Questions and Answers
From February 26th SWS Discussion Forum 1
I.
Policy
1. What options are Solid Waste Services (SWS) considering as part of the service
review?
As part of the FY2016 budget development process, City Council requested further
evaluation on multi-family collection service and referred the topic to the Council
Environment Committee. As a result of the evaluation, staff presented two options
for the Committee’s consideration. The two options presented by staff include:
1. Continue service as currently provided, or
2. Discontinue service for multi-family complexes comprised of more than four
units.
2. What is the current policy that’s being reviewed by SWS?
The current policy under review includes the multi-family collection services
provided by Solid Waste Services.
3. Can you define what’s included in “Multi-Family” housing?
As defined in the Solid Waste Services section of the Charlotte Code (Chapter 10,
Article II):
Multiple residential unit (i.e., multi-family) means any apartment, group of
apartments, or condominiums used for dwelling places of more than four
families.
4. Based on the forum on February 26, 2016, would SWS consider any alternatives
besides the two options under consideration?
The feedback from the participants at the February Discussion Forum was very
helpful and staff is actively reviewing alternatives to present to City Council and
forum participants.
5. How is eliminating multi-family service fulfilling the mission or vision of SWS?
The review of current service options is one aspect of a practice of continuous
improvement that SWS uses to fulfill its mission of leadership as a municipal solid
waste management organization.
6. Why is the current policy a bad policy?
The City’s Solid Waste policies have not been updated for 20 years. The goal for the
current review of the policy is intended to ensure that Solid Waste Services is
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continuing to provide the services in the most efficient and effective way to the
residents of Charlotte.
II.
Gershman, Brickner & Bratton, Inc. Study
The GBB Report can be found here:
http://charmeck.org/city/charlotte/SWS/Pages/Home.aspx
7. Who is the consultant that performed the Solid Waste Services Study? What was the
cost of the contract? Do they have any connections to the current vendor contracted
with the City for multi-family collection service?
Gershman, Brickner & Bratton, Inc. (GBB) (www.gbbinc.com) conducted the study
at a cost to the City of $84,665. The study was received by the City in 2013. To
staff’s knowledge, GBB has no connections to Republic Waste Services, the current
vendor providing dumpster/compactor service to Charlotte multi-family complexes.
8. What was the scope of the GBB study?
The City retained GBB to provide consulting services on two topics:
1. An evaluation of the cost and fee structure of the City’s solid waste management
program which included recommendations on cost allocation methodology, fee
structure, billing and collections.
2. An analysis of the City’s multi-family collection program.
9. What was the full recommendation from the consultant study?
In summary, the recommendations focused on two areas:
1. Modify City trash and recycling collection services provided by SWS
a. Revise the City Code to define four property classifications and limit
provision of collection services to single-family dwellings
b. Develop a new fee structure to be assessed on all improved properties
i. System Benefit Fee
ii. Disposal Fee
iii. Refuse and Recycling Collection Fee
2. Service and Rate Recommendations
a. Single-family Services and Rate
i. GBB recommends the City eliminate the Solid Waste Fee and adjust
the property taxes on single family units to offset a portion of the
cost of the new fees
ii. GBB recommends that the individual fees charged be equal to the
City’s actual cost for providing services to single family units
receiving those services
b. Multi-family
i. Discontinue trash collection services to multi-family units
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ii. Revise fees (eliminate the solid waste fee for multi-family
properties)
iii. Require multi-family properties to provide recycling services for
occupants
iv. Adjust property tax on multi-family units to offset a portion of the
cost of the new fees
v. If the City chooses to continue providing services to multi-family
units, the procurement of exclusive services would provide for
optimal service rates and direct billings to the multi-family property
owners for collection and disposal fees.
c. Businesses
i. Discontinue collection services to non-residential units, commercial
and small businesses outside the Special Tax District
10. Did the GBB Consultant make any recommendation to raise fees?
GBB recommended that the City develop a new fee structure to be assessed on all
improved properties (occupancy-permitted residences and non-residential
improvements with assessed value > $5,000) to capture all costs incurred for the
services provided. The consultant recommended a fee structure to include:
•
•
•
System Benefit Fee (all administrative costs and costs for citywide noncollection services),
Disposal Fee (based on tonnage of solid waste delivered for disposal at the
landfill), and
Refuse and Recycling Collection Fee.
