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8.9 Curbside Recycling CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE 5/23/05 TIME 4:00 P.M. AGENDA SECTION NO: ORIGINATING DEPARTMENT: APPROVED FOR AGENDA: 8 CITY MANAGER'S OFFICE ITEM NO. Page 1 9 BY: Dennis M. Kissinger BY: ITEM: Report and recommendation on curbside recyclables collection program. BACKGROUND: As outlined in the Commission Information Memorandum with this agenda packet, the City has been working for several years to establish a viable and responsive program for collection of residential recyclables at curbside. Our community has for many years had a recycling drop-off program through Images, Inc., but the general public, Solid Waste Management Committee and City Commission had requested a curbside collection option for our community. The private sector has been unable or unwilling to establish this type of service. On April 11, 2005, the City Commission approved establishment of Curbside Recycling as a fee service under the City's Sanitation Division, with a July 1, 2005 transition from our pilot program to the regular service program. The Commission had directed staff to develop the program in a manner that its operating costs would be fully covered by user fees. The capital costs could still be covered by capital grants or other funds. Staff's proposed "self-supporting" program assumed we would have 900 households participating by July 1, 2005. At that participation rate, a $4.90 per month fee would generate sufficient revenue to fully cover program operating costs in the first 12 months. June is our critical month for making the transition from the pilot program to the regular program. As of May 20th, we have nearly 700 households signed up. This includes interested pilot program participants as well as non-participants on a waiting list. It appears uncertain at this point whether we will meet the 900 household target by July 1st. If we do not reach the 900 household target, monthly revenues from the $4.90 user fees will not fully cover program operating costs as planned. For example, at 700 households participating, we would have a revenue shortfall of about $11,000-$12,000 for the coming year. While disappointing, this revenue situation is not a crisis. The Sanitation Fund is in solid financial condition and able to absorb a short-term shortfall of this level. We see this as a "bump in the road" in our long-term efforts to encourage waste reduction and recycling, and believe it can be remedied in coming months. Since it is possible we will not be able to meet the Commission's prior direction to have the program operationally self-supporting at start-up, we are bringing this report and staff recommendation to you for your discussion and further direction. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE 5/23/05 TIME 4:00 P.M. AGENDA SECTION NO: ORIGINATING DEPARTMENT: APPROVED FOR AGENDA: 8 CITY MANAGER'S OFFICE ITEM NO. Page 2 9 BY: Dennis M. Kissinger BY: STAFF RECOMMENDATION: 1. Renew authorization for this regular city service to begin July 1, 2005, acknowledging it may not be fully operationally self-supporting at start-up. 2. Reset the target date for the program to be self-supporting with a new financial self-supporting date of July 1, 2006. 3. Authorize and direct staff to develop and implement marketing and other plans in June to add additional customers to the program, in efforts to reach the 900 household target as quickly as possible. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE 04/11/2005 TIME 4:00 P.M. 3ENDA SECTION NO: 8 ORIGINATING DEPARTMENT: APPROVED FOR DEPARTMENT OF PUBLIC WORK AGENDA: ITEM NO. I Page 1 2 BY: f\~ike Fraser r- BY: rt^{ r ~ ~ ITEM: Resolution No. 05-6172. 1. Approval of Cu rbside Recycling as a City service. 2. Resolution establishing fees for Curbside Recycling. BACKGROUND: City staff has been involved in conducting a City Sanitation Curbside Recycling Pilot Program for the last ten months with over 950 volunteer participants. A presentation was made to the City Commission concerning this Program at the March 28, 2005 City Commission Study Session. This same presentation was made to the Salina/Saline County Solid Waste Management Committee at their meeting on March 31, 2005, where the Committee gave support to add this Program to City . services. At this time staff is recommending the City Commission authorize the addition of Curbside Recycling as a separate service under City Sanitation, and that this new service take affect the first of July ,005. FISCAL NOTE: Funds to pay for this new program will come from Sanitation reserves up to the end of June 2005, beyond that point in time user fees will support the service. RECOMMENDED ACTION: 1. 