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HomeMy WebLinkAboutMemo - Read Before Packet - 7/19/2022 - Memorandum From Caroline Mitchell Re: July 12, 2022 Work Session Summary - Contracting For Residential Trash And Recycling ServiceEnvironmental Services 222 Laporte Ave. PO Box 580 Fort Collins, CO 80522 970.221.6600 fcgov.com/environmental services MEMORANDUM Date: July 15, 2022 To: Mayor Arndt and City Councilmembers Thru: Kelly DiMartino, City Manager Tyler Marr, Interim Deputy City Manager Jacqueline Kozak Thiel, Chief Sustainability Officer Lindsay Ex, Environmental Services Director From: Caroline Mitchell, Program Manager, Waste Reduction and Recycling Re: July 12, 2022 Work Session Summary: Contracting for Residential Trash and Recycling Service Attendees: All Councilmembers were present. Caroline Mitchell and Lindsay Ex provided the presentation. The meeting was conducted via the zoom platform and in person. Purpose: Staff sought feedback on program elements to be included in a contracted system for residential waste and recycling collection in preparation for a Resolution on the same topic at the July 19 Regular Meeting. Discussion Summary: Councilmembers supported staff recommendations for materials to be collected and how, noting the following points: o Commit to revisiting food scraps and size of carts in the next contract o Change the name of opt-out for yard trimmings to avoid confusion o Further exploration on bulky materials to encourage reuse while also preserving neighborhood cleanliness and to ensure recommendations encourage wasting Councilmembers provided support for staff recommendations on system design with further requests to: o Ensure that Associations (HOAs) Can opt-in to the City contract if they prefer Meet all applicable requirements, including Pay-As-You-Throw (PAYT) Comply with requirements regardless of whether the City moves forward with a contracted collection system o Explore who will receive the opt-out fee revenue and how it will be administered o Develop messaging regarding the cost to the City when households opt-out Consider remedies for those who do not have curbside collection now and would be charged an opt-out fee Follow Up Items: Addressed in this memo (see pages 2-3) o Improve understanding of data and accuracy of the R3 Fort Collins Refuse Vehicle Street Maintenance Impact Study o Clarify the percentage of homeowners in HOAs with contracts in survey responses Will be addressed in contract negotiations, ordinance development and roll-out o Keep communications and service selections as simple as possible for residents o Explore how to align HOAs with existing waste and recycling contracts with the services provided by the City contract, e.g., expanded yard trimmings collection service 2 Addressed longer term o Identify benefits of incorporating multi-family units into a single contract consider adding to the Legislative Policy Agenda and work with the Legislative Review Committee to address and advocate at the state level Next Steps: Staff will request City Council adoption of Resolution 2022-079, directing the design and issuance of a request for proposals (RFP) for a residential waste services program within the boundaries of the city at the July 19 Regular Meeting Proceed to develop a Residential Waste Program and finalize and issue an RFP for Residential Waste Services and conduct subsequent contract negotiations Further Information About Follow Up Items: Data from the Street Maintenance Impact Study The City hired R3 Consulting Group to analyze and support understanding of the impacts on Fort Collins streets from the open market residential waste and recycling hauling compared with a contracted hauling system. The analysis estimates a range of street maintenance impacts given various scenarios for the number of residential trash and recycling haulers servicing the community. The estimates utilize the following data sources: City data: 2021 Pavement Condition Analysis completed by IMS (a consulting group who conducted an assessment of Fort pavement health and the quality of the roadway network) Annual street maintenance budget (an average from 2017-2022) Current street maintenance backlog expense The average vehicle trips per day on typical residential and collector streets Percentage of single-family households in HOAs with contracts (this % of residential street impact was removed from the scenario analysis) Assumptions where specific data available: Percent of homes serviced by alleys, so the adjacent street should not be included in streets impact (selected a conservative 20%) o Between the number of households in HOAs and the number assumed to be serviced by alleys (30% + 20%), conservatively only 50% of the residential streets and residential streets budget were assumed to be impacted by shifting to a single hauler contract Number of haulers per residential street in each scenario. This is the variable between scenarios, so can be adjusted to reflect a shifting number of haulers in the community. o Contracted system: one hauler o Current open market Utilized 3.5 haulers to account for the fact that not every street is serviced by every hauler $603k estimated additional annual cost compared to a single hauler contracted system o Potential future open market assuming growth in number of haulers Utilized 7 haulers based on interest staff has heard from three haulers interested in starting to serve Fort Collins in the near future if the open market system continues $1.2M estimated additional annual cost compared to a contracted system with 1 hauler 3 Number of passes down each street per week per hauler o Utilized five to account for weekly trash and yard trimmings collection and every other week recycling collection Percentage of trips on residential and collector streets from heavy trucks, excluding trash / recycling trucks o Because Fort Collins track this data point, this assumption is based on data other jurisdictions provided to the consultant Industry standard metrics In addition to City data and assumptions, one industry standard metric was also employed in the study. This metric is called Relative Impact of Refuse Vehicles considering Average Single Axle Load (ESAL) Factor. ESAL is based on data from various sources including the American Association of State Highway and Transportation Officials (AASHTO). Further information about the methodology and assumptions can be found on page 6 of the Refuse Vehicle Street Maintenance Impact Study. Engagement responses segregated by HOA / non-HOA households Staff separated the responses received in the Phase II engagement surveys to clarify which responses came from households in HOAs. The general survey included 21% responses from residents in HOAs and the targeted survey included 10% responses from residents in HOAs. Notes for context: For the purposes of this chart, the category only includes responses from households in HOAs with contracts for waste and recycling collection. This is because households in HOAs without contracts function like non-HOA households in that they select their own service provider and pay open market prices. The Phase II engagement focused on more detailed conversations and survey tools that ensure only one response per person, which mean there are fewer responses than in the Phase I engagement. Two hundred eleven households responded to the general survey and twenty-nine to the targeted survey, so subsets of these responses include few responses. 0% 20% 40% 60% 80% 100% Reducing Air Pollution Reasonable Costs Quality Customer Service Consistent Recycling Education Reducing Illegal Dumping Stable Uniform Rates Phase II Engagement Responses for Priorities with the Highest Percentage of "Extremely Important" Responses General Survey Non-HOA General Survey With HOA Targeted Survey Non-HOA Targeted Survey With HOA