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HomeMy WebLinkAbout04-04-22 Study Session Agenda PacketSTUDY SESSION AGENDA CITY COUNCIL CITY OF WHEAT RIDGE, COLORADO 7500 W. 29th Ave. Wheat Ridge CO April 4, 2022 6:30 p.m. This meeting will be conducted as a virtual meeting, and in person, at 7500 West 29th Avenue, Municipal Building, if allowed to meet on that date per COVID-19 restrictions. Some City Council members or City staff members will be physically present at the Municipal building for this meeting. The public may participate in these ways: 1. Attend the meeting in person at City Hall. Use the appropriate roster to sign up to speak upon arrival 2. Provide comment in advance at www.wheatridgespeaks.org (comment by noon on April 4, 2022) 3. Virtually attend and participate in the meeting through a device or phone: • Click here to join and provide public comment • Or call +1-669-900-6833 with Access Code: 882 9071 4163 • Passcode: 294354 4. View the meeting live or later at www.wheatridgespeaks.org, Channel 8, or YouTube Live at https://www.ci.wheatridge.co.us/view Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Contact the Public Information Officer at 303-235-2877 or wrpio@ci.wheatridge.co.us with as much notice as possible if you are interested in participating in a meeting and need inclusion assistance. Public Comment on Agenda Items 1. Appropriation of One Time Revenues – American Rescue Plan and Clear Creek Crossing Reimbursement 2. Residential Organized Waste Strategies 3. Staff Report(s) 4. Elected Officials’ Report(s) Memorandum TO: Mayor and City Council FROM: Patrick Goff, City Manager Allison Scheck, Administrative Services Director DATE: April 4, 2022 SUBJECT: Appropriation of One Time Revenues – American Rescue Plan and Clear Creek Crossing Reimbursement ISSUE: The City is receiving historic and transformative funding from the federal government to respond to the impacts of the COVID-19 pandemic. The City received $2.5 million in 2020, through Jefferson County, from the Coronavirus Aid, Relief, and Economic Security Act (CARES) and will receive $7.9 million in Coronavirus State and Local Fiscal Recovery Funds from the American Rescue Plan Act (ARPA) in 2021 and 2022. CARES funding was designed to help respond to the immediate financial impacts of the pandemic while APRA was approved to address the more strategic and long-term needs of communities. The City is also experiencing an unprecedented level of residential and commercial development during this pandemic which is expected to continue for several years. Revenue associated with this development, such as building use tax and building permit fees, has increased substantially since 2019. The SCL Lutheran Hospital project alone is estimated to generate approximately $8 million in building use tax in 2021 and 2022. Finally, the City received $9.8 million from the Longs Peak Metropolitan District (LPMD) in December 2021 as a reimbursement for the funding the City contributed to the Clear Creek Crossing hook ramp project above and beyond the $10 million allocated from the 2E Bond. All these revenues are considered non-recuring as they are one-time revenues or gains that have arisen from infrequent events that are not expected to continue in the future. It is prudent for the City to take a strategic approach in allocating these funds to ensure they are leveraged appropriately. The following proposal will allow the City to shift formally from response to recovery and keep forward momentum for ensuring our entire community can be stronger in the long term from the negative effects of the pandemic. PRIOR ACTION: The City entered into an intergovernmental agreement with Jefferson County for the purpose of accepting $2,463,142 in CARES Act funding in 2020. The funding was appropriated and fully spent by December 30, 2020, as required by the CARES Act, as summarized in the following table. Staff Report: Appropriation of One-time Revenue April 4, 2022 Page 2 The City hired CliftonLarsonAllen (CLA) in 2021 to assist staff with interpreting the U.S. Department of Treasury’s Interim Final Rules and guidance for spending the ARPA funds. Final Rules were not released by the U.S. Treasury until January 6, 2022. Therefore, minimal APRA funding was expended in 2021 and included in the 2022 adopted budget as summarized in the table below. ARPA Eligible Expenditure 2021 2022 Address negative impacts caused by the public health emergency $178,915 $308,596 COVID related sanitation, PPE, employee vaccine incentives, teleworking technology, CLA consulting COVID related sanitation, PPE, teleworking technology, CLA Consulting, homeless navigation activities FINANCIAL IMPACT: The 2021 and 2022 budgets projected significant increases in revenue growth which will enable the City to continue to meet its ongoing operating expenditures and address the increasing demands from residents. Sales tax revenue in 2021 increased by over 11% compared to 2020 and total General Fund revenue increased by over 12% for the same time period. The 2021 Fiscal Year ended with approximately 35% in undesignated General Fund reserves and the 2022 budget was adopted with a projected undesignated reserve of 25% or $11 million. Sales tax in 2022 is expected to increase by about 4.5% over 2021 and total General Fund revenues are projected to increase by about 4.8%. The infusion of almost $28 million in one-time revenues into the City’s budget is a once-in-a- generation opportunity for the City to tackle some pressing issues in the community. CARES Act funding in the amount of $2.5 million was appropriated and expended during the 2020 Fiscal Year to respond to the immediate impacts of the pandemic. Building use tax revenue from the construction of the new hospital is estimated at approximately $8.0 million in 2021 and 2022. This one-time revenue will allow the 2022 Budget to maintain a 25% undesignated reserve, a transfer of $500,000 to the Equipment Replacement Fund for the future purchase of police radios and an enterprise financial management system, and a transfer of approximately $7.0 million to the CIP Fund in Fiscal Years 2022 and 2023 for an increase in capital expenditures. The $7.9 million in ARPA funding will enable the City to address critical community needs as proposed in the discussion below. The $9.8 million reimbursement from the LPMD will remain on a balance sheet until it is appropriated by City Council; therefore, it is not currently included in General fund reserves. CARES Topic Description Amount Economic Support Business grants and assistance $843,190 Public Health PPE, facility improvements $463,361 Personnel Salary and benefits of staff diverted to pandemic work $757,230 Teleworking Software and hardware for virtual work $188,443 Payroll Paid sick and medical leave due to COVID-19 $210,918 Total $2,463,142 Staff Report: Appropriation of One-time Revenue April 4, 2022 Page 3 DISCUSSION: 1. American Rescue Plan Act The American Rescue Plan Act was signed into law on March 11, 2021. In total, it appropriated $1.9 trillion to address the impacts of the COVID-19 pandemic. ARPA established the Coronavirus State and Local Fiscal Recovery Funds which delivers $350 billion to state, local, territorial, and tribal governments to respond to the COVID-19 emergency and its economic impacts. This funding ensures that governments have the resources needed to: • Fight the pandemic and support families and businesses struggling with its public health and economic impacts, • Maintain vital public services, even amid declines in revenue, and • Build a strong, resilient, and equitable recovery by making investments that support long-term growth and opportunity. The Treasury Department issued its final rule on ARPA in January 2022, increasing