Loading...
HomeMy WebLinkAboutRFP - P1109 TRASH SERVICES STUDYADDENDUM No 1 P1109 Trash Services Study SPECIFICATIONS AND CONTRACT DOCUMENTS Description of RFP P1109 Trash Services Study OPENING DATE 3 00 P M (Our Clock) February 22 2008 To all prospective bidders under the specifications and contract documents described above the following changes are hereby made •ce Task 3 25 With regard to a trash districting option consider the market impacts that have been observed in other communities that have districted their trash collection service such as whether new haulers who were not previously in business in the community bid on the contracts and if local independent haulers discontinued business under the new system Attached • Hilton Farnkopf & Hobson LLC Trash Districting Feasibility Analysis May 1 1998 Notes from prebid meeting held February 13, 2008 at 215 N Mason, Fort Collins & via teleconferencing 1 Will this project cover issues for commercial trash collection? Answer The focus of the study is residential trash For the prioritized list of recommendations for actions, is the City looking for what the consultant thinks should be done? Answer We re looking for an analysis such as a matrix of options that shows which of the issues of concern would be addressed by the options presented by the consultant What is the role of the local haulers? Given the short time frame of the project, how will we get the information about trucks? The report will be better if the information concerning trucks is accurate Are the haulers playing an active role in the study? Answer The haulers are not driving the process but they are important stakeholders along with citizens and other interest groups The City does have information about trash trucks which must be licensed in Fort Collins where renewal is a way of life Chapter 1—Back,4round Less air pollution and traffic congestion and improved traffic safety since fewer big trucks would be on residential streets Improved community appearance since neighbors would all set out trash containers on the same day of the week and Less noise since trash would be picked up only one day each week in each neighborhood Disadvantages of districting from a resident s perspective might be that Residents would not be able to choose which trash collector to use without paying higher rates' Residents may end up with a different trash collector since the City would select one company for the entire district Trash collection schedules may change for residents since the single collector would establish new collection days and times Some residents may experience increased rates, if higher than current service levels are required Some residents may experience short-term disruptions in service such as missed pickups, since a new trash collector would need to learn the new routes and special services on those routes and Some residents may need to use different trash and recycling containers depending on the service offered by the new collector PRIMARY ENGAGEMENT OBJECTIVES HF&H was hired by the City of Fort Collins to complete three key study objectives Evaluate the impact of reduced vehicle traffic on residential streets as a result of districting, o Survey public opinion regarding districting and Analyze the cost/benefits of a districted system In order to accomplish these objectives HF&H in consultation with the City developed the following scope of work ' Under a districted system residents would be obligated to pay for service provided by the City s designated hauler although they may be able to continue with their current collector for an additional fee Hilton Farnkopf & Hobson LLC 3 City of Fort Collins SCOPE OF WORK The scope of work was comprised of six tasks Evaluate Traffic Impacts HF&H reviewed the City Engineering Department s original Truck Impact Analysts for reasonableness mathematical accuracy and logical consistency We found the original methodology to be reasonable We did however revise a number of the assumptions used in the analysis and updated certain data based on information provided by the City and the collectors The result of the updated analysis was an estimated street maintenance cost savings resulting from districting Our findings are described in Chapter 2 Evaluate Public Opinion As requested HF&H developed a residential customer survey in order to help gauge public opinion regarding the current level of trash and recycling services and predict residents reactions to the implementation of districted service The City s direct marl contractor mailed the survey to approximately 3,000 residences, based on the likelihood of receiving at least 384 responses a statistically valid response 813 responses were received although not all respondents answered every question Our interpretation of the results is described in detail in Chapter 3 Determine Rate Impacts of Districting As described in Chapter 4 we projected rate impacts from different districting scenarios In order to accomplish this we have spoken with a number of the current collectors We also relied on industry data and our extensive files from trash and recycling procurements and financial reviews As discussed in our limitations section, while we are confident in the justification of our method and data it is impossible to predict the behavior of collectors in a competitive environment In spite of our best efforts to identify likely outcomes actual results could be different and those differences could be significant Gather Comparable Rates In order to evaluate the current residential rates and services, HF&H was asked to survey at least 10 other jurisdictions trash systems In response we surveyed over 20 jurisdictions as described in Chapter 5 Based on our experience we would recommend that the reader use caution when comparing rates among jurisdictions Rarely are rates comparable among jurisdictions because they seldom reflect similar services geography, pricing strategies, demographics or competitive environments Identify Other Benefits of Districting In addition to a reduction in vehicle traffic and a possible reduction in overall rates there are a number of other significant benefits that can be obtained by the City and its residents through districting Some of these impacts include but are not limited to Improved street aesthetics (e g , same day collection and similar containers), 4 Trabh DistrictingThidy Chapter I —Background Higher levels of collector insurance which helps protect customers from collector accidents and damage to private property, Hazardous waste and other indemnifications to the City and its rate payers to protect against future litigation and CERCLA claims which could lead to higher rates Long-term fully -permitted disposal capacity, Increased recycling services (including yard waste collection) Reduced vehicle emissions due to decreased truck traffic and Reduced vehicle traffic in residential neighborhoods since collection would only be one day per week for each district These benefits are discussed in detail in Chapter 6 Estimate the City s Districting Start Up Costs Should the City elect to implement districted trash service, a number of activities need to take place in order to successfully transition from the current open system to districts In Chapter 7 we describe each of these activities in detail and provide a range of cost estimates for each of these activities LIMITATIONS Although we have followed the scope of work as proposed there are a number of limitations inherent in our analysis HF&H s updating of the City s 1994 Vehicle Impact Analysis did not address the reasonableness of the City s underlying assumptions related to current residential street mileage, the life of a typical residential street the average maintenance cost per mile the daily vehicle loadings on those streets or changes in street maintenance costs over time, Our role in the public opinion survey was limited to creating the questions and format and analyzing the results We did not verify the compilation of the results or the randomness of the survey, Where current rates are discussed we relied on the City s survey of the collectors and the public opinion survey, Since the City receives no financial information from the current collectors, we were not able to base our analysis on the actual cost to provide residential service in the City and therefore had to base our analysis on data from other jurisdictions We have used financial and operational data from companies providing similar services and data from competitive procurements (much of which is proprietary and therefore confidential), and Hilton Farnkopf&Hobson LLC 5 City of Fort Collins Our analysis of the impact of districting on current rates is based on industry standards other competitive districting procurements with which we are familiar and information provided by the City and the collectors However it is impossible to precisely predict in advance the outcome of a competitive procurement due to market conditions and competitive pressures on the collectors Therefore, we have been conservative to our analysts however the actual impact could be more or less than estimated and that difference could be significant 6 Trash Districting Sti dy Chapter 2 — Tneck Impacts CHAPTER 2 TRUCK IMPACTS One of the real benefits of districted residential trash collection is a reduction in the number of trash and recycling vehicles traveling on the City s residential streets As trash and recycling vehicle tragic decreases, associated traffic congestion, vehicle noise and air pollution would also be expected to decrease In addition, the City may be able to realize significant savings in Its annual residential street maintenance costs A benefit from districted residential trash collection is a reduction in the number of trash and recycling vehicles traveling on individual residential streets in the City As trash and recycling vehicle traffic decreases associated traffic congestion vehicle noise and air pollution would also decrease In addition the City may be able to realize significant savings in its annual residential street maintenance costs As part of this engagement HF&H assisted the City with the estimation of the annual residential street maintenance cost savings which may result from a reduction in the average number of trash and recycling vehicles as a result of districting Background The City s Engineering Department prepared an analysis in 1994 of the impact of trash and recycling vehicles on the average annual maintenance cost for a typical residential street in the City That analysis included the following general assumptions The average life of a typical residential street is 20 years (at current levels of residential trash and recycling vehicle traffic) An average of 250 vehicles travel on a typical residential street each day over its lifetime with four (4) percent of those vehicles being trucks, The average street maintenance cost over the 20 year life of a typical residential street was $280 000 per mile in 1994 (that cost is currently estimated to be roughly $315,000 in 1998 dollars assuming a 3 5% annual cost increase), There were a total of 200 miles of residential streets in 1994 (that figure is currently 250 miles (1998)) as a result of growth and annexations, Typical trash and recycling vehicles operating on the City s residential streets are half -full, Hilton Farnkopf & Hobson LLC 7 City of Fort Collins Trash and recycling vehicle traffic on a typical residential street are equal (i e , if a trash vehicle for a given company serves a residential street a recycling vehicle for that company also serves that street and travels the same distance), and The impact of individual trash and recycling vehicles on those streets that are traveled will be the same under a districting scenario as it is with Open Competition The only difference is the number of miles which each vehicle impacts (i a districted vehicles will impact fewer street miles) The impact of vehicle traffic on a residential street depends on both the number and weight of those vehicles For purposes of protecting the impact of trash and recycling vehicles two additional major assumptions were required (1) the average weight of typical residential trash and recycling vehicles, and (2) the associated average axle weight of those vehicles (i a the weight borne by each axle of the vehicle) which dictates the impact of those vehicles on the City s streets Using the general assumptions noted above and associated axle weights of typical' residential trash and recycling vehicles the impact of reducing the average number of those vehicles on the City s residential streets was estimated That reduced impact was reflected as additional life in the typical residential street beyond the 20-year baseline estimate and as an associated saving in annual street maintenance costs Central to the analysis was the assumption that the lifetime maintenance cost of a typical residential street does not change regardless of life span, and accordingly, the average annual street maintenance cost decreases as street life increases This occurs since that cost is spread across a longer period of time Methodology HF&H reviewed the City Engineering Departments original analysis for reasonableness mathematical accuracy and logical consistency Our review found that the approach used by the City, as described above, was generally reasonable logically consistent and mathematically accurate We did, however, revise the assumed gross weight and associated axle weight of the typical trash and recycling vehicles used in the analysis, based on updated information provided by the collectors Using this updated vehicle weight information and updated street maintenance costs and mileage we revised the City s analysis following the original approach The results of that analysis are summarized in Table 2-1, with the projected savings resulting from districting presented as both a percent increase in street life, and an associated monthly savings in annual street maintenance cost per residential trash account A summary of the Traffic Impact Analysis is included as Appendix A Findings As shown in Table 2-1 the projected savings are dependent upon the average number of trash and recycling vehicles currently assumed to be traveling on a typical residential street, and the number of those vehicles which would remain after districting For purposes of this analysis we have assumed that districting would result in an average of two vehicles per typical residential street per week (one trash and one recycling vehicle) 8 Trash Districting Sthidy Chapter 2 — Truck Impacts Table 21 Vehicle Impact Summary Assumed Number of Weekly Trash and Projected Monthly Savings per Recycling Vehicles Residential Account Total Annual Citywide Saving Associated Percent Old Street New Street Old Street New Street Current Districted Increase in Street Construction Construchon Construction Construction System System Life Standards Standards Standards Standards 10 2 174 $2 21 $1 99 $700 000 $630 000 8 2 12 5 $1 59 $143 $503 000 $453 000 6 2 8 0 $1 02 $0 91 $322 000 $290 000 4 2 3 9 $0 49 $0 44 $155 000 $139 000 The City could further reduce the number of trash and recycling vehicles per street, per week to one using co -collection vehicles that can collect both trash and recyclables in a single vehicle Additionally, should the City elect to implement a separate yard waste program, a co -collection vehicle could be used to linut the number of vehicles to two per street (one for refuse and yard waste and one for recycling), per week It should be noted that there is currently some geographic consolidation of accounts with specific haulers which may reduce the average number of haulers serving streets in those areas In addition even with districting there may be multiple haulers serving certain residential streets due to the presence of multi -family units These multi -family units are considered commercial accounts and their service provider would not be impacted by districting If districting is pursued and street maintenance cost savings are realized, those savings would not be expected to be realized in full until correction of 'current system damage has been completed As such current residential street maintenance costs per mile would not be expected to decrease significantly in the short-term Finally the City recently developed and implemented new construction specifications for residential streets This action was taken largely to minmuze large vehicle impacts associated with construction of new residential developments The new specifications require 3 5 inches of asphalt on 6 inches of base compared with the old standard of 3 inches of asphalt on 4 inches of base The City s Engineering Department projects that these new standards will reduce maintenance costs by roughly 10 percent each year Accordingly the trash and recycling vehicle impacts which have