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Summarized the advantages and disadvantages of providing for compensation; Discussed possible circumstances under which compensation should be granted; Examined possible eligibility criteria; Analyzed four alternative methods for determining the amount of compensation; Discussed three potential sources of revenue to collect the necessary funds to pay the compensation; and Examined alternatives to compensation, including the advantages and disadvantages of strengthening the existing organized collection planning process. One of the more notable excerpts from the lengthy study analysis in Part Two was an example hypothetical scenario used to estimate the amount of compensation (Section IV — "Who Pays, Sources of Revenue"; Subsection A — "Collection Surcharges"; page 2 — 34): "To illustrate, assume a city has 30, 000 residences that require garbage collection. Prior to organized collection, one hauler collects from 10, 000 residences. Four other haulers split the remainder. The city organizes collection pursuant to a bidded contract and awards the bid to the hauler with 10, 000 accounts. If the total amount of compensation for the four displaced haulers collecting 20, 000 residences is determined by multiplying 20, 000 times the average gross monthly charge per household (est. $16.00 household) times 12 months, the total compensation amount would equal $3,840,000..... " Part Three of the Study contained the report recommendations. The report recommended: 12 "It is recommended that a statutory right to compensation for displaced haulers not be adopted. " 2. "It is recommended that the current organized collection process be modified to require contract negotiations with existing haulers. " The recommendation to not provide a statutory right to compensation was based upon several reasons including: Dangerous precedent — This would be the first statutory right to compensation for a taking in Minnesota. Compensation as undesired and inappropriate remedy — Many haulers stated their primary interest is continuing in business and their concerns were that fair negotiations take place with cities and that they be given an equal opportunity to compete. Other, less onerous remedies were determined to be available. Problems with implementation — Placing a value on a right to operate in a given city was extremely difficult. Any compensation mechanism will unjustly enrich some while inadequately compensating others. 12 Ibid. R - Analysis of Waste Collection Service Arrangements.doc Foth Infrastructure & Environment, LLC • 15 June 2009