the City’s flexibility in terms of timing and usage of the funds. Specifically, the final rule offers a standard allowance of $10 million towards the most flexible use of the funds through “lost revenue” with streamlined reporting requirements. As the City’s allocation is approximately $7.9 million, it means that the entire allocation is considered “lost revenue” and can be spent on almost any government service. For ease of reporting, and in consultation with the City’s auditors, staff will report payroll as usage of the funds in 2021 and 2022. However, the following recommendations for programming of the funds follow the intent and timing of ARPA. Expenses are eligible on or after March 3, 2021, must be obligated by December 31, 2024, and expended by December 31, 2026. Staff Recommendation: Staff recommends funding a number of programs and initiatives that align with the intent of ARPA and meet community needs. Below is a table summarizing the recommendations with an explanation of each category to follow. ARPA Category Description Amount COVID Mitigation and Prevention Testing, vaccine program, sanitation, technology, etc. $613,480 Assistance to Households Homelessness and housing initiatives $2,332,275 Food Insecurity and Assistance to Low-Income Populations Through Community Table, impacts low-income households disproportionately affected by the pandemic $146,000 Behavioral Healthcare Clinician in Wheat Ridge High School and Community Prevention and Engagement Program $481,000 Preventing and Responding to Violence Telephone Reporting Unit staffing and victims’ services $753,872 Lost Revenue Parks and Recreation unfunded capital projects $1,921,652 Water Infrastructure Lena Gulch Simms Overbank floodplain project $1,625,000 Total $7,873,279 Staff Report: Appropriation of One-time Revenue April 4, 2022 Page 4 COVID Mitigation and Prevention This category includes funding for increased cleaning of City facilities and vehicles, personal protective equipment, employee vaccine and testing programs, and technology to support remote and hybrid work and public meetings through 2024. Assistance to Households – Homelessness and Housing Initiatives This category addresses homelessness and housing initiatives through a multi-pronged approach and includes the following: • One additional full-time Housing Navigator to partner with the existing Homeless Navigator in connecting the City’s unhoused population to resources and housing through 2026 • Funding for increased operational expenses including supplies, bus passes, hotel vouchers and emergency relocation funding through 2026 • Estimated City portion of the capital and ongoing operational costs for the regional homeless navigation centers through 2026 • One year partnership with Family Tree to specifically address extended stay guests of Wheat Ridge motels with housing navigation services, rent and security deposit assistance and 4-6 months of case management services • Increased contributions to the Metro Denver Homeless Initiative through the Metro Mayors Caucus in 2022 and 2023 Food Insecurity and Assistance to Low-Income Populations This category includes funding for the Community Table Client Services program, specifically for Wheat Ridge residents, through 2025. The pandemic and the rising cost of food, rent, gas, utilities and medical assistance have placed residents, many of whom have never accessed a food pantry before, in a position where they need a great deal of assistance. Approximately 18% of Community Table families served live in Wheat Ridge. Community Table is preparing for an increase in demand for services of 13% in the next year. Funding will assist Wheat Ridge households with: • Financial Assistance (rent, deposits, utilities, etc.) • Transportation Assistance (bus passes, gas cards, etc.) • Food Assistance Behavioral Healthcare This category funds two specific programs designed to help community members access the tools they need to manage stress and prevent longer term behavioral health and substance abuse problems. Specifically, this program: • Funds a full-time clinician to address the mental and behavioral healthcare needs of students at Wheat Ridge High School for three years. This is a partnership among Jefferson Center, who will provide the clinician, and Jeffco Public Schools who will provide the space and access to students • Funds the Jefferson Center’s Community Prevention and Engagement program in Wheat Ridge for four years. This program provides small and large group trainings on topics such as building resiliency, coping with vicarious trauma, general wellness, self-care, dealing with anxiety, parenting children through stress, suicide prevention, etc. This program was originally funded with FEMA funding which ended in 2021 but the need for continued proactive resiliency building and prevention campaigns is evident in the community. Staff Report: Appropriation of One-time Revenue April 4, 2022 Page 5 Preventing and Responding to Violence ARPA recognizes that violence in many communities has increased due to the pandemic. This category funds the Wheat Ridge Police Department Telephone Reporting Unit and provides funding for victims of crime. • The Telephone Reporting Unit (TRU) was discussed with Council on March 21, 2022 and received consensus to move forward. This category funds two TRU civilian positions through 2026, providing coverage 7 a.m. to 5 p.m., seven days per week. This program allows sworn officers, who have been serving in this position through the pilot phase, to return to the streets and cuts down on the average time of each call for service. • The City partners with several agencies that serve victims of crime including Porchlight Family Justice Center, Victims Outreach Incorporated, Jefferson Center and Ralston House. The City anticipates the need for increased services in this area and has included funds in this category to support the critical and ongoing work of our partners. Lost Revenue While parks and recreation projects are not specifically called out as an eligible use in ARPA, this is a common use of the funds under the “Lost Revenue” category which provides funding for any government service, including parks and recreation capital projects. This category provides funding for the following capital improvements: • Outdoor Fitness Court at Panorama Park. This project was approved by Council on November 22, 2021 and is due to open in June 2022. The Outdoor Fitness Court will provide an additional, outdoor, and free-to-use option for residents to exercise • Panorama Park Tennis Court Replacement. The four asphalt tennis courts at Panorama Park are almost 70 years old and have been resurfaced, on average, every four years with crack repair happening every other summer. The courts are well beyond the typical 20-25 year recommend lifespan and need full replacement with post-tension concrete. This is a good use of ARPA funding because other revenue sources are unlikely, and the current condition of the courts is resulting in injuries and complaints • Fruitdale Park Playground Surface. The playground at Fruitdale Park currently has a woodchip surface. This project installs a pour-in-place surface on this heavily used playground to improve overall safety. In particular, used needles are frequently found in the woodchips which are hard to spot because of the surface. • Prospect Lake Water Quality. Great Outdoors Colorado recently funded the improvements to the fishing pier at Prospect Lake. The lake itself needs water quality improvements through an aeration system so that habitat within the lake, as well as the plants and grass throughout the park, can thrive. • Tabor Lake Trail. Tabor Lake is a popular destination on the Clear Creek Greenbelt. However, due to significant