2. Adoption of Curbside Recycling as a City service under the Sanitation Division as presented. Resolution Number 05-6172 - Adoption of the City Fee Structure for recycling coUection . service. City of Salina Sanitation Division Curbside Recycling Pilot Program 2004-05 ..........-........,........-...-...-.- 01y 0( - ~- sarlRèl ~ Curbside Recycling Pilot Program Orientations Sessions Design of the Pilot Program . One year Pílo( Program. . 1.000 vokmteer City Sanitation customers (954 at this time). . No fee charged for Pilot Program participation. . Once a week collection. . Curb-sort system with one truck and onc employee. . Partner with Images Recydìng to process and sell materials. . ProV'ide educational materials for particìpa nts. . ProV'ide a wheeled bin to customers that require assistancc. . Survey the participants. H ¡story I Backg round Over the last few years the Salimi I Saline County Solid Waste Management Committee and City staff have studied the possibilities of offering curbside recycling to City residents. . 2001 - City Internship study of recyding options, along with Solid Waste Committee (SV\(;) and staff review. . 2002. Community telephone recycling survey conducted by the Docking Institute. Additionallntemship study on curbside collection, and Solid Waste Committee I staff review. . 2003 - Internship study developing an operational plan and budget for a Curbside Recycling Pilot Program, plus SV\(; I staff review. . 2004 - Start or a one year Curbside Recyding Pilot Program. Obtained survey input from partidpants. Produced two Pilot Program videos that were shown on Access TV. . 2006 -Input by the Solid Waste Committee and decision by the City Commission wnether to add Curbside Recycling to City Sanitation services. based on the Pilot Program results. Goals of the Pilot Program . Measure support for a subscription based curbsidc collection program. . Better undcrstand what resources are necessary to run . curbsÎde program. . Test and evaluate operoational practices of the Pilot Program. . EV'aluate the impact on othcr City Service5. . Determine the monthly charge for recycling customers in order to offer a break-eV'en service. Materials to be Collected . Plastics #1 - #5 . N ewspa pe rs . Magazines . Mixed Papers (Mish-Mosh) . Steel Cans . Aluminum Cans . Clear Glass . Brown Glass . Green Glass (added 3/05) 1 Pilot Program Budget . T ota! budget of $190,000 for operating and capital expenses. . Operational budget of $60,000. . Capital budget of $130,000 for 8 recyc1ing truck. The bid price on (he truck was $11 <4 ,000 in 2003. . No fees were to be charged to participants for the Pilot Program. . Partnering Agreement with Images Recycling to process, transport, and seU materials collected. Images was 10 keep all revenues from the sale of materials for the Pilot Program. Survey Results . Customer satisfaction was very high with about 97% expressing from satisfied to extremely satisfied with the program. . Customer support by 60% for once a week collection. . About 76% of participants said they recycle from half to the majority of their wasle. . About 27% are new recyclers. The survey indicated that materials from new recyclers. ptus regular recyclers (hat are now recycling more, account for about 46% new materials collected. . About 82% of participants said that they would most likely sign-up for the service if it was under $5- What We Have learned From the Pilot Program . Volume of materials coiled: Newspapers! Mags- 55% (66.9 tons) Mixed Papers 23% (36.5 Ions) Plastics # 1. #5 7% (11.7 Ions) Clear Glass 6% (9.7 tons) . Educational process with customer has improved collection times. The average amounl of monthly information slips has been 199 with a high of 626 (June) and a KJW of <40 (February). Most problems experienced with customer set-outs has been with: colT\lgated cardboard, plastics other than #1-#-5, and green glass. . Of the 954 customers, 69 have requested wheels due to physical difficutties moving the container to the curb. . The 2006 operating budget with one truck and person is estimated at $55,600. Steel Cans Brown Glass Aluminum Cans <4% (6.0 tons) 3% (4.9 tons) 2% (2.5 tons) Annual Future Revenue I Expense Ca Icu lation s Expenses Operational Costs $66,600 Revenues Cus tamer fees ($4.90 ) Landfill tipping fee savings (new materials) $52,920 2,900 $66,800 !