CITY COMMISSION AGENDA ITEM

Department:	Public Works Department		Commission Meeting Date:  January 16, 2018
Staff Contact:	Kathy Richardson, Solid Waste Division Manager
Recommendations/Options/Action Requested:
Receive staff report on Commercial Single-Stream Recycling Pilot Program.
Executive Summary:		Residential curbside recycling launched city-wide in late 2014 – one of the initiatives recommended by the Solid Waste Task Force. At the time of implementation, there was community and governing body interest in expanding future recycling efforts to include a commercial single-stream program on a subscription basis. For 2018, the City of Lawrence Solid Waste Division proposes to implement a pilot program for commercial single-stream recycling collection service. The pilot program will provide valuable information on the cost of service, participation interest of the commercial sector, and better understanding of the challenges/issues with this type of collection service. Two (2) areas of Lawrence have been selected for the pilot program – one downtown, one with a broad mix of commercial. The pilot program for downtown is based on a six-day collection cycle, comparable to the trash collection cycle, due to space constraints. The pilot program will be structured as a subscription, fee-based collection service on a full cost recovery model. There will be fees for initiating services that cover start up costs (cart, delivery, education) and monthly fees based on the collection frequency schedule. The target for full cost recovery is to achieve fifteen percent (15%) participation within each pilot area. If fewer businesses sign up, the pilot program will be operating at a loss. The division has established a minimum participation rate of eight percent (8%) from each pilot area to start this collection service. If the City Commission wishes to implement the program, the timeline of the commercial single-stream recycling pilot program includes approval of the business plan by the City Commission in January, communication with businesses in the pilot areas and confirmation of their participation by mid-March, and collection services provided for a fee for eight (8) months, May through December. A couple months before the end of the pilot program, the division will work on a recommendation on whether to continue/expand the service. The business plan for the pilot program is attached for review.
Strategic Plan Critical Success Factor		Effective Governance/Professional Administration Core Services Sound Fiscal Stewardship Collaborative Solutions
Fiscal Impact (Amount/Source):		The pilot program is built on a cost recovery model, to equitably charge commercial accounts for the services provided, on a subscription basis. Initial start-up costs, labor, equipment, and contractual costs will be recuperated through the fee structure.
Attachments:		Commercial Single-Stream Recycling Pilot Program Business Plan Correspondence - Updated 01/12/18

Reviewed By: (for CMO use only)

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