Agenda Packets - 1992/03/02 - Laserfiche WebLink

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4 REASONS TO OPPOSE SINGLE HAULER Members of EQTF who opposed a single hauler system did so for various reasons. Moreover, some members put a great deal more emphasis on some reasons than others. In all, three members of the five EQTF members opposed the single hauler system. Expressed and strongly held reasons included: 1 . Fear that big haulers will have an advantage in the bidding process and cause the smaller haulers to lose significant amount of business and perhaps force them out of business. Larry confirmed that Mounds View makes up about 1/3 of his business, so that the loss could very well put him out of business. Some members strongly opposed contributing to the process of big haulers getting a monopoly and small haulers being forced out. 2 . Desire to keep certain cost advantages and other amenities provided by or negotiated with a chosen hauler, which may not be provided by the single hauler. Such advantages included: 1) Some haulers now pick up refuse at the garage side rather than curb side without any additional cost. 2 ) At least one hauler offers a bag rate of $2 .50 a bag with no requirement that a bag be put out every week. Moreover, 26 bags are purchased in advance, so the price is locked in for as long as the bags last. No other monthly payment method allows for locking in a rate in advance. This arrangement 411 allows for true volume-based pricing without any minimum weekly cost. If offers a greater incentive for a cost conscious resident to minimize volume through recycling or prudent buying than any other arrangement. 3 . Fear that a single hauler system will cost more rather than less than we are currently paying due to the likelihood of a hauler putting in an initial low bid, but later raising the rates when no longer faced with competition. 4 . Fear that if we go out for bids, we may not get as low bids as White Bear Lake, and therefore once we have committed to the bidding process, we may end up with rates hiker than most of us, or some of us arennw paying. 5. Desire to see competition left in the system, so that haulers are more likely to want to please the customer and be more open to negotiation to meet individual customer's needs so that they can keep the account. Also allows a better chance for hauler and customer to get to know one another. If customer doesn't like one hauler, they can get another, thereby retaining some control over the quality and type of service. _ 6 . Fear that one more cost put on a utility payment system is going to raise those quarterly payments so high that many residents are 410 going to be unable to pay on time. Delinquent payments will add to administrative costs in collecting all utility payments. Moreover, it will further raise resentment toward utility financing.