been projected based on the former construction standards would be reduced by approximately 10 percent for those residential streets constructed according to the new standards as shown in Table 2-1 This reduced maintenance cost will be realized gradually over time New residential street construction is projected to increase at roughly 3 5% per year while roughly 5 percent of existing residential streets will be upgraded each year (based on an average 20 year life) Therefore the entire benefits of these upgraded construction specifications will take roughly 20 years to realize Hilton Farnkopf & Hobson LLC 9 Gh/ of Fwt Collins This Page Left Intentionally Blank 10 Tmsh Districting Study Chapter 3 Pnblic Opinion Survey CHAPTER 3 PUBLIC OPINION SURVEY Based on the results of the public opinion survey, a majority of Fort Collins residents favor trying a districted trash and recycling collection system A significantly lesser number are opposed to changing their current collector Most residents report that they participate in recycling, but do not wish to pay more to recycle more types of materials Residents want to pay their trash collection bills either directly to the collector or optionally through the City s utility bill preferably four times per year PUBLIC OPINION SURVEY In order to gauge residents feelings regarding their current trash and recycling services as well as their opinions regarding a distncted waste collection system the City and HF&H conducted a public opinion survey of the City s residents Approach As requested HF&H developed a draft survey instrument designed to solicit residents opinions regarding the provision of both current and future trash and recycling collection Subsequent to City review and comment on this draft HF&H revised the survey in order to meet all of the City s needs with the survey instrument Among the goals of the survey were the following Educate the public on what districting might mean to them Determine the public s level of support for various aspects of distncting Elicit the public s descriptions of their current services and their thoughts about those services Ask the public about their preferred method of trash and recycling collection billing Provide the public an opportunity to share related comments Based on these goals the survey contained an introductory section that reviewed the concepts associated with distncted trash collection followed by four sections eliciting residents responses to Hilton Farnkopf & Hobson LLC 17 k Gtv o Fort Collins 1) Distncted Trash and Recycling Collection Alternatives 2) Description of Current Trash and Recycling Collection Services 3) Bill Payment Method Preferences 4) Freeform Comments A separate City contractor, First Class Direct, Inc, generated a random survey pool of 3,000 residents d mailed them A with each survey They were returned o returnedto Firspostage-pa t Class Direct s return envelope officeswhereresponses weretalled and entered into a database To get as much of an overall sampling as possible, four zip codes in Fort Collins were selected - 80521 80524 80525, and 80526 The list of addresses was then selected for 1,500 homeowners and 1500 renters throughout these zip codes Then further selected for 750 of each group with children and 750 without children Then a random selection was made from each zip code using the above criteria A total of 813 respondents subrrutted their completed surveys to First Class Direct for tabulation First Class Direct subrrutted those results to HF&H for analysis A sumary of four y sections is ented the survey isfattached asindings for eAppendixach of eB and the esummary of thesbelow responsesis included as Appendix C Districted vs Open Trash & Recycling Collection Questions 1-4 of the survey solicited residents thoughts regarding distncted trash collection Question 1 asked respondents to identify the importance of seven criteria related to districted trash and recycling collection Question 2 asked residents to determine the importance of five criteria related to retaining an open system of collection Questions 3 and 4 asked the residents to provide their overall opinion as to whether they supported districted or open collection systems respectively !following benefits of districting are important to me ), a clear Based on the results of Question 1 ( th majority of Fort Collins' residents would appreciate the benefits of districted trash collection For all identified benefits, 62 7-73 8 percent of the residents rated those benefits as either important or very important Only 14 4-213 percent strongly or very strongly disagreed with the importance of the identified benefits Chart 3-1 below, graphically summarizes residents' responses to each potential benefit The purpose of Charts 3-1 and 3-2 is to illustrate a weighted average for each question in order to factor in the strength of feelings that often surrounds trash issues The weighting is also intended to take into account those respondents that had no opiruon on a particular question See the footnote below Chart 3-1 for a further explanation 4 What data resources will be available to the consultants? Answer City staff stated that a list of resources will be provided in an addendum for potential consultants that indicates what sources of information and data will be available during the course of the study for the awarded consultant firm including o list of licensed trash and recycling collection vehicles o 2006 Report Strategic Plan for 50% Solid Waste Diversion in Fort Collins http //fcgov com/talkingtrash/odf/DRAFT solid waste diversion plan prelim staf f recs 2006-0321 pdf o Website to watch broadcast of January 8 2008 Council study session and broadcast of community trash districting forum June 2007 http //fcgov com/cable14/video php?home# o Traffic count data as available o Breakdown of when streets were built o Pavement Management Study 2007 o Budget protections for future road maintenance work based on deterioration records and other data 5 Is the City looking for a specific recommendation about districting? Answer If it s a likely measure for the City to consider yes but this is not specifically a trash districting study What the City needs is good data about a range of alternatives that address some or all of the problems outlined in the problem statement 6 Are the primary solutions that the consultant comes up with supposed to combine trash collection and recycling? Answer Not necessarily Some options might hit 3-4 of the issues some may only hit one 7 Is Task 1, item 1, second bullet referring to "recycling diversion rates" in terms of cost rates, or recycling rates? Answer We re interested in changes to levels of recycling rather than rates in term of cost to residences 8 Will the consultant be asked to meet with the City Manager or Council? Answer We do not anticipate that 9 Is it possible that the consultant on this project would be retained for further work on implementing any recommendations from this study? Answer We do not anticipate that 10 How far back does the City's information go concerning street paving costs, and are the costs appropriate for the level of maintenance (PCI) that you are trying to achieve? Answer Our cost information goes back ten years The City s target is 75 PCI and we ve ranged between 73-76 11 How extensive a study of Best Management Practices, and from which communities, are you looking for? Answer City Council has a frame of reference for Fort Collins but other places have a variety of ways to deliver services that s the kind of information we re looking for generally from communities that have similar demographics regulatory frameworks etc 12 Are you looking for quality benchmarkmg versus quantity benchmarkmg? Answer Yes Very Strong Strong Neutral Strong Chart 31 Importance of Districted Collection Benefits' OSupport ®Opposition Clutpter 3 Public Opinion Survey Chart 3.1 was derived numerically by weighting all Strongly Agree/Disagree responses with double the value of Agree/Disagree responses All Neither responses were assigned a zero value Thus in Chart 3 1 and in succeeding charts of similar design a large number of Neither" responses is indicated by a shorter bar top to bottom for that particular question There were few Neither responses throughout the survey so a taller bir generally indicates a greater number of responses The wtute portion of the bar above the Neutral axis is reflective of weighted values in the same manner as the gray bars below the Neutral axis All axes of all charts of this design use the same stile from Very Strong Support down to Neutral down to Strong Opposition Chart 3-1 reflects the strong support for and relatively little opposition to the perceived benefits of districted trash collections Specific results for each of the attributes surveyed in Question 1 are shown in Table 3 1 below Table 3 1 Support for Districted Collection AgreiJJ Disagree) Number of Question Stronal�Agree Neutral Strongly Disagree Responses There would be less truck traffic 72 9% 115% 15 6% 776 Traffic safety would improve 652 158 190 774 The community would look better 664 161 175 777 Trash bill aught be reduced 627 159 213 759 There would be less air pollution 710 132 159 772 Fewer trucks to damage roads 738 117 144 777 Less truck collection noise 717 139 144 777 Hilton Farnkopf&Hobson LLC 13 City of Fort Collins While the survey responses are very positive regarding perceived benefits it should be noted that 213 percent of the respondents do not place importance on the possibility that trash bills would be reduced as a result of Districted Collection This response could be interpreted to mean that residents either do not believe that trash bills would be reduced or that they are price insensitive to lower trash bills, compared to the other benefits Question 2 ( the following benefits of keeping trash collection as it is are important to me ), solicited respondents opinions about the benefits of retaining the current open collection system While to some of the benefits of an open system the level of support respondents ascribed importance for those benefits was much weaker than that of the distncting system (as shown by the shorter length of the bars) Of significant importance, there was a greater percentage of respondents who indicated disagreement or strong disagreement with the importance of open selection benefits as compared with Districted Collection Chart 3-2, below graphically presents the support for and opposition to the importance of benefits with an open system Very Strong Strong Neutral Strong Chart 3 2 Importance of Open System Benefits [3Support ■Opposition Chart 3-2 indicates that respondents agreed most strongly with the benefits of retaining the option of selecting their trash collector The second highest response was for being able to use the same trash containers as they have in the past, followed closely by being able to keep the same trash collector The weakest support and strongest disagreement was for keeping the same day and time for trash collection Table 3-2 provides numeric responses to each of the five identified benefits Chapter 3 Public Opinion Survey Table 3 2 Support for Open System Agree/ Disagree/ Number of Question Strongly Agree Neutral Strongly Dlaagree Rest Keeping current trash collector 45 8% Selecting my trash collector 500 Keeping same collection day & time 315 No transitional disruption 365 Continue to use same containers 468 26 7a/o 27 6% 754 248 251 745 345 340 750 334 301 746 283 248 755 The amount of neutral responses for the open system is about twice as high as that of districting suggesting that significantly more respondents do not care either way about an open system Finally respondents indicated disagreement with the benefits of an open system about twice as often as they did for distncting These results are supported by the responses to Questions 3 and 4 of the survey which solicited overall support for distracted and open selection respectively all things considered Chart 3 3, below graphically depicts the results of this comparison Chart 3 3 Overall Support for Districted vs Open System Very Strong Try Districting Strong Neutral Strong ❑Support ®Opposition Keep Open System Chart 3-3 indicates very strong support overall for a desire to try distracted trash collection There was some opposition to districted trash collection but that opposition was not as strong Hilton Farnkopf & Hobson LLC 15 Oty of Fort Collins as that shown for keeping the open system method Further the support for retaining the open system method was only about half that of residents desires to try Dtstricted Collection Table 3-4 below presents the numeric responses to these two questions Table 3 4 Districted vs Open System p9r� Disagree/ Number of Queshon Strongly Agree Neutral Strongly Disagree Resoonses Try Distncted Collection 65 8% 10 8% 23 4% 766 Keep open system 307 220 473 719 Table 3 4 indicates that support for districted trash collection is twice as strong as staying with the current open system Further the number of fence sitters those who do not have opinions one way or another, is twice as high under the open system Finally, and perhaps most importantly over twice as many respondents indicated that they do not want to keep the current system, compared with trying Districted Collection This response is particularly significant, since those who do not want to keep the current system represented 11most half of the number of responses Current Trash & Recycling Collection Questions 5-16 of the survey solicited information about current trash and recycling services Among the information requested was information about annual bill amounts, number of containers put out each week the length of time with the current hauler, and participation in recycling programs The primary findings for these indicative questions are presented below Current Bill Amounts Respondents were asked to estimate their annual trash and recycling collection bills There was a very wide range of responses from $3-$720 but approximately half of the responses clustered around the ten most common amounts The average annual bill paid by survey respondents was $132 which amounts to $12 64 per month There may have been some misunderstanding of this question regarding the time period to estimate bills, which might explain the response of $3 annual collection bills Other responses included $10, $12 $18 and $20 which may or may not be valid answers to the question To that extent the average might be skewed downward On the other hand there were 15 responses of annual bills totaling $400-720 If any of those responses are invalid then the average would be lower Self Haul According to the survey results 17 6% of the respondents self -haul their trash at least once per year while 82 4% do not Of those who self haul their trash, most do so only 2-6 times pet year —approximately 78 9% of the respondents reported making 2-6 trips per year Only three respondents reported making 50, 52, and 90 trips respectively, during the course of one year Tlus means that almost every resident subscribes to trash collection service 16 Trash Distnctmg Study Chapter 3 Public Opinion Survey Container Numbers Residents reported using cans bags, dumpsters carts bins boxes barrels tubs etc The most common responses were for one can one bag, or one cart Of those three responses the most common number of containers was one can (240) one cart (164), and one bag (156) The responses for the most common containers are summarized in Table 3-5 below Table 3.5 Common Container Types 05 2 1 05 5 1 1 164 1 240 1 156 2 92 2 62 3 25 3 21 4 3 4 6 Given the wide range of types and quantities of containers in use any attempt to change service levels would require consideration of the variety and type of residents containers While respondents did not indicate strong opposition there may be some strong sentiment against changing containers if those respondents assumed that they would be able to continue to use containers substantially the same as they now use Trash Collector Respondents reported a wide range of penods that they have used their current trash collector from 1 month to 36 years The average weighted period that respondents have used the same collector was 4 years, 6 months, although the single most common response was 12 months Respondents reported that the last time they considered changing their trash collector also varied widely, from 1 month to 36 years The average weighted time that respondents indicated they last considered changing their trash collector was 2 years 5 months, although the single most common response was 12 months A majority of the respondents indicated that their hauler was not the same one used by their neighbors Of those that responded 36 4% indicated that they used the same collector while 63 6% said they used a different one These responses indicate that a majority of the respondents are