Variable Rate Options
Variable Rate Options A unit pricing system where the resident pays a variable rate based upon how much refuse they place for collection. n Township’s current 3 -tiered SWF subscription system is a variable rate system: n 1 container n 2 containers n 3 to 5 containers n
Benefits of a Variable Rate System n Economic n n Variable rate systems increase the incentive to generate less waste, thereby reducing collection and disposal costs and the associated fees to be paid by the resident who is generating the waste. Environmental n Variable rate systems help decrease the quantity of waste generated and encourage more recycling.
All Systems In all systems, it is recommended that unlimited commingled and mixed paper recycling collection and processing be provided at no additional cost. n Bulk item collections would continue for a separate fee. n Leaf collection would continue at no extra fee only at curbside in the Township’s biodegradable paper leaf bag. n
Option A Pay Per Container n Charge fees based upon number of containers. n n n Option A 1: Charge a base fee to include fixed cost and the collection of one container of refuse; charge additional rates for each additional container based upon disposal costs. Option A 2. Require all to pay for one container, but charge same price for each container including first container. Allow subscription to be selected annually. n Resident may choose any number of additional containers annually (December); would not have option to increase/decrease once subscription level is selected.
Option A Pay Per Container n Advantages n n n Township’s fixed costs could be recovered through the upfront billing (Option A 1). Residents will choose the subscription level that meets their needs. Containers are most efficient, cleanest appearance and well known method of disposal for both residents and Township. Does not require administration and purchase of special containers, bags or tags. Encourages waste reduction.
Option A Pay Per Container n Disadvantages Requires the resident to choose up front their subscription level. n Does not allow for adjustment except on an annual basis during the renewal period (December). n Requires resident to acquire and maintain containers for entire year. n
Option B Pay Per Tag n n n Resident buys pre-printed (air-baggage-type) tags from the Township and affixes a tag to each container; refuse employee tears off and disposes tag. Purchase price of each tag is based on fixed and/or estimated variable cost to the Township to provide the service. Resident may place zero or any number of containers for collection as long as the refuse is always placed at same location in containers with a pre-purchased tag affixed to each container.
Option B Pay Per Tag n Advantages Resident only pays for the refuse they generate. n Allows resident to control their cost incurred on a weekly basis – pay only for refuse disposed. n Encourages waste reduction. n
Option B Pay Per Tag n Disadvantages Determining fee for tag - prices will need to change over time; “Forever Stamp” concept? n Tags are susceptible to loss (falling off can during inclement weather; vandals remove tags). n Administrative burden to sell/buy tags – higher overhead and inconvenience to resident. n Residents run out of tags. n
Option C Pay Per Bag n n n Resident buys pre-printed, heavy-duty plastic trash bags from the Township and places all refuse within these bags. (Filled bag is then usually placed into container. ) Purchase price of each bag based on fixed and/or estimated variable cost to the Township to provide the service. Resident may place zero or any number of bags for collection as long as the refuse is always placed in such a bag at same location. If no bag used, resident can “tie” an empty bag to handle of container; refuse employee takes and disposes bag.
Option C Pay Per Bag n Advantages Resident only pays for the refuse they generate. n Allows resident to control their cost incurred on a weekly basis – pay only for refuse disposed. n Encourages waste reduction. n
Option C Pay Per Bag n Disadvantages n n n Determining fee for bag - prices will need to change over time; “Forever Stamp” concept? Bags are vulnerable to weather, unsightly, and susceptible to break if not placed in can (animals rip bags). Bags are stolen by vandals. Bags are more costly than tags. Administrative burden to sell/buy bags – higher overhead and inconvenience to resident. Residents run out of bags, must store bags, may prefer to use alternate size/type bags in the home.
QUESTIONS
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