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HomeMy WebLinkAboutItem 04 FY23 Sanipac Annual Report Update AGENDA ITEM SUMMARY Meeting Date: 10/16/2023 Meeting Type: Regular Meeting Staff Contact/Dept.: Sam Kelly- Quattrocchi/CMO Staff Phone No: 541.726.3713 Estimated Time: Consent Calendar S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Provide Financially Responsible and Innovative Government Services ITEM TITLE: FY23 SANIPAC ANNUAL REPORT UPDATE ACTION REQUESTED: No action requested at this time. ISSUE STATEMENT: Each year Sanipac is required, under its franchise agreement with the City and in compliance with Ordinance 6367, to provide the City with an annual report on its activities. ATTACHMENTS: 1. Council Briefing Memorandum 2. FY23 Sanipac Annual Report DISCUSSION/ FINANCIAL IMPACT: Attachment 1 provides a summary of the FY23 Annual Report from Sanipac, which is included as Attachment 2. Attachment 2 was received on August 28, 2023 for the fiscal year 2023 in compliance with requirements outlined in Ordinance 6367. Ordinance 6367 outlines the exclusive garbage collection franchise between the City of Springfield and Sanipac Inc. It grants Sanipac the exclusive rights to collect garbage in Springfield, while also requiring them to provide annual reports to the City, the annual Opportunity to Recycle report to the state and prescribes how Sanipac can request a fee increase. M E M O R A N D U M City of Springfield Date: 10/16/2023 To: Nancy Newton COUNCIL From: Niel Laudati Assistant City Manager Allie Camp Economic Development Manager Sam Kelly-Quattrocchi Legislative & Economic Development Analyst BRIEFING Subject: FY23 Sanipac Annual Report Update MEMORANDUM ISSUE: Each year Sanipac is required, under its franchise agreement with the City and in compliance with Ordinance 6367, to provide the City with an annual report on its activities. COUNCIL GOALS/ MANDATE: Provide Financially Responsible and Innovative Government Services BACKGROUND: Residential and Commercial Recycling Sanipac’s Springfield recycling program was established by City Council as a component of the Department of Environmental Quality requirement to increase recycling throughout Oregon. For FY23, Springfield residents and commercial customers recycled nearly 12 million pounds of material. Commercial recycling was responsible for 42%, or 5 million pounds, of all recycling in Springfield. Sanipac monitors commercial recycling when it is picked up by the drivers and provides outreach and other opportunities for commercial customers who are not filling their recycling bins. Sanipac also plays a part in buildings earning LEED certification for environmentally conscious new building construction. Yard Debris The Yard Debris program, started in the spring of 2008, is a voluntary program available to all Sanipac customers. The FY23 yard debris program held steady at 40% of customers continuing to subscribe to the yard debris recycling program. In FY23, 3,214 tons of yard debris was picked up and the number of customers increased by 674, up from 7,264 to 7,938. Starting July 1, 2023, Springfield customers will also be able to put food waste in their yard debris cans. This will allow the community to reduce harmful greenhouse emissions that come from decomposing food in the landfill. Commercial Compost The Commercial Compost program was implemented in March 2012 and has 11 commercial customers. A special container built to be leakage tight is emptied once a week and rinsed each time. The food waste is delivered to a local processor where it is processed into reusable compost. This program allows for the reduction of solid waste by removing the food waste and allows the customer to reduce their container size, thus reducing their costs. Sanipac Franchise Revenue Sanipac reports fiscal year 2023 franchise fee revenue as $725,868. This represents a $61,989 (8.5%) increase over FY22. Attachment 1 Page 1 of 2 MEMORANDUM Page 2 Change in Number of Customers Included in the table below is a summary of the number of customers served by Sanipac in FY22 and FY23. Sanipac saw a 2.7% increase in the number of customers served. FY22 FY23 Annual Change % Residents 17,350 17,679 1.9% Commercial 1,575 1,777 11.4 % Roll Off 119 112 -6.3% Total 19,044 19,568 2.7% Delinquent Accounts Delinquent accounts have increased this past year by 1.55% to 19.69 %, with $53,769 in lost revenue. This lost revenue is an increase from FY22’s $32,810. Because waste disposal is an important public health concern, Sanipac has a lenient collection system to help avoid potential health hazards. For commercial accounts it is based on a 60 and 90 day reminder notice with a follow up phone contact. For residential customers, there is a quarterly billing process with payment due at the end of the second month of the quarter. Service is suspended if payment is not received by the end of the last month of the quarter. Contacting the customer by phone and mail is a standard process before the account is closed and the equipment picked up. Customer Complaints & Resolutions City staff has compiled the following list of customer complaints received during the period covered by this report. Total Customer contacts 1 Billing issues 0 Exclusive Franchise 0 Customer Service 1 City Beautification Sanipac donates a range of services to the City including support of street sweepings and garbage pickup at City facilities. The full list and associated donation amounts are listed in the table below. Services Donate to the City of Springfield Services Amount