials recycled by the community. Limitations Limitations Limitations Limitations Triple Bottom Line Analysis Map Attachment 2