11. How is the elimination of collection services not seen as discrimination against multifamily dwellers in other cities that do not service multi-family complexes?
Staff cannot speak to the legality or the context of other cities’ provision of solid
waste services.
12. What is the rationale other cities have used to not service multi-family?
Staff cannot speak to the legality or the context of other cities’ provision of solid
waste services.
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13. What cities were evaluated and what cities do not provide multi-family service?
The peer cities included in the study are: Austin, TX; Baltimore, MD; Columbus, OH;
and in North Carolina, Raleigh and Greensboro:
Jurisdiction
Austin
Baltimore
Columbus
Greensboro
Raleigh
How They Provide
Multi-Family Service
Provides service for
complexes with fewer than
four units
Provides service for
complexes with fewer than
four units
Provides trash collection
only with city crews to
multi-family complexes
with more than four units
Provides service for
complexes with more than
eight units
Provides service for
complexes with more than
five units with city crews
Notes
Austin does provide
service to multi-family
residential properties
within the downtown
district.
Charges fees to complexes
depending on the level of
service
Charges fees to complexes
depending on the level of
service
14. What was the thought process and full logic of evaluating multi-family collection
service?
Multi-family collection service was included in the GBB study as a result of questions
from Council’s Environment Committee discussions about the appropriate amount of
service or capacity for multi-family properties.
15. Can the City study the impact of keeping collection the same for everyone except
apartment complexes which are commercial?
Staff has evaluated several models and plans to continue that process.
16. In the last five years, has the SWS Department studied service delivery in other
service areas besides multi-family?
The last five years have included solid waste service additions for light rail stops and
public receptacles, as well as reviews of bulky item collection and yard waste for
single-family residences. Another area selected for study was small business
garbage collection (for businesses generating less than 512 gallons per week).
Beginning in FY2016, Council approved an annual charge of $250 for small business
garbage collection.
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III.
Solid Waste Service Operations
17. If multi-family collection service is eliminated, would the service end this year?
No. The earliest the multi-family service would be eliminated is calendar year 2017.
18. Can the City speak to the concern of having multiple contracts, contractors, pick-up
days, congestion of streets, sidewalks, parking, etc.?
Staff notes these concerns and will incorporate them into its review.
19. Why is there a discrepancy in the policy and practice around complexes greater than
30 units not getting rollout service?
Exceptions were granted by previous Solid Waste Services and City management.
20. What is the impact on the landfill if multi-family complexes are not able to afford
recycling collection services?
Staff does not have enough information to calculate the impact due to possible
changes in future recycling behavior.
21. How will bulky pick-up be handled if the City does not service multi-family
complexes and complexes cannot afford to provide collection services?
The bulky item collection and disposal service would be the responsibility of each
multi-family complex.
22. Is the City concerned that the elimination of multi-family collection service might
increase litter due to no bulky item pick-up, no recycling service, no monitoring of
collection, etc.?
Yes, because the City’s goal is to keep Charlotte clean and beautiful.
23. What are [multi-family] complexes supposed to do if they do not have a place for a
dumpster or compactor?
Complexes will have the responsibility for the placement of a dumpster and/or
compactor.
24. How will Home Owner Associations (HOA) pay for the upfit of space for a
dumpster/compactor?
Up-fitting the space would be at the discretion of each HOA to determine. Staff
offers no opinion on HOA finances.
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25. If services to multi-family are eliminated what is the impact to waste management
employees? Will there be layoffs or elimination of positions?
Depending on the service delivery model selected, positions may be impacted. It is
anticipated that any position impacted would be absorbed through attrition.