either satisfied with their current collector and do not often consider changing or simply do not care about changing haulers given current conditions This result is surprising because the strongest perceived benefit of an open system is the freedom to switch haulers (which seems to occur infrequently for those surveyed) Efforts to Recycle Questions 11-15 were designed to gauge respondents current recycling efforts as well as their demand for more recycling services In general respondents are satisfied with their recycling Hilton Farnkopf & Hobwn LLC 17 Cdv of Fort Collins service, and believe that they make every effort to recycle their materials Further a very large majority 78 5 percent, indicated that they wanted to recycle more types of materials However, when questioned about whether residents wanted to use separate yard waste containers, only a simple majority (52 8%) indicated support It is also clear that most residents would not want to pay more to increase the type of materials recycled Table 3 6 below provides numeric indicators of respondents support for recycling Table 3.6 Support for Recycling Number of Satisfied with current recycling service 77 4% 13 8% 8 8% 774 Currently recycle as much as possible 867 82 51 790756 Want to recycle more types of materials 785 132 83 Want a separate yard waste container 528 240 233 742 Will pay more to recycle more 333 174 493 765 As another measure of support for recycling respondents were asked how many times per month they set out recyclable materials for collection Out of 617 respondents 14 4 percent indicated once per month, 17 2 percent indicated twice per month 10 9 percent indicated three times per month and 57 5 percent indicated four times per month Thus a majority of the respondents indicated weekly participation in recycling programs It is also important to note that 25 (4%) of respondents wrote in zero times per month, although it was not one of the pre -defined answers for this question This write-in answer may indicate either a desire not to recycle, or a lack of understanding about their opportunities to do so with their current collector Given the quantity of write-in responses there may be additional residents who would have chosen zero times per month if given the option of selecting zero Bill Payment Methods The third question of the survey solicited respondents opinions regarding bill payment methods Specifically, respondents were asked whether they would like to combine their trash bill with the City s utility bill pay the trash collector directly or pay through automatic bank transaction The results of these questions are presented in Table 3-7 below Table 3-7 Preferred Bill Payment Method Combined with City utility bill Mail directly to trash collector Automatic bank transaction Number of 48 0% 12 8% 39 2% 725 600 242 157 703 148 141 710 686 Chapter 3 Public Opinion Survey The respondents were clear on their preferred method of bill payment they want to mail their bills directly to their collector, although a significant number would consider combining the hash bill with the City utility bill In terms of billing frequency the average for the 722 respondents was 5 6 times per year reflecting a desire for bi monthly billing The range of responses was 1-32 times per year (ignoring the one response of zero times per year) The most common response (57 9%) was four times per year followed by twelve times per year (20 2%) Hilton Farnkopf & Hobwn LLC 19 Cifof Fort Collins This Page Left Intentionally Blank Chapter 4 Districting Model manual Analysis CHAPTER 4 DISTRICTING MODEL FINANCIAL ANALYSIS In order to estimate the financial impacts of a districted system, HF&H created a financial model to estimateMure residential rates Should the City implement districted collection, we believe that overall residential rates could be reduced by as much as 13% or $500,000 per year city-wide However because 1) the data we used to develop our model was taken in part from other jurisdictions and 2) it is impossible to predict collector behavior in a competitive procurement, the actual results of districting could differ DISTRICTING MODEL The districting model was designed to estimate the financial impact of switching from the current open system to between one and six districts and assumes that only one collector will provide residential trash and recycling services in each district Approach In order to develop our model we relied on a number of sources of information These sources include Financial and operational information from a number of the City s current collectors Periodic operational reports to the City by the collectors Financial and operational data from our work papers and from other engagements using a sample of companies of different sizes and corporate structures (e g , public vs private) and Results from competitive and negotiated procurements of surular services Limitations While we are confident in the reasonableness of our assumptions, we cannot predict the actual behavior of the potential proposers in a competitive environment For example we assume that proposers may be able to offer the City further reduced rates if they are awarded a larger district(s) To illustrate this point we have included Table 4-1 below which summarizes the Hilton Farnkopf & Hobson LLC 21 Collins results of a recent competitive procurement where bidders were given the opportunity to propose on more than one district (zone) consisting of a total of 57 000 residential accounts Proposal Table 4-1 Sample Districting Outcomes ($000 s) Recycling Zone 1 Zone 2 Both savings 2267 1711 3602 (94) 2 538 1009 3 434 (3 2) 5 285 3 609 6 405 (28 0) 2495 1590 3660 (104) Green Waste I Both Zone 1 Zone 2 Both Savings 5 945 3 960 9 688 (2 2) 5259 2687 7863 (10) 6 499 5 237 9 678 (17 5) 5,547 4 710 8 739 (14 8) Zone 1 Zone 2 Both Savings 8212 5671 13290 (43) 7 797 3 696 11,297 (17) 11785 8 846 16 083 (22 0) 8042 6300 12399 (135) As Table 4-1 shows each of the four proposals included proposals for Zone 1 Zone 2 or both zones As shown above in each case (recycling, green waste or both) the proposed cost of providing service to both zones was less than the sum of providing similar services to each zone separately As shown above this results in savings ranging from 1% to 28% simply by rewarding the proposer with a larger service area These economies are not always related to changes in how the services will be performed but likely include pricing decisions made by each company related to the additional value (profit) of providing more service to more customers A company desiring control of the waste stream for its own landfill may be more aggressive in its collection proposal In this procurement, two collectors were very large publicly traded companies and two were locally owned private companies Further this analysis shows how large a variance typically exists between companies proposing to provide similar services as could be expected in Fort Collins These pricing decisions are the primary reason why it is difficult to predict the actual behavior of those companies that elect to submit proposals to provide districted service to the City Another limitation is that although some of the City s collectors were very cooperative and provided us useful data, not all of the data required for our analysis was provided by the City s collectors Additionally since the City requires no financial information from the collectors, we were not able to obtain financial information from the City Therefore where local data is not available our analysis is based in part on data from other comparable jurisdictions Information specific to the City of Fort Collins for a number of the key model variables including the number of accounts waste volumes and average hourly labor costs was however provided by either the City, County, or collectors and is reflected in the model Assumptions In order to generate the model we made the following assumptions Each distncted collector is only providing residential trash and recyclables collection in the City The impact of commercial collection or other services in the City, or in non -City areas is not considered 22 Trask Drstncting Stittty 13 How extensively do you want the consultant to evaluate the impacts of other types of delivery trucks and buses on streets? Answer Council is interested in a comparative analysis relative to the impacts from trash trucks a one-to-one comparison For example what is the typical difference in street damage between various types of vehicles? 14 Will legal research be needed as part of the study? Answer No the City will do its own legal work and the Deputy City Attorney is part of the staff team on this protect 15 How much coordination will be needed between the staff and consulting teams? Answer It will depend on the needs of the consultant but the City s goal is to do much of the work on-line and via conference call to minimize travel time for the consultant 16 Are the trash haulers willing to share information about the weight distribution of their trucks, fuel usage, number of miles of traveled on residential streets, etc? Answer The City is hopeful that local haulers will provide critical information but we can t guarantee it 17 Task 1 item 1 requests an evaluation of the City's metrics and measurements for solid waste and recycling diversion rates (including compost and construction debris) How should we consider composting and C&D (much of which is generated & managed outside the residential sector) given the previous direction? Answer The City evaluates its diversion rates based on data for the entire community waste stream and recycling stream not just for the residential waste and recycling Consultants will be provided with these data and with a standard quantification used by the City to estimate what portion of the waste stream may be reasonably attributed to residential generation Please contact John D Stephen CPPO CPPB Senior Buyer at (970) 221-6777 with any questions regarding this addendum RECEIPT OF THIS ADDENDUM MUST BE ACKNOWLEDGED BY A WRITTEN STATEMENT ENCLOSED WITH THE BID/QUOTE STATING THAT THIS ADDENDUM HAS BEEN RECEIVED Chapter 4 Districting Model Financmt Analysis The sizes of the districts are proportionate to each other (i a each district is the same size) However, when the actual districts are created the sizes may vary based on the City s geography or other factors in order to opturuze collection efficiency, A one -person semi automated side loader will be used for trash collection and a one - person manual two compartment side loader for residential recycling with direct costs of roughly $50 per route per hour The average length of the st indard work d-ty will not exceed ten hours, A route driver is paid for a minimum of 8 hours per day regardless of how many hours he/she actually works The average number of stops per trash route per 8-hour day is 517 The average number of stops per recycling route per 8-hour day is 473 based on a 70% set out rate of at least one bin Operations and maintenance costs are based on projected route operating hours for one district This cost is then escalated in proportion to total direct labor hours for each of the multiple district scenarios to account for decreasing economies of scale, General and administrative costs are estimated to be roughly 32 percent of direct costs for one district That percentage is then escalated in proportion to the direct costs for each of the multiple district scenarios As an example in the case of six districts this expense is 32% of the six district direct route costs multiplied by 124 (the ratio of the overall direct costs for six district to the direct cost of one district) The average current monthly residential rate is estimated to be $12 46 based on information provided by the haulers and responses received through the customer survey Each resident would receive one recycling bin and roughly 25 percent would receive a solid waste cart (note The customer survey results indicate that roughly 21 percent of residents currently have cart service) All trash would be disposed of at the County facility although this may eventually not be the case because certain collectors may opt to use their own landfills and No hp fee or revenue is assumed for recyclables Should the City request proposals for Districted Collechon, key model variables such as collector productivity average hourly operating costs and the assumed economies of scale will likely be different than those assumed in our model and these differences can significantly impact the model results For example more aggressive productivity would result in lower operating costs and therefore lower rates while decreases would result in higher rates In order to determine the total costs related to providing trash and recycling services to each district we developed projections for the following cost components Direct Route Costs This category includes driver and supervisor wages and benefits vehicle operating and maintenance costs, vehicle depreciation and anv other expenses directly related to running the routes, Hilton Farnkopf & Hobson LLC 23 city of Fort Collins General and Administrative Costs These costs are primarily administrative related expenses and are unrelated to the direct provision of collection services (i a rent, officers salaries utilities billing) Container Costs These costs account for the purchase of both trash and recycling containers, Landfill Disposal Costs Disposal costs are based on the current rip fees at the Lanmer County Landfill City Costs/Fees These costs include any additional incremental cost to the City for annual administration of the agreements and future rate setting or operational reviews and was set at $50 000 Findings Table 4-2 describes our estimates of the potential impact of districted service on the average current rate paid by residents s shown in Table 4-2 we have estimated that the current estimated cost per month for service A A shown 46 Should the City move to districted service we believe that the impacts on the average monthly rate would range from a $158 decrease to a $1 16 increase depending on the number of districts selected A number of the current collectors agreed that these numbers do not appear to be unreasonable Fhe protected savings are also consistent with the 10 to 20% savings estimated by Environmental Financial Group in its letter report to the City dated September 4, 1996 Table 4 2 illustrates that the cost savings of moving to districting decrease as the number of districts increase This is due primarily from economies of scale related to increased efficiencies that develop as the number of accounts serviced increases For example with a larger service area a collector generally has more opportunity to use overtime in lieu of adding additional routes A collector serving a smaller area has less opportunity to do so, since he has fewer routes which he can operate overtime As a result emay be forced n l route and associated costs, sooner than a hauler with larger service area Addit onally a haulerincur w with five routes may be able to maintain a single backup vehicle while a hauler with fewer routes would also require a sirrular level of backup capacity Further, we have assumed that certain indirect expenses would also increase as the number of districts increase For example under a single district, there would likely be only one operations facility but under a six district system there could be as many as six facilities although the average size of each facility would be less This would also be true for certain necessary personnel required for each district regardless of its size Finally smaller districts have less of a rate base in which to spread fixed costs Finally we have assumed that the current collection system (i e , mix of carts and cans) remains the same However should the City implement automated cart collection the savmgs could be significantly greater than those shown above 24 V m 000 O O O O O O O N m Do ° N O O 000 O O O p O O O m C -0 W 0 0 y O O O O O O O O O O m N O O m O n W m C1 N m t7 C'J m a w w vi w w vi w w w w w w w n o o o 0 O 0 0 0 O o m m N O a` m 000 0 0 0 0 0 0 o W o m a a 00 c N o o O o 0 0 0 0 0 O N m m w w q c 0 W O O O O 000 O O O O O O O O O O D O O O m n m O ^ O n 0 m N O O O q m O O O O O O O O O O N 0 O m p ^ N nm m n O N N n N m m 3 a w 19 to f9 w w w w w w w w q _ m N 0 0 0 O O y 0 0 0 O O O O O O O N O N O O O O Em d m 000 0 0 O O O Z n m m n W m N m N t7 y� w w fA w d! w f9 w w w f9 w O N m a o A O V m o 0 0 0 0 0 0 0 0 o n m 000 0 o 0 o 0 0 0 o v n o ^ o 0 3 E N g N O O O O O O O O O Ocm 5 m u N m d? F L w w w w w w w w w w w w o a N 2N m O O O O p p O O O O W m m 0 N O m N O O O O O O O O O O m O m 0 N 00 i `m m ^N N < m m m C1 �- O O m a� ^ •- w O w N C m WmO n m O^ W m .gyp �-N Om m m m m m m N V v m w w f9 w w w w w w w w w N m a _ m T' t q a N Vl "q O O m q m C m m ¢ . 