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<br /> Comprehensive Review of <br /> S olid W aste Collection and Disposal Options <br /> <br />v2.1 118 10/22/12 <br />Exhibit 8 -4. <br />Advantages and Disadvantages of Hybrid PAYT Programs 14 <br /> <br />Advantages Disadvantages <br />Helpful in transition from a traditional rate <br />structure to a variable rate structure. <br />Least incentive for waste reduction. <br />Mitigates revenue risk by retaining some <br />traditional financing methods. <br />Full costs of waste collection and disposal <br />program may not be entirely reflected on <br />customers. <br />Allows more time for customers and implementers <br />to get familiarized with variable systems. <br />Potential confusion may be created in <br />variable billing methods (e.g., per can and <br />per bag). <br />Customers and implementers are not committed <br />to a specific system. <br /> <br />Relatively quick implementation and readily <br />modified or replaced with other variable <br />methods. <br /> <br />No new billing systems may be needed. <br />Allows time for planning and data collection. <br /> <br />8.2 FINANCIAL ANALYSIS – PAYT RATES <br />A PAYT module was developed as part of the Pro Forma model to assist in the evaluation of <br />potential cost savings and various collections and disposal rate structures that could result from <br />implementation of PAYT. <br />8.2.1 Calculation of Baseline Collection and Disposal Cost <br />SCS analyzed the Town’s solid waste management costs and tonnages based on the budget <br />information provided. Within this analysis, cost and corresponding waste tonnage was allocated <br />to either residential or commercial operations. From these data, SCS estimated the baseline <br />residential collection and disposal cost per household, assuming that 11,500 households are <br />served by the Town as described in Section 2. For the purposes of this evaluation, the residential <br />collection and disposal cost per household includes both the current MSW and yard waste <br />programs (i.e., one MSW collection and one yard waste collection per week), but does not <br />include the costs to implement a recycling program alternate from the services currently <br />provided by Orange County. Based on the information provided, the estimated monthly <br />collection and disposal cost, per household, is $16.60 as presented in Exhibit 8-5. <br /> <br />14 “Analysis of Implementing a Pay-as-you-Throw”, R.W. Beck, May 11, 2005.