Paul Umano
Public Finance
April 26, 2013
To: Michele Bernier, Town Manager
From: Paul Umano
Date: May 1, 2008
Re: Expanding PAYT services in North Attleborough
With the pending expiration of North Attleborough’s Pay-as-you-throw program, we seek to expand our services in an effort to maximize recycling and maintain a cost-effective approach to waste removal. A thorough review of the previous contact reveals the need to update the current removal fees for our residents.
The challenges that we face are significant in terms of providing a transparent unit-pricing system at a low cost. Our current waste management contact faces the concern of residents opting to utilize a private service for waste and recycling to offset higher costs. Residents have been asked to pay an increased $60 per household to reflect support of landfill closures and increased efforts to recycle. Finding a successful balance requires that we assess the impact of recycling and trash tonnage towards a new automated collection program for single stream recyclables, in addition to a simplified PAYT collection system.
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Our course of action has been to review the current contract for trash collection and disposal and discuss future collection avenues. Meetings with town officials have provided options such a separate contact for disposal, trash, and consolidation of recyclables at our transfer station.
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A compilation of program service and cost information to access potential revenue of recyclables being collected at the transfer station.
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Hauling companies who are interested in providing a combination of hauling, trash disposal, and automated collection of recyclable have been contacted.
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Created a cost form to review program costs over the life of the contract.
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Finally, conducted a thorough review of the curbside PAYT curbside pickup and informed of revised service fees.
The results of our efforts have indicated that execution of a new solid waste and recycling contact is both cost-effective and provides substantial service enhancement. An automated collection of single stream recyclables has proven to provide a more extensive revenue share on recyclable materials and an overall effective system of trash collection for North Attleborough residents.

Paul Umano
Public Finance
April 26, 2013
North Attleborough PAYT/ Solid Waste Disposal and Recycling Cost-Benefit Analysis
Background/Thesis
Local city and town managers often face the difficult task of finding fiscally sound policy for waste and recycling disposal efforts. The difficulty often lies in providing a balance between an effective service that is transparent and easily understood by citizens, and a practical cost effective method of operation. For a practitioner of public policy, the ideal collection service hinges on the prior success or failure of their municipalities current waste removal contact.
Success indicates only the need for small incremental changes by building on what has worked financially and effectively for its citizens. On the other hand, such failures in policy require a completely new method of operating that involves more efforts to reduce waste and increase incentive to recycle. The case study of North Attleborough’s waste and recycling program reveals the need for both incremental change in an already successful pay-as-you-throw campaign and sweeping reform in transparency for its residents. Research conducted on the program seeks to maintain a successful PAYT program, while expanding on the need to recycle.
Issues of transparency arose based on town officials added base fee cost per household for waste removal without explaining why residents were incurred such a cost. However, with a new waste contract, the opportunity arises for the use of automated collection for single stream recyclables and a more effective pickup of trash tonnages. A cost-benefit analysis of North Attleborough’s
PAYT and recycling program reveals that the cost to recycle single stream recyclables is outweighed its benefits; measured by the high waste removal expenditures that would be utilized instead.
What is PAYT and its incentives?
To begin we must provide the scope of what a successful PAYT program consists of and the cost saving strategy it underpins. PAYT is a solid waste management system that charges residents based on the amount of waste that they discard. Similar to utilities, residents are charged based on the amount of trash that is placed for curbside pickup. The volume of waste that is disposed of is often the precursor to the fee that the resident will be asked to pay. Success within a PAYT program rests upon the idea that municipalities will lower their waste production, coupled with residential recycling or composting. According to the EPA, communities can expect a 25-45% reduction in waste disposal as a result of these efforts, in addition to a modest increase (34% statewide) in recycling. In terms of tonnage, Massachusetts municipalities with unit based pricing programs have shown an average of .37 tons per capita disposed by residents compared to municipalities without unit based programs (.47 per capita).
Earlier we raised the issue of transparency towards the citizens of the intended policy.
Unit based systems establish greater transparency as residents are only asked to pay for the level of service they intend to use. Therefore, households that generate less trash, pay less than those who produce more. In terms of equity and fairness, low-income and elderly citizens no longer have to subsidize those who generate larger volumes of trash, but simply what they themselves generate. Secondly, unit based systems have positive environmental implications because of the amount of waste that is diverted from landfills. Greenhouse gas emissions and other pollution from disposal facilities are reduced while natural resources such as land and water are protected.

