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<br />. <br /> <br />seen their prices go up under the open system, and there is no reason to expect that <br />haulers would refrain from all futur.e price increases if the City decided not to go <br />ahead with organized collection. Over the long term, prices are likely to rise, whatever <br />option the City chooses. <br /> <br />The question is, are ilie structured increases under a contract likely to be greater or less <br />than the increases imposed on customers in an open system? And is iliere a "bulk <br />buying" effect that drops ilie prices when a City organizes? <br /> <br />Rates and systems vary widely around the country, from highly structured "pay as you <br />throw" systems to those that charge a flat rate for any amount of trash. Commission <br />research came up wiili information on many cities, some of which are included in <br />Appendix D. Rate tend to be much higher in coastal states where land for landfills is <br />scarce and costly and waste must be transported for longer distances. <br /> <br />The most meaningful comparisons can be made with communities in ilie Twin Cities <br />Metro area, especially in Ramsey County. This sample in Table I is not exhaustive by <br />any means, but it does show that at least some nearby communities that have organized <br />collection have achieved rates iliat are lower than the average charges in Falcon Heights, <br />Roseville and Maplewood, which all have open systems. <br /> <br />Efficiency <br /> <br />. The Falcon Heights Solid Waste Commission set as one of its major mission goals <br />improved efficiency in the City's solid waste collection system. But is this a meaningful <br />goal? Does efficiency really matter? <br /> <br />Yes, it does, according to the U.S. Environmental Protection Agency. (7) The EP A cites <br />a recent study by SW ANA (the Solid Waste Association of North America) showing iliat <br />collection represents the most costly phase of solid waste management, up to 62% of total <br />system costs. Finding ways to pick up more waste with fewer trucks and fewer people in <br />less time can have a big impact on total costs. <br /> <br />For a trash hauling business, costs per customer are minimized when the hauler serves a <br />densely populated area. When customers are widely dispersed, the hauler has to pay <br />more for fuel, labor, and truck maintenance to earn the same revenue. In an open system, <br />a hauler who can accumulate the best customer density achieves ilie most cost efficient <br />operation. "Using fuel and labor efficiently.. .has a positive cost impact for ilie haulers <br />and should result in lower prices for consumers," according to the Minnesota Attorney <br />General's Office. (8) <br /> <br />. <br /> <br />The big question for consumers, however, is whetller "those savings are passed on to <br />them or pocketed by ilie hauler." Some communities have tried to mal,e the efficiency <br />factor work for them by joining togeilier by block or by neighborhood to contract with a <br />hauler. The Attoruey General's report gives ilie example of St. Paul's Tangletown <br />neighborhood, which was able to contract for significantly lower costs than the residents <br /> <br />City of Falcon Heights Final Report on Organized Collection <br />October 13, 2004 <br /> <br />9 <br />