2 z E c 0 ' 0 m m m O W m ; 0 9 m C 9 f0] m S O b Q N Ol Y > W C Y R E g e u a m v N c 'e q cmi u O 9 Y ^Vi Z A G q Ooi Y O � C Q 1 y Q 0is A 2 s° a m, o z c �O> m Y m a = !- U £ N C C O U w U Y t m Collins This Page Left Intentionally Blank 26 Tmnh Dwnctmg Study Chapter 5 Compamble Rates CHAPTER 5 COMPARABLE RATES In order to gauge how the City s trash and recycling rates compare with other jurisdictions HF&H conducted a residential trash collection rate survey of communities within Colorado as well as a number of communities of similar size outside the state Rate and service information was obtained for a total of 26 jurisdictions The survey looked at open systems, municipal collection and private service COMPARABLE RATES As part of this project HF&H conducted a residential trash collection rate survey of communities within Colorado as well as a number of communities of similar size outside the state Rate and service information was obtained for a total of 26 jurisdictions Survey Overview The communities surveyed have arranged for trash collection service using one of the three following structures 1) Private Open Competition Jurisdictions in which residential trash collection is provided in a manner where private companies compete with little if any municipal regulation Rate information was obtained for a total of seven jurisdictions with private Open Competition five in Colorado and two in Missouri 2) Municipal Collection Jurisdictions which provide municipal residential trash collection with a municipal work force The majority of those jurisdictions surveyed indicated that the residential collection operation functioned as an enterprise fund, and that the rates were intended to reflect the actual cost of collection Rate information was obtained for a total of eight municipal collection operations five in Colorado and three in Wyorrung Hilton Famjk pf & -Hobson LLC 27 ON of Fort Collins 3) Private Contracted Service Jurisdictions which contract directly with the private sector for residential trash collection Rate information was obtained for a total of 11 jurisdictions with Contracted Service Nine of these jurisdictions are in Colorado including seven small jurisdictions in the Fort Collins area, as well as Commerce City and Greenwood Village in the Denver Metropolitan Area, and two in Kansas (Kansas City and a small homeowners association (Windom Hill) in Overland Park) In all cases a single collector was contracted for residential service as opposed to multiple collectors serving within defined districts In the case of those jurisdictions with Contracted Services it is our understanding that those contracts were all awarded through a competitive bid process In the case of those jurisdictions in Colorado with Contracted Service it is also our understanding that most, if not all, of these contracts are 'non-exclusive That is to say residents are free to contract with, and pay a tlurd party for service Residents are, however still billed for the Contracted Service whether they chose to use it or not This has led to basically one hauler servicing the entire jurisdiction This is a similar approach that could be used by the City Billing is typically handled by the jurisdiction through its utility billings, with the jurisdiction reimbursing the contracted collector To our knowledge, none of those jurisdictions with Contracted Service employed districting of services among multiple collectors Findings As described in Table 5 1 on the following page, the majority of respondents (with similar types of trash and recycling services to those of Fort Collins) rates are higher in the junsdictions with Open Competition than those with municipal collection Rates are generally less for Contracted Service than those jurisdictions with either Open Competition or municipal collection (although the contract rates typically do not include recycling service which typically ranges between $1 00 and $3 00 per month per account for weekly service) hi the case of both Greenwood Village and Kansas City Kansas City representatives stated their Contracted Service rates were significantly less than those of neighboring Open Competition jurisdictions for similar or greater levels of service A comparison of Fort Collins rates to that of other Open Competition communities which were surveyed indicates that in general, the City s rates are lower for one -can service ($8 74 as compared to an average of $1105 for Boulder and Colorado Springs), roughly average for two - can service ($13 06 as compared to an average of $12 88 in Boulder and Colorado Springs), and higher for three -can service ($17 50 as compared to an average of $11 83 for Colorado Springs Greeley and Pueblo) and 90 gallon carts ($19 60 as compared to an average of $14 08 in Colorado Springs Greeley and Pueblo) This relationship in prices and container sizes should be expected as a result of the City s implementation of volume -based rates As with the other Open Competition jurisdictions, the rates in Fort Collins are generally higher than those of municipal collection operations (with the exception of bag service which is slightly lower than Loveland) and in all cases significantly more than those jurisdictions with Contracted Service ($19 60 for a 90 gallon cart as compared to an average of $7 06 for unlimited non -cart service) However those Contracted Service rates in all but one case do not include recycling service and the residents are not billed directly by the contractor Typically the 28 Trash Distncting Stndy Chapter 5 Comparable Rates contractor sends a single bill to the jurisdiction which charges the residents through its utility billing system It should also be noted that the above comparison is based on a fairly limited survey and sample base Table 5-1 Residential Rate Survey Summary PRIVATE OPEN COMPETITION Cdorado Indepetlence Spnngfleld FaRCollins At80m B9vklst Sodnaa Fit P&I2 FA !mod Population 105 000 252 000 90 000 345 000 6a 000 99 000 110 000 143 000 Samoa Levet bag $4 17 . $1 18rbag unkndai $ 1275 5 17 55 $ 1200 142 an 8 74 $ 1260 $ 950 242 an 1308 5 1475 $ 1t 00 3Y32 on 1740 $ 1200 $ 1300 S 1050 60165 toter 1425 90196 toter 1960 $ 1500 $ 1500 $ 12.25 $ 13.00 $ 1165 Curbside Recycling WEEKLY BI WEEKLY WEEKLY WEEKLY WEEKLY BI WEEKLY NO BI WEEKLY MUNICIPAL COLLECTION Grand owmie Casper Laramie DIM >l71 = Lgligiront Lovdmw I09tl90 Wvcm Wvomm WVDMI& Population 497 000 40 000 58 000 45 000 67 000 53 000 48 000 26 000 service Level Sags only bag 54 60 a $ilbag unimeed S 1050 $ 1200 $ 750 1142 can 242an $ 856 3r32 can 60165 toter 5 896 90196 toter $ 1096 S 1321 5 1150 Curbside Recycing 81 WEEKLY MONTHLY WEEKLY WEEKLY WEEKLY NO NO NO 2*wk semce PRIVATE CONTRACTED SERVICE COMM" Gaaenwood ;M Eran E21111. VMM Grovel J9i>nsmxm Ke1r.11 NAM Population 17 000 6 000 2 000 12 000 (135 accls) 2000 1 000 2000 Sella Level un9m8ed a 5 76 S 600 9 780 $ 935 5 1100 3 700 S 700 $ - 00 Curbside RecycOrg NO NO NO WEEKLY NO NO NO NO Kama City Windom NO Pierce Kansas Karma Population loco 142 000 (390 ants) Semi Level unhealed $ 565 $ 5 40 S 575 Curbnde Recycling NO NO NO Hilton Farnkop% y Hobson LLC 29 City of Fort Collins Limitations of Rate Surveys When considering the findings of a rate survey of this type, comparing rates is valuable as a reality check' but there are often significant differences among operations (e g municipal versus private cost allocations, subsidies between residential and commercial services tip fees wage rates) which can have a material effect on the rates and the findings of subsequent comparisons Additionally the method of procurement of services (sole source or competitive bid) current competitive pressures and pricing decisions (e g , rate subsidies and volume -based rates) also impact rates With that said, however it does appear that contracting of residential trash collection in those jurisdictions surveyed has resulted in lower rates 30 Trash Districting Stndy Cimpter 6 Other Districting Impacts CHAPTER 6 OTHER DISTRICTING IMPACTS In addition to reduced truck traffic and a potential decrease in rates, there are a number of other advantages and disadvantages that should also be considered including improved aesthetics, comparability in services and rates decreased liability, improved reporting and record keeping and rate stability There are also disadvantages that should be understood Finally, elements of successfid districting projects have been identified OTHER BENEFITS OF DISTRICTING In addition to the benefits described elsewhere there are a number of less tangible but equally important benefits of districting These include Improved Aesthetics Currently many adjacent residents place their containers out for service on different days and times This can detract from the appearance of a neighborhood because there may be trash containers placed at the curbside for collection throughout the week Additionally containers currently come in all shapes and sizes and differing colors Under a districted system, typically, all containers are placed for collection at the same time and on the same day so streets are free of trash and recycling containers six days out of the week Additionally containers can be standardized and if carts are used, no detached lids are needed These changes generally result in improved overall neighborhood aesthetics Comparable Services Under the current open system residents may be receiving different levels of service These differences may include bigger or smaller recycling containers more materials recycled and different trash can/cart sizes Further companies may only offer particular levels of service and may provide different levels of customer service and responsiveness In a chstncted system all of the services throughout the City would be comparable, unless the City elected to offer differing services among the districts Even if that were the case adjacent residents would have similar services Additionally districting could help the City create incentives to improve overall landfill diversion levels by increasing recycling Hilton Farnkopf & Hobson LLC 31 City of Fort Collins Comparable Rates Theoretically the primary advantage of the open system is that residents have the ability to shop around for the best rates available However based on the response to the survey, residents rarely change collectors Only 121 of the nearly 800 respondents changed their hauler in the last 12 months Also, based on our rate survey of comparable jurisdictions Open Competition systems do not appear to result in the lowest rates Decreased Liability through Collector indemnifications Assuming that the City would enter into collection agreements with each selected collector the agreements provide the City the opportunity to gam certain indemnifications from the collectors It is common for collectors to provide jurisdictions general indemnification for negligent behavior, hazardous waste indemnifications related to CERCLA for the hazardous waste collected by each collector and pass -through indemnifications from the landfill owner/operator These indemnifications provide jurisdictions with greater future rate stability due to protections from unforeseen events typically lawsuits Improved Reporting and Record Keeping Based on our experience collection agreements can require additional reporting and record keeping from the collectors This reporting usually relates to tonnage collected by type (trash and recyclables) trussed pick ups complaints financial information, accounts, account rmx (i e , contamei sizes used), vehicles and new customers Additionally detailed record keeping will allow the City to adjust rates on an ongoing basis, should the City elect to set rates This could help the City on future issues related to the actual levels of waste diversion and in determining the City s fair share of closure/post closure costs or hazardous waste at the County landfill Rate Stability Under an open system the City has no control over current and future residential rates In a competitive drstncting system rates would be set and adjusted periodically based on a pre- determined method This approach ensures the lowest possible initial rate and reasonable future rates DISADVANTAGES OF DISTRICTING The biggest disadvantage to moving to a districted system from the customers perspective is that they will no longer have the option to choose their own collector (without having to pay twice for that privilege) Although the City would select one collector to provide service in each district and require each residential customer to pay for service offered by that designated collector a resident could opt to use a different service provider yet not be relieved of paying the rates charged by the City s designated collector Additionally it is possible that certain residents will have a rate increase because the level of service under the districted system may be greater than that which they currently receive For example if cart service is implemented residents currently using bags will likely incur increased rates 32 Trash Disstnamg Stiidy CITY OF FORT COLLINS Trash Districting Feasibility Analysis May 1,1998 Prepared by HILTON FARNKOPF & HOBSON, LLC Chapter 6 Other Districting Impacts For most residents, their current collector may change as might their current collection day This would result in some inconveniences during the start-up phase of districting Additionally any transition to a new collector results in some service disruptions as drivers are learning their routes This could be limited by the winner being required to hire former route drivers Difficulties can be minimized however if the collectors submit thoughtful transition plans and implement them as proposed Finally, in a districted system there may be an increased amount of City administrative time necessary to manage multiple districts however this could be offset by additional functions currently performed by the City being performed by the collector (such as public education) KEY POLICY CONSIDERATIONS In order to move to a districted system, a number of key policy issues should also be considered Legal Restrictions Colorado law authorizes local governments to arrange for local residential trash hauling services through a competitive process In addition local governments are authorized to charge residential households a fee for those trash hauling services Our analysis is based on the assumption that the City will institute such a fee As a result it is reasonable to assume and we have assumed for the purposes of our analysis that the designated trash collector for any particular district will provide trash hauling services to substantially all of the residential households in that district Billing In prior consultant reports performed for the City there was an assumption that under a districted system the City would have to become the billing agent for the residential customers and mcur the cost to do so This assumption results in considerable expense to the City in order to revise its utility billing system to provide these services Further, if the City performed the billing the rate revenues collected would result in a revenue increase to the City budget which may force the need for an Enterprise Fund and/or be prohibited by annual City revenue increase lirruts However it is very common for collectors to perform the billing function In addition, larger collectors have performed the billing function for smaller ones Finally collectors are currently providing this function and are compensated for this service through the rates charged for service Therefore, in a districted system we have assumed and recommend that the billing function be performed by one or more of the collectors Impact on Collectors Under a districted system, it is possible that the number of collectors providing residential service will decrease from the current six The actual decrease will depend on the number of districts selected and whether or not a collector could be awarded more than one district However it is not clear what impact districting will have on the current number of service providers since their number of current residential accounts serviced by each collector is Hilton Farnkopf & Hobson LLC 33 CaV of Fort Collins unknown Because collectors typically provide commercial and industrial service as well as service to other jurisdictions including the County it is difficult to predict if the loss of the Fort Collins residential base will result in any collector going out of business Alternatively, it is possible through the districting process to encourage teaming and subcontracting relationships to ensure the maximum number of current service providers remain or give preference to a local service provider in at least one district should that be desirable to the City Finally in a districted arrangement the City has some control over the sale or assignment of the collection agreements which would allow them