1. Department of Solid Waste Management FY11 Budget Update Mayor’s Report Harry J. Hayes, Director January 19, 2011

2. Outline Mission Major Department Business Functions Key 2011 Objectives Budget Review FY08 - Present Budget Actions Required – Recycling Expansion – Used/Scrap Tire Management Future 2

3. Department Mission 3 The mission of the Department of Solid Waste Management is to provide cost effective, environmentally sound and safe solid waste management services to the citizens of Houston.

4. Solid Waste Management Department Core Business Functions Residential Garbage (Automated Collection) Tree & Junk Waste Yard Waste Recycling Recycling: Single & Dual Stream Dead Animal Collection Neighborhood Depositories Expansion Transfer Station Management and Refuse Disposal 4

5. SWMD Key Objectives for FY 2011 Reduce collection and disposal of yard trimmings by up to 60,000 tons. Increase automated recycling collection by at least 30,000 new homes. Expand neighborhood recycling opportunities with the opening of new Neighborhood Depository Sites and expanded Adopt-a-Container programs. Offer automated recycling for small businesses. 5

6. SWMD Budget Fiscal Years 2008 - 2011Fiscal Year Highlights FY08 first “whole city” service in nearly 25 years, added 85,000 formerly contracted units to city service. FY09 includes Hurricane Ike related expenses, addition of Clear Lake Community and higher fuel expenses. FY10 includes expanded automated recycling, renegotiated and reduced disposal fees, garbage reroutes and full year of Tree Waste Program. FY11 opened two new Neighborhood Depository Sites, fully implemented compostable bags and MORE Automated recycling. 6

7. SWMD Budget Management 7 * fy11 projections based on actual budget

8. Budget Management 8 Adj. BudgetActual ExpenseSavings Adj. Bud. Redux fy07 $ 72,078,405 $ 69,972,621$ 2,105,7842.9% fy08 $ 75,145,178 $ 74,082,830 $ 1,062,3481.4% fy09 $ 75,787,162 $ 74,418,745 $ 1,368,4171.8% fy10 $ 70,236,945 $ 68,494,838 $ 1,742,1072.5% fy11 * $ 70,278,682 $ 67,900,916 $ 2,377,7663.4% Total $ 365,032,011 $ 355,585,994 $ 8,656,4222.4% * fy11 projections based on actual budget

9. Financial Management SWMD has consistently come in under budget while: – Absorbing annual pay and benefit cost increases. – Expanding services offered to customers. – Delaying equipment replacement and acquisition. Department Management monitors costs and effectiveness of services. 9

10. Budget Action Required – ACR Expansion 28% of homes currently on Automated Recycling. Approx. $25.0 million required to expand to rest of city. – $17.7 million for carts. – $7.2 million for trucks. Citywide expansion would save at least $3.0 million in annual disposal. Recommend that Council adopt the expansion plan as presented with $3.50 fee. – Recycling – Depositories – Neighborhood Protection Expansion 10

11. Budget Action Required – Scrap Tires The city needs better management & oversight of used tire generators. Illegal dumping of scrap tires is a public health nuisance. Between 4,000 – 5,000 used tire generators in the city limits. 11

12. Tire Management Nearly 3.2 million vehicles registered in the City of Houston and Harris County. 600,000 – 800,000 tires “changed” annually. 12

13. TCEQ Tire Registrations 13

14. 14

15. Used/Scrap Tire Entities Registered with TCEQ 86 Transporters 1,576 Generators 1 Transportation Facility 6 Scrap Tire Facility 1 Storage Facility 6 Processors 1 LRPUT 15

16. Used/Scrap Tire Entities In City’s GIS Data System 4,487 – Franchise Tire Shops – Franchise Repair Shops – Auto Salvage Yards – New/Used Car Dealers – Rent-a-tire Centers – Neighborhood Tire “Yards” 16

17. Illegal Dumping Facts 17

18. Illegal Tire Dumping Costs 5,148 Staff Hours @ $1.0 million. Disposal for 1.7 million lbs of tires collected @ $123,000 for disposal. 18

19. Public Safety & Health Protection SWMD estimates a cost of $250,000 to monitor used/scrap tire operations for compliance with City and TCEQ regulations. Houston should follow the model of other large Texas cities in managing this public health concern. 19

20. Summary SWMD has managed, reduced and controlled costs during tough economic times. Renegotiated expensive contracts, thereby insulating citizens from undue expensive services. Expanded Recycling and other services. 20

21. Questions 21