26. What is the difference between rollout service and dumpster/compactor service?
Rollout service consists of collection from 95 gallon carts that are rolled to the curb
by the resident. Dumpster/compactor service is also called bulk container service
and is defined as:
“Bulk container means a metal container of not less than two cubic yards nor
larger than eight cubic yards, made of watertight construction with doors
opening on two sides and top, constructed so that it can be emptied
mechanically by specially equipped trucks.”
27. Will the City consider a reduced collection schedule of once per month or every
other week instead of once per week?
Service reduction is an option to consider. Staff is reviewing a number of options; a
recommendation is anticipated later in the FY2017 budget development process.
28. Have you considered reducing the service versus eliminating it?
Service reduction is an option to consider. Staff is reviewing a number of options; a
recommendation is anticipated later in the FY2017 budget development process.
29. Is there an opportunity to be grandfathered in?
Previous exceptions, which were granted by previous Solid Waste Services and City
management, have created discrepancies in the policy and practice of solid waste
services. Grandfathering would not resolve these discrepancies and is not endorsed
by the City.
30. Does City staff have a recommendation on how collection service will be provided for
multi-family complexes?
Staff is reviewing a number of options; a recommendation is anticipated later in the
FY2017 budget development process.
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IV.
Fee/Budget
31. Why has the City not evaluated a full-cost recovery method for collection services
and increase fees to recover the costs?
The GBB report did evaluate and address a full-cost recovery method.
32. What is the burden to residents and complexes if services were eliminated?
If services were eliminated, the complexes or unit owners would be responsible for
the cost of solid waste collection and disposal. The financial impact is unknown as
the private haulers treat their billing structure as proprietary information.
33. What was the rationale for decreasing the single family fee from $47 to $25 and
increasing the multi-family fee from $24 to $25?
During the FY2016 budget process, the fee was reduced to partially offset an
increase in the property tax rate.
34. If elimination of multi-family service is approved, how would this impact the singlefamily fee of $25?
At this time, no changes have been considered. Any changes to the solid waste fee
would be considered as part of the City’s FY2017 budget development process.
35. Is it cheaper to service single-family or multi-family complexes?
Dumpster/compactor collection is less expensive than curbside collection.
36. How will the savings be distributed if multi-family service is eliminated?
At this time, the distribution of savings is unknown and would be addressed during
the budget development process in the fiscal year the service would be eliminated.
37. Would eliminating service to multi-family complexes increase the subsidy for singlefamily units?
At this time, this is unknown and would be addressed during the budget
development process in the year the service would be eliminated or through Council
policy changes.
38. Is it possible to add a fee for new complexes only?
No. Fees must be assessed uniformly as required under North Carolina General
Statutes § 160A-314.
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39. What percentage of the total City budget is the cost savings/avoidance if the multifamily service were to be eliminated?
The percentage of the total City budget of the cost savings/avoidance if the multifamily service were to be eliminated is 0.7%.
40. Can you provide an explanation of the calculations on the total cost of service, per
unit costs, per type cost, and projected savings/cost avoidance?
Actual cost of service is difficult to determine, as it is based on many variables, such
as number of containers, services used and distance to disposal facilities. The
average cost for garbage, recycling, yard waste and bulky service for a curbside unit
with rollout containers ranges from $186-$195 per year. The average cost for
garbage, recycling, Christmas tree and bulky collection services for dumpster or
compactor unit ranges from $55-$61 per year. Costs include collection, disposal and
departmental administrative costs. Capital costs and City administrative costs are
not included.
Projected Savings/Cost Avoidance
Collection Costs (eliminated)
Disposal Costs
FY2018 Projected
$5.1M
$2.4M
Total Operating Savings/Cost Avoidance
$7.5M
Less: Solid Waste Fee Revenue Reduction
$3.9M
Net Savings/Cost Avoidance
$3.6M
41. There are economies of scale when the City provides the service through a
contractor. Do you have a sense of what the impact will be for owners and renters
to pay a contractor for service when there are no economies of scale?
