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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/26/2016 - COMMUNITY RECYCLING ORDINANCEDATE: STAFF: January 26, 2016 Caroline Mitchell, Environmental Planner Jeff Mihelich, Deputy City Manager Lucinda Smith, Environmental Sustainability Director Susie Gordon, Senior Environmental Planner WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Community Recycling Ordinance. EXECUTIVE SUMMARY The purpose of this item is to provide additional information and seek feedback from Council regarding specific aspects of the Community Recycling Ordinance, which was last discussed by Council at its work session on October 13, 2015. The topics for discussion will be:  Percentage price difference between sizes of trash cans in single-family trash and recycling (otherwise known as the Pay-As-You-Throw Ordinance)  Options for collection of organics (yard trimmings and possibly food scraps) from single-family home residents  Phase-in options for all elements of the Community Recycling Ordinance (the collection of organics from single-family home residents, collection of food scraps from restaurants and grocers, and for bundling trash and recycling for multi-family and commercial locations in Fort Collins). GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council have feedback regarding the: 1) Price differential between trash cans sizes? 2) Organics collection service? 3) Ordinance implementation timeline? BACKGROUND / DISCUSSION In 2013, City Council adopted a goal of recycling or composting 75% of the material generated by the community by 2020, 90% by 2025, and a zero waste goal by 2030. As an implementation step to these goals as well as the Climate Action Plan goals, staff undertook the Community Recycling Ordinance project in 2015. This project has included substantial outreach with the community and stakeholders, including working closely with Fort Collins’ trash haulers. Staff discussed the elements of the Community Recycling Ordinance with City Council at a work session on October 13, 2015. In the recently released 2015 Citizen Survey, 68% of Fort Collins residents expressed support for prohibiting the landfill disposal of recyclables. Additionally, 60% of residents supported prohibiting yard waste from being sent to the landfill. Banning materials from the landfill is a step further than actions being proposed in the Community Recycling Ordinance, but these results reflect the interest in the community for additional recycling and composting opportunities. Progress since Work Session on October 13, 2015  During the work session on October 13, Council specifically asked staff to work closely with Fort Collins trash/recycling haulers to arrive at a fully considered recommendation regarding the percentage price difference between sizes of trash cans for single-family residential customers under the existing Pay-As-You- Throw ordinance. January 26, 2016 Page 2 o Staff met with the haulers in early and late November to discuss this topic, and notes from those meetings were shared with Council via memo (Attachment 1).  Staff developed draft code language for the Community Recycling Ordinance. o Draft Code language was shared with the trash/recycling haulers and the public on December 4.  A public meeting was held on December 17, 2015. o Attendees were highly engaged and in discussion expressed overall support for the project. o Discussed the draft Code language and the project overall  Staff held a third meeting with Fort Collins’ trash haulers to discuss the draft code language in great depth (notes from that meeting were shared with Council via memo; see Attachment 1). As a result of this work, staff is seeking additional feedback from City Council regarding the following three specific implementation decision points for the Community Recycling Ordinance. 1) Percentage price difference between sizes of trash cans for single-family residents The existing Pay-As-You-Throw (PAYT) ordinance:  Applies only to single-family homes  Bundles together trash and recycling service and cost  Requires that a resident’s trash bill is based on the volume of trash service to which they subscribe o Requires a 100% price difference between sizes of trash cans.  