1. Solid Waste Services Residential Solid Waste Collection Options April 6, 2016

2. Overview Policy Question Options with pros and cons Next Steps 2

3. Policy Question Are apartment buildings commercial entities that should handle waste collection independently? 3

4. 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) 4

5. 5 Multi-Family Unit Type UnitsRoll OutDumpster/ Compactor Private Hauler Apartment102,8783,95898,920 Condo24,1226,07918,043 Townhouse8,9696,3132,656 Unknown15,587 Total151,55616,350119,61915,587 Single Family UnitsRoll OutDumpster/ Compactor Private Hauler Homes197,670 Current Model Anticipated increase of 5-10% in multi-family units in FY2017 and FY2018

6. 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 6

7. 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 7

8. 1. Stop Service 8 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 UnitsService Type Net Savings/ Cost Avoidance 98,920Dumpster/Compactor$2.0M - $2.5M 3,958Rollout$104,000

9. 2. Full Cost Recovery 9 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 Estimated Unit Cost Current SW Fee Revenue Estimated Additional Revenue 98,920Dumpster/Compactor$59$2,473,000$3,363,280 3,958Rollout$195$98,950$672,860

10. 3. Franchise Model 10 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 Impacted UnitsService Type Net Savings/ Cost Avoidance 98,920Dumpster/Compactor$2.0M - $2.5M 3,958Rollout$104,000

11. 4. Continue Current Service 11 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 FY17 Projected Cost FY18 Projected Cost 119,619Dumpster/Compactor$6.2M$6.7M - $7.7M

12. Next Steps 12 Get feedback from Council on options Schedule Public Forum #3 to update residents Incorporate into Manager’s Recommended FY2017 Budget (as needed)