HomeMy WebLinkAboutMemo - Mail Packet - 08/20/2024 - Memorandum from Emily Wenger re: Q2 2024 Update on Transition Towards Contracted Residential Waste Collection ProgramEnvironmental Services Department
222 Laporte Avenue
PO Box 580, Fort Collins, CO 80522
970-416-2148
contractfortrash@fcgov.com
CC: Jacob Castillo, Chief Sustainability Officer, Amy King, Environmental Services Director, Megan DeMasters,
Manager, Environmental Services
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MEMORANDUM
Date: August 13, 2024
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Tyler Marr, Deputy City Manager
Josh Birks, Chief Sustainability Officer
From: Emily Wenger, Lead Specialist, Environmental Services
Subject: Q2 2024 Update on Transition Towards Contracted Residential Waste Collection
Program
BOTTOM LINE
This memo shares key updates from the last quarter with City Council on the transition towards
the City’s Contracted Residential Waste Collection program. Highlights from the last quarter
include:
• City staff and Republic agreed to an amendment to the Contract to allow consolidated billing
for group accounts under the program.
• Completion of the cart ordering phase. The deadline to order carts was June 14.
Approximately 8,000 residents had not ordered carts by the deadline.
o Outreach efforts are underway to encourage these residents to order carts.
o New cart orders will be accepted on an ongoing basis through the program start date.
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• A process is underway to review contracts submitted by exempt HOAs to ensure compliance
with Municipal Code § 12-19 (a) requiring all licensed haulers to include yard trimmings for
no additional fee unless the customer declines service beginning Sept. 30.
• City staff have learned that construction on Republic’s RNG site is delayed and may not be
fully operational by the program start date.
PROJECT UPDATE:
Consolidated Billing Amendment
The program was designed to eliminate consolidated billing and transition every customer to
individual accounts. Some unintended consequences of transitioning to individual accounts
include:
• Low-income residents in mobile home parks may struggle to pay a bill that had formerly
been included in lot rent. Additionally, quarterly billing is a burden for many residents on
fixed or low incomes.
• Many HOAs include trash in their dues. Updating covenants is a lengthy and costly process.
To address these issues, staff worked with Republic and developed a consolidated billing option
that preserves the pay as you throw ordinance and ensures households under a consolidated
account will receive the full benefits of the program. Key elements of the consolidated billing
option include:
• Consolidated accounts will pay for a standard cart size for each household in their
community, either the S 35 gallon ($19.10/m) or the M 65 gallon ($37.10/m).
• Republic will maintain an individual account for each household within the group account,
allowing individuals to select a service size different than the standard cart size.
o Republic will bill or credit households individual accounts for the difference in cost
between the service level covered by the group account and the service level the
individual household selects.
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It is estimated that approximately half of the residents who have not ordered carts are HOA
residents, and the consolidated billing option may result in responses from these residents as
HOAs choose to join the program as consolidated billing accounts.
Of the four mobile home parks affected by the program (totaling 746 households), one has
confirmed they will proceed with group billing (204 households), two will transition to individual
billing within the program (372 households), and one is undecided (170 households).
Cart Selection
Approximately 8,000 households had not selected cart sizes for their home as of June 14.
Initially, it was communicated that residents who did not order carts would be automatically
enrolled in the Small (35- gallon cart service). However, given that the number of customers
who have not signed up for service is larger than anticipated, City staff and Republic agreed that
these residents will receive an opt-out bill beginning on Oct. 1. The rationale for this includes:
• Incentivizing action: Residents have been asked to complete cart ordering forms through
many methods since February, including multiple mailers, door-hangers, in-person events,
social and traditional media advertising, and email. It is anticipated that customers who have
not yet ordered carts will do so when they receive the first opt-out bill.
• Increased efficiency and effectiveness
o Customer service: Residents are likely to feel that receiving carts they have not ordered
is poor customer service, which may negatively impact their perception of the program.
o Cart manufacturing: Manufacturing small carts for all the residents who have not
submitted cart ordering forms would likely result in a large surplus of small carts.
o Increased Labor Costs: Republic would need to swap out the carts once a customer
orders the correct cart size, this requires additional staff capacity and would increase
labor costs for Republic.
• Loss of revenue for Republic: Carts that are set out on collection days will be serviced by
drivers, regardless of if the household has signed up for service or not. If the resident has
not signed up for service, Republic may not have accurate billing information and Republic
may lose revenue from servicing customers they cannot properly bill.
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Residents who contact Republic to select their cart size and begin service after receiving the
first opt-out bill on Oct. 1 will have the opt-out bill waived.
Outreach will continue to encourage residents to order carts proactively. Efforts include:
• Email to residents who have not yet filled out a form using records from Utilities customer
data
• Social and traditional media advertising
• Presence at events
Residents who submit forms after June 14 may initially receive Republic branded carts but will
receive City-branded carts in the weeks before or immediately after the service commencement
date.
What to expect during Q3 of 2024:
• City-branded carts will be delivered throughout Fort Collins between August 1 and
September 27.
o For current Republic customers, new carts will be delivered simultaneously with old cart
pickup.
o Customers that are not current Republic customers may have up to six carts at their
property at the same time.
Code compliance will not issue violations for the presence of old or new carts placed
on curbs or visible in front of any home participating in the City’s residential trash and
recycling program.
Residents will need to coordinate old-cart removal with their current hauler.
• Continued coordination between the City, licensed haulers, and Republic with the goal of
implementing a smooth and clear cart deployment and reclamation process.
• Continued community outreach to encourage proactive cart ordering, especially directed at
mobile home park residents and managers, homeowners’ associations, and property
managers and landlords.
• City program services and yard trimmings requirements for all licensed haulers will begin on
September 30.
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