For example, if the smallest trash cart (32 gallons) were $15 / month, the medium cart (64 gallons) would be $30/month, and the largest (96 gallons) $45 / month. (These are round numbers meant for illustration – the haulers set their own rates and the numbers listed here aren’t meant to represent the actual rate charged by local haulers.) Changes to the price difference between trash cart sizes Over time, Fort Collins’ PAYT ordinance has been updated to provide further refinement or to adapt to changes. Recent local changes include:  In 2015, changes in the contract at the Larimer County Recycling Center have resulted in charges to haulers when delivering recyclables (for which they were paid in the past).  Rising landfill “tipping” fees o Costs at Larimer County are going up 4% in 2016 and will continue to climb as the facility’s closure date nears.  Haulers are likely to raise rates for customers in 2016 due to reasons listed above. Given that over 9,000 communities in the U.S. have PAYT ordinances, staff now has access to substantial research into what characterizes the “ideal” PAYT ordinance.  Optimal price difference between trash cart sizes to motivate waste reduction and recycling is 80%1. o For example, if a small trash cart were $15, a medium would be $27, and a large $39 1 EPA webinar regarding Pay-As-You-Throw http://www2.epa.gov/sites/production/files/2015- 09/documents/skumatz.pdf (Price differentials highlighted on slide19) ; Pay As You Throw (PAYT) In the US: 2006 Update and Analysis http://archive.epa.gov/wastes/conserve/tools/payt/web/pdf/sera06.pdf (Price differentials on page 15) January 26, 2016 Page 3 o Same research shows the minimal price difference to still provide motivation for people to reduce their trash volumes is 50%  Example trash rates would be $15 (small cart), $22.50 (medium cart), and $30 (large cart). Staff recommendation: 80% price difference between trash cart sizes  Maintains the excellent recycling habits already established by Fort Collins residents  Minimizes the impact of potential future rate increases on 64- and 96-gallon customers  SERA analysis notes that an 80% price differential is likely to encourage greater participation in new organics collection programs also being considered as part of the Community Recycling Ordinance (see models for pricing with bundled organics collection in Attachment 2) Hauler preference: 50% price difference between trash cart sizes  50%-differential may be anticipated to reduce participation in recycling by 4%, thereby actually reversing the trends in Fort Collins that have contributed to reaching community goals. Staff does not recommend adopting a 50% difference in prices per can 2) Options for organics collection from residents of single-family homes Compost collection programs are an area of great opportunity for waste diversion and greenhouse gas reduction from Fort Collins:  Over 50% of the material generated by Fort Collins that is sent to landfill for disposal could be composted;  New infrastructure in Northern Colorado now allows for the composting of food scraps collected separately or together with yard trimmings. o There has been strong interest from Fort Collins residents during public outreach in having more options for organics (food scraps and yard trimmings) collection. Four options for collecting compostable yard trimmings and potentially food scraps have been identified for the Community Recycling Ordinance. All options listed:  Would require a separate cart be provided to residents (likely 96-gallons) for collecting compostable materials curbside.  Would be embedded in the cost of basic residential service (along with trash and recycling). Modeled pricing for organics collection options are included in Attachment 2. Table 1: Modeled results from percentage price difference options in the single-family residential Pay-As-You-Throw ordinance Trash Cart Size (gallons) 100% Differential (current) 80% Differential (new option) 50% Differential (new option) 32 $12.70 $14.00 $16.30 64 $25.40 $25.10 $24.50 96 $38.10 $36.30 $32.70 Anticipated change in residential recycling rate 0% 0 to -2% -4% Assumptions included in this model:  Revenue generated to the haulers remains constant  Independent of any other program changes – it applies to changes to the existing program only January 26, 2016 Page 4 Table 2: Single-Family Residential Organics Collection Options and Analysis Single-Family Organics Collection Option Estimated Cost to Resident per Month Estimated Tons Composted per Year $ / Ton Composted Greenhouse Gas Reductions per Year (MTCO2E) Comments a) Year-round weekly