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Home My WebLink AboutMemo - Read Before Packet - 2/21/2023 - 4 - Memorandum From Caroline Mitchell Re: Contracted Residential Waste Collection Agenda Item: Presentation Update – February 21, 2023 Environmental Services 222 Laporte Ave PO Box 580 Fort Collins, CO 80522 970.221-6600 fcgov.com MEMORANDUM Date: February 21, 2023 To: Mayor and City Councilmembers Thru: Kelly DiMartino, City Manager Tyler Marr, Deputy City Manager Lindsay Ex, Environmental Services Director From: Caroline Mitchell, Manager, Environmental Sustainability CC: Josh Birks, Deputy Sustainability Director Kira Beckham, Lead Specialist, Environmental Sustainability Sylvia Tatman-Burruss, Sr. Project Manager, CMO Gerry Paul, Purchasing Director Re: Contracted Residential Waste Collection Agenda Item: Presentation Update The purpose of this memo is to provide an updated presentation for the Contracted Residential Solid Waste Collection agenda item for this evening. Items updated are listed below. Presentation Updates • Additional information about the opt-out fee: slide 14 • Sustainable vehicle information added to slide 7 • Information about engagement conducted and feedback heard from the community and boards on slide 13 Attachment 1: Updated Power Point Presentation DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A Contracted Residential Trash, Recycling and Compost Collection February 21, 2023 City Council Regular Session Caroline Mitchell Lindsay Ex Additional project team members: Kira Beckham Ted Hewitt Gerry Paul DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 2Staff Recommendation Staff recommends adoption: •Ordinance 2023-27 Contract •Ordinance 2023-28 Code Changes •Ordinance 2023-29 Appropriation •Council may also consider whether to select weekly or every other week recycling in the proposed contract DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 3Strategic Alignment City Plan Council Priority: Explore Districted System for Garbage, Recycling and Compost Principle ENV 5: Create a Zero Waste system. Environmental Health 4.3 Zero Waste Strategic PlanCouncil Priority Our Climate Future Big Move 2: Zero Waste Neighborhoods Aligned: Accelerate Composting Improved Air Quality Enhanced Recycling Education Critical Path to Achieving Climate Goals (composting) DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 4Systems for Trash and Recycling Collection City RolePure Open Market Each household chooses their own hauler for trash and recycling collection. No role of local government. Municipal Hauling Utility A municipality owns and operates their own hauling utility using city staff, resources and equipment. Open Market with Licensing Each household chooses their own licensed hauler for trash and recycling collection. City license can support safety requirements and/or policy goals like including recycling. This is Fort Collins’ current system. Contracted System A municipality contracts with one or more companies to provide residential trash and recycling collection. This is the system under consideration. DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A Contracting Application 5 Contract WOULD apply to •Single family homes •Multi-family complexes of 7 units or fewer that use carts Contract would NOT apply to •Multi-family complexes of 8 units or more •Businesses •Construction sites, industrial recycling •Single-or multi-unit homes that use dumpsters Contract MAY apply to •Homeowner’s associations (HOAs) that contract for trash & recycling service now •If contract in place by 3/17/23 and contract meets Code requirements, can continue with existing contract or opt into City contract Single Family Homes 20% Contracted HOAs 10% Construction and Demolition Sites 29% Multi-Family and Commercial 42% Sectors Serviced by Haulers in Fort Collins DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 6Timeline Feb 21: First Reading of contract, ordinance and appropriation Mar 7: Second reading 2023 Sept 30 2024: Service and Admin Fee start Homeowner Association compliance check & Program start-up 2024 Feb 2: Council Finance Committee 2022 April 12: Council Work Session April, June: Community Conversations July 12: Council Work Session July 19: Resolution directing Request for Proposals (RFP) Sept 13: RFP released 3 haulers respond to RFP Hauler interviews Dec -Jan: Contract negotiations March: Initial public engagement We are Here Feb 2023: Community Engagement DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 7Contract compared with Council and community goals Council and Community Priorities Goal Details Cost-effective pricing •More services for a price similar to what residents paid in 2022 •XS service available Equity •All community members have access to consistent, predictable pricing •Households can have 2 bulky items / year collected for no additional charge Additional recycling and composting •Yard Trimmings included for a price similar to what households pay for trash + recyc. only now •Option of weekly recycling Increased safety, reduced emissions, street maintenance savings of having fewer trash trucks in neighborhoods •Sustainable vehicles: 1 pilot electric vehicle, all new vehicles will run on natural gas from landfills, no new diesel vehicles purchased Reduce greenhouse gas emissions •Fewer trucks able to provide same service, increased yard trimmings composted High level of customer service •Dedicated customer service representatives •Clear penalties for poor customer service = Highest priorities from community engagement in 2022= Direction from City Council DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 8Contract services Element How addressed Trash •Consistent volume-based pricing; included XS cart service Recycling •Pricing: Bundled w trash service for no extra charge •Service frequency: Every-other-week service; Council can select weekly for $1.25 more / mo Yard Trimmings •Weekly collection from April –Nov •Included in service; can decline service and receive discount on bill Bulky Waste (Items too large to fit in cart)•2 items / year included Food Scraps •Not included in this contract •Can be amended when service becomes available Carts •New City logo’d carts; will remain at homes at end of contract Variances •Large volume producers (more than 2 large carts per week) •Shared service (must share XS service) Contract length •5 years from service start date [ DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 9Contract enforcement Unlike in the open market system, the contract includes enforcement ability, including: •Performance standards: If an issue is