Receive Update on Status of City's Curbside Recycling Contract

The City is currently in year four (4) of a five (5) year contract with ACE Solid Waste for curbside collection of recyclable materials.  The current contract will expire on December 31, 2017.  Please note that the current discussion focuses on the City's current organized curbside recycling contract. The current discussion does not contemplate extending the organized collection into solid waste disposal.

The purpose of this case is to begin discussions on policy direction once the current contract expires.  There are essentially three (3) options that could be considered by the City:

1. Enter into negotiations with the current service provider to again extend the contract
2. Prepare a Request for Proposals (RFP) for competitive bids for curbside collection of recyclables 
3. Migrate to an open hauling system that would allow property owners to choose any City-licensed hauler to provide their recycling services.

State Statute (Chapter 115A Waste Management) requires that residents, including both single family and multifamily residences, have the opportunity to recycle.  The City has historically satisfied this requirement with a contract for curbside collection of residentially generated recyclables.  The current contract specifically addresses all town homes as well as single family residential homes.  Note that apartment complexes and the manufactured home park are treated as commercial accounts and are not part of the current contract.

There are several advantages to operating with a contracted service.  

• Participation rates are typically higher than in an open hauling system (currently, Ramsey's participation rate is at 90%). 
• Generally decreases the number of trucks that would be on a street on collection day (depending on what services a hauler offers, there could be up to four [4] trucks to service one address: garbage, recycling, yard waste, and organics), reducing both traffic volumes and wear and tear on residential streets. 
• More efficient from an administrate and reporting perspective (generally only one hauler submitting tonnage reports, exceptions are for the couple apartment complexes)
• More efficient from a promotion and marketing (oftentimes, haulers have slightly different standards for accepted materials and thus, in an open hauling system, promotion and marketing is more generalized). 
• Opportunity for the City to implement various standards/requirements such as providing labor and equipment for recycling events and assistance with program promotion and education.

Historically, communities that provide recycling service through a contract generally have higher participation rates and greater quantities of materials recycled compared to communities that operate in an open hauling system.  Two exceptions to this, at least within the County, are Andover and Coon Rapids.  However, it is worth noting that both of those communities have a drop off recycling center available for their residents throughout the year (and in the case of Coon Rapids, 1.5 FTE positions dedicated entirely to their recycling program).  Participation rates and tonnage are key factors in this discussion considering that the State's current Solid Waste Management Policy Plan calls for a goal of 54-60% of the total municipal solid waste get recycled (for reference, in 2010, 40% of the municipal solid waste was recycled).

Should the City move to an open hauling system, this would provide more flexibility for property owners to select their own recycling service provider.  This would, however, require some ordinance amendments related specifically to the licensing requirements.  Most notably, City Code would need to be amended to specify licensed haulers offering garbage service must also offer recycling service and that each licensed hauler shall provide monthly tonnage reports to the City. 

As a reminder, the City's recycling program is funded through the Select Committee on Recycling and the Environment (SCORE).  Each community in Anoka County receives a base of $10,000.00 plus another $5.00 per household and has the ability to apply for additional enhancement funds to make improvements to their recycling program.  Ramsey's allocation for 2016 is $61,000.00.  Additionally, the Anoka County Board of Commissioners also sets a tonnage goal for each community (based on 195 pounds per person per year per single family home and 170 pounds per person per year for multifamily buildings of five [5] units or more) and Ramsey's current goal is set at 2,399 tons.  Ramsey has now achieved its recycling goal for twelve (12) consecutive years.

The City has had a contract with ACE Solid Waste since approximately 1998.  ACE Solid Waste calls Ramsey home and has provided good service over the course of almost twenty (20) years.  The City and ACE continue to have a good working relationship.  However, it should be noted that ACE Solid Waste is no longer locally owned; Waste Connections Inc., headquartered in Texas, purchased ACE late in 2013.  ACE continues to provide great service. There were some initial customer complaints submitted to City Staff during the transition in ownership, but it appears that these issues have been resolved. 
 
Alternatives

Alternative 1.  Recommend that the City continue to provide recycling service via a curbside recycling contract either by entering into negotiations with the current hauler or draft an RFP for competitive bids.  Providing recycling as a contracted service will best position the City to continue to meet or exceed its recycling goals.  Furthermore, this would help to limit traffic volumes on residential streets and result in less wear and tear on roads.  This would also provide the City with an opportunity to potentially expand (or at least explore) services covered by contract, such as introducing organics.  This would also be most efficient from an administrative perspective as Staff would only be working with a single hauler regarding education, promotion, and reporting.  Staff supports this alternative.

Alternative 2.  Recommend that the City migrate to an open hauling system.  This would give each property owner the flexibility to choose their recycling service provider but more than likely would result in greater traffic volumes on collection day, more wear and tear and roads, and more Staff time when it comes to preparing required reports due to Anoka County.  Staff would be concerned that this would ultimately result in a decrease in participation as well as an overall decrease in the materials recycled.  Staff does not support this alternative unless an additional recycling opportunity such as a recycling center is considered.

Alternative 3.  Identify specific information the Board feels is needed to make an informed recommendation.  Staff will attempt to gather any requested information and bring this topic back for further discussion at the July EPB meeting.

Staff is handling this case as part of its normal recycling duties, which will be covered through SCORE funds. 

Based on discussion.