collection of yard trimmings + food scraps $7.80 21,500 $169 15,260  In line with conversation with public thus far in project  Allows for future movement to every-other-week trash service  Only one current destination for materials (A1 Organics) b) Seasonal weekly collection of yard trimmings + food scraps (Apr-Nov) $6.00 18,300 $153 12,989  Only one current destination for materials (A1 Organics) c) Seasonal weekly collection of yard trimmings (Apr-Nov) $5.47 9,900 $257 789 Haulers have multiple options for locations that could accept and compost materials d) Every-other- week, seasonal collection of yard January 26, 2016 Page 5 Table 3: Updated Phase-in Recommendations for Community Recycling Ordinance Original Proposal Current Proposal Comments Details of phase-in Multi-Family Recycling 1.5 years (June 2017) 1.5 years (June 2017)  Only 32% of multi-family complexes remain that don’t have recycling (72 complexes)  Important for social equity and parity with single-family residents  Bundled recycling applies to any new customers  Existing customers (that don’t have recycling) would have recycling bundled with trash service by 2018 (1.5 years) Commercial Recycling 1.5 years (June 2017) 4 years (2020) Add recycling for 25% of customers per year  Greater number of customers to add recycling (~1600) o 48% of businesses currently have recycling  Phase-in by % of customers each year ensures progress toward goals, but allows hauler to add customers as makes business sense for them  Allows for capitalization and staffing to roll out recycling  Bundled recycling applies to any new customers  Existing customers (that don’t have recycling) must have recycling bundled with trash service by 2020 (4 years) January 26, 2016 Page 6 Based on conversations with Fort Collins trash haulers, staff understands their preferences to vary for the organics collection options and phase-in timelines, but share consensus regarding:  50% price difference between trash cart sizes for single-family residents Next Steps Once the items for discussion at this work session are resolved, the next step is for City Council to discuss the full Community Recycling Ordinance at a regular session. A tentative date is scheduled for the February 16 regular session, pending further direction from Council. ATTACHMENTS 1. Memos sent to Council since October 13, 2015 Work Session (PDF) 2. Modeled Cost to Residents for Bundled Organics Collection (PDF) 3. October 13, 2015 Work Session Summary (PDF) 4. Powerpoint presentation (PDF) Memos sent to City Council regarding the Community Recycling Ordinance since the 10/13/15 work session ATTACHMENT 1 Modeled Cost to Residents for Bundled Organics Collection 100% price difference between sizes of trash cans 80% price difference between sizes of trash cans 50% price difference between sizes of trash cans Anticipated distribution of cart subscriptions Just trash and recycling service (no organics bundled) Small cart (32gal) $12.70 $14.00 $16.30 40% Medium cart (64gal) $25.40 $25.10 $24.50 40% Large cart (96gal) $38.10 $36.30 $32.70 20% Overall amount raised / household $22.89 $22.89 $22.89 Year-round weekly collection of food scraps + yard trimmings (+$7.80) Small cart (32gal) $19.20 $20.70 $23.60 50% Medium cart (64gal) $38.40 $37.30 $35.40 40% Large cart (96gal) $57.50 $53.90 $47.20 10% Overall amount raised / household $30.69 $30.69 $30.69 Seasonal weekly collection of food scraps + yard trimmings (+$6.00) Small cart (32gal) $18.10 $19.50 $22.20 50% Medium cart (64gal) $36.10 $35.10 $33.30 40% Large cart (96gal) $54.20 $50.80 $44.40 10% Overall amount raised / household $28.89 $28.89 $28.89 Seasonal weekly collection of yard trimmings (+$5.47) Small cart (32gal) $16.70 $18.20 $21.00 45% Medium cart (64gal) $33.40 $32.70 $31.50 40% Large cart (96gal) $50.00 $47.30 $42.00 15% Overall amount raised / household $28.36 $28.36 $28.36 Seasonal every-other-week collection of yard trimmings (+$3.33) Small cart (32gal) $15.40 $16.80 $19.40 45% Medium cart (64gal) $30.80 $30.30 $29.10 40% Large cart (96gal) $46.30 $43.70 $38.80 15% Overall amount raised / household $26.22 $26.22 $26.22 *All information is for example only – haulers set rates for their customers in Fort Collins. All costs listed are modeled. ATTACHMENT 2 Environmental Services 215 N. Mason PO Box 580 Fort Collins, CO 80522 970.221-6600 970.224-6177 - fax fcgov.com MEMORANDUM Date: October 15, 2015 To: Mayor and City Councilmembers