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reasonably regulate our industry while maintaining a system that allows for competition ". Consumers know healthy competition provides the best price, service and value over the long term. " Question: What are NSWMA's responses to commonly stated advantages of organized collection (worded as government managed collection by NSWMA)? ► Increased efficiency leads to a lower cost per household ► Less impacts of truck traffic on residential streets ► Reduced risk of accidents, truck emissions, and noise ► Greater control and management capabilities leads to • Control where waste and recyclables are delivered • Better assurance that residents actually have garbage service • Factors promoting recycling and diversion such as variable rate pricing • Uniform service makes public education simpler • Ability to provide access to special service at known, controlled costs ► Ability to competitively bid service on a regular basis ► Can be used to generate revenues to support other services "An open market, with competition, is the only way to drive innovation, hence efficiency and value. Value is not just price, but the combination of price, service and environmental protection. It is interesting to note, when government speaks of the advantages of government "managed" collection, there appears to be an underlying presumption they can manage the system better than the private sector. Structurally, government is ill-equipped to manage the myriad of challenges and demands of the consumer and, adds another burden to an already overworked city staff. Again, when you talk to residents, they believe government has more important problems to tackle, especially given the long history of consistent, innovative and valuable service provided by the private sector in the Twin Cities. A recent example in the Twin Cities market is single sort recycling. Despite the naysayers, the amount of net material recycled has increased and participation has skyrocketed. All of this was done WITHOUT government regulation. To be clear, we do not advocate a new regulation mandating single -sort, but an open market that allows technologies to compete against each other Even today, despite all of the change in our industry, we have a healthy mix of competitors including 50 year old private companies, large national companies and even new startups. Although some of the "advantages " touted by government staff may appear to be desirable, they do not offset the proven history and longterm benefits of competition. The system we have today, although not perfect, provides the best value to individual consumers and the community at large. " Question: Do haulers make more money per customer in open systems than organized systems (worded as government managed systems by NSWMA)? R - Analysis of Waste Collection Service Arrangements.doc Foth Infrastructure & Environment, LLC • 43 June 2009