HomeMy WebLinkAboutMemo - Mail Packet - 08/12/2025 - Memorandum from Honore Depew re Composting Facility Feasibility Study Summary
1
Memorandum
Date: August 7, 2025
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Tyler Marr, Deputy City Manager
Josh Birks, Deputy Director, Sustainability Services
From: Honore Depew, sr. Manager, Environmental Services, hdepew@fcgov.com
Subject: Composting Facility Feasibility Study Summary
The purpose of this memo is to partially summarize a recent grant-funded study conducted to
assess the feasibility of developing a compost facility (municipal- or regional-scale) to facilitate
the diversion of organic waste from landfills (i.e., yard waste and food scraps).
Bottomline
Community-scale composting infrastructure for organic waste will require substantial capital
investments and would benefit from policy updates (to ensure supply and end use of finished
product), enhanced regional collaboration, and exploration of public-private partnerships.
Key Findings: siting considerations are vital for success; initial costs are substantial; annual
revenue could exceed operating costs; a long implementation timeline is necessary
CONTEXT
In 2013, Fort Collins adopted an ambitious goal of zero waste by 2030, and in 2024, Council
named a priority to “Accelerate Zero Waste Infrastructure and Policies”, highlighting the regional
need, high urgency, and broad support. Per 2023 estimates, prior to the single-hauler contract,
Fort Collins’ total diversion rate is approximately 61%, including:
Residential sector: 25% diverted from landfill
Commercial sector: 40% diverted
Industrial sector: 82% diverted (largely due to Hoffman Mill crushing facility for soils,
asphalt and concrete)
Docusign Envelope ID: EF6923C0-5A27-4115-8446-10EA209ADB2F
2
The organic (i.e., compostable) portion of the remaining landfilled waste is estimated at 40% of
residential and commercial waste, and 18% of industrial waste. This organic portion of waste
not only takes up space in landfills but also emits methane, a potent greenhouse gas, and is a
lost opportunity for beneficial end uses such as compost or mulch.
Notable City-led initiatives for diversion of organic materials have included:
The Community Recycling Ordinance (CRO) requires trash haulers to offer seasonal
yard trimmings collection and mandates large grocery stores (96 gallons of food waste
per week or more) separate compostables from landfill trash.
The new contracted curbside collection system for residents requires the hauler
(currently, Republic) to provide weekly yard trimmings collection for customers by default
(with an option to opt out). The contract is structured to evolve, with the contract
language noting that food scrap collection can be added by amendment once the
infrastructure is available locally at the scale necessary. This program is already one of
the single largest expansions in organic material diversion in Fort Collins’ history and
has diverted 2,718 tons of yard trimmings since Sept 30, 2024.
A new small-scale compost pilot program (with awards expected in August 2025),
providing up to $100K for local service providers to test and innovate new ideas to
expand services related to organic waste diversion.
The City Parks department has begun collaboration with CSU researchers to pilot and
scale compost top-dressing projects for City managed locations.
While progress has been made in making it easier to recycle yard trimmings, there is no
community-scale regional facility to process food scraps in Larimer County. This means most
food scraps (from homes, restaurants, etc.) still end up in landfills. Currently, smaller-scale local
businesses offer subscription-based collection and composting services, but the nearest large-
scale composting facility is more than 60 miles away. The organics portion of solid waste
represents a complex system with many interdependent variables and challenges, and
continued progress towards Zero Waste goals will require increased infrastructure and policy
efforts.
FEASIBILITY STUDY – COMPOST FACILITY
To accelerate progress towards additional organics infrastructure options, the City, with grant
support from Colorado Circular Communities (C3) Enterprise, commissioned a feasibility study
Docusign Envelope ID: EF6923C0-5A27-4115-8446-10EA209ADB2F
3
that assessed stakeholder input and provided modelling and cost analysis for infrastructure and
policy options. The study culminated into a feasibility-level cost model for two different size
compost facilities (municipal-scale and regional-scale). The full report may be found on the City
website here: https://www.fcgov.com/recycling/publications-resources with key take-aways
summarized below:
Siting considerations are fundamental and key to success. An industrial use,
community-scale food scraps processing facility would require 20 to 40 acres of land,
and would be subject to State and local permit requirements, including strict odor
management regulations and other environmental requirements.
Initial costs are substantial. Capital estimates (including, but not limited to: facility
costs, equipment costs, road construction, etc.) were approximated at:
o $11.7M for a municipal-scale processing facility – 25K tons per year (TPY)
Excludes land purchase (18-20 acres), estimated as additional $2.7-3M,
using assumptions of $150K/acre.
o $17.8M for a regional-scale facility – 50K TPY
Excludes land purchase (34-40 acres), estimated as additional $5.1-6M, if
an existing location already identified through regional planning
processes is not selected.