Finally, movement towards disposal of recyclable materials consumes less energy. When disposing of an aluminum can, for example, from recycled materials rather than its natural source
(bauxite), approximately 12-20% less energy is used and produces 95% less air pollution.
Theory to practice: North Attleborough’s PAYT/ recycling program
Further, we must determine whether the cost of implementing a recycling program in
North Attleborough is outweighed by the benefits brought forth by PAYT initiatives. The success of merging both programs hinges upon PAYT as a deterrent to discourage the production of waste within a given household. What remains problematic, however, is whether or not it is more cost effective to dispose of curbside waste through a regular tax base, rather than having both a PAYT and recycling fee imposed simultaneously. Ultimately transparency towards citizens is the arbiter in determining whether such a program has held serve. Based upon the final agreement levied for the town of North Attleborough, both waste collection and disposal and recycling collection and disposal, will be collected once a week. Residents are then supplied a
96-gallon wheeled cart for the purpose of automated single stream recycling. Items that are considered solid waste are placed in designated bags by the town to be collected and accessed a fee based on the volume of trash. The recycled materials are divided between curbside residential collection and material collected from the dumpster carriages of buildings and schools. For our purpose, the recycled materials that remains of focus are glass containers, plastics, aluminum, cardboard, mixed paper, and newsprint.
To access the cost of recycling we must add the total fees incurred over five fiscal year periods beginning in 2009. In 2009 the estimated cost for curbside recycling was $336, 360.00 and $7,200.00 for municipal buildings and schools. Our total cost is therefore valued at
$373,560. For 2010 fiscal year the cost was $385, 2011; in 2012 $410,400; and in 2013
$422,400. Thus, the overall program cost was valued at $1,988,760. Alternately we can highlight the cost-savings based on the tonnage of waste that is collected each year. For instance in 2009 one ton of waste disposed cost $79.00; however, by recycling through the utilization of a 96gallon container, waste production is condensed. By providing waste restrictions of a certain weight we are able to reduce the total tonnage that is collected each year. To calculate the tonnage of capacity of a 96-gallon container we would multiply 96 gallons by its weight
(estimated at nine pounds), and divide by 2000 for an estimated tonnage of .24. Subsequently, if in 2009 one ton of waste cost $79.00, then .24 tons of recycled material will only cost $18.69.
Applying the same equation to FY 2010, the cost is estimated to be $19.54; for 2011 $20.16; in
2012 $20.76; and finally in 2013 $21.12. Therefore, the total cost based on tonnage is valued at relatively inexpensive $100.54.
By comparison, the benefits of recycling are accessed by the average waste diversion cost savings. Outlining the benefits based on this premise indicates the importance of residents keeping both an effective recycling campaign and successful trash collection service that charges for the amount that is disposed. The residential waste tonnage each year is estimated at 5,600 tons, in addition to 4,590 tons of waste created by municipal buildings and schools (for a total disposal tonnage of 10,190). Our prior model of tonnage fees applies to the benefits for each fiscal year. Estimating the cost in 2009 provides a value of $805,010; for FY 2010 the cost is
$829, 466; in 2011, $855,960; 2012 $881,435; and finally $896,720 in 2013. Our total benefit is measure over five years is measured at $4,268,591.

Accessing citizen transparency/ citizen document
Certainly the measured benefit of costs savings outweigh the recycling cost, however, the question remains as to whether the residents of North Attleborough have been provided with the necessary information as to the ramifications of the program. Research provided by the
Massachusetts Department of Environmental protection indicates that citizens have been provided the appropriate literature indicating the changes in service. Boucher’s that were sent out to residents clearly states what the new service will be providing and where residents can obtain their recycling containers. What can and cannot be placed within the containers has been indicated by the town and that the current PAYT system will continue to operate. A citizen’s guide to these services can be found below:
North Attleborough PAYT/ Recycling Program
Fact Sheet
Overview
The town of North Attleborough signed a new contract with Waste Management, who will begin providing a new automated collection of recyclables for those currently receiving curbside collection services. All residents will be receiving a 96-gallon wheeled cart for single streamed recycling in which ALL designated materials may be placed by the curb. During regular pickup hours an automated vehicle will empty the cart in a process that is noticeably safer and more efficient than the current system.
What materials can be placed in the cart?
With sorting no longer necessary, the following materials can be placed in one single unit.
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Glass bottles and jars
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Plastic
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Aluminum
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Cardboard boxes
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Mixed paper (white and colored paper)
 Newspapers and magazines
Items not allowed in the container:
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Trash
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Light bulbs
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Plastic bags
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Paint cans
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Yard waste
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Wood or Styrofoam
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Aerosol cans
With both PAYT and automated recycling, will I have to pay any new fees?

No . Residents will continue to have their solid waste disposed of on a weekly basis in the authorized bags provided by the town. You will only be accessed a charge based on the amount of trash that is placed on the curb. Recycling costs will be accessed according to the unique identification number on the container. We believe that by recycling residents will see a significant reduction in PAYT costs by utilizing the new system. More information and questions on the new program can be found by contacting the Solid Waste Department through North
Attleborough’s recycling website at www.north-attleboro.ma.us.
Will there be a maintenance charge for damage and repair of the container?
The cart has a four year maintenance free warrantee and can be repaired by contacting the Solid
Waste Department.