to ensure competition and/or local companies this ability does not exist Under the current open system this is not the case Rates/Services between Districts In our experience jurisdictions typically want all of their residents to receive comparable services and pay the same rate for those services Through districting, the City will gam the ability to ensure that services and, if desired rates are consistent for all residents Conversely the City could allow rates to be set at their proposed or negotiated levels and allow for service differences for comparison purposes, if conformity is not necessary Urban Growth Area It is our understanding that there is a significant urban growth area surrounding the City that is actually in the County It is likely that the City s current collectors are also providing services in this area which impacts the rates charged in Fort Collins One option for the City, if legal and assuming County support, may be to include the urban growth area in the distracting process This is a common practice in California in order to maximize collection efficiencies and minimize administrative costs Additionally if not done it is possible that adjacent city and county residents on opposite sides of the street could receive different services, at different rates which may cause some customer complaints KEY COMPONENTS OF SUCCESSFUL DISTRICTING PROJECTS Based on our experience there are certain activities which if performed correctly will help ensure a successful and smooth transition to the districted system These components include Public Support In order for any major trash service transition to be successful it is essential that the public and advisory groups be supportive and understand the need for the transition or at a minimum not be outwardly opposed To that end the City and HF&H conducted the public opinion survey to better understand the attitudes of the City s residents regarding their current trash and recycling services, and the possible change to a districted system Should the City Council determine that a districted system is their desired alternative the public should be kept informed of the procurement process and the selection of collectors for each district This information allows the public to have input into the process and protects the City from assertions that decisions were made without adequate public information 34 Trash Districting Study Clmpter 6 Otker Districhnq Impacts City Council and Staff Support In addition to public support it is important that the City Council and appropriate staff be involved in all phases of the project This reduces the likelihood of surprises' and helps keep the project on schedule Often, a subcomrruttee of the City Council is formed to work with City staff and their consultant in order to educate the City Council on what are very complex issues Collector Participation" It is also important that the collectors understand the objectives of the City and the possible outcomes of the system change This can be done through periodic meetings with the collectors allowing them the opportunity to review draft documents and providing them an opportunity to comment on the documents If collector comments are incorporated collectors will feel like they have participated in the process rather than having it imposed on them by the City Collector participation should begin early in the process and continue through the awarding of the districts Based on our experience, there are usually collectors that support the process (usually the ones that win a contract) and others who are very opposed (the ones that fall to win a contract) Customer Benefits As one would expect, significant system changes are typically better received by residents if those changes are accompanied by benefits such as rate reductions increased service reduced traffic less noise and pollution etc In regard to service changes increased service in the City s case could include separate yard waste collection or an expanded recycling program A major benefit of successful districting projects is a reduction in the number of vehicles on residential streets These reductions most commonly result from limiting the number of collectors on any given street to one for each service (trash recycling, and yard waste) Recently vehicle innovations have helped reduce the number of vehicles on City streets even further by co -collecting in one vehicle multiple materials (e g recyclables and trash) in separate compartments Community Benefits In a districted system a more unified approach could be instituted to ensure that containers are all similar and trash and recycling collections would always occur on one day only for all residents of a particular street This could improve the visual appearance of a neighborhood Additionally, it is common in districted systems for the City to enter into an agreement with each service provider, which clarifies the terms and conditions related to the provision of services in the City These agreements could allow the City to clearly define the service standards gain certain indemnifications from the collectors ensure long term disposal capacity reduce liability define necessary insurance provisions and other items discussed earlier in tlus Chapter Hilton Farnkopf & Hobson LLC 35 City of Fort Collins This Page Left Intentionally Blank 36 Tmsh Distncttng Study Chapter 7lmplementnig Districts CHAPTER 7 IMPLEMENTING DISTRICTS In order to implement a districted system, certain tasks must be undertaken by the City These include conducting public/Council workshops, document preparation, negotiations and rate setting Based on our experience with other jurisdictions, the start-up costs are likely to range between $71000 and $91,000, for technical assistance provided to the City Other necessary activities Will be performed by the haulers or funded out of the residential rate base as is currently the case START-UP COSTS Should the City decide to implement districted trash and recycling services a number of tasks will need to be completed in order to ensure a smooth transition for the City s residents The entire process typically takes between one and two years, depending on the number of workshops, and other factors Particular tasks to be performed by the City include City Council/public/advisory group/collector workshops or meetings (60 days) Drafting of request for proposals (60 days) Drafting of agreements (included) Evaluation of proposals (90 days) Negotiation of new agreements (60 days), and Developing and approving a revised residential rate structure (45 days) The schedule includes six months to one year for development of proposals implementation of the new program and unforeseen slippage in the schedule including delays in the delivery of equipment (e g carts and trucks) We describe each of the above tasks in greater detail below City CouncilIPublic/Collector Workshops and Notification Requirements As discussed earlier, it is important that the City Council the public and the current service providers be involved throughout the districting process Typically we recommend that the City s objectives be determined in advance in order to guide the procurement process This is often done through the use of surveys and/or workshops By establishing the objectives of the Hilton Farnkopf 6 Hobson LLC 37 Ght of Fort Coffins City in advance it makes the selection process much more straightforward by evaluating proposals against these pre determined objectives We would assume that City Council Workshops/Meetings on districting should be held up to twice prior to the release of any RFP and at least once after the receipt of proposals At least two meetings should be held in advance of the RFP with the collectors in order to solicit their opinions and allow them the opportunity to review and comment on draft procurement documents We anticipate that all of these meetings would be public meetings where the residents of the City would be encouraged to participate This type of approach protects the City from accusations by residents or prospective proposers that they were unaware of what was happening or did not understand how the changes might impact them Drafting the Request for Proposals In order to solicit proposals from the current and other collectors, the City will need to develop a Request for Proposals (RFP) The purpose of the RFP is to solicit proposals from interested parties to provide service in one or more of the districts The RFP should be developed in a manner that ensures an apples to apples' comparison between the proposals and allows the City the opportunity to review the proposals for reasonableness The RFP should also require information which allows the City to evaluate the proposers ability to perform the requested services in a manner that will provide the City reasonable assurances that the collector has the necessary ability both financially and operationally to provide the proposed services Drafting of Collection Agreements In a districted system the City would enter into agreements with their collectors Typically when we prepare RFP s for our clients we recommend that the draft agreement be included in the RFP package so potential proposers can review in advance of the submission of their proposal the desired terms and conditions of the City In their proposal, companies are instructed to identify any exceptions they take to the proposed terms and conditions included in the agreement This approach provides for a much shorter negotiation process than one that provides the selected collector(s) with the draft agreement after selection It is common for collectors in a competitive environment to take rrurumal or no exceptions to the agreement in order to help position themselves during the selection process Evaluation of Proposals Presumably there will be multiple proposals subrrutted by interested parties for each district Therefore it will be necessary to evaluate each proposal and award the districts in a manner that best meets the objectives of the City and meets the evaluation criteria determined prior to the submission of proposals Typical evaluation criteria include, but are not limited to, proposed rates, financial stability, demonstrated history of providing sinular services, and exceptions to the proposed agreement Negotiation of New Agreements Once companies are selected for each district collection agreements will need to be finalized with each collector As stated above by including draft agreements with the RFP and asking proposers to identify their exceptions the City is luruting the negotiations to only those items 38 Trash Districting Study Citapter 7lmp4mienting Districts taken exception to by each proposer This elirmnates the need for protracted negotiations which results in a more ambitious schedule and reduced overall expenses Develop Revised Residential Rate Structure Although the PFP would require bidders to identify their proposed rates it may be desirable for the City to develop a Citywide rate structure Although, it is most common for all residents to pay the same rate for each service it is possible for the City to allow differing rates for similar services In some instances jurisdictions set different rates for senior citizens low income residents and residents that are harder to service due to hilly terrain or private driveways However, since proposers would bid rates and changes to those rates would be a policy decision of the City Estimated Start Up Costs In Table 7 1 below we have estimated the potential start-up costs related to the implementation of a districted system assuming the City contracts for the provision of these services Because a number of these costs are contingent on the number of districts suggested we have provided a range of expenses based on between one and six districts with all other potential start up costs falling within that range Table 71 Estimated Start Up Costs' One District Six Districts Workshops $13 000 $13 000 Drafting of request for proposals $16 000 $18 000 Drafting of collection agreements $12 000 $12 000 Evaluation of proposals $19 000 $23 000 Negotiation of new agreements $5,000 $14 000 Develop revised residential rate $6,000 $11 000 structure Total $71,000 $91,000 We have also included in our districting model $50 000 annually to cover unknown staff or consulting costs for administering the system and for future rate setting and adjustments This There are a number of other expense items described in a prior City report which we have not included in this estin ate These include establishing an enterprise fund a residential generation survey a rate study utility billing programming and public education Based on our experience and understanding of collector billing capabilities and since the collectors are currently billing for these services we have assumed that at least one collector could act as the billing agent for the City and possibly other collectors This would ebminate the need for the City to revue its billing system or create an enterprise fund since revenues would not Bmv through the City finances Only 16 / of the survey respondents were opposed to mailing their bills directly to the collector Based on our experience we believe that a residential generation study would provide only limited value and data collected would be mostly for informational purposes and have little impact on the distracting process There has been substantial analysis on residential waste streams conducted by public agencies and private collectors We believe that the combination of available information and collector experience will be adequate In regard to the rate study we performed that study as part of this analysis and as discussed elsewhere in this report believe that information is interesting but provides little value to the City s duancting approach. The companies as part of their proposals to the City can provide the public education component The City could supplement this effort with their own efforts Hilton Farntopf & Hobson LLC 39 City of Fort Collins amount is included in the rates and would be used to reimburse the City, therefore the City would not have to generate this amount from its general fund 40 Trash Districting Study APPENDIX A Traffic Impact Analysis Summary TRAFFIC IMPACT ANALYSIS SUMMARY Total Number Of flesi ntlal ACCOUOta 28 135 Juna 9] Bierinuai Re Aassumed Vehicle and Payload Weigms Relative Axle Weight Distribution Assumptions Primary Pnmary Recycling Modal 5014 Waste Mcdal Recyaang Solid Wavle Front 37% Front 22% Vehicle Tare (Weighted Ave) . 