At full capacity, annual revenue is estimated to exceed costs. Not considering initial
costs, and per assumptions in the report (such as quality of compost and market value),
estimates at full capacity are:
o For municipal scale (25K TPY), annual operating costs of $1.2M, with revenue
estimates from tipping fees and compost sales at $1.4M.
o For regional scale (50K TPY), annual costs of $2.2M, with estimated $2.9M in
potential revenue.
A long implementation timeline is necessary. The report conservatively estimated up
to 6 years for full build out of a new facility. Considerations included land acquisition,
state and local permitting, securing funding, facility design and construction, stakeholder
and community engagement, outreach and education, commissioning, and start-up
activities.
Additionally, the feasibility report recommends that new policies be explored, especially for large
generators, such as:
Docusign Envelope ID: EF6923C0-5A27-4115-8446-10EA209ADB2F
4
Internal policies supporting reduction of food waste, diversion of food scraps, and
compost procurement policies for City-maintained green spaces.
Incentives or requirements for private sector, including restaurants and food service
businesses.
Support/incentives for public-private partnerships to collect, process, and distribute
materials.
REGIONAL PARTNERSHIPS
In 2018, a North Front Range Solid Waste Infrastructure Master Plan (SWIMP) was adopted,
based on extensive collaboration among a Regional Wasteshed coalition including Larimer
County, Fort Collins, Loveland, Estes Park, and Wellington. Implementation, as led by Larimer
County, committed to closing the current landfill (fast approaching capacity), opening a new
publicly operated landfill, and converting the site of the current landfill in a resource-recovery
campus for waste diversion. The Plan is currently being implemented on a tiered priority basis,
with the following Tier 1 priorities currently in progress,
Closure of the current landfill, opening of a new landfill near the Rawhide power plant,
and construction of a transfer station at the current site near Taft Hill Rd. and Trilby
Build-out of the Construction and Demolition (C&D) portion of the transfer station
Preliminary planning and permitting exploration for yard trimmings and food scraps
composting infrastructure
It should be noted that the feasibility study summarized above was conducted independently of
the Regional Wasteshed coalition and SWIMP implementation plan, as led by Larimer County.
The study included input from regional and commercial stakeholders and City staff are currently
in discussions with County Solid Waste Department staff.
For the two scenarios explored (municipal-scale and regional-scale composting facilities), the
main advantages of a municipal facility include full control over facility siting, operations, and
timelines. Alternately, continued collaboration towards a regional facility would provide:
A potential site location identified (current landfill site on Taft Hill Rd.) relatively central
for Fort Collins and Loveland generators
Estimated lower processing costs per ton, due to economies of scale for increased
processing demand
Docusign Envelope ID: EF6923C0-5A27-4115-8446-10EA209ADB2F
5
Potentially leveraging regional resources, including shared capital burden and Larimer
County Solid Waste Department expertise and leadership.
Further collaboration and coordination among agencies, including cost-sharing agreements and
policy development, would be necessary to accelerate progress toward a regional-scale facility.
INITIAL CAPITAL INVESTMENT
During a July 8 Council work session, City Councilmembers signaled support for consideration
of up to $7M in funding to support expanded compost infrastructure (e.g., a community-scale
processing facility), through the 2025-2035 Community Capital Improvement Program (CCIP)
fund. If approved by voters, these funds could be leveraged toward the build-out of either a local
or a regional-scale facility within the 10-year CCIP timeframe, potentially as a local match for
federal and State grant opportunities, or more directly as funding for initial project phases.
Conditions and dependencies to consider would include:
Securing a site and appropriate permits (if County site is not selected)
Establishment of government structure and intergovernmental agreements, if working
regionally
Policy commitments to help ensure sufficient high-quality feedstock (input) and end
market development for generated compost (output)
Additional capital from other sources such as dedicated revenue, state and federal
grants, and/or cost-share from other regional partners
NEXT STEPS
While a $7M capital investment would not be sufficient to fully cover costs for a new facility, it
would provide a significant portion of funding that could be leveraged in support of community-
scale organics processing infrastructure for Fort Collins, which is necessary to advance the
City’s Zero Waste goals.
Recommended next steps include:
City Council decision for including this funding as part of the CCIP ballot measure
Further discussion regarding regional collaboration and agreements to support planning,
cost-sharing, feedstock supplies, and beneficial end-uses
Continued implementation and expansion of small-scale compost pilot efforts, aimed at
scaling organic diversion efforts in the private sector to better understand benefits and
barriers
Docusign Envelope ID: EF6923C0-5A27-4115-8446-10EA209ADB2F
6
CC: Jacob Castillo, Chief Sustainability Officer
Docusign Envelope ID: EF6923C0-5A27-4115-8446-10EA209ADB2F