Thru: Darin Atteberry, City Manager Jeff Mihelich, Deputy City Manager Lucinda Smith, Environmental Services Director Susie Gordon, Sr. Environmental Planner From: Caroline Mitchell, Environmental Planner Re: 10/13/15 Work Session Summary – Community Recycling Ordinance Jeff Mihelich, Lucinda Smith, and Caroline Mitchell presented options for a Community Recycling Ordinance. All City Councilmembers were present. A Community Recycling Ordinance would potentially update the Pay-As-You-Throw ordinance as it applies to single-family homes, include multi-family and commercial locations in the ordinance, and provide organics collection for composting. General Comments  Councilmembers generally expressed support for the multi-family & commercial and organics options  Council members had questions about the single-family Pay-As-You-Throw system, including o The benefit and ability of haulers to show customers the cost for providing recycling service o The benefit of requiring a certain percentage increase between sizes of trash carts  Be sure to recognize the role of the private sector in providing trash and recycling service in Fort Collins Next steps  Staff will meet with trash haulers to understand their perspectives and aim to come to an agreement about the single-family Pay-As-You-Throw systems. Potential changes to the start date of seasonal yard trimmings collection by haulers will also be discussed. Staff will report back to Council via memo following that meeting. o If that result is supported by Council, staff will draft an ordinance with the recommendations from the Community Recycling Ordinance to bring to a regular Council meeting.  Further research anticipated impacts to Fort Collins’ recycling rate from various options of the Pay-As-You Throw ordinance for single-family homes o Include comparable communities to Fort Collins and share with Council  Continue to evaluate and report back on the overall greenhouse gas impacts of Community Recycling Ordinance options, including composting options Additional Information regarding questions from Council  Clarification of verbiage allowed in trash haulers’ communications to customers was provided in a memo to Council on 10/15/15  Fort Collins residents’ subscription to trash container sizes o 96 gallons: 27%; 64 gallons: 36%; 32 gallons: 36%; bag service / intermittent: 1% ATTACHMENT 3 1 Community Recycling Ordinance Caroline Mitchell 1-26-16 ATTACHMENT 4 Council-Adopted Goals Road to Zero Waste Goals • 75% diversion by 2020 • 90% diversion by 2025 • Zero waste by 2030 2 Climate Action Goals • 20% reduction by 2020 • 80% reduction by 2030 • Carbon neutral by 2050 Update since last Council work session 3 • Significant stakeholder engagement • Met 3 times with all haulers • Created draft code language, shared with haulers and public • Held public open house on Dec 17 • Conducted additional research into single-family organics options Questions for Council Does Council have feedback regarding the 1) Price differential between trash can sizes? 2) Organics collection service? 3) Ordinance implementation timeline? 4 5 1) Recycling service included with trash service; cost embedded • Recycling is no additional charge (to single-family residential) 2) Trash pricing based on volume of trash can subscription • Currently 100% price difference Current Pay-As-You-Throw Requirements Price Differentials in Residential Pay-As-You-Throw 6 Current 100% price difference *Rates are for example. Actual rates set by haulers. 80% price difference 50% price difference $12 $14 $16 $32 $24 $25 $36 $24 $36 Recycling decreases 4% Recycling same to 2% decrease Food scraps • Includes meat, bones, dairy • Can include food-soiled paper • Napkins, paper towels Includes items that can’t go down garbage disposal or in backyard compost piles Organics 7 Yard Trimmings • Branches, leaves • Garden trimmings • Grass clippings Compost cart 8 Single-Family Organics Collection Options a) Year-round weekly food scraps + yard trimmings b) Seasonal weekly food scraps + yard trimmings c) Seasonal weekly yard trimmings d) Seasonal every-other-week yard trimmings (All services bundled with basic trash / recycling service) 9 Estimated Monthly Cost to Resident Tons Composted $/ton diverted Greenhouse Gas Reduction (MTCO2E) 2a) Year-round food + yard $7.80 21,500 $169 -15,260 2b) Seasonal food + yard $6.00 18,300 $153 -12,989 2c) Seasonal yard $5.47 9,900 $257 -789 