05-04-1992 WS - Laserfiche WebLink

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LnC.((.+ �..t..t� LIABILITIES AND DISADVANTAGES OF ORGANIZED COLLECTION There are four potential liabilities or disadvantage to organized collection of refuse. Organized collection reduces an individual's choice of garbage collectors, requires additional municipal involvement, broaches anti-trust issues, and could potentially adversely affect existing refuse companies. Households that currently arrange with a hauler for refuse removal would no longer be able to select the hauler of their choice. This runs counter the nationwide trend of permitting individuals more choice in the type and level of services desired. However, a survey by the Minnesota Center for Social Research completed March 29, 1985, showed broad-based support for municipal control, with 77 percent of those respondents who now select their garbage hauler willing to let the city decide, although some agree only if it reduces their cost. r. . . . . . I,. 'i• •k .bout 11 •ercent of the so•ulation or about 20 I ercent of the re s ondents who selected their garbage hauler, who felt strongly that they wanted to retain choice. The study suggests that this group be studied further to identify their concerns. Organized collection will require municipalities with unorganized refuse collection to become more involved in refuse collection issues. Because there is a great del of satisfaction among households and businesses about the manner in which refuse is handled, it may be difficult to explain why additional government involvement is necessary. Municipalities will have to overcome the concern, "If it ain't broke, why fix it?" Although the cost differentials to the households of the different market structures is not great, the sum of the costs to all the households in the city over a period of.a year's time can be significant. For example, if St. Paul went to an organized collection system, it could expect an annual savings of at least $1 million based upon 64,986 single-family units and a $1.50 differential in cost per household per month. Municipalities will incur costs associated with administration, billing, and monitoring of the contract. Billing can be done in conjunction with other municipal billings such as property tax statements or utility bills. National studies show that billing expenses are much less if handled by the municipality rather than by the waste hauler. Administration and monitoring costs amount to about five percent of the total cost of the contract according to the study by Ecodata, Inc. How organized collection is implemented in the region may be affected by anti-trust law. This matter requires additional study. Implementation of organized collection by municipalities has the potential to adversely impact some refuse collection companies. An increase in productivity means that fewer people are needed to perform the same function. Consequently,, fewer collection-crews-would be needed-to-collect-refuse-under-an _organized collection system. Whether this means a reduction in collection companies depends upon how organized collection is implemented. The businesses of some waste haulers, particularly those operating part-time or collecting waste as a job on the side, may be adversely affected. The implementation of the waste management system envisioned by the Council's solid waste policy plan may work to offset any negative impacts upon the collection industry as a result of organized collection. The provision services for yard waste, recyclables, and household hazardous wastes may compensate for the reduction in the labor force if organized collection were implemented by a significant number of cities in the region. Also, there- isan importunity-for new business ventures into management of the yard waste compost sites or recyclables processing facilities. The expansion or development of new industries as a result of increase recycling activities could also increase the demand for labor.