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I. Cost and Efficiency . Comparison of Garbage Collection Fees Consumer cost was one important factor leading the Falcon Heights Solid Waste Commission to explore the possibility of organizing refuse collection in Falcon Heights. The table below gives a quick comparison of local communities. Type of I City collection 30 Clallon 60 gallon 90 gallon Falcon Heiohts (averaoe of 6 comoaniesl Ooen $ 13.59 $ 15.56 $ 17.17 Rosevillelaveraoe of 7companiesl- Ooen $ 12.85 $ 14.90 $ 16.84 Manlewood /;,verane of 9 haulers' Ooen $ 12.19 $ 14.11 $ 16.08 North St. Paul. 2003 Ornanized $ 8.07 $ 8.86 $ 10.39 Shakonee, 2004-2005 Ornanized $ 8.60 $ 10.65 $ 12.24 Little Canada. 2002 (most recent rates listed) Oroanized $ 8.29 $ 9.77 $ 11.29 White Bear Lake Oroanized $ 7.50 $ 11.00 $ 15.00 Stillwater, 3 vears endina 12/31105 Ornanized $ 8.16 $ 10.06 $ 12.03 Table 2. Note: The Falcon Heights average was calculated from the rate schedules haulers are required to submit with their annual license applicaton. The County Environmental Charge is not included; taxes were subtracted from the rates that included them. More information is given in Appendix D.) . During their preliminary study, Commissioners saw a study done by the City of North St. Paul in 2000 which showed that, among a surveyed group of Metro area communities, those with only one hauler or a consortium of haulers tended to have lower average rates than those with a high number of haulers. (1) This led the Commission to wonder ifFa1con Heights residents could gain a bargaining advantage by "buying in bulk." In other words, haulers might be prepared to offer a lower price to customers if they could be guaranteed the business of the whole city or a section of the city. It seems to work elsewhere. For instance, few individual consumers can negotiate the same discount on a new car that a large corporation purchasing a whole fleet of cars can get. Ran1sey County and the City of St. Paul have special purchasing contracts with vendors for all kinds of products and services, saving large amounts of taxpayer money. Through a joint powers agreement, Falcon Heights participates in this arrangement. Residents who shop at warehouse discount stores save money on per unit costs by buying in bulle But does this principle work for trash collection? Haulers insist that it does not. In fact they have claimed that county or municipal organization of waste collection would cost consumers more. When a City contracts for residential waste hauling, they said, prices go up. (2) In fact, structured price increases are usually built into service contracts that last over several years (for example, both NOlih St. Paul and Shakopee built increases into their contracts). This is only fair when a provider's costs are also rising due to inflation. But Falcon Heights residents have also . City of Falcon Heights Final Report on Organized Collection October 13. 2004 8