&pita! Costs Capital cost (truck I bins I wheels) in the future could be funded through local Venture Grants or other sources depending on availability of funds and strong customer support What We Have learned From the Pilot Program . Participation in the Program has leveled off at 954 customers (target 1,000). . The optimum numbers of customers per week per truck. is 900. . About 66% of customers said the 16.gallon size bin is adequate from .always. to .most of the time: About 4% said that it is never enough. . There are 11 customers that have requested a second recyc1ing bin- . The recycling truck dumps only once a day at the end of the route- . Images has the capacity to handle I unloading addi1ional recycling \r'ehicles. . As of the end of Februa7' estimates showed that Images had made about $15,435 from the sale 0 156210ns of materials. The annual projection would be about $20,580. About half or less would be new revenues. . The average set-out rate of materials is 78% (high 63% . 'ow 73%). . About 96% of customers said the types of materials colfeded are adequate. . The addition of a second truck into the system would help provide back-up in the case of truck problems. GlGn! funds could provide a second trucK. . Projected annual savings of $2,900 in tipping fees from new materials. -... ,- ~ -- u.o ..... "-- . :. ! 11 .. .. .. . , . < ., .- ! - . ~ .. .. .. ..- ! - , .}>' Jf .". .". ~ .". of/. ~ I' I' tl'/ ... r'."..,¡I' ¿>.;' .; . ,,- ." .,¡ " /-./ ",.t!' .,¡I'of ¿"of ./ /.../."I'.,¡I'./ /" -- -.........,. 0.. - ,.. Oor -..... _.... c.r.._~ ,.. Lo_- \:I :. i ~ 11 -- -.-... --; /'/""".,¡I't!' ¿"of.;" /.../ /~I'"I' /' .}>- ~ of 11";' t!' t!'.}>" *' Þ Þ Þ.}>~ ... "-"""'0 "';"" ~,J.~... 2 Staff Recommendations . Volunteer recyding program. . Collection fee 0($4.90 per month guaranteed through June 2006. . A $10 Activation fee for new customers signing up. Pilot Program participants do not pay. . Maximum of 900 custome~. . A second truck would be considered if funds are available and demand is strong. . Service starts on July 1. 2005. . Establish a waiting list for new customers. Questions & Answers Time Line of Events Upon City Commission Approval . City Commission Study Session to discuss the Program. (March 28, 2005) . Solid Waste Committee discussion on the Program. (March 31, 2005) . City Commission action on adding recycling as a City Sanitation service. (April 11, 2005) . Development of a new contract with Images Recyding. (April) . Develop a s¡9n-up form for Pilot Program participants to commit to the new service. Deadline for sign-up would be May 6,2005. (April) . Develop a sign-up list for new customers to take th.e place of those positions that faU below 900, and for future expansIon beyond the 900 customers maximum. (April - ongoing) . Wor1< with the Finance Department to add billing information for recycling customers onto the main computer. (April-June) . The Pilot Program officially begins as a paid service under City Sanitation. (July 1, 2005) 3 RESOLUTION NUMBER 05-6172 A RESOLlTTION AMENDING ARTICLE V OF THE CITY OF SALINA COMPREHENSIVE FEE SCHEDULE BY ESTABLISHING FEES FOR CURBSIDE RECYCLING SERVICES. WHEREAS, the City of Salina provides many specific services for the Citizens of Salina; and WHEREAS, specific individuals benefit from said services; and WHEREAS, it is appropriate public policy to require specific individuals benefiting from specific services to pay all or a portion of the cost of such services; and WHEREAS, Salina Code Section 2-2 provides that the Board of Commissioners shall detennine, by, resolution, all license fees, pennit fees and other user related fees or charges established by the ordinances of the City; SO NOW, THEREFORE BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That the following fees charged by the City of Salin~ are hereby added to Article V and shall be incorporated in the City's Comprehensive Fee Schedule~ Curbside Recycling;. Start-Up Fee Curbside Recycling Service $10.00 $4~90 per month Section 2. That the fees outline in Section 1 shall be effective July 1, 2005. Section 3. That this Resolution shall be in full force and effect from and after its adoption~ Adopted by the Board of Commissioners and signed by the Mayor tills 11 th day of April, 2005. Monte Shadwick, Mayor [SEAL] A TTES T: Lieu Ann Elsey, CMC, City Clerk