Solid Waste Services
Residential Solid Waste Collection Options
April 6, 2016
Overview
• Policy Question
• Options with pros and cons
• Next Steps
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Policy Question
Are apartment buildings commercial
entities that should handle waste
collection independently?
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Current Policy
• Solid Waste Services provides collection services
for:
– Single family residential
– Multi-family residential (townhomes & condos)
– Multi-family commercial (apartments)
• Collection methods include:
– Roll out service (single family, multi-family < 30 units)
– Contracted Dumpster/Compactor (multi-family > 30
units)
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Current Model
Multi-Family
Unit Type
Units
Apartment
102,878
3,958
98,920
24,122
6,079
18,043
8,969
6,313
2,656
Condo
Townhouse
Unknown
Total
Single
Family
Homes
Roll Out
Dumpster/
Compactor
Private
Hauler
15,587
151,556
Units
197,670
15,587
16,350
Roll Out
119,619
Dumpster/
Compactor
15,587
Private
Hauler
197,670
Anticipated increase of 5-10% in multi-family units in
FY2017 and FY2018
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Basis for new options
for apartments
• From Tax Assessor’s Office
– Multi-Family is a classification of housing where multiple
separate housing units for residential purposes are contained
within one building. Most of the time these are properties
such as apartments, duplexes, triplexes etc.
– Apartments are considered commercial projects by our
office. The commercial real estate division is responsible for
those valuations.
• Solid waste management is a residential service in most
municipalities
• Collecting commercial solid waste without full cost recovery
is unique to Charlotte based on review of peer cities
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Options for Consideration
1. Stop solid waste services to multi-family
commercial buildings (i.e., apartments)
2. Full Cost Recovery for solid waste services to
multi-family commercial buildings
3. Franchise solid waste services to multi-family
commercial buildings
4. Continue providing services in current form
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1. Stop Service
How
would it
work?
• Apartments, as commercial entities, would use the
free market for waste collection services.
Pros
• Eliminates subsidy to commercial buildings
• Increased market competition
• Improved alignment between SWS service provision
and Tax Office property classification
Cons
• Potential impact on rents
• Potential impact on recycling
• Potential for multiple haulers and collection days
Impacted Units
98,920
3,958
Service Type
Dumpster/Compactor
Rollout
Net Savings/
Cost Avoidance
$2.0M - $2.5M
$104,000
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2. Full Cost Recovery
How
would it
work?
• Apartments, as commercial entities, would be billed
a solid waste fee equal to the cost of waste collection
incurred by Solid Waste Services.
Pros
• Eliminates subsidy to commercial buildings
• Cost control for apartment owners/renters
• Improved alignment between SWS service provision,
Tax Office property classification, and small business
solid waste services
Cons
• Potential impact on rents
Impacted
Units
Service Type
98,920
Dumpster/Compactor
3,958
Rollout
Estimated
Unit Cost
Current
SW Fee
Revenue
$59 $2,473,000
$195
$98,950
Estimated
Additional
Revenue
$3,363,280
$672,860
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3. Franchise Model
How
would it
work?
• A contracted arrangement for one or more haulers to
provide service for group designated by the City at
competitive rates. Service users pay the haulers
directly.
Pros
• Cost control for apartments/renters
• Limits number of haulers and collection days
Cons
• Possible limited opportunities for small haulers
• Possible enforcement, inspection, monitoring
Impacted Units
98,920
3,958
Service Type
Dumpster/Compactor
Rollout
Net Savings/
Cost Avoidance
$2.0M - $2.5M
$104,000
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4. Continue Current Service
How
would it
work?
• No change to current services or fees.
Pros
• No change in service
Cons
• Continued taxpayer subsidy for commercial buildings
• Continued misalignment between SWS service
provision and Tax Office property classification
• Budget impact from continued growth of apartments
Unit
Count
Service Type
119,619 Dumpster/
Compactor
FY16
Projected
Full Cost
FY17
Projected
Full Cost
FY18
Projected
Full Cost
$5.3M
$6.2M
$6.7M - $7.7M
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Next Steps
• Get feedback from Council on options
• Schedule Public Forum #3 to update residents
• Incorporate into Manager’s Recommended
FY2017 Budget (as needed)
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