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Comprehensive Review of S olid W aste Collection and Disposal Options v2.1 A -18 10/22/12 Subsidize Private -Sector Commercial -Multi -Family Collections Using these analyses, SCS was able to estimate the value of providing commercial-multi-family collections according to the level of service the Town is currently providing. SCS estimates the cost for the Town to provide collection for multi-family accounts is approximately $402,400/year, with offsetting revenues of $54,000/year, for a net cost of $349,000 /year (see Exhibit A-2). Using these data, the Town may evaluate how it may subsidize the cost of privatized commercial-multi-family collections if it so chooses. Based on SCS’s experience in the industry, subsidizing such collection services for private, multi-family housing is rare. However, SCS is aware a decision to either provide or forego a subsidy involves other intangible metrics in addition to this financial analysis, such as: the Town’s values, level of service expectations, citizen equality, and private development. Separating A partment C omplexes from C ondos/T ownhomes SCS evaluated what the impact would be if the commercial-multi-family collections from only Townhomes and Condominiums were given the discounted rates (i.e., one collection per week at no fee), while apartments and other multi-family establishments that aren’t so categorized were charged the full rates for all collections. A preliminary analysis of the revenue impact of modifying the Town’s billing practices to charge non-townhomes and condominium customers the full rates without discount was prepared. There may be other establishments that in a more extensive analysis would also be granted the discounted rates. The net revenue increase the Town might expect is about $135,000 per year. SCS did not analyze the option of the Town only collection from the condos and townhomes, but suspect the Town would lose significant revenue but still have the basic labor and equipment costs, although operational costs would reduce somewhat (fuel, maintenance), as would the respective disposal costs. Conclusions and Recommendations Regarding Commercial Collection A summary comparison of each of the commercial collection scenarios evaluated is presented in Exhibit A-12. No significant economic benefit would be achieved by simply eliminating the Town’s commercial-business collection program. SCS’s analysis suggests that only a nominal savings of $22,000/year could be achieved; however, given the number of variables and assumptions associated with the cost allocations between commercial and residential collection programs and the commercial-business and commercial-multi-family functions, the projected savings are well within the margin of error of the analysis. Another scenario that was considered is to continue collection to residential properties (e.g., townhomes and condos), eliminate large multi-family collections (e.g., multiplex apartments) and commercial account collections. Financial analysis of this specific scenario was not performed. Because there would be some further reduction in costs, but no additional revenue, the ballpark estimated savings is believed to be in the $50,000 to $75,000 per year range.