Peder Sandhei Presentation2009 Analysis of Waste Collection Service ArrangementsPeder Sandhei
MPCA position?MPCA has not developed a policy position on organized collection?State law offers organized collection to Cities and Counties (115A.94 Organized Collection)?Regulation
(ordinances) and “market participation” (contracting) are legitimate roles for local government?This study and previous studies speak for themselves
§115A.94 Organized Collection?Cities and towns may organize collection?Counties may require cities and towns to organize?Detailed timeline that must be followed –including a 180 day
notice period prior to implementation?Organized system that is developed must not impair recycling or recycling markets
Use of the Organized Collection Statute?Typical Process:?City expresses interest in organizing?Staff work along with a committee?Haulers involved, generally opposed?Residents express
desire for freedom of “Choice”?Councils discuss and decide not to proceed?No city in MN has changed from open to organized collection since 1991
Typical Municipal Goals ?“City expresses interest in organizing” because…?Reduce Amount of Truck Traffic & Related Impacts?Reduce Monthly Cost /Rates per Household?Improve Program Outcomes
& Standardize Services?Improve Management of Waste According to SWM Plans & Hierarchy
Typical Hauler Goals?Haulers generally oppose organizing because…?Haulers want to protect their business interests?Favor free market –customer choice?Risk loss of customers, limits growth,
limits company value?Raise issue of “Just Compensation/Inverse Condemnation”
Scope of work?Literature Review?Compare open (subscription) verses organized collection (OC) systems in Minnesota?Look at economics, outcomes, energy & other issues?Survey cities over
10,000 population?Perform in depth analysis of 10 larger cities ?Draw conclusions
Literature review?Minnesota has fewer organized communities?MN (29%1) vs. Nationwide (72%2) ?National literature consistently showed lower cost for organized collection?Minnesota studies
done between 1993 and 2004 show lower cost for organized collection?Organized collection also affects noise, road wear, air emissions & fuel consumption1 Barone, Michael. Dec. 2005.
“Report on Residential Municipal Solid Waste Collection.” City of Eden Prairie, MN.2“Summary of Key Results from SERA’s 2008 Solid Waste and Recycling Survey. Mar. 2008. SkumatzEconomic
Research Assoc., Inc. Superior, CO.
CityType 30 Gal60 Gal90 GalFalcon Heights (average of 6 companies)Open$13.59$15.56$17.17Roseville (average of 7 companies)Open$12.85$14.90$16.84Maplewood (average of 9 haulers)Open$12.19$14.11$16.08N
rth St. Paul, 2003Organized$8.07$8.86$10.39Shakopee, 2004-2005Organized$8.60$10.65$12.24Little Canada, 2002 (most recent rates listed)Organized$8.29$9.77$11.29White Bear LakeOrganized$7.50$11.00$15.0
Stillwater, 3 years ending 12/31/05Organized$8.16$10.06$12.03Historical Rate Survey Example (2003-2004 -Falcon Heights Rate Study)
Overall Survey –Average Monthly Rates Charged to ResidentsCollection SystemAverage Monthly Rate30 Gallon60 Gallon90 GallonOpen MSW$22.64$25.46$25.46 Organized MSW$14.83$16.98$22.23Difference$7.81$8.4
$3.23% Change+34.5%+33.3%+12.7%
City of Robbinsdale2008 Rate ScheduleCity Billing vs. Monthly Rate Paid to Contractor30 Gallon60 Gallon90 GallonCity Monthly Billing$19.19$21.81$24.61Total Paid to Hauler$12.19$13.62$15.04Difference$
.00$8.19$9.57
City of Robbinsdale Contract Services?Weekly garbage collection?Every other week recycling?Unlimited yard waste collection April to November?Dispose one Christmas tree?Bulky waste collection?Hauler
pays disposal costs?“Free” service at 6 city facilities
Robbinsdale Extra Funds Cover?State taxes, county taxes, administrative cost?Operation of a drop-off facility?Code enforcement related to solid wastes?Payment to annual CIP for road
improvements ($150,000 in 2008)
Impact on Roads?1City of Falcon Heights attributed the impact of garbage trucks on roads as: ?High in alleys (~86% of impact due to garbage trucks)?Low in heavily traveled areas (~8%
due to garbage trucks)?2City of Roseville noted $20 to $40 per household per year from garbage trucks ($188,000 to $376,000)?3City of Oakdale reported an estimate of $120,000 to $300,000
per year1“Organized Collection Study –Final Report.” Oct. 2004. Falcon Heights, MN.2“City of Roseville, Solid Waste and Recycling Report” 2002. Residential Solid Waste and Recycling
Advisory Committee. Roseville, MN.3“Final Report: Study on Public Collection.” Apr. 2002. Ramsey & Washington Counties.
Impact on Recycling?Analysis of SWMCB Re-TRACTMdata found an increase in recycling pounds per household in cities with organized recycling collection (95% significance)?Open MSW/Open
recycling = 510 pounds?Open MSW/Org. recycling = 583 pounds?Org. MSW/Org. recycling = 573 pounds?Average for Org. recycling = 579 pounds
Field Observations Fuel Use in Open & Organized Comparisons29158631527558211283.712386118050100150200250300350400450500550600650EaganDuluthRochesterWoodburySt PaulFeet Distance per household
serviced Actual Distance per Household Totalroute
Factors affecting increased fuel use?City of Eagan has one hauler with over a 60% market share resulting in relatively lower relative fuel use?City of St. Paul has the most haulers with
relatively lower market shares (highest ~25%) resulting in higher relative fuel use
Percentage of Increased Fuel UseIncreased Fuel Use –Existing System vsa Single Hauler for MSW% More FuelCityEaganDuluthRoch.Wdbry.St.Paul216%294%250%355%437%
Twin Cities Hauler market share 1995 to 1999 –large firms growHauler types19951999DifferencePublic9%9%0Independent72%43%(29%) lossConsolidated (Waste Management, Allied Waste,Veolia)19%48%29%
gain
Conclusions of Study?Average monthly household rates are lower in organized systems vs. open systems?Recycling capture rates are generally higher in organized (recycling) systems?Road
wear, fuel consumption, air pollution, truck traffic, and noise are reduced by organized collection?Private haulers strongly oppose organized collection
Items for Consideration?Organized collection requires a major commitment to implement & then effective contracting?No city in MN has changed from open to organized collection since 1991?This
study has renewed city interest in the issue?MPCA staff is also available to provide background information for organics and recycling collection
2009 Analysis of Waste Collection Service Arrangements http://www.pca.state.mn.us/oea/lc/collectionservice.cfmPowerPoint Prepared by:Peder Sandhei –Prevention and Assistance Division651-757-2688
or peder.sandhei@state.mn.us