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Table 2-1 Advantages/Disadvantages of Open Collection Systems Advantages Disadvantages Choice — Households are free to . Usually results in a more expensive continue to choose their hauler based monthly cost on preference There is a direct relationship between the hauler and the customer that allows the customer to shop around or change if dissatisfied None to very minimal administrative costs or burdens for public entities Small haulers are more apt to compete for a portion of the accounts — entry level requirements for new businesses is low Haulers are more likely able to shop for lower disposal prices or use their own facilities Results in more truck traffic with potential associated impacts of. ► Added street maintenance ► Air quality/vehicle emissions ► Safety/vehicle accidents ► Aesthetics (containers out more days of the week), noise, and litter Inconsistent charges for the same level of service in a community, even among customers of the same hauling company Reduced ability of the community to effectively manage solid wastes Haulers switching from one landfill to another due to price results in exposure to liability at more sites The primary advantage cited for open systems is the ability for people to choose their own hauler. There is a direct relationship between the individual customers and service provider that may supersede any other potential benefit. The customer is in control, making the decision to hire whoever is providing service in the community. The choice may be a matter of family relationships, tradition, past experiences of inadequate service, price, etc. Open systems typically result in less administrative effort for the public entity, but also result in less overall control of the solid waste management system (less control on where waste is disposed, service levels, and diversion levels). Open systems may be better suited to smaller or start up businesses as the requirements for equipment and employees are controlled by the individual hauling company rather than set by the public entity contract. While there can be variations in pricing, the price paid by households in open systems is typically higher per month for similar service levels. This is primarily due to the increase in efficiency for haulers in organized collection systems serving every household in the community or on a route rather than driving by households served by other hauling companies. Also, in open systems where a particular hauling company is successful in gaining a predominant market share, there is less reason for the hauling company to pass on the improved efficiency to customers. The hauling company may increase its profitability in that specific community. 4 •Foth Infrastructure & Environment, LLC R - Analysis of Waste Collection Service Arrangements.doc June 2009