17 900 28 900 fb 63% Rear 78Y Payload tonnagaiload 1 5 7 0 Model Axle Weights Note Pavloso tarn a is Aaeumed for osovdinif and weighted for said waste Recycling Solid Waste Total Weight 19 400 Total Weight 33 g00 Relatlw Paylged Aasumptlon Front 7 300 Front 7 300 50% Rey 12,100 P. 26.600 reer it Waste Dauhle R..I Single Front weight 26 600 weight SAE 0 403 SAE Recycling Simla. Re, Single Front weight 12100 Weight SAE 0198 SAE crignal analYale check 15 000 single We 0 492 Croas Axle SAE Equwalan e Weight Single Axle Double Axle 7 300 8 000 0 010 0 001 0 026 Total W. r 0 429 8 Coo 0 034 0 003 equivalent can - 537 10 000 0 088' 0 007 12 000 0 189 0 014 14 000 0 360 0 027 7 300 16 000 0 623 0 047 0 026 Tdal SAE. 0 223 18 000 1 000 0 077 equ valant cam 279 20 000 1 510 0 121 22 000 2 180 C 1 B0 24 000 3 030 0 260 26 000 4 090 0 384 2A.000 5 son o ... Street Maintenance Coat Factor 100% 100% Old specification 90% . new specifications S 16 CBS . Annual Maintenance Conavile 250 . Total Residential MIle6 Annual coal adjustment fatly Lifetime Annual maintenance mamtytence coat per mse cost per aide (20 year life) 1994 S 280 000 S 14 000 1995 5 289 800 S 14 490 1996 S 299 943 S 14 997 1997 S 310 441 3 15 522 IAAA S A91 Ing o r. naa iUATION Can TM$Ii TRI1CK5 FEGYlA34O TRUCKS Omer Trucks Number of (X) munber, o1 SAE (Y) number of SAE (Y) Winner of SAE Z lnumber of) SAE 36 500 Vehcle 5 X 00008 5 200 0 429 5 200 0 223 73 000 0 24 36 500 4 X 00008 4 160 0 429 4 160 D 223 73 000 0 24 36 500 3 X 0 0008 3 120 0 429 3 120 D 223 73 000 0 24 36 SCO 2 X 0 0008 2 080 0 429 2080 0 223 73 000 024 30 500 Immil em Increase in Mount total annual Maintenance Tmal SW S Recycling Vehicles Life of Street Us of Seems savingshnse savings Cost Savings (percent) (years) (S/acchml) X 10 19 482 184 8 20 330 747 4 4Y 0 9 5 700 If 175 000 S 0 55 8 211793f0 87% 17 S 1399 S 350000 $ 110 4 22 027 873 13 1% 2 6 $ 2 090 5 525 000 S 1 fib 2 22 876 437 17 4% 3 5 S 2 799 S 700 000 S 2 21 X 8 20 330 747 8 21 179 310 4 21' 0 8 $ 671 $ 168 000 S 0 53 4 22 027 873 B 3Y 1 7 S 1 341 $ 335 000 $ 1 06 2 22 876 437 12 5% 2 5 S 2 012 S 503 000 3 1 59 X 6 21 179 310 4 22 027 873 4 0% 0 8 S 644 S 161 000 S 0 51 2 22 876 437 6 0% 1 6 S 1 287 S 322 000 F S 1 02 X - 4 22 027 873 2 22 876 437 3 9% 0 6 S 619 S 155 000 5 0 49 base tees a reduCtIm of weekly valyJes from 8 to 2 per "dentist in Is 4/30/88 1 12 45 PM FC Traffic Impact FINAL / Truck Impact Analysis Summary CITY OF FORT COLLINS TRASH DISTRICTING FEASIBILITY ANALYSIS Table of Contents EXECUTIVE SUMMARY CHAPTERIBACKGROUND CHAPTER 2 TRUCK IMPACTS CHAPTER 3 PUBLIC OPINION SURVEY CHAPTER 4 DISTRICTING MODEL FINANCIAL ANALYSIS CHAPTER 5 COMPARABLE RATES CHAPTER 6 OTHER DISTRICTING IMPACTS CHAPTER 7IMPLEMENTING DISTRICTS APPENDICES Traffic Impact Analysis Summary Public Opinion Survey Summary of Responses 1 _7 11 21 27 31 37 Appendix A Appendix B Appendix C HdRon Farnkopf & Hobson LLC APPENDIX B Public Opinion Survey WHAT' S YOUR OPINION Of Trash and Recycling Services in Fort Collins Qty of F_ art�> In May 1994 the City of Fort Collins surveyed many residents opinions regarding trash and recycling collection services (referred to collectively as trash collection) We are now conducting a follow up survey to solicit your opinions regarding your current service and the possibility of instituting districted trash collection Under a districted trash collection system, the city would be divided into several geographic areas, and only one company would be designated to collect trash in each district Therefore, you and your immediate neighbors would all use the same trash collection company Those who favor districted trash collection cite the following benefits There would be a possibility of reduced trash bills due to the trash collectors increased operational efficiencies There would be less damage to roadways, since fewer heavy trucks would travel on neighborhood streets There would be an opportunity to increase residential service levels such as adding separate compost collections, or increasing the types of recyclable materials collected There would be less air pollution since fewer collection trucks would be on the road There would be less traffic congestion and improved traffic safety since fewer big trucks would be on residential streets The community s appearance would improve since neighbors would all set out trash containers on the same day of the week There would be less noise since trash would be picked up only one day each week Those who might oppose districted trash collection may cite the following arguments Residents may end up with a new trash collector other than their current company since the Ciry would designate a single company for the entire neighborhood Trash collection schedules may change for residents since the single collector may establish new collection days and times and some residents may have to adjust to different trash pick up days and times Some residents may experience minor temporary disruptions in service since a new trash collector would need to learn the new routes and special services on those routes Some residents may need to use different trash and recycling containers depending on the service offered by the new collector Now you can see why we need your input Please send us your thoughts on districted trash collection It is our continued desire for Fort Collins residents to receive the highest quality lowest cost service Please take a few minutes to complete the survey on the back of this letter and return it in the enclosed postage paid envelope by Friday March 13 1998 Thank Your 4 1�zj- ohn F Fischbach City Manager FORT COLLINS TRASH AND RECYCLING COLLECTION SURVEY In order to more accurately complete this survey please review the cover letter which explains dcstricted recycling and trash services for city residents The following survey is intended to better understand the residents of Fort Collins attitudes regarding their current trash and recycling collection seance and gauge your attitude regarding a potential switch to districted service Your response will help the City better tailor city trash services to the needs of our residents Strongly strongly Dnegree NaNtr Agree 1 The following benefits of distncted trash collection are important to me There would be less traffic in my neighborhood from big trucks 1 2 3 4 5 Traffic safety in my area would improve due to fewer big trucks on the road 1 2 3 d 5 My community would look better with trash out only one day a week 1 2 3 4 5 My trash collection bill might be reduced 1 2 3 4 5 There would be less air pollution in my neighborhood from big trucks 1 2 3 4 5 Fewer big trucks would result in less damage to the roads in my neighborhood 1 2 3 4 5 Trash collection noise would occur only once a week in my neighborhood 1 2 3 4 5 2 The following benefits of keeping trash collection as it is are important to me I would keep my current trash collector 1 2 3 4 5 I would be able to select my trash collector 1 2 3 4 s My trash pick up day and time would stay the same 1 2 3 4 s I would not experience any transitional disruption in service 1 2 3 4 5 1 could continue to use my same trash containers 1 2 3 4 5 3 All things considered, I would like to try districted trash collection 1 2 3 4 5 4 All things considered I would rather keep things as they are 1 2 3 4 5 5 What is the amount of your estimated yearly trash bill? $ 6a Do you haul your own trash to the landfill'? Yes No 6b If you self -haul your trash what is the average number of trips you make per year Trips per Year 7 Please write in the number of trash containers normally set out each week Cans gags for your hauler to collect Carts Other 8 How long have you been with your current trash collector? Years Months 9 When is the last time you considered changing your trash collection company9 Years Months 10 Do you and your neighbors use the same trash collector? Yes No CIRCLE ONE 4tr0ngly strongly liugcaa AgrYe 11 I am satisfied with the quality of my current recycling and trash collection service 1 2 3 4 5 12 I try to do everything I can to recycle instead of throwing materials into the trash 13 I would like to recycle more types of materials 14 I would Ue to receive and use a separate container for my yard waste 15 I am willing to pay more for increased recycling services (i a more types of materials would be collected) 16 I currently set out my recyclable materials for collection 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 Times Per Month 1 2 3 4 CIRCLE ONE ly 17 I understand that the City is exploring optional ways of paying trash bills biz .: faiths ';,�. I would support the following methods Combine my trash bill with the City utility bill 1 2 3 4 5 Mail my trash bill payment directly to the trash collector 1 2 3 4 5 Automatically pay my trash bill through my checking savings or credit card 1 2 3 4 5 18 How many tunes per year would you like to pay your trash collection Times bill9 (other than zero"') Please return this survey in the enclosed postage -paid envelope by Friday March 13 1998 If you have any questions or comments please caU Susie Gordon City of Fort Collin at 221 6265 Thank you for your helpf Get maid >f rt i~ca. b,&. APPENDIX C Summary of Responses Strongly Disagree Neither Strongly Agree 1 2 3 4 5 Total Meal St Dev QUESTION fft—The following benefits districted collection are important tome Less traffic from big trucks 82 39 89 159 407 776 399 1 34 10 6% 5 0% 11 5% 20 5% 52 4% 95 4% Better safety from fewer trucks 92 55 122 172 333 774 377 138 119% 71/6 158/c 222°% 430% 952% Better community appearance 85 51 125 165 351 777 3 83 135 109% 66% 161% 212°% 452% 956%, Trash collection bill might be reduced 117 45 121 144 332 759 370 1 46 154% 59°% 159% 190°% 437% 934% Less pollution from trucks 83 39 102 171 377 772 393 1 34 108% 51% 132°% 222°% 488% 950% Less road damage from trucks 76 36 91 172 402 777 401 130 98°% 46°% 117% 221°% 5170/ 956/6 Less noise from once per week collections 80 32 108 147 410 777 4 00 133 10 3% 41 % 13 9% 18 9°% 52 8% 95 6% QUESTION R2—The following benefits of open collection are important to me Keep current collector 135 73 201 103 242 754 332 3 43 17 9% 9 7% 26 7% 13 7% 321°% 92 7% Select own collector 122 65 185 119 254 745 3 43 1 44 16 4% 8 7% 24 8°% 16 0% 341 °% 916% Retain same collection day &time 173 82 259 63 173 750 297 1 43 231% 109% 345% 84°/ 231% 923% No disruption in service 148 77 249 97 175 746 310 1 40 198°% 103°% 334°% 130% 235% 918% Use the same containers 126 61 214 103 251 755 339 1 44 167% 81% 263% 136% 332°% 929% QUESTION 93-1 would like to try districted trash collection 143 36 83 155 349 766 3 69 153 187/6 47% 108%, 202% 456% 942% QUESTION 114—I would rather keep things as they are 231 109 158 49 172 719 2 75 155 321% 152% 220% 68% 239°% 884% Strongly Disagree Neither Strongly Agree 1 2 3 4 5 Total Mean $t Dev QUESTION M—What is the annual estimated trash bill9 Total responses 664 %of responses 817% High 720 Low 3 Meant 15166 Standard Deviation 8042 Actual Responses Count Amount Count Amount Count Amount 65 12000 3 19200 1 12400 60 10000 3 27000 1 13500 40 20000 3 28000 1 14200 38 15000 3 50000 1 14580 23 11000 2 1500 1 15180 21 16000 2 4200 1 15240 18 13000 2 6200 1 15500 17 10800 2 94 00 1 16300 17 22000 2 9700 1 16400 16 18000 2 11500 1 16470 14 8000 2 12600 1 171 00 12 240 00 2 12800 1 17800 11 25000 2 132 00 1 18500 11 30000 2 13800 1 18800 10 7500 2 148 00 1 19000 10 14000 2 15100 1 20200 10 16500 2 15300 1 20400 9 9000 2 15600 1 20600 9 12500 2 17400 1 20740 9 14400 2 17500 1 21500 7 3600 2 19500 1 21540 7 70 00 2 21900 1 21960 7 9600 2 22200 1 224 00 7 16800 1 300 1 226 00 6 11400 1 1000 1 230 00 6 15200 1 1200 1 232 00 6 17000 1 1800 1 23500 6 21000 1 2000 1 25600 6 22500 1 2500 1 26000 4 5000 1 28 00 1 26100 4 60 DO 1 3000 1 26800 4 6500 1 5500 1 28800 4 8500 1 5600 1 296 OD 4 8800 1 6600 1 302 00 4 10900 1 6700 1 31500 4 11200 1 75 60 1 32600 4 16200 1 7800 1 36000 4 20800 1 78 75 1 37800 4 21600 1 9200 1 39600 4 40000 1 9300 1 40800 3 4000 1 9800 1 420 00 3 48 00 1 10080 1 450 00 3 7200 1 10130 1 480 00 3 10400 1 10920 1 51600 3 10500 1 11376 1 60000 3 13600 1 11600 1 65D 00 3 17600 1 12100 1 72000 Strongly Disagree Neither Strongly Agree 1 2 3 4 5 Total WM SL Dev QUESTION #6 —Do you haul your own trash? Yes No Total 138 646 784 17 6% 82 4% 96 4% QUESTION N6b —Average number of self haul trips per year Total responses 142 % of responses 17 5% High 90 Low 1 MGM 549 Standard Deviation 966 Count Trips 41 2 30 4 27 3 10 6 8 1 4 15 4 12 4 10 4 5 3 8 3 7 1 90 1 52 1 50 1 24 QUESTION #7—The number of containers set out each week. Count Number Cans 240 1 92 2 25 3 3 4 2 05 1 1+ 1 20 1 5 Carts 164 1 4 2 Bags 156 1 62 2 21 3 6 4 5 05 2 6 1 7 1 5 Other 1 Recycle Bin Recycling Bin 1 Recycling Bin Recycle Bin Dumpster 1 Dumpster Toter 5 Dumpster 5 Recycle Box 1 Barrel IBin 1 Recycle i Recycle Cart 1 Recycle Container 1 Recycle Tub 2/Yr 3 Yard Boxes Box Lg Boxes etc Newspapers Papers Recycling Bins Trash Bin Tub Yard Waste 11 EXECUTIVE SUMMARY In 1995, the City of Fort Collins (City) Council adopted a policy to reduce the average number of trash trucks per week on residential streets from six to two on at least 80% - 85% of the residential streets The purpose of this policy is intended to respond to complaints from citizens about trash truck traffic and to reduce street maintenance expenses Subsequently the City engaged a consulting firm to perform an initial Districting feasibility analysis and another firm to identify the costs associated with implementing Districting In February 1998, the City selected Hilton Farnkopf & Hobson LLC (HF&H), through a competitive process to perform a more detailed feasibility analysis of creating a districted trash collection system for residential customers The purpose of this analysis is to provide a greater understanding of what will happen if the City were to award residential trash hauling contracts for specified geographic districts in the City (hereafter referred to as Districting ) Our analysis found many benefits to the City and customers from Districting including f Districting would result in a reduction to the number of trash and recycling trucks traveling on City streets According to the City's model this reduced number of trucks would reasonably be expected to also reduce traffic congestion noise and air pollution and street maintenance costs Assuming an average reduction in trash and recycling vehicles from six to two per week on a typical residential street the associated annual street maintenance cost savings is roughly $322 000, According to our public opinion survey a majority of the City s residents can be expected to support the City's interest in Distnchng According to our economic analysis a Districting system comprised of five or less districts would likely result in savings of as much as $500 000 annually from the current Open Competitive system s current residential rates (Savings could be significantly greater if certain system changes were implemented such as automated collection ) This result is generally supported by our survey of comparable community rates from which we found that Open Competitive systems tend to have higher rates than either municipal or contracted systems, and Other benefits such as improved aesthetics, comparability of services and rates, and reduced City liability may accrue from Districting However our analysis also identified certain disadvantages to the City customers and collection companies Districting will require increased attention by the City Council and staff both during the implementation stage and thereafter (The associated costs are included in our economic analysis and we have assumed that the City would be reimbursed for the cost of these efforts through the residential rates) Hilton Farnkopf y Hobbon LLC : QUESTION #8 How long Math current collector? Total responses 748 % of responses 92 0% High 432 Low 1 Mean 5724 Standard Dmatton 6353 Count Months Count Months Count Months 121 12 4 192 1 44 85 24 3 21 1 46 79 36 3 122 1 50 71 60 3 156 1 52 43 48 2 5 1 53 40 120 2 13 1 61 30 72 2 14 1 62 23 6 2 19 1 65 20 96 2 20 1 67 17 240 2 27 1 68 15 1 2 38 1 69 14 84 2 42 1 75 14 180 2 51 1 110 12 8 2 55 1 111 11 18 2 66 1 115 8 144 2 78 1 118 7 9 2 102 1 134 7 132 2 204 1 159 5 4 2 216 1 162 5 11 2 300 1 222 5 30 2 360 1 252 5 108 1 16 1 260 4 2 1 17 1 276 4 3 1 22 1 324 4 7 1 28 1 336 4 10 1 31 1 408 4 15 1 39 1 420 4 29 1 40 1 432 4 54 1 43 QUESTION #9—When did you last consider changing collectors-) Total responses 423 % of responses 52 0% High 432 Low 1 Meat 3115 Standard Deviation 4216 Count Months Count Months Count Months 101 12 4 144 1 14 59 24 4 240 1 17 46 1 3 9 1 19 38 36 3 21 1 25 26 6 2 11 1 38 26 60 2 15 1 39 18 48 2 16 1 54 11 2 2 20 1 55 11 72 2 30 1 61 10 96 2 84 1 69 9 3 2 132 1 85 8 120 2 180 1 122 5 4 1 7 1 432 5 8 1 10 4 18 1 13 QUES11ON #10—Do you and your neighbors use the same collector? Yes No Total 253 442 695 36 4% 63 6% 85 5% Strongly Disagree Neither Strongly Agree 1 2 3 4 5 Total Meal St Dev QUESTION #1" am satisfied with current service quality 28 40 107 209 390 774 415 107 3 6% 5 2% 13 8% 27 0% 50 4% 95 2% QUES11ON #12-4 do everything I can to recycle 19 21 65 208 477 790 4 40 092 2 4% 2 7% 8 2% 26 3% 60 4% 97 2% i QUESTION 413-1 would like to recycle more types of materials 32 31 100 123 470 756 4 28 Ill 42% 41% 132% 163% 622% 930% QUESTION #14-1 would like to use a separate yard waste container 119 54 178 127 264 742 3 49 1 44 160% 73% 240% 171% 356% 913% s Strongly Disagree Neither Strongly Agree 1 2 3 4 5 Total Mm St Dev QUESTION #15—I am willing to pay more for increased recycling 269 108 133 150 105 765 2 63 1 47 352% 141% 174% 196% 137% 941% QUESTION #1" currently set out recyclables for collection this many times per month 89 106 67 355 617 312 115 144% 172% 109% 575% 759% QUESTION #17—I support the following bill payment methods Combine with City utility bill 239 45 93 172 176 725 300 161 33 0% 6 2% 12 8% 23 7% 24 3% 89 2% Mad payment directly to collector 65 46 170 138 284 703 375 130 9 2% 6 5% 24 2% 19 6°/ 40 4% 86 5% Automatic bill payment through account434 53 97 51 51 686 188 131 633% 77% 141% 74% 74% 644% QUESTION #18—How may times per year do you want to pay your bill? Total responses 722 % ofresponses 88 8% High 32 Low I Meet 557 Standard Deviation 358 Count Times 418 4 146 12 76 3 36 6 30 2 10 1 2 5 1 7 1 9 1 24 1 32 Financial Services _ Purchasing Division 215 N Mason St 2n° Floor PO Box 580 Fort Collins CO 80522 970 221 6775 970 221 6707 fcgov com/purchasing REQUEST FOR PROPOSAL P1109 Trash Services Study Written proposals four (4) will be received at the City of Fort Collins Purchasing Division 215 North Mason St 2nd floor Fort Collins Colorado 80524 Proposals will be received before 3 00 p m (our clock) February 22 2008 Proposal No P1109 If delivered they are to be sent to 215 North Mason Street 2nd Floor Fort Collins Colorado 80524 If mailed the address is P O Box 580 Fort Collins 80522-0580 Questions concerning the scope of the protect should be directed to Protect Manager Ann Turnquist (970) 224-6094 Questions regarding proposals submittal or process should be directed to John D Stephen CPPO CPPB Senior Buyer (970) 221-6777 A pre -proposal meeting will be held at 1 30 MST on February 