Discussion and direction on Solid Waste Rate Structure and future waste diversion strategies.

The City of Flagstaff Solid Waste system has been operating under the same collection rate system since it was last adjusted in 2008. During this ten year period, the number of collection routes and demand for services, such as bulk pickup, have increased significantly. In addition, Environmental Protection Agency (EPA) regulations have placed additional mandates impacting the operations of our Cinder Lake Landfill, which may require capital improvements that were not incorporated into the 2008 rate structure. There have also been multiple developments in the waste and recycling industry that have significantly increased the costs to dispose and recycle material produced by Flagstaff residents. 

In working to acheive the diversion goals as outlined in our Rethink Waste Plan, Council asked staff to explore the concept of volumetric pricing and evaluate the costs associated with implementing a volumetric pricing program.

Since the last rate adjustment in 2008, residential customers have increased by 13%, bulky trash tons have increased 36%, and the number of commercial containers serviced have increased by 46%. Staff anticipated increases in service demand and our City operations have been able to manage these demand increases without an increase in staffing or infrastructure. Today, Solid Waste is faced with some operational challenges of an aging fleet and infrastructure and additional maintenance costs. 

With our Cinder Lake Landfill, as additional EPA mandated regulations are required to be implemented, staff is exploring the ability to implement a Landfill Gas Collection and Control System.  The cost for the associated infrastructure to implement this system is significant.

In the past year, international recycling markets have collapsed following an import ban on recyclable material by China. Currently, 60% of the recycling stream has $0 or less value. Additionally, the “lightweighting” of consumer goods and packaging means that it now takes 49% more material to produce a ton. This is important, as the costs of the Solid Waste Section are incurred by volume, while revenue is generated by weight. 

Related to recycling, staff is exploring an annual fund for recycling outreach and allow the City to communicate changes in acceptable materials and reduce costly contaminants in the recycling stream.  Staff is also exploring the potential implementation of a volumetric pricing program into the rate structure. Such programs have been shown to double diversion numbers and was a key strategy identified in the Rethink Waste Plan.