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HomeMy WebLinkAbout2020-041 Solid Waste & Recycling Performance Amid COVID-19Date: April 24, 2020 Report No. 2020-041 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: City of Denton Solid Waste and Recycling Performance Amid the COVID-19 Pandemic BACKGROUND: The purpose of this report is to provide performance data on waste generation and revenue projection at the City of Denton due to COVID-19 impacts. DISCUSSION: Stay-at-home orders have caused an unprecedented change in waste generation characteristics. Although we are working from very small data sets, trends are starting to emerge that will allow the City to respond with adjustments to service provision that best suit customers’ needs and preserve fiscal health. Due to shelter in place orders, our residential customers have increased their weekly waste generation by 53% over pre-COVID rates, 839 tons last week versus 549 tons the first week of March. Requests for collections of bulk material have increased 49%, and requests for yard waste services are also trending upward. Multifamily properties are being closely watched by staff to ensure that adequate capacity is provided. Anecdotally, the volume of curbside recycling material collected curbside has increased by 29.3%, 194 tons last week versus 150 tons the first week of March. The level of contamination, however, has increased notably. A detailed report on City of Denton recycling trends will follow upon the release of the April data from Pratt Recycling. Conversely, the City’s commercial sector realized a significant reduction in activity in recent weeks. They collected 26.2% fewer tons on average, 1,258 tons last week versus 1,706 tons in the first week of March. Since March 16, 2020, the Solid Waste & Recycling Department has reduced service levels of approximately 260 containers (8%) and 13 containers (0.4%) have been permanently removed from service. These actions resulted in a monthly revenue loss of approximately $85,000. At the start of the stay-at-home orders, customers visiting the landfill immediately decreased approximately 30%, however, those volumes began returning to pre-pandemic levels within the last few weeks. The performance of our contract waste haulers mirrors the waste generation realized throughout the City. Initial response to COVID-19 resulted in a reduction of volumes delivered, however, waste deliveries have started to return to pre-COVID levels. Based on recent trends, staff is projecting that these haulers will deliver less waste in aggregate to the facility than allowed by contract. Keep in mind that the contracts approved by Council last fall guarantee minimum Date: April 24, 2020 Report No. 2020-041 revenues of $5.24 million regardless of any shortfalls in volumes delivered to the landfill. Based on current trends, staff does not expect landfill life to be negatively impacted. Staff is continuing to monitor revenue impacts as they develop. To date, the Solid Waste fund is projecting an increase of $2.9 million in total revenues, largely due to increased gate traffic and contract waste agreements. It is worth pointing out that original FY 19-20 adopted budget revenues forecasted contract hauler revenues considerably lower than the final council approved amounts, $2.79 million budgeted versus updated figure of $5.24 million. While the Solid Waste and Recycling Department remains cautiously optimistic given the limited amount of data available for review, they continue to monitor activity and work to ensure the health of the fund. Like other departments, Solid Waste is working through exercises to reduce expenditures while maintaining the quality of service that customers currently enjoy. Phase 1 reductions, which include position and merit increase freezes, department expense reductions, and the reallocation of capital projects, is anticipated to result in approximate annual savings of $4.5 million. Phase 2 departmental reductions will include savings realized through the Voluntary Separation Program, approved by City Council on April 21, 2020, and other necessary reductions to ensure financial viability while assuring service delivery. The Solid Waste Department will continue to work with the Finance Department to provide updated performance data in planned updates to the City Council. STAFF CONTACT: Brian Boerner Director of Solid Waste and Recycling (940)-349-8001 brian.boerner@cityofdenton.com REQUESTOR: Council Member Briggs (April 21, 2020 Work Session)