happening repeatedly, the City can end the contract •Liquidated damages: Hauler must pay when certain issues happen •These apply to •Customer service wait times (< 3 minutes), resolution times (< 1 day) •Missed pickups for regular service or bulky item pickup •Customer receives 1 free month of service •Not delivering carts within 5 business days •Customer receives 1 free month of service •City will have staff specifically focused on contract monitoring and enforcement DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 10Contracted pricing compared to 2022 pricing Trash Cart Size % of Homes Trash + Recycling Only Trash + Recycling + Yard Trimmings Trash + Recycling + Yard Trimmings + Bulky Items Current Avg. Contract Price $ Change % Change Current Avg. Contract Price $ Change % Change Current Avg. Contract Price $ Change % Change XS 0.5%$15.93 $11.10 $ (4.83)-30%$33.10 $11.10 $(22.00)-66%$39.35 $11.10 $ (28.25)-72% Small 43%$18.18 $12.85 $ (5.33)-29%$35.35 $17.85 $(17.50)-50%$41.18 $17.85 $ (23.33)-57% Med 41%$32.09 $29.60 $ (2.49)-8%$49.26 $34.60 $(14.66)-30%$55.10 $34.60 $ (20.50)-37% Large 15%$42.32 $46.35 $ 4.03 10%$59.49 $51.35 $(8.14)-14%$65.33 $51.35 $ (13.98)-21% XL n/a n/a $96.60 n/a $101.60 n/a $101.60 When comparing the same services, the contracted price offers significant price savings for almost all households Prices above include City administrative fee DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 11More cost-effective way to provide yard trimmings collection Current: Licensed Open Market Approach Proposed: Contract Approach Price $18 / month $5 / month How to get service Have to call to request •Automatically included in service •Can decline service to reduce bill $5 / month Participation rate 17%75-85% Tons diverted 6800 (incl. drop-off) 2500 (curbside only) ~ 9,700 –13,300 Service details Weekly collection April -November Weekly collection April - November 78% 130% - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Now Low High Tons Anticipated Additional Composting from Contracted Program Impacts of the 78%-130% increase in yard trimmings composted: Residential diversion rate from 28% to 31% -40% Community wide diversion rate from 51% to 53% -54% Greenhouse gas emissions by 12-20% of waste-related emissions (0.2-0.4% progress to goal) DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 12Policy Option: Every Other Week or Weekly Recycling Context Trash Cart Size Option 1: Every Other Week Recycling Option 2: Weekly Recycling XS $11.10 $11.10 S $17.85 $19.10 M $34.60 $37.10 L $51.35 $55.10 XL $101.60 $109.10 9% 27% - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Now Low High Tons Anticipated Additional Recycling from Weekly Recycling Collection Benefits •Additional recycling •Additional convenience •Supports more recycling at homes from online shopping, working from home •Slight greenhouse gas emissions benefit from weekly recycling Tradeoffs •Additional cost •Additional truck impacts •Slightly more emissions Impacts of the 9% -27% increase in materials recycled: Residential diversion rate from 28% to 30% -32% Community wide diversion rate from 51% to 52% Greenhouse gas emissions by 2.5% -8% of waste-related emissions (0.05% -0.15% progress to goal) DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 13Outreach Outreach conducted •2 virtual information sessions held so far •Additional session scheduled for March 1 •Our City website (10k+ visits) •Press release •Newsletters •Social media posts •Online questionnaire re: recycling frequency •Board presentations Recycling questionnaire (72 participants) Overall feedback: •Support for lower prices and price predictability •Support for increased composting opportunities •Concerns about Republic (primarily customer service & rate increases) •Concerns regarding the opt out fee •Questions about specific details of how the program would work Board Recommendations: •Natural Resources Advisory Board voted in support of the project and recommended every- other-week recycling •Economic Advisory Board members shared support but did not take a formal vote Every other week 56% Weekly 44% •Weekly: Prefer more frequent collection, want to increase recycling, and not have to remember which week to put out bin •Every other week: Lower price, fewer trucks, don’t need weekly frequency DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 14Opt-out fee and administrative fee Opt-out fee •Only charged to households who want to work with a different hauler or take their trash directly to the landfill •Helps ensure a predictable baseline of revenue that allows for cost effective service •Is $11.10 / month (the same as the XS service level) Administrative fee •Charged on all bills, hauler remits to City quarterly •Supports 2 -4 FTE and program costs for City role in: •Compliance (HOAs, contract, and related code compliance) •Program roll-out, program management •Customer service, outreach and education •Is $1.35 / month •Is already included in all pricing in this presentation •Supported by Finance Committee on 2/2/23 DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 152023 Appropriation and 2024 planning 2023 Appropriation 2024 Planning Expenses Personnel $43,726 $206,180 Programmatic expenses $63,525 $87,465 Appropriation 2023 $107,251 $293,645 Supported by Finance Committee on 2/2/23 DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 16Code Changes •Enable the contracted service and administrative fee •Homeowner’s Associations (HOAs) •Continue to meet Pay-As-You -Throw requirements •Match contract yard trimmings service by the time the City’s service starts DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 17Staff Recommendation Staff recommends adoption: •Ordinance 2023-27 Contract •Ordinance 2023-28 Code Changes •Ordinance 2023-29 Appropriation •Council may also consider whether to select weekly or every other week recycling in the proposed contract DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 18 Backup slides DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A 19Expected increase in diversion 78% 130% 9% 27% - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 YT Now YT Low YT High R Now R Low R High Tons Anticipated Additional Recycling and Composting from Contracted Program Impacts of the increase in yard trimmings composted and material recycled: •Residential diversion rate from 28% to 36% -42% •Community wide diversion rate from 51% to 53% -55% •Percent progress toward zero waste goal •Yard trims only: 3.1% -5.2% •Recycling only: 0.46% -1.4% •Yard trims + recycling: 3.7% -6.7% DocuSign Envelope ID: 70CD0393-E1BF-4F7B-9A74-002C7785192A