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HomeMy WebLinkAboutMemo - Mail Packet - 06/10/2025 - Memorandum from Jacob Castillo and Emily Wenger re Q2 2025 Update on Contracted Residential Waste Collection Program OperationsEnvironmental Services Department 222 Laporte Avenue PO Box 580, Fort Collins, CO,80522 970-221-6600 1 MEMORANDUM Date: June 5, 2025 To: Mayor and Councilmembers Thru: Kelly DiMartino, City Manager Tyler Marr, Deputy City Manager From: Jacob Castillo, Chief Sustainability Officer Emily Wenger, Contracting Program Manager, Environmental Services Subject: Q2 2025 Update on Contracted Residential Waste Collection Program Operations BOTTOM LINE This memo shares key updates with City Council on the City’s Contracted Residential Waste Collection program and staff’s progress towards stable program delivery. Highlights from the beginning of 2025 include: • The addition of approximately 2,000 new yard trimmings customers in 2025 • Service updates including: o Missed pickups o Challenges with automated trucks and alley service • Update on outreach efforts to reduce the number of overdue opt-out accounts. • Operational updates o Republic is submitting reports on time o Remittances of the administrative fee equal $324,769.50 remitted to date o Hiring an additional FTE to help support program operations BACKGROUND Service • Implementation of Yard Trimmings on an opt-out basis for all customers: Due to miscommunication with Republic during launch, many former Republic customers did not receive yard trimming carts as intended. This was resolved ahead of the 2025 season, adding ~2,000 new customers. Docusign Envelope ID: 40F43371-C404-48D4-B934-3D71EB1BB5C7 2 • Missed Pickups: Total missed pickups for Q1 were 1,475, and the average days to recover was 1.6. Republic reports meeting the contractual standard for recovery in Q1 2025, and City staff are working on confirming. • Alley Service Issues: Republic continues to face challenges in narrow alleys, including causing damage to property, overhanging tree branches, and low-hanging telecom lines. Tree and wire issues are being reported to the City to be resolved. While there’s no clear solution for recurring property damage, staff are discussing potential solutions with Republic, including exploring a curbside service pilot and encouraging Republic to consider smaller trucks for servicing alleys. Billing & Payment • Opt-Out Fee Enforcement: In early March, ~1,500 opt-out accounts had a past due balance. The City issued an educational letter to occupants of the affected residences, and this dropped to ~1,000. A second letter will be sent to property owners to inform them that unpaid bills are ultimately the owners’ responsibility. Remittance & Reporting • Reports & remittances are being submitted on time and as required • Total amount remitted to date: $324,769.50 NEXT STEPS • Code Update Implementation: Following recent Council-approved changes, the City Manager signed a rule excluding seven households from the program due to safety concerns, and staff are developing an application process for newly adopted variances, expected to be available to residents in early June. • Price increase: Republic can petition to request an annual price increase above 3% if increase is tied to disposal cost increases. City staff expect to receive a petition soon, and staff will work with Purchasing and CAO to review the petition and work with Republic to agree on a price increase. • Increasing City Staff Capacity: An additional FTE has been hired to support continued progress toward solidifying program operations, including supporting opt-out fee compliance efforts, answering residents’ questions about the program, and generating reports related to contractor performance. Docusign Envelope ID: 40F43371-C404-48D4-B934-3D71EB1BB5C7 3 CC: Josh Birks, Deputy Director Sustainability Services Megan DeMasters, Manager, Environmental Services Docusign Envelope ID: 40F43371-C404-48D4-B934-3D71EB1BB5C7