Why Pay-Per-Use Makes Cents

For additional information, please visit the EPA's Pay-As-You-Throw site

http://www.epa.gov/payt/comm.htm

What is Pay-Per-Use?

In the collection business, costs keep going up faster than revenue. In the public sector, a new refuse truck doesn’t sound as high of a priority as a new fire truck. In the private sector, competitive bidding keeps revenue at marginal levels. The easiest way to create additional revenue is to move as many items as possible from free collection into a Pay-Per-Use category.

Why PPU Makes "Cents"

Pay-As-You-Throw is the name that the EPA has popularized. It is also referred to as based pricing, volume based pricing, etc. For convenience, we will refer to it as Pay-Per-Use, because ultimately it is about economics. Unlimited collection is exactly what it says and the type of service that the majority of households have in this country. Any program that is not unlimited is a form of Pay-Per-Use.

There are three assumptions that have been proven time and again in

over 5,000 communities that use PPU programs.

Pay-Per-Use makes economic sense

Pay-Per-Use drives recycling

Pay-Per-Use makes political sense

BAG & TAG PROGRAMS

Some programs require a bag or tag on every container. Others require extra waste charges after 1 or more “free” containers, but usually charge a base rate per household. Serving over 1,000 communities, we have observed that the easiest transition to a Pay-Per-Use system is with a combination of base rate and extra waste charges.

· Give your residents an easy way to pay for extra waste

· Reduce phone calls and book-keeping hassles

· Reduce the temptation for your drivers to take cash

EXTRA WASTE PROGRAM

Charging only for extra waste is the most popular form of Pay-Per-Use. Communities using this type of program charge a base, or pass by, rate. For example, $6.00 per household for 2 bags at no additional cost. Anything over the two-bag limit must be paid for, usually with the purchase of either a printed bag or a sticker.

BULK WASTE PROGRAMS

Tires, appliances, and everything including the kitchen sink can be paid for at the curb. Bulk waste collection stickers are a convenient way to charge for the disposal of large items. Yardwaste, appliances, and electronic items are all good targets for Pay-Per-Use. Electronics (computers, monitors, TV, etc) are particularly critical as the whole country begins the transition to HDTV sets by Jan 2006. There is a glut of electronics items out there, and when the full wave of old TV’s and monitors hit the market, it will be a flood.

VARIABLE CAN RATES

Wheeled Carts can be used in Pay-Per-Use programs. For example, when a 95-gallon cart is charged at a higher rate than the 65-gallon cart, that's Pay-Per-Use.

YARDWASTE PROGRAMS

Yardwaste programs are the most successful Pay-Per-Use programs. Increasingly, compost facilities are banning plastic bags, and municipalities are looking for alternatives. Resourceful has been dealing with yardwaste issues for the past eleven years. We have hundreds of customers who are using some variation of these programs to address the yardwaste issue.

When a fee is charged, for picking up yardwaste, it encourages residents to compost or mulch their own yardwaste. People who insist on having their yardwaste collected must pay for the privilege.

Educate Customers with NON-COLLECTION NOTICES

When you give customers a limit on set out, it is important that you get paid for additional set out. Use non-collection “sorry tags” to educate your customers and enforce compliance.

Answers to the Top 10 Objections to PAY-PER-USE Programs

10. “It will promote littering and dumping.”

Out of 5,000 communities, few have documented an increase in litter.

9. “I don't have a garbage bill currently; how much can I save?”

If people don't know what it costs, the 1st step is to tell them.

8. “It is not fair to big families.”

It's even less fair to expect a single person to underwrite trash collection for a large family.

7. “It's a garbage tax.”

If the fee customers pay now is not reduced, Pay-Per-Use will seem like a double tax to them.

6. “Our elected officials can't agree on anything.”

You need consensus. Also, never introduce a Pay per-Use-Program in an election year.

5. “It's a hardship on the poor, the shut ins, etc.”

There are many ways to see that service is available to all.

4. “Our recycling program is inadequate.”

Without a free recycling program, Pay-Per-Use will probably fail.

3. “I can't put a TV in a bag.”

As shown earlier, there are many ways to provide an easy form of payment for bulky waste.

2. “Bags break, tags fall off, etc.”

Not if you choose your vendor carefully.

1. “It interferes with my God given right to free garbage!”

As Will Sagar from Transylvania County would say, "Yep, it sure does!"

A WIN / WIN for Everyone!

Pay-Per-Use programs encourage residents to put out less trash and recycle more, which saves them money. By charging for the extra waste, municipalities and haulers increase revenue and reduce the cost of trash hauling and disposal.

Pay-Per-Use works. It gives people economic incentive to reduce and recycle, and is the only waste strategy that targets the first step on the E.P.A. hierarchy.

For more information visit

www.bagandtag.com