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Residents will have to choose their services from the standard set offered. This may not <br />include some services they receive now. <br />There would be an increased administrative burden associated with getting a new system <br />set up and running, including developing the RFP, evaluating proposals, developing a <br />contract agreement. The City would also have to monitor and enforce the terms of the <br />contract. <br />Residents opposed to organized collection have been far more vocal than residents who <br />support organized collection. Staff and elected officials are likely to experience negative <br />feedback from those individuals. In other cities, this has been temporary. <br />Decreased business opportunities for haulers. <br />2.4.2.2 Hauler Participation <br />The Organized Collection statute includes significant requirements to work with the existing <br />haulers serving the city considering organizing. The haulers are obviously motivated to protect <br />their interests as they participate in the process. They work to dissuade city officials from <br />proceeding often times offering some alternatives that address some of the potential advantages <br />of organized collection or disadvantages of open collection. <br />Hauling companies were extensively engaged in the Ramsey/Washington Counties Public <br />Collection Study. Following are highlights from their input to that evaluation that are pertinent <br />for a statewide study.17 <br />Maintain competition — Small haulers believe they can compete in a number of ways in <br />open systems that allow them to differentiate their service. Competitive measures <br />include: <br />► Providing quality customer service; <br />► Niche marketing (providing specific, limited services and not trying to be "all things <br />to all people"); <br />► Maintaining long-term customer relationships; and <br />► Appealing to customer preferences for supporting locally -owned independent <br />businesses. <br />Growth opportunities — Open systems allow haulers to pursue new customers and grow <br />their business easier than bidding for contracts in organized systems. <br />Company value — The value of a company is based upon annual revenues. If haulers lose <br />customers due to a public entity organizing collection, their annual revenues will decline, <br />decreasing the price received when selling. Some haulers use the proceeds from the sale <br />of their company as their retirement fund. <br />17 "Final Report: Study on Public Collection." Apr. 2002. Ramsey & Washington Counties. St. Paul, MN. <br />22 •Foth Infrastructure & Environment, LLC R - Analysis of Waste Collection Service Arrangements.doc <br />June 2009 <br />