Main St. & Rosa Parks path garbage pickup $2,643.60 Wildish Theatre $771.60 Springfield Justice Center garbage pickup $14,502.96 Disposal of street sweepings $131,115.30 Garbage Services at Other Facilities $36,303.06 Total 185,336.52 RECOMMENDED ACTION: No action is requested at this time. Attachment 1 Page 2 of 2 Attachment 2 Page 1 of 46 Attachment 2 Page 2 of 46 Attachment 2 Page 3 of 46 Attachment 2 Page 4 of 46 Attachment 2 Page 5 of 46 Attachment 2 Page 6 of 46 Attachment 2 Page 7 of 46 Attachment 2 Page 8 of 46 Department of Environmental Quality Western Region Eugene Office 165 East 7th Avenue, Suite 100 Tina Kotek, Governor Eugene, OR 97401 (541) 686-7838 FAX (541) 686-7551 TTY 711 July 3, 2023 TRANSMITTED VIA ELECTRONIC MAIL: nnewton@springfield-or.gov Nancy Newton, City Manager City of Springfield 225 Fifth St. Springfield, OR 97477 Re: City of Springfield 2022 Opportunity to Recycle Program Approval To Nancy Newton: This letter acknowledges receipt of the 2022 Opportunity to Recycle Report for the City of Springfield. The report documents implementation of Oregon Administrative Rules OAR 340-90-0040 and OAR 340-90-0041. For most cities over 10,000 population, a Waste Prevention and Reuse Program is required that implements OAR 340-90-0042. In addition to the General Requirements of OAR 340-090-0030 for all cities with a population above 4,000, Springfield chose the following recycling programs. Recycling Program Elements: OAR 340-90-0040 and 0041 (a) Provision of at least one durable recycling container (c) Provision of an expanded education and promotion program (d) Multi-family dwelling collection program (e) Provision of a residential curbside yard debris collection program (f) Provision of a commercial/institutional recycling program (i) Commercial and institutional food waste collection system (k) Collection and composting of food waste from residential customers (l) Recovery of construction and demolition debris Attachment 2 Page 9 of 46 Waste Prevention and Reuse Programs: OAR 340-90-0042 (2) Implementation of a city- or county-wide education and promotion program (3) Waste prevention campaign targeting residential generators*** (4) Waste prevention campaign targeting commercial generators*** (6) City or wasteshed funding or infrastructure support to promote and sustain reuse, repair, leasing or sharing efforts (8) Support by a local government for a food rescue program for food that would otherwise be composted or disposed DEQ approves the Opportunity to Recycle report for Springfield and the recycling and waste reduction programs implemented in 2022. ***2023 Waste Prevention Campaign Requirements To maintain compliance with the Opportunity to Recycle law for 2023, Springfield must develop new Waste Prevention Campaigns for Residential (3) and Commercial (4) Generators. The City currently uses a campaign related to textiles for Residential Generators, and food waste prevention for Commercial Generators, both started in 2018. Topics for outreach must change every five years and educational materials should be refreshed after two years. Please advise DEQ what new topics for education will be completed this year for Residential and Commercial Generators through plans, including the message of each campaign and how these audiences will receive information. Submit Springfield’s plans by July 31 for implementation the remaining months of the year. Templates for the plan update are available on DEQ’s website at https://www.oregon.gov/deq/mm/Pages/Waste-Prevention-and-Reuse.aspx Options for new campaigns using DEQ-provided resources target electronics and food waste, but the City can develop its own educational materials. https://www.oregon.gov/deq/mm/food/Pages/Bad-Apple.aspx https://www.oregon.gov/deq/ecycles/Pages/Consumers.aspx DEQ continues to work with local governments, service providers, and industry to improve recycling opportunities in Oregon through the Plastic Pollution and Recycling Modernization Act (RMA). Needs Assessment work will continue in 2023, but feel free to reach out to me with questions or to set up a meeting to discuss the RMA. Attachment 2 Page 10 of 46 You can also contact me to discuss Springfield’s current recycling program. I can be reached by phone at 541-687-7325 or email cathy.brown@deq.oregon.gov. Sincerely, Cathy Brown Materials Management DEQ Western Region ec: Aaron Donley, Sanipac: Aaron.Donley@WasteConnections.com Angie Marzano, Lane Wasteshed Representative: angie.marzano@lanecountyor.gov Sam Kelly-Quattrocchi, City of Springfield: skellyquattrocchi@springfield-or.gov Attachment 2 Page 11 of 46 Attachment 2 Page 12 of 46 Attachment 2 Page 13 of 46 Attachment 2 Page 14 of 46 Attachment 2 Page 15 of 46 Attachment 2 Page 16 of 46 Attachment 2 Page 17 of 46 Attachment 2 Page 18 of 46 Attachment 2 Page 19 of 46 Attachment 2 Page 20 of 46 Attachment 2 Page 21 of 46 Attachment 2 Page 22 of 46 Attachment 2 Page 23 of 46 Attachment 2 Page 24 of 46 Attachment 2 Page 25 of 46 Attachment 2 Page 26 of 46 Attachment 2 Page 27 of 46 Attachment 2 Page 28 of 46 Attachment 2 Page 29 of 46 Attachment 2 Page 30 of 46 Attachment 2 Page 31 of 46 Attachment 2 Page 32 of 46 Attachment 2 Page 33 of 46 Attachment 2 Page 34 of 46 Attachment 2 Page 35 of 46 Attachment 2 Page 36 of 46 Attachment 2 Page 37 of 46 Attachment 2 Page 38 of 46 Attachment 2 Page 39 of 46 Attachment 2 Page 40 of 46 Attachment 2 Page 41 of 46 Attachment 2 Page 42 of 46 Attachment 2 Page 43 of 46 Attachment 2 Page 44 of 46 Attachment 2 Page 45 of 46 Attachment 2 Page 46 of 46