Alternatives to an Open Competitive Commercial Collection Program Presented by Robert Craggs RAM/SWANA Conference October 2018
Burns & McDonnell Our Mission: Make Our Clients Successful Full Service Consulting - Engineers, Architects, Scientists, Economists, Planners, Constructors Solid Waste and Resource Recovery Practice since 1970 2
Commercial Waste Collection Evaluation Study 3
Commercial, Industrial, and Multi-Family (CIM) Collection Open competitive collection system for commercial, industrial, and multi-family (five units or more) generators Licensing for haulers of solid waste with approximately 70 licensed haulers including approximately 400 collection vehicles Required base and vehicle licensing fees accompanied by general business information, certificate of insurance, and vehicle information No licensing or reporting information requirements for haulers of recyclable materials 4
Applicable City Ordinances All commercial businesses and property owners must offer collection of recyclable materials Adequate containers and frequency of service at least twice a month Distribute written program information Enforced by Fire Marshal s Office All multi-unit buildings with two or more dwelling units must offer opportunity to recycle to tenants Adequate containers in convenient locations Distribute written program information Enforced by Solid Waste and Recycling Division without dedicated funding 5
Commercial Waste Collection Evaluation Study 6
City of Portland, Oregon Hauler Licensing Mandatory recycling with City goal of a 75% recovery rate Open competitive market Approximately 37 licensed haulers Haulers required via licensing to offer collection of target materials (including food scraps and C&D) and provide quarterly reports on quantities collected Unique solid waste management system where all commercial refuse collected is transported to a Portland Metro transfer station with a system wide tipping fee and then long hauled for disposal Program funding based on levying a $8.30 per ton fee on every commercial ton collected in the City 7
City of Austin, Texas Standards via Ordinance Zero waste goal by 2040 Open competitive market with 24 licensed haulers Universal Recycling Ordinance (URO) with phased implementation Recycle specific materials (recyclable materials and organics) Ensure container capacity and convenient location Provide education to generators supported by City s business outreach Annual reporting Annual diversion plan required Funded through Clean Community Fee levied on all generators (residential and commercial) SQ FEET 75,000 50,000 25,000 5,000 ALL RECYCLING 10/1/2013 10/1/2014 10/1/2015 10/1/2016 10/1/2017 8
City of San Diego Non-Exclusive Franchise Zero waste goal by 2040 Open competitive market for commercial collection with two tier licensed haulers threshold > 75,000 TPY Each hauler provided a non-exclusive franchise for a seven year term with option for one year renewals Haulers subject to a per ton collected franchise fee Requirement to meet 50% diversion target by 2020 City Council voted down proposal to establish exclusive commercial waste collection zones in October 2018. Approved alternative proposal that included the following: Extend term of franchise agreement to 12 years (2024) with option for one year renewals Require conversion to alternate fuels of 100% of non-roll off trucks by 2025 and roll-off trucks by 2028 Meetings with haulers at the city's discretion to evaluate waste diversion requirements and requirement to certify access to adequate infrastructure to meet diversion targets Increase franchise fee in 2019 and then again in 2022 9
City of Los Angeles, California Exclusive Franchises Los Angeles has a zero waste goal defined as a diversion rate of 90% by 2025 and 100% by 2050 Open competitive market More than 70,000 accounts Estimated 45 licensed haulers Awarded contracts to seven (7) haulers to provide services for eleven (11) exclusive franchise zones in exchange for franchise fees Contract term of 10 years with two, five year renewal options providing uniform rates throughout the City Implementation began in 2017 10
Benchmarking Benchmarking Summary Matrix Background Policy Tools Program Funding City Population1 1 Commercial Diversion Rate Targeted Outreach and Assistance to Generators Program Standards via Ordinances and Rules Mandatory Recycling Austin 913,000 NA Los Angeles 3,930,000 70% Miami 430,000 NA Portland 620,000 65% San Jose 1,016,000 78% Minneapolis 407,000 NA = Primary Policy Tool Focus NA Not available 1 U.S. Census Bureau, 2014. Complaint Driven Enforcement Hauler Licensing Non-Exclusive Franchise Exclusive Franchise Material Disposal Bans Licensing Fees Franchise Fees Hauler Recycling Fee (AB939) Tonnage Surcharges Generator Fees 11
Commercial Waste Collection Evaluation Study 12
Identify Alternative Strategies and Options Targeted generator outreach and assistance Enhanced enforcement of City ordinances Expand hauler licensing and establish minimum service standards Mandatory generator recycling plans coupled with material disposal bans Transition to a non-exclusive franchise within the City Establish organized commercial collection within the City Municipalization of commercial collection through use of City staff and equipment 13
Program Funding Options Licensing fees Hauler franchise fees Disposal tonnage surcharges Generator fees General fund 14
Determine Evaluation Criteria Legal Feasibility Government Offices Difficulty of Implementation Projected Growth in Diversion Implementation Activities Hauler Reporting and Rate Transparency Capacity to Raise Revenues for Implementation Transportation Benefits and GHG Reductions Costs to City 15
Commercial Collection Strategy Legal Feasibility Projected Growth in Diversion Hauler Reporting and Rate Transparency Transportation Benefits and GHG Reductions Difficulty of Implementation Implementation Activities Capacity to Raise Revenues for Implementation Costs to City Evaluate Options Composed of Strategies (Example) Option E - Targeted Outreach, Mandatory Recycling and Non-Exclusive Franchise Targeted Generator Outreach and Assistance Yes Low/ Medium Low Low Low Procure staffing resources Train staff (if needed) Coordinate assistance with Hennepin County Low Low Mandatory Generator Recycling Plans Coupled with Material Disposal Bans of Recyclable Materials Transition to Non-Exclusive Franchise Feasible if tied to compliance Potentially requires following organized collection statute Medium/ High Medium Low Medium Medium Low/ Medium Medium/ High Medium/ High Procure software to establish database of businesses Develop detailed programmatic requirements Add staff to review plans and provide technical assistance Revise ordinance Confirm applicability of organized collection requirements Low Medium Medium/ High Medium/ High 16
Commercial Waste Collection Evaluation Study 17
Stakeholder Feedback City Steering Team composed of representatives from Solid Waste and Recycling Division, Sustainability Office, Mayor s Office, City Council, and MPCA. Gathered input from: Various business sectors Downtown business council Multi-family housing Commercial haulers 18
Summary of Findings A number of U.S. communities are implementing program alternatives to improve rate equity, consistency in services, reduce VMT, and foster additional commercial waste diversion. Program feasibility is based on key factors including: generating adequate program funding customer and hauler stakeholder support community alignment of selected policy approaches commercial materials diversion targets 19
Summary of Findings Strategies and options considered by communities vary, but typically include: Generator/business outreach and assistance strategies Well-defined local regulatory framework for haulers and commercial generators Creation of a fee mechanism to establish sustainable program funding beyond licensing fees 20
Next Steps Gather additional input from commercial haulers and CIM generators to identify opportunities and barriers to program implementation. Monitor and evaluate the licensed hauler data (quantities of refuse and recyclable materials collected, generator-type and county of origin) submitted annually to MPCA beginning in 2017. Establish an internal City working group with broad representation to assess preferred options. 21
Robert Craggs rwcraggs@burnsmcd.com 22