HomeMy WebLinkAboutMemo - Mail Packet - 09/02/2025 - Memorandum from Emily Wenger re Q3 2025 Update on Contracted Residential Waste Collection Program Operations
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Memorandum
Date: August 28, 2025
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Tyler Marr, Deputy City Manager
Jacob Castillo, Chief Sustainability Officer
From: Emily Wenger, Contracting Program Manager, Environmental Services,
ewenger@fcgov.com
Subject: Q3 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 since our
last memo include:
Annual rate increase and contract amendment
o 3.2% annual service rate increase will go into effect September 30, 2025
o Contract amendment in progress that will codify rate increase and increase
convenience of the yard trimmings program
Operations
o Nearly 1,000 delinquent opt-out accounts (approximately 30% of total) were
referred to collections on August 4 for balances 90+ day past-due
o $486,984.40 remitted to date:
$485,384.40 in administrative fee
$1,600 in liquidated damages
o Harvest Park alley service continues despite safety concerns. Republic is
exploring operational solutions that maintain alley service to mitigate safety risks
Background
Annual rate increase and additional contract amendment items
Docusign Envelope ID: 565CE2DD-D556-4E4D-BD97-B21218909DB2
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Annual Rate Increase
The contract provides for annual rate increases of 3%, plus additional adjustments when the
contractor can demonstrate uncontrollable cost increases in disposal/processing fees or
regulatory changes. Republic petitioned for an additional adjustment earlier this year based on
increased disposal costs.
Following the methodology outlined in section 4.11 of the contract, staff reviewed Republic's
documentation and conducted independent verification through market data analysis, finding
that the weighted average residential disposal costs increased by more than 3% over the past
twelve months, justifying a 3.2% rate increase.
Residents will see increases of $0.31-$3.45/month ($3.72-$41.10/year) depending on service
level. Bulky item fees, overage charges, and other fees remain unchanged.
The City's administrative fee will remain at $1.35/month as established by the City Manager and
in accordance with City code.
Contract amendment items
A contract amendment is in progress that will establish the annual rate adjustment and make
yard trimming service more convenient.
Yard trimmings specifics
The amendment will eliminate enrollment period restrictions, allowing residents to opt in or out
of yard trimmings service at any time. This change has already been implemented operationally.
Contract Amendment Approval Authority
City code allows the City Manager to approve contract amendments that increase customer
rates when accompanied by commensurate service improvements. This amendment improves
service by increasing yard trimmings flexibility, allowing the City Manager to sign this
amendment.
Operations
Past-due opt-out accounts
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As of June, approximately 1,000 opt-out accounts (31% of the total opt-out accounts) had
balances 90+ days past due. These accounts were referred to Republic's collections agency on
August 4.
This represents a shift from a previous plan to use city code enforcement for payment
compliance. However, the volume of past-due opt-out fees exceeds code enforcement capacity,
despite communications efforts aimed at voluntary compliance. The collections approach is
expected to be more effective at recovering past-due fees and provides residents additional
opportunities to resolve accounts before potential credit reporting.
Remittance & Reporting
Reports & remittances are being submitted on time and as required.
Total amount remitted to date: $486,984.40.
o $485,384.40 has been collected & remitted in administrative fees. The
administrative fee covers the city’s costs for administering the program, including
personnel, communications & education, software & tools, and other costs.
o $1,600 has been remitted in liquidated damages related to uncorrected missed
pickups and call abandonment rate.
Alley service in Harvest Park
Republic will continue providing alley service while exploring operational solutions to address
safety concerns in certain areas. Any change that would eliminate alley service would require
City approval, and would not be made without consulting councilmembers.
Next Steps
Staff will bring code updates before the end of the year related to the following:
o Giving the City Manager explicit authority to approve annual rate increases
above 3% that are evaluated following the contract's established methodology.
Staff will provide a report on program performance, update on items shared in this
memo, and an update on the new statewide Extended Producer Responsibility program
and its impacts on this program in Q4 of this year.
CC: Josh Birks, Deputy Director Sustainability Services
Megan DeMasters, Manager, Environmental Services
Docusign Envelope ID: 565CE2DD-D556-4E4D-BD97-B21218909DB2