erosion, the trail around the lake’s perimeter is inaccessible to visitors. This project includes the design and construction to make significant trail improvements that will meet ADA requirements. With the workforce housing development replacing the Howard Johnson hotel to the north, safe access to the lake and Greenbelt will add a significant recreational benefit to the area. Water Infrastructure This category provides funding to increase flow capacity to Lena Gulch and reduce flooding in the area in conjunction with the Mile High Flood District who will pay 50% of the total cost. Staff Report: Appropriation of One-time Revenue April 4, 2022 Page 6 The Lena Gulch Major Drainageway Planning Study was completed in 2007. It identified a project in the segment of the gulch with the highest concentration of flood-prone properties that would eliminate 100-year flood damages for 15 residences between Tabor Court and Simms Street. To do this, a 550-foot-long channel is constructed with vertical walls and three drop structures that reduce the channel grade. An additional benefit is a wide-bottom channel that provides an attractive area for riparian plants, habitat for wildlife and a stable aquatic environment. 2. Development Related Revenue Residential and commercial development is at an all-time high in Wheat Ridge generating a significant amount of one-time development-related revenue. As a majority of this revenue is considered non-recuring, it was transferred to the Capital Improvement Program (CIP) budget in 2022 for one-time capital projects instead of relying on this revenue for ongoing operating expenditures. In the past, transfers from the General Fund to the CIP budget averaged below $3 million annually. This infusion of new development-related revenue has allowed the City to transfer $7 million to the CIP budget in 2022 for critical capital projects including bike/pedestrian improvements, bridge maintenance, preventative street maintenance, neighborhood traffic management, city parking lot repairs, and other facility maintenance and repair projects. 3. Clear Creek Crossing Reimbursement As Council is aware, a funding gap of approximately $10 million exists to complete the full construction of the planned Wadsworth Boulevard improvements. Council recently approved a contract with HDR to prepare the second phase construction documents so that the project is shovel ready once funding is identified. Staff will continue to seek additional sources of funding and will apply for Congressionally Directed Spending funds through Senator Bennet and Hickenlooper and Representative Perlmutter for inclusion in the 2022/2023 Fiscal Year infrastructure package, however these funds are far from secure. Wadsworth Boulevard is a major economic driver for Wheat Ridge and the City’s major thoroughfare. The developer of the Corners at Wheat Ridge is currently negotiating with a new tenant to backfill the Lucky’s Market building located in this multi-use center. If these negotiations are successful, a tenant of this size and type will typically generate approximately $750,000 in sales tax revenue annually. This specific tenant has advised the developer that a requirement for them to commit to this building and site is for the second phase of the Wadsworth project to be completed in the near future (18 to 24 months). Staff recommends committing the $9.8 million Clear Creek Crossing reimbursement for this purpose, so that the full Wadsworth improvement program is realized without interruption if no additional funding is secured. Proceeding immediately with phase two of construction will save approximately $1 million in temporary and transitional improvements and mobilization costs and will help to secure a new tenant for the Lucky’s Market building. Should the City be successful in securing additional funding for phase two, Council will have the opportunity to redirect the spending of any remaining Clear Creek Crossing reimbursement funds to other critical capital projects. NEXT STEPS: Staff is seeking consensus from City Council on this proposed spending plan for the $7.9 million in ARPA funding and the $9.8 million Clear Creek Crossing reimbursement. If consensus is reached, staff will bring back more specific spending plans and requests for supplemental budget appropriations to budget the necessary funding for the proposed expenditures. Memorandum TO: Mayor and City Council THROUGH: Patrick Goff, City Manager Marianne Schilling, Assistant to the City Manager FROM: Kayla Betzold, Sustainability Coordinator DATE: April 4, 2022 SUBJECT: Residential Organized Waste Strategies ISSUE: Municipalities in this region have been addressing waste management at the community level by implementing residential organized waste strategies that aim to increase efficiency of waste hauling operations within a city to reduce residential costs, reduce truck traffic and road impacts, improve neighborhood aesthetics and safety and increase environmental benefits, such as increased recycling rates and reduced air pollution. Based on Council direction, staff is presenting an overview of the existing system in Wheat Ridge and various organized waste strategies for Council’s consideration and direction. PRIOR ACTION: At the January 10, 2022 Council meeting, Mayor Pro Tem Hultin and Councilmembers Hoppe and Weaver asked that an overview of existing waste management policies and potential organized waste strategies be scheduled at a future study session. Previously, on August 9, 2010, City Council approved Resolution No. 41-2010, a resolution submitting a ballot question to the registered electors of the City, concerning city-wide residential trash removal. FINANCIAL IMPACT: N/A BACKGROUND: 2008-2010 The topic of organized waste first appeared on the Wheat Ridge resident survey in 2008 when the City asked “To what extent do you support or oppose having a single trash hauler in the City of Wheat Ridge, rather than multiple haulers?” A similar proportion of respondents “strongly” supported (23%) and “strongly” opposed (22%) the City taking such action. 14% said they would “somewhat” support a single trash hauler. City Council first considered an organized waste system in 2010. On August 9, 2010 City Council passed a resolution to put a question on the ballot that fall, and the issue was included as 2 a Wheat Ridge City Franchise Question on the November 2, 2010 ballot with the following language: SHALL THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO BE AUTHORIZED TO ENTER INTO A FRANCHISE OR FRANCHISES FOR CITY WIDE RESIDENTIAL TRASH REMOVAL, INCLUDING RECYCLING AND A SENIOR DISCOUNT, FOR SINGLE FAMILY AND DUPLEX ZONE DISTRICTS? The measure was defeated with 4,064 (35.09%) YES votes and 7,516 (64.91%) NO votes. 2018 to Present The topic of waste management did not appear again on the Wheat Ridge resident survey until 2018, when residents were asked “How important to you, if at all, is it that the City focus on each of the following areas of environmental sustainability, which may or may not increase costs for taxpayers?” with 53% of respondents saying “Diverting trash from the landfill” was “essential” or “very important” and 38% of respondents saying “starting a compost program” was “essential” or “very important”. In 2021, the Wheat Ridge resident survey included specific mention of organized waste, for the first time since 2008. At this time, 55% of respondents said “Implementing organized trash hauling in neighborhoods” was “essential” or “very important” and 62% of respondents said “Expanding access to residential recycling and composting services” was “essential” or “very important”. DISCUSSION: Organized Waste Systems What is Organized Waste? The term organized waste system describes a municipal approach to responsible waste management within a city. Organized waste strategies aim to increase the efficiency of a waste hauling system by streamlining the routes and optimizing the number of providers. Benefits of an Organized Waste System Reduced Truck Traffic. This reduces nuisance noise associated with trash trucks, improves safety conditions for pedestrians and bicyclists, and improves the impact of trash trucks on road conditions. A 2019 City of Lakewood report states that in an open system “a typical neighborhood street experiences an average of 10-12 truck passes every two weeks. Noise from trash trucks may include engine noise, audible backing alarms, and dumping materials”. According to a 2018 City of Arvada study, each trash truck is equivalent to 1,400 vehicles per day in terms of road damage. Improved Neighborhood Aesthetics. Currently, the City does not regulate collection bags and bins or the amount of time bins can be set out in the street, which can result in bins without lids being tipped over by wind and animals, contributing to trash along sidewalks and roads in Wheat Ridge neighborhoods. Cost. Trash collection costs are significantly impacted by transportation expenses. The more efficient a collection route, the less fuel, labor, and maintenance are required, resulting in lower costs for the hauler that can be passed along to the customer. According to a 2019 City of 3 Lakewood report, these organized or “contracted” systems have been shown to reduce rates for residents by 12 to 35 percent. Environmental Impact. Through this type of system, all residents could receive recycling bins and some systems incorporate volume-based pricing, further incentivizing waste diversion and likely increasing recycling rates. Additionally, the reduction in waste hauling trucks and vehicle miles traveled (VMT) would reduce air pollution in the City. Concerns Regarding Organized Waste Systems Lack of Hauler Choice. Lack of choice, market competition, lack of services and municipal costs associated with program creation, implementation and management. Through research and public engagement, other cities in this area have found that many residents desire to choose their own waste hauler. Many residents value a free-market system and cite this as an important aspect of waste hauling. Colorado state law protects resident’s right to contract the waste hauler of their choice (C.R.S. § 30-15-401), so in an organized waste system, individuals would have a choice to opt-out, although there may be a fee associated with this choice. Interest in Supporting Small Businesses. In recent years, many communities, including Lakewood, are experiencing large haulers acquiring smaller haulers. The City of Golden incorporates a Local Preference for Contractors in the City’s overall purchasing policy, which benefits local companies during the waste hauler contracting process. Preferences like this can also be added directly into contract bid requests. Accessibility to Services. Residents may have chosen their waste hauler because they provide extra services, such as cart-to-door service, in which the company returns the cart to the house after servicing it, or large item pickup days and special collection events. These services may be lost if the City moves to an organized waste system. The addition of these services may also increase the costs associated with the organized system. Administrative Cost. There could be increased costs to the City of Wheat Ridge in an organized system, both administrative and financial, to manage an organized waste program and/or contract. City of Wheat Ridge Existing System Currently, there are eight licensed haulers in the City of Wheat Ridge. In Wheat Ridge, there is no municipal code specific to residential or commercial trash or recycling services, other than a code regulating the hours of operation between 7 a.m. to 10 p.m. Haulers in Wheat Ridge are required to obtain a $20 annual business license to operate in the City. Other municipalities in the Denver metropolitian area have additional requirements, such as requiring haulers to provide recycling services (Arvada), pay higher annual business license fees (Denver), and pay fees for each trash and recycling vehicle operating within the city (Westminster). City of Wheat Ridge Waste Diversion Efforts In 2017, the original Sustainable Wheat Ridge committee was appointed by the Mayor and City Council and the group was tasked with developing recommendations in six sustainability topic areas, determined by City Council. One of these topic areas is Solid Waste & Recycling. Within 4 this category, various recommendations reference organized waste strategies, including “Explore waste hauling service zones or route restrictions for residential trash and recycling collection” (SW&R goal 2-Ai) and “Update City municipal code to incoproate progressive solid waste management standards” (SW&R goal 2-B). Based on the direction by Council and the recommendations outlined in the Sustainable Wheat Ridge Final Report and Recommendations, the City has been pursuring a variety of waste diversion efforts. In 2020, the City entered into a partnership with Scraps Mile High to begin a compost drop off program at the Wheat Ridge Recreation Center and City Hall, allowing residents the opportunity to drop off unlimited amounts of kitchen scraps. Additionally in 2020, the City began the Fall Yard Waste Drop-Off Weekend, diverting yard waste, such as leaves, sticks, and other organics from the landfill. The City also received grant funds to purchase 30 zero waste stations that have been used for a variety of Wheat Ridge events, including Performances in the Park, Localworks’ Movies on the Ridge and the Harvest Festival. These zero waste stations are diverting materials from the landfill, while familiarizing Wheat Ridge residents with recycling and composting services. In 2021, the City partnered with the Sustainable Neighborhoods Network and GreenSheen Paint to host the first Citywide Paint Recycling event, a free event for residents that diverted paint, stains and varnish from local landfills. In addition to the paint event, the City continued the Fall Yard Waste Drop-Off Weekend and the four Sustainable Neighborhoods hosted neighborhood leaf collection events. Other waste diversion efforts include the Sustainable Neighborhoods electronics and battery recycling events, which began in 2021 and are ongoing in all four Sustainable Neighborhoods, and the Recycling Resource Guide and household waste audit housed on the City’s Solid Waste and Recycling webpage, which aims to increase awareness of household waste in an effort to set waste reduction goals, and educate residents about how to properly dispose of hard-to-recycle items. The table below reflects the various waste diversion programs in Wheat Ridge, including resident participation and waste diversion numbers. Program Partnering Organization Participation Waste Diversion Metrics Compost drop-off Scraps Mile High 76 participants 540 lbs food/week Compost pick-up Scraps Mile High 62 participants 375 lbs food/week Yard Waste Drop-Off Weekend (2020) Scraps Mile High 110 participants 100 cubic yards of leaves, sticks and yard waste Zero Waste Events Can’dAid Foundation, Localworks 300+ participants 100 lbs organics and compostable tableware Paint Recycling Event (2021) Sustainable Neighborhoods, GreenSheen Paint 306 vehicles 36,880 lbs of paint Yard Waste Drop-Off Weekend (2021) Scraps Mile High 185 participants 110 cubic yards of leaves, sticks and yard waste 5 Sustainable Neighborhoods Yard Waste Pick-Up Event (2021) Scraps Mile High 150 participants 100 cubic yards of leaves, sticks and yard waste Electronics Recycling Events (2021) Sustainable Neighborhoods 186 participants 4,175 lbs of electronics Battery Recycling Events (2021) Sustainable Neighborhoods 100 participants 300 lbs of batteries Resident Feedback Let’s Talk The City’s Let’s Talk resident engagement program, which has covered six out of the 10 Wheat Ridge neighborhoods since its start in late 2020, has found mentions of trash and recycling services in all six neighborhoods. Bel Aire residents mentioned waste 19 times in surveys and small group discussions. Mentions of road damage from trash trucks, traffic, and general cleanliness were common themes. East Wheat Ridge residents mentioned trash, recycling and composting 45 times in Let’s Talk survey comments and small group discussions. Common threads included trash trucks and cans on the street frequently, trash in the streets and 12 specific requests of a single trash hauler for the City. Leppla Manor residents found pedestrian and bicycle safety as a top concern, along with traffic. 