The impact is unknown as the private haulers treat their billing structure as
proprietary information.
42. Was there a proposal by the consultant company to raise the rollout fee back to the
2015 fee of $47 for both single and multi-family units?
No. The consultant’s report was issued in 2013, prior to changes to the Solid Waste
Fee during the FY2016 budget process.
43. What is the offset in decrease in waste management fees?
Assuming this refers to the annual solid waste fee currently charged on the property
tax bill, the projected reduction in revenue to eliminate the fee is $3.9 million in
FY2018. This offset has been factored into the net savings/cost avoidance
calculation.
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44. What is the history of the $25 fee and what was it intended to cover?
In 1984, the City and Mecklenburg County entered into a solid waste interlocal
agreement where the City became the lead agency charged with solid waste
collections and Mecklenburg County took over disposal. This agreement included the
transfer of City landfills to County ownership. Also as part of the original agreement,
the County did not charge the City for tipping fees and instead charged a residential
disposal fee, billed at the same time as the property tax, to cover the cost of the
landfills.
In 1996, the original terms of the agreement ended. At that time, the County
eliminated single-family and multi-family residential disposal fees and the City
began to incur tipping fees. The City adopted the same fee used by the County $38 per year for single family and $23 per year for multi-family. The County
retained a $10 per year administrative fee for residential customers. The County fee
is currently $17 per year.
As part of the FY2016 budget adoption, the City code was re-defined and expanded
the use of the fee to include coverage of collection costs. The fee was set at $25 for
both Single Family and Multi Family effective July 1, 2015.
Fiscal Year
FY1997
FY2001
FY2013
FY2016
Solid Waste Fee History
Single Family
$38 per year
$45 per year
$47 per year
$25 per year
Multi Family
$23 per year
$27 per year
$24 per year*
$25 per year
*decrease due to elimination of multi-family supplemental service
45. How much has the move to recycling impacted the budget? Has it been positive or
negative?
The City currently provides bi-weekly recycling collection service. Weekly recycling
collection service would cost more than bi-weekly collection service. The move from
a weekly dual-stream model to a bi-weekly single-stream curbside recycling model
in 2010 has yielded an average of $3 million per year in savings and/or cost
avoidance.
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V.
General/Other
46. How would the elimination of multi-family service impact affordable housing?
Staff does not have enough information to answer this question at this time.
47. How will the elimination of multi-family service impact low to moderate income
families in multi-family complexes?
Staff does not have enough information to answer this question at this time.
48. How will the elimination of multi-family service impact households that receive rent
subsidies?
Staff does not have enough information to answer this question at this time.
49. With the growth in multi-family complexes, is the City considering the impact of not
having as many single-family units for pick-up and the impact it may have on Solid
Waste Services if multi-family service is eliminated?
Staff does not have enough information to answer this question at this time.
50. State law prevents Home Owners Associations (HOA) from increasing their fees
more than 10% per year. How will complexes be able to afford the cost of a private
hauler if state law will not allow an increase great enough to cover the cost of
collection services, in addition to other cost increases the HOA may need to
consider?
This is an issue that was not considered by staff. However, staff are studying the
impacts.
51. Will the presentation that was given today be sent out?
The presentation will be posted on the Solid Waste Services website by Friday,
March 4 (http://charmeck.org/city/charlotte/SWS/Pages/Home.aspx)
52. Can the City provide a map of where we provide services? What is the impact of
moving the line in or out?
Solid Waste Services provides services inside the city limits of Charlotte.
53. Who in the City has supported the elimination of multi-family collection service?
Various City staff and Council committees have supported further study and review
of solid waste services.
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54. Can the City set up an online public forum for people to submit additional questions?
The City plans to add the ability for residents to submit additional questions via the
website. (http://charmeck.org/city/charlotte/SWS/Pages/Home.aspx)
55. Is the City beholden to tax payers or home owners when looking at best practices?
The City has a responsibility to provide an efficient and effective service.