2d) Every-other-week seasonal yard $3.33 8,900 $174 -709 Single-Family Organics Collection Options Analysis Phase-in: Multi-Family Recycling Original: 18 months Recommended: 18 months (June 2017) • Only 72 multi-family complexes remaining that don’t yet have recycling (32% of complexes) • Provides greater social equity, parity with single-family residents 10 Phase-in: Business Recycling • ~ 1,600 businesses to phase in • (48% of businesses already recycling) • Allows haulers to phase in as it makes business sense • Provides greater flexibility for capitalization and staffing to roll out recycling Original: 18 months Recommended: 4 years (by 2020) (incrementally add 25% of customers / year) 11 Phase-in: Residential Organics Original: 2 years Recommended: 2 years (by April 2018) • No phasing recommended • To competitively meet demand, haulers may prefer to deploy carts to all customers at once • Allows for capitalization and planning time 12 Phase-in: Food Scraps from Restaurants Original: 2 years Recommended: 3 years (2019) • No phasing recommended • Allows for capitalization and planning time 13 14 Recommended Phase-in Commercial Recycling: 2020 (25% per year) Restaurant & Grocer Food Scraps: 2019 Single-Family Organics: 2018 Multi-Family Recycling: Jun 2017 0 1 2 Years 3 4 5 Waste-to-Energy Component Food scraps from Grocers & Restaurants could go to: 1. Heartland Biodigester •Generates methane from anaerobic digestion •Natural gas piped into grid •Compost made from solids 2. Fort Collins water-reclamation plant biodigesters (emerging option) • Generates methane from anaerobic digestion • Used for combined heat & power 15 Price Differentials in Residential Pay-As-You-Throw 16 Current 100% price difference *Rates are for example. Actual rates set by haulers. Option 1a) 80% price difference Option 1b) 50% price difference $12 $14 $16 $32 $24 $25 $36 $24 $36 Recycling decreases 4% Recycling same to 2% decrease 17 Single-Family Organics Collection Options 2a) Year-round weekly food scraps + yard trimmings 2b) Seasonal weekly food scraps + yard trimmings 2c) Seasonal weekly yard trimmings 2d) Seasonal every-other-week yard trimmings (All services bundled with basic trash / recycling service) 18 Recommended Phase-in Commercial Recycling: 2020 (25% per year) Restaurant & Grocer Food Scraps: 2019 Single-Family Organics: 2018 Multi-Family Recycling: Jun 2017 0 1 2 Years 3 4 5 Questions for Council Does Council have feedback regarding the 1) Price differential between trash can sizes? 2) Organics collection service? 3) Ordinance implementation timeline? 19 o phase-in 25% of customers each year Single-Family Organics 2 years (2018) 2.5 years (June 2018)  No phasing as haulers may prefer to deploy carts to all customers at once  Allows for capitalization and planning time All residents must have service bundled in with basic trash and recycling service by June 2018 Restaurant & Grocer Food Scrap Composting 2 years (2018) 3 years (2019)  No phasing recommended  Allows for capitalization and planning time All restaurants and grocers must subscribe to food scraps service in 3 years (2019) (unless using garbage disposal or other non- landfilling disposal method) Summary of Recommendations Based on analysis of options to advance progress toward community zero waste goals and public input, staff recommends the following three options for the specific decision points that City Council requested further information on as part of the Community Recycling Ordinance:  80% price difference between trash cart sizes for single-family residents  Seasonal bundled collection of food scraps + yard waste for single-family residents (option b)  Updated phase-in for all elements of the Community Recycling Ordinance trimmings (Apr-Nov) $3.33 8,900 $174 709 Haulers have multiple options for locations that could accept and compost materials Staff recommendation: b  Based on the substantial amount of material that could be composted at an efficient price, and the potential scalability of the program to year-round in the future if warranted. 3) Phase-in options for elements of Community Recycling Ordinance Many communities phase in recycling requirements or organics collection programs. During conversations with Fort Collins’ trash haulers, staff received additional insight into phase-in needs. An updated recommended phase- in for the elements of the Community Recycling Ordinance is offered for Council feedback as follows: