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5 <br /> Will the fees be levied on only waste or waste and recyclables? <br /> Are the fees to provide an incentive for waste reduction and <br /> recycling? <br /> While these goals are not mutually exclusive, ranking them in <br /> importance would have an impact on the fee structure. There may be <br /> other goals that the governing bodies and Owners Group should <br /> consider. <br /> Advantages of Unit-Based Pricing: <br /> • Uses economic incentives to change solid waste generation <br /> behavior and increase prevention/recycling, <br /> • Enables raising of funds specifically related to solid <br /> waste collection activities, <br /> • Distributes costs of solid waste system according to use, <br /> • Enables development of a rate structure to achieve <br /> certain goals e.g. cost recovery, diversion of materials <br /> from solid waste, sending a "message" about solid waste <br /> costs, <br /> • Offers flexibility to system users and administrators in <br /> consumption choices and policy making/fee setting. <br /> Disadvantages of Unit-Based Pricing: <br /> • Potential for illegal disposal to avoid payment of fees, <br /> • Uncertainty in revenue generation depending on user <br /> behavior and unit costs (e.g. if there is a lot of <br /> recycling, prevention, and/or illegal dumping the revenue <br /> from sale of bags or stickers may not cover costs as <br /> projected) , <br /> • System set-up costs and rate structure development are <br /> significant tasks. Professional technical assistance <br /> could be necessary to establish rate structures and <br /> billing systems, <br /> • It is potentially difficult to achieve response to this <br /> system from tenants of multi-tenant commercial or <br /> residential buildings since costs are primarily borne by <br /> the owner, not the tenant. Hauling fees are usually built <br /> into the rent and do not vary. Thus there is no <br /> individual "reward", <br />