56. What does “leader” mean and what are examples of SWS leading in the industry?
SWS operates an effective and efficient operation with a high level of customer
service, and has been the leader in the following ways:
•
•
•
•
For the past 18 years, the City of Charlotte’s cost of service has been
consistently below and customer service has been consistently above the statewide averages for cities participating in the University of North Carolina’s School
of Government Benchmarking Project.
SWS is a leader in the use of technology for routing and tracking software for
service validation and enhanced customer service.
SWS’ fleet includes refuse trucks fueled by environmentally-friendly compressed
natural gas.
SWS has been the recipient of numerous awards from industry trade
organizations, has been featured in trade magazines, and staff frequently serve
on panels or as speakers at conferences.
57. Could it be said that providing multi-family service is a way that SWS is leading the
industry?
The City’s solid waste policies have not been updated for 20 years. The goal for the
current review of the policy is intended to ensure that Solid Waste Services is
continuing to provide the services in the most efficient and effective way to the
residents of Charlotte.
58. If I own my unit and the parcel below it, sharing only a wall with my neighbor, am I
considered a single-family resident or multi-family resident?
According to the definition in City Code and the classification assigned by the
Mecklenburg County Tax Assessor, a property that shares a wall with a neighbor is a
multi-family property.
59. Can you assess different property rates in the City?
No. Per Article V, Section 2(2) of the North Carolina Constitution, “No class of
property shall be taxed except by uniform rule, and every classification shall be
made by general law uniformly applicable in every county, city and town, and other
unit of local government.”
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60. If North Carolina law prohibits differing tax rates within the jurisdiction, how am I
charged 3 different rates on my tax bill?
Properties in municipal special districts are subject to additional tax assessments,
per North Carolina General Statutes, Chapter 160A., Article 23.
61. Why does the City think it should not subsidize solid waste services when they
subsidize many other City services?
As the consultant study notes, the national trend is toward re-evaluation of
municipal solid waste services and a fee-based funding model.
62. Is the recommendation that multi-family dwellers are no longer citizens?
The City of Charlotte considers all residents to be citizens.
63. Provide clarification on commercial multi-family complexes with private streets and
multi-family complexes with public streets.
The City and its contractor currently provide services to a mix of residents on both
public and private streets.
64. What is the definition of commercial?
The City has not defined “commercial” within the Solid Waste Services section of the
Charlotte Code (Chapter 10, Article II) nor has the City developed a proposed
definition.
65. Besides budget savings reasons, does the City have any reasoning for eliminating
service to multi-family?
1.
2.
3.
4.
5.
6.
Is it a better service to residents?
Does it meet the goal of trash diversion?
Does the City not manage the contract well enough?
Will it create more jobs?
Will Charlotte be more competitive?
Will it improve public safety?
At the direction of Council, City staff is currently evaluating SWS service options and
is intending to include additional concerns raised through the community forums.
66. How are mobile homes classified? Single-family, multi-family, or other classification?
Mobile homes are assessed by the Mecklenburg County Tax Assessor’s office as
motor vehicles unless on a foundation. When mounted on a foundation, these
mobile homes are assessed as single-family.
67. Why is a townhome with a rollout cart considered differently than a single-family
home with a rollout cart?
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According to the current Mecklenburg County Tax Assessor’s office and the City of
Charlotte Code, townhomes are classified as multi-family dwellings.
68. Is there going to be any consideration given on the effect of eliminating services and
the City’s zero waste goal?
The path towards the zero landfill goal, as part of Council’s Environment Focus Area
Plan, is still in early development. The evaluation of the management of Charlotte’s
waste stream, including construction, commercial and residential, is part of that
development process.
69. By recommending limited provisions to multi-family residents is the City treating
multi-family residents differently than single-family?
The City of Charlotte supports the provision of solid waste services in a uniform
manner based on classification.
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