Public Works Solid Waste Program Update
 

Over the last year and with a more significant focus in the last few months, Public Works staff has gathered feedback from our Solid Waste Section internal professionals, industry partners, peer cities and have been investigating the business of trash and recycling locally, regionally, statewide and nationally. The variation of programs is vast across the industry and we are seeing trends and best practices aligned within our operations as well as noticing improvements and alternatives that provide meaningful benefit to the enterprise fund health and are more reflective of common practices across the industry.  These program changes are a direct reflection of the listening tour and understanding of the solid waste business. 

The city is responsible for providing trash and recycle services for the community residents.  Residential Trash and Recycle carts (rolling cans) are collected twice weekly at all city residential locations.  Commercial service (dumpsters or bins) is a subscription service that is provided in the open market of collections.  Several private collection vendors provide service to our multi-family complexes, businesses, and construction companies.
 
Once collected, the material is delivered to post collection sites for proper disposal and processing. 
 

• The “trash” is delivered to the city owned and operated Cinder Lake Landfill.  This community asset provides the safe disposal of trash and debris and is located just north of the city on Hwy 89.  At the landfill, we also operate the Hazardous Products Center (HPC) and separate metal appliances, green waste, and inert (concrete, dirt, and asphalt) materials.  

 

• The recyclables are delivered to the Butler Recycling Transfer station for processing, compaction, and shipment to a large industrial Materials Recovery Facility (MRF) located in Phoenix.  This effort is accomplished using our service provider Friedman Recycling.  Freidman provides trailers, transport logistics and the proper processing, and sale to reuse markets and companies.  

 
 
Rationale and Background for program changes –
 
The Solid Waste Fund is an enterprise fund.  In simple terms, the functions and funding are independent of the city general fund, and we operate much like a business focused on the operating costs and a fee structure resulting in a lower cost provided to residents for an essential service.  One important note that does not mirror business; we are not working to achieve a profit. 
 
In the last few years, we have been seeing a trend of a few different dynamics that have been concerning to the fiscal health of the enterprise fund. 
 

1. Equipment operation and maintenance costs – The cost of operating a heavy truck and equipment fleet continue to see inflation impacts that outpace the anticipated budget. Fuel expenses, maintenance costs, and equipment repairs are expensive when addressing the specialized nature of collections and processing equipment.  Much of our annual funding “growth” is now being dedicated to the increasing fuel and maintenance costs.  Larger capital purchases of new trucks and equipment are expensive and up to 2 years out for build and delivery.  This market dynamic has real impacts on the final costs and make truck replacements more difficult.

 

2. Recycling Costs – The city assumed all recycling processing and handling when the long-term provider, Norton Environmental abruptly ended a 25-year contract following an equipment fire at the MRF facility on Butler.  After the incident, the city worked quickly to assume the building and avoid disrupted service to the residents. The processing plant was deemed unsafe and unable to be rehabilitated to a working condition. At that time, the city began a transfer station to send the materials to a modern day and fully functional processing facility in Phoenix. The trucking expenses, processing fees and lower rebates for recyclables has resulted in costs higher than under the previous Norton contract.

 

3. Staffing that matches the service expectations – Staffing has improved over the last year and our vacancy rate continues to decline.  Our service demands are outpacing staffing resources and while we have improved recruiting,  overtime impacts for route coverage is one of our largest expenses.

 

4. Difficulty in maintaining good customer service and schedule – Essential services provided at a lower cost than most private providers create a natural demand for services.  It will continue to be a cornerstone of our success to maintain our customer base and make sure that we can address all locations in a timely manner.  Missed bins and carts only create more work and delayed pick up and even more costly than working to streamline a good well balanced daily routine for customers and drivers alike.

 
A rate study to correct the financial imbalance has been discussed and may eventually be warranted.  It is our belief that maintaining good customer service leads to a productive and low-cost essential service for residents while benefiting employees. These changes will at the least, likely delay or defer future rate studies with likely increases.
 
Operational changes –
           

1. Suspend City collection services on recognized holidays – This creates a more cost-effective service while balancing the staffing needs with service to all customers. Collection services will be modified for a “flex” collections during the same week.  This achieves the required pick up but is adjusted to allow for the holiday time off with a well balanced schedule. There is a substantial cost savings from the financial impacts of overtime pay that often overlaps the holiday.  The landfill will also be closed on the holidays.
2. Commercial Services – As commercial markets are considered “open” with vendor availability,  we will continue to service existing customers and key accounts but suspend the acquisition of new accounts or locations to stabilize the current customer base with excellent regular service. The commercial programs consisting of general bins and roll off service is primarily business accounts.  
3. Bulk Trash – Provide quarterly service to all residents to improve operational efficiencies and better balance the entire collections programs.  The adjustment will allow us to provide regular and predictable services and help reduce the buildup of large, unwanted items throughout the year. The quarterly schedule will streamline our waste management processes, leading to cost savings in fuel, staffing and equipment maintenance that will benefit all residents. By consolidating pickups, we can ensure resources are used more efficiently, minimizing disruption to other regular services, and keeping costs down.  The landfill is always available to rate payers as an inclusive benefit for additional volumes or for those that prefer not to use the bulk trash pick up alternative. 
4. Green Waste program – Our landfill accepts green waste (tree limbs, logs and stumps primarily) at no cost. We are looking at diversion options with local composting operators and hoping to encourage “processed” or chipped material at a discounted price.  This will lead to increased landfill capacity and encourage good stewardship of the renewable resource and reduce the need for city chipping operations at the landfill.  Staff is investigating the blended use of processed chip in daily cover in a more formal manner hoping to balance materials accepted with the actual need.   

Communication of these changes is well underway to our community in many formats. The community presentation will speak to many of these for context.  We are engaged with the communication team at the city, sustainability staff and using multiple tactics to inform the public.  In addition, we are using FAQ documents and providing clear and consistent messaging informing or messaging. To date, we have received inquiries that are realistic and understandable.  Staff has had good success in addressing concerns and working with community members to understand individual impacts.  We anticipate this to be a focus of effort for some time, not unlike other operational changes, we understand that this can be an adjustment and we are working diligently to be understanding and accommodating.