13 2008 at the Community Room 215 N Mason in Fort Collins Teleconferencing service will be provided and please call 970 416 2500 to participate You must state your name and have downloaded the RFP from the following website www fcgov com/eprocurement The answers to all questions will be sent by e-mail to the registered consultants and posted on the Purchasing webpage A copy of the Proposal may be obtained as follows 1 Download the Proposal/Bid from the BuySpeed Webpage https //secure2 fcgov com/bso/login isD 2 Come by Purchasing at 215 North Mason St 2nd floor Fort Collins and request a copy of the Bid The City of Fort Collins is subject to public information laws which permit access to most records and documents Proprietary information in your response must be clearly identified and will be protected to the extent legally permissible Proposals may not be marked Proprietary in their entirety Information considered proprietary is limited to material treated as confidential in the normal conduct of business trade secrets discount information and individual product or service pricing Summary price information may not be designated as proprietary as such information may be carried forward into other public documents All provisions of any contract resulting from this request for proposal will be public information Sales Prohibited/Conflict of Interest No officer employee or member of City Council shall have a financial interest in the sale to the City of any real or personal property equipment material supplies or services where such officer or employee exercises directly or indirectly any decision - making authority concerning such sale or any supervisory authority over the services to be rendered This rule also applies to subcontracts with the City Soliciting or accepting any gift gratuity favor entertainment kickback or any items of monetary value from any person who has or is seeking to do business with the City of Fort Collins is prohibited Collusive or sham proposals Any proposal deemed to be collusive or a sham proposal will be rejected and reported to authorities as such Your authorized signature of this proposal assures that such proposal is genuine and is not a collusive or sham proposal rev 01/08 The City of Fort Collins reserves the right to reject any and all proposals and to waive any irregularities or informalities Sincerely Jafne B O Neill II CPPO FNIGP Direc r of Purchasing &Risk Management TRASH SERVICES STUDY SCOPE OF WORK Complete a study of trash collection services in the City of Fort Collins, Colorado that will 1) review the City's current solid waste reduction policies and programs, 2) supply data to address a variety of questions about the impacts of trash collection in the community, and, 3) provide a comprehensive and detailed list of options for making improvements to the current system in terms of collection efficiency, air quality and neighborhood considerations, and waste diversion The consulting team will work closely with a team of City staff including representatives from Natural Resources, Engineering, City Attorney, Finance, and Purchasing departments PROJECT DESCRIPTION To address trash services questions in Fort Collins, the City will hire a consultant or consulting team to prepare a comprehensive study that answers the following problem statement/question "In what ways can the City reduce the impacts of trash collection services in Fort Collins, addressing issues of air quality, neighborhood aesthetics, noise, other neighborhood impacts and the cost of street wear9 Are there ways that the City might also improve diversion rates for recyclables9 ' The City Council has allocated a total project budget of $60,000 The project will rely on consulting assistance to prepare background research and data regarding trash collection issues (causes and effects), and options for addressing these issues The range of options under consideration will include, but are not limited to • Null alternative —no changes to the existing open/competitive system • Regulatory actions which address one or more of the identified issues noise, air quality, neighborhood aesthetics, safety, street damage and/or recycling diversion rates • Districting of trash service with City billing and awarding of districts The consulting team will work with an inter -departmental team for the purposes of completing three separate tasks, as follows TASK 1 Review the City's current policies (e g , "pay -as -you -throw" and recycling ordinance), practices, and programs that are currently in place to meet the community s adopted goal of diverting 50% of the waste stream from landfill disposal 2/9/00 I Review existing data and practices • Review the City s recycling ordinances and incentive/promotion programs to evaluate opportunities to improve recycling and diversion rates • Evaluate accuracy of City's metrics and measurements for solid waste and recycling diversion rates (including compost and construction debris) 2 Document 'best practices" for trash and recycling services used by other communities and provide data regarding the number of cities with municipal trash collection, districted systems, open competition, or other systems 3 Evaluate the future impact of emerging hazardous waste needs on trash collection service, (e g , mercury, compact fluorescent light bulbs, and a -waste) TASK 2 Data Collection and Analysis 1 Use information from the City, local private trash haulers, and other public agencies (e g , Lanmer County and State) to establish accurate local data on impacts of trash collection services on the community 2 Provide detailed analysis of the impact of typical trash trucks on City streets, including older streets and those which are built to street standards adopted in 1999 • Update model used in previous 1998 study (http //www fceov com/recyclmn/pdf/trash districting feasibility analysis 1998 pdf) to quantify impacts from truck traffic to street maintenance in Fort Collins, and clearly establish new baseline data • Provide comparative evaluation of impacts from trash collection vehicles and other types of service / delivery trucks, as well as buses • Research additional impacts that may occur from over -loaded trash collection vehicles and model this information to establish the impact of trucks based on both 'legal" weights and typical, full -load weights 3 Quantify impacts to air quality, neighborhood safety, and community aesthetics that are related to trash collection 4 Consider applying concepts from Industrial Ecology (i e, Material Flows Analysis) to pull data together in context of achieving community goals and optimizing efficiencies TASK 3 Research and create a list of options for the City of Fort Collins to consider implementing that will help the community achieve greater efficiency in trash collection and increase its waste diversion and recycling Describe which priority actions are recommended by the consultant for implementation 1 Options should include, but are not limited to • Null alternative (no changes to existing open/competitive system) • Changes and/or additions to regulations affecting trash collection • Direct involvement by local government in creating trash collection districts whereby districts are bid upon competitively by private haulers, including analyses of 2/9/00 0 how Vehicle Miles Traveled (VMTs) change under a districted system 0 affects on air quality from the acceleration/deceleration of trash trucks versus the amount of VMTs that occur • Alternatives that make improvements to the system without harming existing haulers • New recycling initiatives 2 Each option should be evaluated for its impacts on street condition, air quality, neighborhood aesthetics, safety, noise, and estimated cost of implementation 3 Professional suggestions for additional alternatives to consider evaluating could include, but are not limited to • Technology innovations in the hauling industry which may address one or more of the identified issues • Regulation of haulers to improve either mileage (Vehicle Miles Traveled,) such as route planning software, mileage tracking or other methods for addressing the impact of trucks on air quality • Regulations on the operation of trash vehicles, including weight limitations and enforcement of overweight violations • Improvements in recycling and diversion rates that may reduce the impact of trash trucks on streets • Establishment of local environmental fee by City government to pay for waste diversion programs • Pursuit of regional solutions 4 Prepare report that includes data analysis, pros / cons of each option presented, a graphical representation of how each option addresses the issues of concern (i e , air quality, noise, damage to streets, etc ), and, professional recommendations on which option(s) would be most feasible and/or effective for the City to implement TIMELINE Timeline for 2008 Trash Services Stud February 13, 2008 Optional bidders meeting February 22, 2008 3 00 P M Proposals due Week of March 3, 2008 City interviews, select bidders March 3-12, 2008 Negotiated contract finalized March 14 — June 6, 2008 Initiate and implement work on project June 6, 2008 Completion of project June 24, 2008 Final report due 2/9/00 DELIVERABLES Written outline of the schedule for completing tasks Complete final report and analysis of various solid waste collection strategies or systems (three hard copies and electronic files of all materials), including • Executive summary Prioritized list of consultants professional recommendations for actions that the City could take to increase trash collection efficiency, address impacts of trash collection on streets and neighborhoods and improve recycling rates OTHER Consultants must provide rate schedules for themselves and subcontractors as part of submitted responses References must be provided for consultants and subcontractors Deliverables must be provided within 80 days of the notice to proceed Any requests for extensions to deadlines must be approved by the City in advance Selection of consultant will be determined based on the criteria attached Interviews may be requested with selected firms Consultant may be asked to make a presentation(s) to the City Manager and the Council FOLLOW-UP WORK ORDERS City reserves the right to use selected consultant(s) for additional contractual work during the next year PREFERRED QUALIFICATIONS FOR CONSULTING TEAM Consulting team's experience in the following areas is seen as critically important to the success of the project • solid waste, recycling, and trash collection planning for municipalities • pavement design, engineering, and management • analysis of truck traffic impacts on maintenance costs • transportation data collection (i e , trips, truck loads etc ) Examples of previous work in these areas of emphasis should be provided Use of qualified subcontractors for any part of the work is permissible, each company must be fully identified in responses submitted to this RFP 2/9/00 REVIEW AND ASSESSMENT Professional firms will be evaluated on the following criteria These criteria will be the basis for review of the written proposals and interview session The rating scale shall be from I to 5, with 1 being a poor rating, 3 being an average rating, and 5 being an outstanding rating WEIGHTING QUALIFICATION STANDARD FACTOR 20 Scope of Proposal Does the proposal show an understanding of the project objective, methodology to be used and results that are desired from the project9 20 Assigned Personnel Do the persons who will be working on the project have the necessary skills? Are sufficient people of the requisite skills assigned to the project9 10 Availability Can the work be completed in the necessary time? Can the target start and completion dates be met9 Are other qualified personnel available to assist in meeting the project schedule if required? Is the project team available to attend meetings as required by the Scope of Work9 10 Motivation Is the firm interested and are they capable of doing the work in the required time frame9 20 Cost and Do the proposed cost and work hours compare Work Hours favorably with the project Manager's estimate? Are the work hours presented reasonable for the effort required in each project task or phase? 20 Firm Capability Does the firm have the support capabilities the assigned personnel require? Has the firm done previous projects of this type and scope9 2/9/00 City of Fort Collins Customers will lose their ability to choose their collector, unless they are willing to additionally pay a second collector (This did not appear to be a major drawback in the public opinion survey responses ) Districting will probably result in changes that will adversely affect customers such as transitionmg to a different hauler adjusting to new services and even increased rates in some particular cases Finally it is almost certain that some of the current collectors may be disadvantaged by Districting It is unlikely that all will continue to provide residential service in the City and those remaining may be operating at lower levels of profitability The degree to which a particular collector is disadvantaged is directly related to the proportion of their profits which result from residential operations in the City We conclude from our analysis that it is in the City's and customers overall best interest to create up to five districts and contract exclusively with one collector for service in that district Whether the non -economic disadvantages of Districting outweigh both the non economic benefits and the significant economic benefits is a decision which the City Council must make it Trash Distncting Shiny Reference evaluation (Top Ranked Firm) The project Manager will check references using the following criteria The evaluation rankings will be labeled Satisfactory/Unsatisfactory QUALIFICATION STANDARD Overall Performance Would you hire this Professional again Did they show the skills required by this project? Timetable Was the original Scope of Work completed within the specified time9 Were interim deadlines met in a timely manner9 Completeness Was the Professional responsive to client needs, did the Professional anticipate problems? Were problems solved quickly and effectively9 Budget Was the original Scope of Work completed within the project budget? Job Knowledge a) If a study, did it meet the Scope of Work? b) If Professional administered a construction contract, was the project functional upon completion and did it operate properly9 Were problems corrected quickly and effectively? PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT made and entered into the day and year set forth below by and between THE CITY OF FORT COLLINS COLORADO a Municipal Corporation hereinafter referred to as the City" and [insert either a corporation a partnership or an individual doing business as hereinafter referred to as Professional' WITNESSETH In consideration of the mutual covenants and obligations herein expressed it is agreed by and between the parties hereto as follows 1 Scope of Services The Professional agrees to provide services in accordance with the scope of services attached hereto as Exhibit A consisting of ( ) pages and incorporated herein by this reference 2 The Work Schedule [Optional] The services to be performed pursuant to this Agreement shall be performed in accordance with the Work Schedule attached hereto as Exhibit B' consisting of ( ) pages and incorporated herein by this reference 3 Contract Period This Agreement shall commence 200 and shall continue in full force and effect until 200 unless sooner terminated as herein provided In addition at the option of the City the Agreement may be extended for additional one year periods not to exceed four (4) additional one year periods Renewals and pricing changes shall be negotiated by and agreed to by both parties The Denver Boulder Greeley CPIU published by the Colorado State Planning and Budget Office will be used as a guide Written notice of renewal shall be provided to the Service Provider and mailed no later than ninety (90) days prior to contract end 4 Early Termination by City Notwithstanding the time periods contained herein the City may terminate this Agreement at any time without cause by providing written notice of termination to the Professional Such notice shall be delivered at least fifteen (15) days prior to the termination date contained in said notice unless otherwise agreed in writing by the parties All notices provided under this Agreement shall be effective when mailed postage prepaid and sent to the following addresses Professional City With Copy to City of Fort Collins Purchasing PO Box 580 Fort Collins CO 80522 In the event of any such early termination by the City the Professional shall be paid for services rendered prior to the date of termination subject only to the satisfactory performance of the Professionals obligations under this Agreement Such payment