79% of respondents supported expanding waste diversion efforts. There were 18 mentions of trash, recycling, single hauler or city-operated waste hauling, compost and yard waste services. 91% of Applewood neighborhood respondents supported expanding current waste diversion efforts. Additionally, nine residents directly requested a single trash hauler for the City. In Fruitdale, waste diversion was mentioned less, with five residents referencing either a single waste hauler or expanding recycling and composting services within the City. In Anderson Park, community services, including waste collection was listed as a top five priority and waste diversion was directly mentioned 20 times. On average, 4.5% of residents in each neighborhood participated in the Round 1 survey and/or small group discussions. Out of those residents, on average 1.3% of respondents called for a single trash hauler for the City and 4.8% requested additional trash, recycling and composting services in the City. On average, 20.3% of respondents mentioned traffic and road conditions as an issue in Wheat Ridge, both of which would be impacted through an organized waste system. Sustainable Neighborhoods Since the Sustainable Neighborhoods program began in 2020, neighborhood leadership teams have been surveying their neighbors asking which sustainability topics are of most importance to them. In Applewood Villages, more than 90% of survey respondents were either “interested” or “very interested” in procuring a single trash hauler for the neighborhood. Paramount Heights and Panorama Park found similar responses in their neighborhood interest survey. Following the survey, Applewood Villages neighbors reached out to multiple waste haulers to solicit bids on a neighborhood preferred waste hauler and now have secured an agreement with a waste hauling company to provide neighbors in these boundaries with low-cost trash and recycling services, volume-based pricing and curbside compost pickup, along with curb-to-door 6 service and neighborhood large item pickup events. Additional Feedback The City receives regular calls from new residents asking about how to sign up for waste management services through the City and Councilmembers frequently receive emails and calls from their constituents asking about waste services. Lastly, responsible waste management has been a topic that Sustainable Wheat Ridge has supported for many years. They have included a letter of support with the packet and wish to work with and advise the City should Council provide direction on this project. Alignment with Current City Planning Documents In addition to solid waste and recycling being included as one of the six sustainability topic areas determined by City Council in 2017, in City Council’s 2035 Vision statement, “great neighborhoods” and “environmental stewardship” are mentioned. Additionally, City Council included that “Residents will have opportunities to recycle and compost” and that “innovation on sustainability is supported and encouraged so the City can continue to promote a safe and healthy environment.” The 2009 Comprehensive Plan mentions community recycling in Goal 3, sustainable future. Additional mentions in the Comprehensive Plan that support organized waste strategies include mentions of fewer vehicle miles traveled, greenhouse gas reduction, and improved air quality. In regard to traffic, the plan describes working with partners to improve traffic congestion in order to improve air quality and reduce vehicle hours traveled. The Bicycle and Pedestrian Master Plan mentions trash cans in neighborhoods and routinely identifies traffic as a hindrance to the City achieving more bike/pedestrian activity. In the Sustainable Wheat Ridge Final Report and Recommendations, in addition to solid waste and recycling goals that support an organized system, transportation sector goals supporting a reduction in vehicle miles traveled and diesel trucks align with a more organized waste strategy. Potential Organized Waste Strategies Staff has researched several options that City Council may consider should they want to pursue responsible residential organized waste in the City of Wheat Ridge. These strategies are all currently in operation in the region, and each option has both positive and negative components to be considered. 1. Enhanced Licensing Requirements: Through this strategy, Wheat Ridge would keep an open market system for haulers, although the haulers would be required by the City to meet enhanced regulations and criteria to obtain an annual business license to operate within the City. Examples of licensing requirements include: recycling requirements, volume-based pricing requirements, data reporting, service route and pickup day requirements, extra services available to residents (large item pickup, curb-to-door), and customer service requirements. In this system, residents would choose their waste hauler, similar to the current system. Although this system would keep an open market system, it would likely result in higher costs for customers, as the City would be requiring more of haulers without increasing the haulers’ operational efficiency. In this scenario, specific services could be mandated, which 7 could ensure that residents have access to extra services, however this could potentially increase the number of trucks on the streets, depending on how many haulers meet the requirements, especially if recycling and/or compost are mandated, since this would add more stops and potentially new routes. Some neighborhoods that did not already have recycling service for all households may experience an increase in the associated noise impacts, safety concerns, and number of days of the week with containers on the street. This strategy could also be considered as a steppingstone towards a more robust organized waste system. Other cities have originated an organized waste system by including enhanced licensing requirements and have then moved towards additional strategies. 2. City-Contracted Hauler: Through this strategy, the City would manage a competitive procurement process, evaluate the responses and choose a preferred residential waste hauler. Residents would then voluntarily choose the City’s contracted provider to receive the agreed upon pricing and services, or opt-out of the program, likely by paying a fee. To maintain market competition, districting can be added to this strategy, in which the City is split into geographical districts and haulers bid on services in each district, which may result in more than one city-contracted hauler. In this scenario, costs would likely decrease for residents, as there would be one or few haulers providing services to a majority of the City. The increased efficiency would reduce the number of trucks on the streets, improving safety, traffic, and road impacts. Regulations, like access to recycling, could be built into the contract and would likely result in environmental benefits like increased recycling rates and reduced air pollution. Issues with this system include the perceived lack of choice for a hauler and increased operational costs for the City to manage the contract and potentially the customer service and billing aspects of the program. 3. Preferred Hauler System: In the preferred hauler system, modeled by the Wheat Ridge Sustainable Neighborhoods Program, the City would contract with a preferred waste hauler through a competitive procurement process and residents would opt-in, rather than opt-out, of the program to receive the agreed upon pricing and services. In this scenario, residential costs would likely decrease or remain the same, with additional services added, such as curb-to-door service, volume-based pricing and large item pickup events. However, costs would depend on resident participation rates. In this system, the open market system would be maintained, and residents would retain hauler choice, however, traffic, road conditions, noise, safety and neighborhood aesthetics would not improve unless a majority of residents within a neighborhood opted in to the preferred hauler system. Similarly, the City would not realize environmental benefits unless a majority of residents participated in the program. 4. Municipal System: Through this strategy, the City would administer residential waste hauling services as a City-managed utility. This strategy would require significant upfront costs to the City, which could include adding solid waste and/or utility billing department, additional staff, and funds to purchase trash and recycling trucks and carts for residents. Benefits of this system include the City’s management of trucks, which would improve 8 traffic, road conditions, safety, noise and neighborhood aesthetics and associated environmental benefits, however the issues include reducing hauler choice and market competition. Additional research would be required to determine the costs to the City and the residents with this strategy. The table below reflects each of the four potential strategies, along with regional examples of cities implementing each strategy. All four strategies can incorporate volume-based pricing, recycling and composting services. City-contracted systems retain the lowest costs for residents, as the increased efficiency of the system results in lower costs, which are passed on to residents within that system. System Type City/Program Monthly Rates Volume-based pricing? Recycling Included? Compost Included? Enhanced Licensing Boulder $32 - $57 Yes Yes Yes Enhanced Licensing Fort Collins $15 - $45 Yes Yes No Contracted System Arvada $12 - $20 Yes Yes No Contracted System Golden $12 - $30 Yes Yes Yes Preferred Hauler Sustainable Neighborhoods $17 - $20 Yes Yes No, add-on service Municipal Denver $0 (incl. in taxes) N/A Yes No, add-on service Municipal Longmont $7 - $30 Yes Yes Yes Peer Agency Overview Staff conducted interviews with seven cities that have approached organized waste in their communities within the last five years. On average, peer cities required two to four years to conduct public engagement, research organized waste policy and develop a city-specific strategy. Community feedback in peer cities was mixed, with most peer cities hearing public opposition to the project, and in some cases, public opposition stopping the initiative. Most communities hired consultants to assist with developing the organized waste strategy. Peer cities saw between one and five full-time employees working on the project through the development stage, with one to three full-time employees working on the project during the implementation phase. There are a variety of additional considerations collected from peer agency feedback, which can be found in the Peer Agency Overview attachment. The table below details the cities that participated in this research and their overall approach to organized waste. City Overall Approach Successful Outcome? Arvada City-contracted hauler – ordinance passed by Council Yes Golden City-contracted hauler – ordinance passed by Council Yes Edgewater City-contracted hauler – ordinance passed by Council Yes 9 Boulder Enhanced Licensing Requirements – Zero Waste Ordinance Yes Westminster City-contracted hauler No Lakewood City-contracted hauler – ballot question No Lyons City-contracted hauler – ballot question No Next Steps At this time, staff is looking for direction from City Council regarding its interest in moving forward on a specific organized waste system strategy. RECOMMENDATION: Staff is asking City Council for direction on steps moving forward. ATTACHMENTS: 1. Peer Agency Overview 2. Sustainable Wheat Ridge Letter of Support Residential Organized Waste Strategies - Peer Agency Overview Staff conducted interviews with seven peer cities – Arvada, Golden, Edgewater, Boulder, Westminster, Lakewood and Lyons – that have approached organized waste in their communities within the last five years. The peer cities were asked about the overall organized waste strategy, timeline, public engagement plan and staff impacts. The peer cities were also asked about consultants, community feedback and lessons learned. The data was collected and has been compiled into this attachment. Approximate Strategy Timeline On average, peer cities required two to four years to conduct public outreach, research organized waste policy and develop a city-specific strategy. In Arvada, the Arvada Sustainability Advisory Committee (ASAC) led the public engagement efforts and conducted a citywide community engagement campaign for two years, gathering data that illustrated which organized waste benefits residents were most interested in, which resulted in a focus on truck traffic, safety and air pollution. ASAC presented the results of the public engagement campaign to City Council in 2018. After several staff presentations and additional public engagement in 2019 and 2020, Council passed an ordinance creating a city-contracted waste hauling program that began in summer 2021. In Golden, staff and the sustainability committee led public engagement efforts for a two-year period. During this time, staff researched types of organized waste strategies and built interest in the program. In 2010, City Council passed an ordinance creating a city-contracted waste hauling program. Since the program started, the ordinance has been expanded various times to include volume-based pricing requirements and data reporting requirements. In 2021, curbside compost collection was added for all residential customers. Edgewater had been managing waste as a municipal system prior to a city-contracted system. From 2006 to 2009, there were various issues with the municipal system and the City changed from a municipal system to a city-contracted hauler system in 2010. Boulder began changing policy in the late 1980s with a trash tax to fund waste diversion efforts. Over many years, City leadership passed ordinances requiring recycling and composting and adopted waste diversion goals. When City Council passed the Zero Waste Ordinance in 2015, Western Disposal was servicing approximately 90% of residents and businesses. Boulder’s leadership made the decision to leave an open market system, so smaller, locally owned companies could also participate – however the open market system has resulted in approximately three times more expensive costs to residents for services than other cities in the region with city-contracted hauler systems. Efforts in Westminster began in 2008 with several citywide recycling facilities. In 2015, a staff taskforce was created to analyze organized waste policy options. These options were presented to City Council in 2016, but the process was halted due to public opposition. Westminster noted a large amount of misinformation from waste haulers and the lack of a detailed public outreach plan as potential reasons for the strong public opposition. ATTACHMENT 1 Lakewood’s sustainability division spent two years gathering information and leading public engagement efforts, including managing a grant-funded statistically significant waste management survey. In 2019, this research was compiled into a document that was presented to the City Council. The decision was made to move forward with a ballot question and the ballot question was defeated, with 58% of voters opposing the project. In Lyons, the sustainability committee led the organized waste efforts, supported by a Sustainability Coordinator. The committee recommended a Council-passed ordinance pathway to implementation, but City Council decided to include the topic as a ballot question. In 2020, the ballot question was defeated with 60% of voters opposing the project. Community Feedback The table below reflects the community feedback in each of the cities that were interviewed: Arvada 60/40 approval rate through development process Public effort to recall Councilmembers 63% participation rate Golden “Passionate opposition” but supported 2:1 margin. High call volume 2 months before/after program implementation, then leveled out. Edgewater General agreement – City had managed program previously 95% participation rate Boulder Slow transition – community approval Westminster Public opposition stopped project Lakewood Public opposition – ballot question defeated, 58% oppose Lyons Public opposition – ballot question defeated, 60% oppose Considerations From data collected through interviews with various cities in the region, there are a variety of considerations in regard to an organized waste system. 1. Ballot initiative: There has not been a successful example of an organized waste ballot question in this region within the last five years. This is due to a variety of reasons, including misinformation from waste hauling companies and strong public opposition, with a focus on personal property rights. There are additional considerations in regard to the language that can be included on a ballot question and debate among cities about the amount of information to be included on a ballot question. 2. Consultants: Most cities hired either Eco-Cycle or Skumatz Economic Research Associates (SERA) when developing the organized waste strategy. Consultants have assisted with a variety of project aspects, including modeling the impacts of waste collection scenarios and providing a better understanding of trash truck traffic impacts, emissions and reduction estimates, jobs and economic impacts, and collection systems in peer cities. In regard to policy, consultants can assist with crafting the RFP and advising on ordinance and/or ballot language. Lastly, consultants can advise and assist with community engagement efforts. The cost estimate from other cities has ranged from $10,000 - $30,000 for these types of services, depending on the level of support required. 3. Public Engagement: The major recommendation from all cities that participated in the research was to allow time for staff to conduct public engagement before moving forward with an organized waste strategy. The public engagement efforts will inform staff about resident interests and concerns, which will be important when developing the organized waste strategy and the RFP. 4. Staff time: There are many ways that cities have managed the creation and implementation of an organized waste strategy. Successful examples include a collaboration between city staff, city leadership, sustainability committees and consultants. Other cities dedicated between one and five staff members to the project as it was being developed, to coordinate the RFP process, manage outreach and engagement efforts and develop information for Council. After a strategy had been approved, cities retained between one and three staff dedicated to the topic, depending on the scope of the strategy. 5. Request for Proposals: There are a variety of considerations in regard to the creation of the RFP. a. Billing: Many of the successful examples of organized waste systems have been in cities that own a utility. Since Wheat Ridge does not own a water utility, billing would be a challenge. If billing is included in the RFP and this aspect is managed by a waste hauling company, it could result in a loss of transparency, customer service concerns, and increased costs for services. To ensure quality billing, and to ensure payment of opt-out fees, Wheat Ridge could create a staff position to manage utility billing. As an estimate, billing costs are about $1-2 per bill for cities with an existing utility bill and haulers suggest higher costs ($2.25-$3) per bill. b. Carts: Cart ownership and maintenance should be considered when developing the original RFP. Cart ownership can be taken on by the city managing an organized waste system and the cart cost ($100/cart) could be worked into the first five years of billing. After five years, the carts would belong to the City and the City would potentially avoid purchasing carts when re-bidding the waste hauling contract. However, cities have had challenges with re-bidding contracts, depending on the hauler requirements, if carts are city-owned. c. Homeowner’s Associations (HOA’s): The inclusion of HOA’s into the RFP will need to be considered. Seven or fewer units (single-family homes, townhomes, some multi-family) is the unit limit of residences for which cities can legally regulate trash collection according to state law (C.R.S. § 30-15-401). HOA’s have bargaining power with waste haulers because of bulk pricing agreements and likely already pay rates similar to what residents would pay with a city-contracted system, so HOA’s may be disincentivized to join an organized system. However, this is a potential equity issue as well. According to a 2019 Lakewood report, in general, HOA household’s median household income is $20,000 more than non-HOA households, yet non-HOA households pay on average $10-15 more each month than an average HOA household because they do not have the organizational ability to negotiate group rates. Arvada does not currently include HOA’s in their program, however each residence is charged 88 cents/month and is able to participate in the community events. Other cities expressed regret in not including HOA’s initially, with a longer timeline to join the program. 6. Opt-out Fees: Since Colorado law protects a resident’s right to choose their waste hauler (C.R.S. § 30-15-401), if a city-contracted hauler is chosen, there will need to be an opt- out program. There is debate in this region regarding the costs of the opt-out fees. In some cities, the fees are as low as $5/month and in other cities, the lowest service package cost ($11/month or more) is charged as a monthly opt-out fee. Higher opt-out fees may result in higher participation in a city-contracted system; however, this may cause concern with residents that choose to opt-out of a city-contracted system. 7. Sustainable Neighborhoods: It will be important to consider how this project might impact the Wheat Ridge Sustainable Neighborhoods program and their preferred hauler initiative with Summit Waste and Recycling. The Sustainable Neighborhood groups, although not HOA’s, have formed agreements with Summit Waste and Recycling as their “preferred neighborhood hauler” gaining them bulk purchase pricing, Sustainable Neighborhood-branded carts, and community recycling events – similar to a city-contracted hauler. It will be important to consider these agreements, although they are non-binding, as the City considers next steps. City of Wheat Ridge Municipal Building 7500 W. 29th Ave. Wheat Ridge, CO 80033-8001 P: 303.235.2819 F: 303.234.5924 1 March 18, 2022 Dear Wheat Ridge City Council: Thank you for taking the time to consider waste management in the City of Wheat Ridge. Sustainable Wheat Ridge (SWR), an all-volunteer advisory committee, focuses on transportation, energy efficiency, renewable energy, water, and waste in Wheat Ridge. We have researched solid waste and recycling for several years. In this letter, we will highlight our findings that are relevant to the problems we’ve identified and possible solutions for the City Council to consider. With our background we can be a resource to the Council. It is now time for the city to consider a city-wide policy that addresses the following issues by taking steps that may include but are not limited to: 1.Updating the business license requirements for waste haulers. 2.Updating city code to address quality of collection bins and promoting waste diversion from landfills. 3.Considering a city-negotiated waste hauling contract. Importantly, we believe implementing these steps will: 1.Reduce truck traffic, which in turn will reduce noise pollution, air pollution, and wear and tear on the roads, improving pedestrian safety and overall neighborhood livability while also reducing road maintenance costs. 2.Reduce the costs to residents of waste hauling services and improve the quality of waste hauling services. 3.Protect the local environment, like water quality in Clear Creek and increase the rates of waste diversion from landfills. 4.Minimize obstruction of pedestrian walkways on primary corridors. Wheat Ridge City Council considered how waste was managed in 2010, looking at services and policies of our neighboring communities. In the meantime, some of our neighboring communities have made progress in how waste is managed in their cities by implementing policies, regulations, and licensing to improve the quality of life of residents, services offered and cost, and environmental outcomes. Three neighboring municipalities–Golden, Boulder and Arvada– offer excellent examples on varied approaches to improving waste management. These include a city-negotiated contract, licensing requirements and hauler ordinance, or a combination. SWR believes that progress must be made, and any steps forward should be composed of elements that benefit Wheat Ridge residents and our environment. Waste collection in Wheat Ridge is loosely managed. Our research of other municipalities shows that Wheat Ridge has fewer regulations and standards for waste collection services and management than many communities in the Denver metropolitan area. Wheat Ridge residents also often pay more and have less services available than many neighboring communities. The benefits of improving policy and licensing would allow for all residents to enjoy cleaner, healthier, and safer streets. It is important to understand that these improvements do not take away the freedom for residents to choose their own hauler. Colorado law protects residents' right to contract the waste hauler of their choice (Colorado Revised Statutes Title 30. Government County § 30-15-401. General regulations--definitions). An improved waste collection and management approach by the City of Wheat Ridge will reduce costs for residents and the city. Residents will have more options, not less. Below are the primary issues and solutions needed to make progress: Quality of Life ●Expected outcomes of improving the way waste is collected and managed in Wheat Ridge is an increase of quality of life for residents. Reducing trucks on City streets will improve safety, reduce greenhouse gas emissions and noise for overall improved neighborhood livability. ATTACHMENT 2 City of Wheat Ridge Municipal Building 7500 W. 29th Ave. Wheat Ridge, CO 80033-8001 P: 303.235.2819 F: 303.234.5924 2 ● Improved standards for collection bins and trucks can help keep Wheat Ridge clean and beautiful. How we manage our waste impacts the appearance and character of our community. Current waste collection bags and bins lack quality standards. Some bins lack basic elements like lids, leaving waste exposed and subject to environmental conditions like wind and animals. Loose trash in the streets reflects poorly on the City’s character. ● The current approach impacts both our personal and environmental health. Our neighboring communities have implemented common sense standards for waste collection bins. Costs to City and Residents ● Accelerated degradation of city streets is a result of frequent and unregulated truck use of residential streets. Waste collection trucks are heavy. It is a well-documented problem that they contribute to deterioration of roads, curbs, and sidewalks, with some studies equating the damage from one truck to 1,400 cars.1 The City has a financial responsibility to operate efficiently. Reducing the amount of waste collection truck traffic will result in fewer resident tax dollars spent on road maintenance. ● Our review of costs and services available to residents in neighboring communities shows that Wheat Ridge residents are paying more for less services. Other communities near us, even those with a similar approach to Wheat Ridge, list the licensed haulers on a city website and require companies to provide transparency in pricing with specific business licensing requirements for this sector. The current conditions make it difficult for residents to navigate the current licensed providers and pricing. ● Current conditions burden the City and taxpayers. It is inefficient and costly to residents. Waste haulers benefit from low business license fees and few regulations. Residents do not benefit from this system. Environmental Stewardship and Protection ● Those living here on the Front Range take great pride in this beautiful place with many opportunities to enjoy the outdoors. Locally, there are several actions we must take to become better stewards of our waste. ● One of the simplest steps every resident and business can take is to reduce their contribution to the amount of waste going to landfills. Some waste collection services in Wheat Ridge do not offer the opportunity to divert recycling and/or compost from landfills. All haulers servicing Wheat Ridge must provide more options to divert waste from landfills and offer service and fee options that meet the differing needs for waste volume, recycling, and compost. These services are provided to many of our neighboring communities. This must change. ● City policy for waste bins can reduce litter, which attracts animals and impacts water quality. ● Waste collection trucks should transition to low emissions engine technology to support cleaner air in our city. ● Additionally, the city should require haulers provide quantitative data on the amount of waste removed by type (trash, recycle, compost) and where the waste is disposed. With the proper data, the city can make informed decisions in the future that support waste reduction and maintain our fragile environment. In 2021 Resident Surveys, most residents responded that organized trash hauling, recycling, and composting services are essential. Residents also expressed interest in expanded dumpster and clean up days. Participants in the Sustainable Neighborhoods program, our city’s model communities, have taken it upon themselves to organize and improve waste collection in the ways mentioned above. We understand that resident engagement and education are critical and look forward to working with the City of Wheat Ridge to support this effort. Thank you for your consideration, 2022 Members of Sustainable Wheat Ridge 1Hubbell, Roth & Clark, Inc – Consulting Engineers, “Road Deterioration Due to Large Truck Traffic,” Sept. 18, 2009.