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Food Scrap Recycling Pilot ProgramTHE CITY OF DuB E MEMORANDUM ~-~~ Q`< a April 11, 2007 ~ ~~ _~ c ~ ~- cn' T1 a s. -._._ ~a a TO: The Honorable Mayor and City Council Members ~ o ~ V FROM: Michael C. Van Milligen, City Manager SUBJECT: 2007 Food Scrap Recycling Pilot Program The City began the second year of its two-year Food Scrap Recycling Pilot Program last week. While the program has been relatively successful, it operated last year at only 50% of its Iowa Department of Natural Resources-permitted capacity. Public Works Director Don Vogt is recommending a reduction in the program fee schedule as it is believed that price is the primary obstacle to growth in the program's number of subscribers. Public Works Director Don Vogt recommends that the service fee for the 2007 Food Scrap Recycling Pilot Program be reduced from $3.25 per month to $1.25 per month for residential customers, with proportionate reductions to 48 gallon and 64 gallon larger- volume commercial customers. The minimal budget impact in revenue is being provided through a $600 grant from the Dubuque Metropolitan Area Solid Waste Agency. I concur with the recommendation and respectfully request Mayor and City Council approval. ~" Michael C. Van illigen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Don Vogt, Public Works Director v = x THE CITY OF DuB E MEMORANDUM ~-~~ April 10, 2007 TO: Michael C. Van Milligen, City Manager FROM: Don Vogt, Public Works Director ~`-' 1~ SUBJECT: 2007 Food Scrap Recycling Pilot Program INTRODUCTION The purposes of this memorandum are to provide information and recommend a course of action regarding the service fees to be charged for the City's 2007 Food Scrap Recycling Pilot Program. BACKGROUND The City began the second year of its two-year pilot program last week. While the program has been relatively successful, it operated last year at only 50% of its Iowa Department of Natural Resources-permitted capacity. In the attached memorandum, Solid Waste Management Supervisor Paul Schultz states that the program's fee schedule has proven to be too high and is likely the primary obstacle to growth in the program's number of subscribers. DISCUSSION I concur with Paul's argument for lower program fees. While the timing of this recommendation may seem tardy, that it should have been submitted as part of the FY08 budget submittal process, we felt that we could not make any recommendations until after the conclusion of the first year of the program, thereby allowing time for a proper analysis of costs/revenues and the completion of the post-program customer survey. Also, any recommended/approved program changes would need to be implemented prior to the start of FY08. While the second year of the program did begin last week, billing for it will not begin until later this month. ACTION STEP I recommend that the service fee for the 2007 Food Scrap Recycling Pilot Program be reduced from $3.25 to $1.25 per month for our residential customers, with proportionate reductions to $5.00 (48 gallon) and $7.50 (64 gallon) per month for our larger-volume, commercial customers. Attachment ~."` THE CITY OP DuB E MEMORANDUM ~,~,~.~~ April 9, 2007 T0: Donald J. Vogt, Public Works Director FROM: Paul F. Schultz, Solid Waste Management Supervisor SUBJECT: Proposed Change in Second Year Food Scrap Recycling Pilot Program The purpose of this memorandum is to recommend a fee reduction in the Food Scrap Recycling Pilot Project from a seasonal $26.00 to $1.25 per month. On April 3, 2006, the City of Dubuque implemented atwo-year pilot project of curbside collection of food scraps for composting. Over one hundred residential, institutional and business customers voluntarily diverted their source-separated organics (food scraps and compostable paper) for co-composting with yard debris. Households set out their materials in 13 gallons recycling carts. Subscribed customers were requested to set out weekly to reduce odors. Neither neighbor nuisance concerns nor composting process problems were ever reported. This co-composting initiative helped reduce the release of methane, a potent greenhouse gas, supply more raw materials for our locally produced compost, and helped the our customers reduce their landfilled materials. Approximately 33 tons (one ton per week) of food scraps were collected between April and November. Subscribing residential households set out an average of 13 pounds each week with a 75% weekly setout rate. Eight commercial customers set out an average of 86 pounds per week using either 48-gallon or 64-gallon tipper carts. Residential customers purchased prorated $26.00 annual decals as used in the yard waste program. Commercial customers paid higher fees for increased volume. The goal of the two-year pilot is to achieve diversion of the maximum two tons per week of food scrap compostables currently allowed by IDNR. It is recommended that we add approximately 150 new subscribers in order to achieve this objective. Our end of season survey of subscribers identified a perceived high subscription fee as the major barrier to increased participation and therefore diversion. I therefore recommend that the City reduce the fee for a GreenCart subscription from the current equivalent fee of $3.25 per month to $1.25 per month billed monthly. Monthly commercial rates are recommended to be set at $5.00 fora 48-gallon cart and $7.50 fora 64-gallon cart. This fee reduction will still allow us to cover our pilot program costs. Since the same food scraps are now being co-collected by the yard waste crew rather than by the refuse crew, there is little difference in collection cost. Tipping charges are virtually the same and are unloaded at the same facility location. The only significant operational cost is a small administrative and promotional charge and the prorated cost of the carts amortized over 7 years. The carts were purchased with 50% of the cost paid from a grant from the Dubuque Metropolitan Area Solid Waste Agency. Last week, DMASWA approved an additional $600 grant to promote the pilot and expand the number of subscribers in order to increase our composted tonnage.