shall be the Professional's sole right and remedy for such termination 5 Design, Proiect Indemnity and Insurance Responsibility The Professional shall be responsible for the professional quality technical accuracy timely completion and the coordination of all services rendered by the Professional including but not limited to designs plans reports specifications and drawings and shall without additional compensation promptly remedy and correct any errors omissions or other deficiencies The Professional shall indemnify save and hold harmless the City its officers and employees in accordance with Colorado law from all damages whatsoever claimed by third parties against the City and for the City s costs and reasonable attorneys fees arising directly or indirectly out of the Professional s performance of any of the services furnished under this Agreement The Professional shall maintain commercial general liability insurance in the amount of $500 000 combined single limits and errors and omissions insurance in the amount of $ 6 Compensation [Use this paragraph or Option 1 below ] In consideration of the services to be performed pursuant to this Agreement the City agrees to pay Professional a fixed fee in the amount of ($ ) plus reimbursable direct costs All such fees and costs shall not exceed ($ ) Monthly partial payments based upon the Professionals billings and itemized statements are permissible The amounts of all such partial payments shall be based upon the Professionals City -verified progress in completing the services to be performed pursuant hereto and upon the City s approval of the Professionals actual reimbursable expenses [Optional] Insert Subcontractor ClauseFinal payment shall be made following acceptance of the work by the City Upon final payment all designs plans reports specifications drawings and other services rendered by the Professional shall become the sole property of the City 6 Compensation [Option 1] In consideration of the services to be performed pursuant to this Agreement the City agrees to pay Professional on a time and reimbursable direct cost basis according to the following schedule Hourly billing rates Reimbursable direct costs with maximum compensation (for both Professionals time and reimbursable direct costs) not to exceed ($ ) Monthly partial payments based upon the Professionals billings and itemized statements of reimbursable direct costs are permissible The amounts of all such partial payments shall be based upon the Professionals City -verified progress in completing the services to be performed pursuant hereto and upon the City s approval of the Professional's reimbursable direct costs Final payment shall be made following acceptance of the work by the City Upon final payment all designs plans reports specifications drawings and other services rendered by the Professional shall become the sole property of the City 7 City Representative The City will designate prior to commencement of work its protect representative who shall make within the scope of his or her authority all necessary and proper decisions with reference to the protect All requests for contract interpretations change orders and other clarification or instruction shall be directed to the City Representative 8 Proiect Drawings [Optional]Upon conclusion of the protect and before final payment the Professional shall provide the City with reproducible drawings of the protect containing accurate information on the protect as constructed Drawings shall be of archival prepared on stable mylar base material using a non -fading process to provide for long storage and high quality reproduction CD disc of the as built drawings shall also be submitted to the owner in and AutoCAD version no older then the established city standard 9 Monthly Report Commencing thirty (30) days after the date of execution of this Agreement and every thirty (30) days thereafter Professional is required to provide the City Representative with a written report of the status of the work with respect to the Scope of Services Work Schedule and other material information Failure to provide any required monthly report may at the option of the City suspend the processing of any partial payment request 10 Independent Contractor The services to be performed by Professional are those of an independent contractor and not of an employee of the City of Fort Collins The City shall not be responsible for withholding any portion of Professional s compensation hereunder for the payment of FICA Workers' Compensation other taxes or benefits or for any other purpose 11 Personal Services It is understood that the City enters into this Agreement based on the special abilities of the Professional and that this Agreement shall be considered as an agreement for personal services Accordingly the Professional shall neither assign any responsibilities nor delegate any duties arising under this Agreement without the prior written consent of the City 12 Acceptance Not Waiver The Citys approval of drawings designs plans specifications reports and incidental work or materials furnished hereunder shall not in anyway relieve the Professional of responsibility for the quality or technical accuracy of the work The City s approval or acceptance of or payment for any of the services shall not be construed to operate as a waiver of any rights or benefits provided to the City under this Agreement 13 Default Each and every term and condition hereof shall be deemed to be a material element of this Agreement In the event either party should fad or refuse to perform according to the terms of this agreement such party may be declared in default 14 Remedies In the event a party has been declared in default such defaulting party shall be allowed a period of ten (10) days within which to cure said default In the event the default remains uncorrected the party declaring default may elect to (a) terminate the Agreement and seek damages (b) treat the Agreement as continuing and require specific performance or (c) avail himself of any other remedy at law or equity If the non -defaulting party commences legal or equitable actions against the defaulting party the defaulting party shall be liable to the non -defaulting party for the non -defaulting party s reasonable attorney fees and costs incurred because of the default 15 Binding Effect This writing together with the exhibits hereto constitutes the entire agreement between the parties and shall be binding upon said parties their officers employees agents and assigns and shall inure to the benefit of the respective survivors heirs personal representatives successors and assigns of said parties 16 Law/Severability The laws of the State of Colorado shall govern the construction interpretation execution and enforcement of this Agreement In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction such holding shall not invalidate or render unenforceable any other provision of this Agreement 17 Prohibition Against Emplovmg Illegal Aliens This paragraph shall apply to all Contractors whose performance of work under this Agreement does not involve the delivery of a specific end product other than reports that are merely incidental to the performance of said work Pursuant to Section 8-17 5-101 C R S at seq Contractor represents and agrees that a As of the date of this Agreement 1 Contractor does not knowingly employ or contract with an illegal alien Mr. 2 Contractor has participated or attempted to participate in the basic pilot employment verification program created in Public Law 208 104th Congress as amended and expanded in Public Law 156 108th Congress as amended administered by the United States Department of Homeland Security (the Basic Pilot Program ) in order to confirm the employment eligibility of all newly hired employees b Contractor shall not knowingly employ or contract with an illegal alien to perform work under this Agreement or knowingly enter into a contract with a subcontractor that knowingly employs or contracts with an illegal alien to perform work under this Agreement c Contractor shall continue to apply to participate in the Basic Pilot Program and shall in writing verify same every three (3) calendar months thereafter until Contractor is accepted or the public contract for services has been completed whichever is earlier The requirements of this section shall not be required or effective if the Basic Pilot Program is discontinued d Contractor is prohibited from using Basic Pilot Program procedures to undertake pre -employment screening of job applicants while this Agreement is being performed e If Contractor obtains actual knowledge that a subcontractor performing work under this Agreement knowingly employs or contracts with an illegal alien Contractor shall 1 Notify such subcontractor and the City within three days that Contractor has actual knowledge that the subcontractor is employing or contracting with an illegal alien and 2 Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to this section the subcontractor does not cease employing or contracting with the illegal alien except that Contractor shall not terminate the contract with the subcontractor if during such three days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien f Contractor shall comply with any reasonable request by the Colorado Department of Labor and Employment (the Department ) made in the course of an investigation that the Department undertakes or is undertaking pursuant to the authority established in Subsection 8-17 5-102 (5) C R S g If Contractor violates any provision of this Agreement pertaining to the duties imposed by Subsection 8-17 5-102 C R S the City may terminate this Agreement If this Agreement is so terminated Contractor shall be liable for actual and consequential damages to the City arising out of Contractors violation of Subsection 8-17 5-102 CRS h The City will notify the Office of the Secretary of State if Contractor violates this provision of this Agreement and the City terminates the Agreement for such breach 18 Special Provisions [Optional] Special provisions or conditions relating to the services to be performed pursuant to this Agreement are set forth in Exhibit consisting of ( ) pages attached hereto and incorporated herein by this reference THE CITY OF FORT COLLINS COLORADO By James 0Neill ll CPPO FNIGP Director of Purchasing & Risk Management DATE ATTEST City Clerk APPROVED AS TO FORM Assistant City Attorney [Insert Professionals name] or [Insert Partnership Name] or [Insert individuals name] or Doing business as [insert name of business] M Title CORPORATE PRESIDENT OR VICE PRESIDENT Date ATTEST Corporate Secretary (Corporate Seal) EXHIBIT B INSURANCE REQUIREMENTS 1 The Service Provider will provide from insurance companies acceptable to the City the insurance coverage designated hereinafter and pay all costs Before commencing work under this bid the Service Provider shall furnish the City with certificates of insurance showing the type amount class of operations covered effective dates and date of expiration of policies and containing substantially the following statement The insurance evidenced by this Certificate will not be cancelled or materially altered except after ten (10) days written notice has been received by the City of Fort Collins " In case of the breach of any provision of the Insurance Requirements the City at its option may take out and maintain at the expense of the Service Provider such insurance as the City may deem proper and may deduct the cost of such insurance from any monies which may be due or become due the Service Provider under this Agreement The City its officers agents and employees shall be named as additional insureds on the Service Providers general liability and automobile liability insurance policies for any claims arising out of work performed under this Agreement 2 Insurance coverages shall be as follows A Workers Compensation & Employers Liability The Service Provider shall maintain during the life of this Agreement for all of the Service Providers employees engaged in work performed under this agreement Workers Compensation insurance with statutory limits as required by Colorado law 2 Employer s Liability insurance with limits of $100 000 per accident $500 000 disease aggregate and $100 000 disease each employee B Commercial General & Vehicle Liability The Service Provider shall maintain during the life of this Agreement such commercial general liability and automobile liability insurance as will provide coverage for damage claims of personal injury including accidental death as well as for claims for property damage which may arise directly or indirectly from the performance of work under this Agreement Coverage for property damage shall be on a 'broad form basis The amount of insurance for each coverage Commercial General and Vehicle shall not be less than $500 000 combined single limits for bodily injury and property damage In the event any work is performed by a subcontractor the Service Provider shall be responsible for any liability directly or indirectly arising out of the work performed under this Agreement by a subcontractor which liability is not covered by the subcontractor's insurance Chapter 1—Background CHAPTER 1 BACKGROUND Primarily in response to concerns regarding excessive trash and recycling collection vehicle traffic on residential streets which results in ongoing street damage, the City of Fort Collins (City) engaged Hilton Farnkopf & Hobson, LLC (HF&H) to analyze the cost and benefits of switching to a districted trash and recycling collection system from the current open system and to analyze public opinion related to such a change The purpose of the study is to determine if districting could meet the City s primary goals of reducing vehicle traffic in residential neighborhoods and reducing costs to residents Other policy and programmatic implications that should be considered were also to be identified BACKGROUND Overview of Current System The City maintains an open system for trash and recycling collection In an open system the resident has the ability to select its collector from any company that maintains a City license to haul trash and recyclables within the City Currently, there are six licensed collectors 1) BFI Waste Systems, 2) Dick s Trash Hauling 3) Gallegos Sanitation, Inc, 4) Ram Waste Systems Inc 5) S&S Sanitation, and 6) Waste Management These collectors range in size from very small privately held companies to the largest publicly traded solid waste management companies in the world Typically residents receive weekly trash collection using either customer supplied containers or company supplied carts The Hilton Farnkopf & Hobson LLC 1 Cav of Fort Collins collectors must offer recycling service Typically this service is provided using a company provided 18-20 gallon bm (tub) Each rate shown below includes a service fee of $4 00-$5 00 and the remainder of the rate is volume based (e g $4 00 for the first 33 gallons and $4 00 for each additional 33-gallons) per City requirements As Table 1-1 below describes The rates for 2 33 gallon cans range from $12 60 to $13 70 a difference of 8 7% or only $13 20 a year The prices for 90 gallon cart service range from $16 95 to $22 86, a difference of approximately 35% The difference in cart service rates may result from the number of cart accounts each collector services (both inside and outside of the City) and the collectors relative economies of scale related to purchasing the carts and collection efficiency Table 11 1997 Residential Rates Category (Includes Service Fee) BFI Dick's Gallegos Ram SO Waste Mgt 1 33 gallon can $8 33 $9 00 $8 35 $9 10 $8 40 $910 2 33 gallon can $12 66 $13 00 $12 65 $13 70 $12 60 $13 70 3 33 gallon can $16 99 $17 00 $16 95 $18 30 $16 80 $18 30 1 65 gallon cart N/A $17 50 $12 65 $13 70 WA $13 70 190 gallon cart $17 00 $20 00 $16 95 $18 30 $22 86 $18 30 What a Districted System Means for Residents Under a districted trash collection system, the City would be divided into one or more geographic areas and only one company would be designated to collect trash and recyclables in each district' Therefore a resident and their immediate neighbors would all use the same collector Benefits of a districted system from a resident s perspective often include The opportunity for reduced trash bills due to the trash collectors reduced costs which result from increased operational efficiencies, An opportunity to increase residential service levels, such as adding separate yard waste collections, or increasing the types of recyclable materials collected Less damage to roadways, since fewer large trucks would travel on individual neighborhood streets, ' The actual number of distracts would depend on collection efficiencies the number of different collector/recyclers destred by the City and the savings related to fewer districts for residents and the City 2 Trash Districting Study