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#4 Proposed procedures for distribution and care of trash & recycling carts DEPARTMENT OF PUBLIC WORKS MEMORANDUM March 2, 2012 TO: City Council FROM: John Whitcomb, Operations Director SUBJECT: Staff Presentation and Direction from Council, on Proposed Procedures for Initial Distribution and Long-Term Management of Carts Utilized for the Collection of Trash and Recyclables Summary The 2012 Sanitation Fund provides for a conversion from manual collection of trash and recyclables to automated collection utilizing wheeled carts. In previous discussions with the City Council regarding the conversion, several questions have been raised including cart size availability and how cart replacement costs will be handled. The City will have approximately 48,000 carts distributed throughout the community upon conversion to automation, at an estimated value of $2.5 million. These assets need to be properly managed, and procedures established which balance varying customer needs with the goal of minimizing inventory and operating costs associated with cart management. With this in mind, staff recommends the following procedures be established, and would like direction from the City Council relative to their implementation. City Manager Recommendation The City Manager is supportive of the recommendations, but requests City Council thoughts on any possible changes the Council would like to implement. Major Concepts/Assumptions Each residential dwelling unit will receive two carts, one for trash and one for recyclables. Each unit in a multi-unit building (4-unit maximum) will receive two carts, unless otherwise requested. All waste must be placed in carts, with lids substantially closed, in order to be serviced. Two cart sizes are planned: 95-gallon and 65-gallon. The 95-gallon cart will be the default size for both trash and recyclables and residents will be encouraged to utilize this larger cart, particularly for recyclables. A smaller cart is available through the vendor. However, staff does not recommend utilization of this size cart. Experience in other communities shows a smaller cart can be difficult to empty because waste may be “jammed” into them due to their small volume. This is a particularly important issue if the City were to develop a volume-based user fee system in the future, which would provide financial incentive for 1 residents to try to utilize the smallest container. Also, adding a third size cart makes inventory management more complex. All carts will be the same color but will have different colored lids to distinguish the cart used for trash from the cart used for recyclables. This aids in reducing cart body inventory. The lid on the cart used for recyclables will contain an in- mold color graphic with information and illustrations indicating which materials can be recycled. The lid on the cart used for trash may also contain an in-mold label with pertinent information. Carts will come with a minimum 10-year, non-prorated warranty, regardless of vendor. It is expected the carts will have a useful life of 15 or more years. User fee calculations assume the cost of the initial, city-wide cart distribution, including interest, are spread over a 15-year time period. After 15 years, the costs associated with the initial cart distribution could be removed from the user fee calculation, or could remain in the calculation to generate cart replacement capital. Consistent with current collection procedures, individuals with documented disabilities are eligible to receive alternative service provisions. Such instances are managed individually. Prior to Cart Distribution Various educational and informational venues will be utilized to alert residents of the pending change in collection method. These include a dedicated web page, a video production through JATV, media releases and public presentations. A working group comprised of citizens and City staff has been established to help develop and coordinate these activities. Likely in May, residents will be afforded an opportunity to select the 65-gallon cart for trash, recyclables or both. Residents will be notified of this opportunity via a direct mailing. It is anticipated residents will be able to make this request via the City’s website, and/or a website maintained by the City’s cart vendor for this purpose. Requests will also be managed by phone. Residents who do not request 65-gallon carts will automatically receive the 95-gallon carts. Owners of multi-unit buildings will be encouraged to contact City staff to coordinate the delivery of fewer than two carts per unit if desired. Initial Cart Distribution and Tracking Cart distribution will be completed over an approximate 6-week period by the vendor selected to supply the City’s carts. Each cart has a unique serial number and unique RFID (electronic) tag which will both be linked to the address of the parcel receiving the cart. An electronic database containing this information will be maintained to assist in managing cart warranty claims. Handheld RFID tag readers will be utilized to maintain this database, and staff is evaluating the 2 merits of installing RFID readers on collection vehicles. The on-route information collected with these units would provide useful information, particularly in regards to recycling participation rates. The on-route information can also be used to alert staff if a cart is moved from its assigned address. Cart Size Change Requests – “Grace Period” After Initial Distribution After initial distribution of the carts is complete, staff recommends residents utilize their carts for a period of one month before requests for cart size changes are accepted. Experience in other communities shows residents become comfortable with the cart they are using after a few collection events, which will reduce the number of requests from residents to subsequently change cart size. This is particularly important in encouraging the use of the 95-gallon carts. After the first month of city-wide implementation, residents could begin to request changes in cart size. Staff is recommending a four week “grace period” whereby such requests would be accommodated at no additional cost to the resident. Beyond this four week “grace period”, and for residents who requested a 65- gallon cart prior to initial distribution by the vendor and who subsequently wish to change to the 95-gallon cart, staff is recommending residents be charged a service fee whenever changing cart sizes. The proposed service fee is discussed further, below. General Procedures With one exception (noted below) carts remain the property of the City of Janesville and must remain at the parcel to which they were distributed. The following would be included as a base level of service and incorporated into the calculation of the quarterly user fee as provided by City Ordinance 8.64:  Warranty claims. Carts have a 10-year, non-prorated warranty period covering all aspects of the cart.  Carts distributed to residential units which are not newly constructed and which did not receive a cart during the initial distribution in 2012 (vacant homes).  Additional carts for recyclables. Residents must first be utilizing a 95-gallon cart to be eligible for a o second cart. Residents would be charged a $15.00 service fee for the following:  Changing cart sizes after the initial “grace period”.  Replacement of a stolen cart provided the resident first completes an incident report with the Police Department.  If a resident moves into an existing dwelling unit that was provided a cart and the cart has been removed. 3  Residents could avoid being charged the service fee by dropping off and/or picking up carts at the City Services Center. Residents would be charged the prorated purchase cost of a cart, plus a $15.00 service fee, for the following:  Provision of a cart to a residential dwelling unit constructed after the initial cart distribution in 2012. This is proposed because newly constructed units will not have o paid, through the user fee, the full cost of carts initially distributed in 2012. For example, if a new home is constructed and occupied in 2015 o the resident would be charged 20% of the cost of a new cart (2015 – 2012 = 3 years / 15 year cost recovery = 20%  The proration period includes only the first 15 years after the initial cart distribution in 2012, consistent with the timeframe for recovery of costs associated with that initial cart distribution.  Residents could avoid being charged the service fee by picking up carts at the City Services Center. Residents would be charged the full purchase cost of a cart plus a $15.00 service fee, for the following:  Replacement of a stolen cart if the resident is unwilling to complete an incident report with the Police Department.  Replacement of a cart with a non-serviceable body after the warranty has expired, unless the body was made non-serviceable as a result of negligent actions by City collection personnel. A non-serviceable cart body is one which is cracked and/or in a condition which does not allow it to be safely lifted by the collection vehicle’s automated arm  Additional carts for trash collection. Residents must first be utilizing a 96-gallon cart to be eligible for a o second cart. Additional trash collection carts purchased by a resident remain the o property of the resident. Cost for any post-warranty repair parts for such carts, plus any service fees, would charged to the resident  Residents could avoid the $15.00 service fee by dropping off and/or picking up carts at the City Services Center. 4