Landfills are the main disposal method for solid waste in North America. About 60% of our residential contracts increase based on an index price while the remaining 40% increase based on market prices. The fees for residential collection are paid monthly in advance either by the municipality or directly by the residents receiving service.ДЇor most residential collection services, we have a contract with a municipality, local authority such as a homeownersвЂ™ association, or individual resident. Municipal contracts are usually three to ten years while open market customers can sign up for services under a monthly subscription. Residential customers typically fall into two categories, municipal or open market. Temporary service is based on market pricing.Д¬ommercial and industrial customer churn is about 9%, meaning that on average customers stay with us for more than 10 years. Temporary service is for short-term projects like construction. Permanent service typically has a monthly rental fee and charge per haul. We often provide compactors to these customers as well. Permanent service indicates that a bin is always at the customer site, like a manufacturing plant or a shared container that a large apartment complex would require. Industrial services can either be permanent or temporary. As part of the service, we typically provide steel containers to most customers to hold their waste between pick-up dates. The fees are determined by factors like collection frequency, type and volume or weight of the waste collected, and cost of disposal. Generally, contracts based on an index are municipal contracts or franchise agreements.ДЇor commercial and industrial customers, we typically have a three-year service agreement. Overall, about 40% of collection contracts are based on pricing that fluctuates with an index while the remaining 60% periodically increases with market prices. We provide services to commercial, industrial, residential, and municipal customers. About 70% of the waste that we collect is disposed of at our own landfills, or internalized, which allows us to realize higher consolidated margins and stronger operating cash flows. Collection involves picking up solid waste and recyclables from where they were generated and transporting them to a transfer station, material recovery facility (MRF), or landfill. Collection operations are our largest revenue driver.

Wm garbage truck