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2009 Boiler Green Initiative

PAYT Project Team

4/23/2009

Pay As You Throw in West Lafayette Design Proposal

http://www.epa.gov/epawaste/conserve/tools/payt/index.htm

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Contents

I. INTRODUCTION 4

A. What is Epics? 4

B. What is BGI? 4

C. What is PAYT? 4

D. PAYT Project Team and Our Project Partner 4

II. WEST LAFAYETTE STREET, SANITATION AND RECYCLING DEPARTMENT 4

A. Detail of Services 4

B. Financial Information 6

C. Need for PAYT 8

III. PAY-AS-YOU-THROW IN DEPTH 8

A. Fundamental System 9

B. Container Types: 10

C. Merits of using PAYT 11

D. Demerits of using PAYT 13

E. Case Studies 14

IV. IMPLEMENTATION 20

A. Rate Structure 20

B. Survey 23

C. Education and Outreach 25

V. CONCLUSION 30

VI. REFERENCES 31

VII. ACKNOWLEDGEMENTS 32

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CONTRIBUTORS: 32

APPENDIX I. FLOW CHART OF SANITATION SERVICES PROVIDED IN WEST

LAFAYETTE, INDIANA 33

APPENDIX II. SURVEY QUESTIONNAIRE 34

APPENDIX III RATE STRUCTURE SCENARIOS FOR THE CITY OF WEST LAFAYETTE FOR

TWO DIFFERENT OPTIONS: VARIABLE AND MULTI-TIERED, CONSIDERING 4650

HOUSEHOLDS. THE ‘TOTALS’ DO NOT CONSIDER TIPPECANOE COUNTY TIPPING FEE,

RECYCLING REVENUE OR BRUSH AND BULK ITEMS PICKUP REVENUE. 37

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I. Introduction

A. What is Epics?

EPICS, Engineering Projects In Community Service, is a program at Purdue

University which utilizes teams of undergraduate students to tackle real world

problems in the city of West Lafayette. The students come from a multi-disciplinary

background and work together to create feasible solutions for these problems within a

deadline and a fixed budget. (EPICS, PURDUE)

B. What is BGI?

Our project team is a part of the Boiler Green Initiative (BGI) team. BGI team is

one of the many teams under EPICS at Purdue University. This team is composed of

three project sub-teams that are tackling issues pertaining to the environmental

sustainability of the community.

C. What is PAYT?

According to the EPA (Environmental Protection Agency), Pay-as-you-throw

(PAYT) is a system under which residents pay for municipal waste management

services per unit of waste collected rather than paying a fixed fee. This system is also

known as Unit Pricing or Variable Rate Pricing (EPA)

http://www.epa.gov/epawaste/conserve/tools/payt/index.htm 04/26/08)

D. PAYT Project Team and Our Project Partner

Our project partner, Rev. Peter Bunder, from the Go Greener Commission of the

city of West Lafayette, contacted the EPICS program in order to develop an

alternative waste and recycling system for the city of West Lafayette. This project

was handed over to the Boiler Green Initiative (BGI) team and work started in full

swing on the Pay-as-you-throw project in Fall 08.

II. West Lafayette Street, Sanitation and Recycling Department

A. Detail of Services

The West Lafayette Streets, Sanitation, and Recycling Center offers four services

to the residences and apartments with four or fewer units within city limits. These

services include municipal solid waste removal, recycling, yard waste removal, and

bin drop-offs for recyclables in neighborhoods. (See Appendix I)

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The first service offered is municipal solid waste removal. This service is offered

once a week; Tuesday through Thursday depending upon which zone the residence is

located. This service includes solid waste, large item removal, and large appliance

pick-up curbside. The solid waste and large items are taken to the Tippecanoe County

Transfer Station, while the large appliances are taken to Oscar Winski Co. located in

Lafayette, Indiana. The large appliance pick-up service requires that all chemicals are

removed from the appliance before the item is picked up.

The second service offered is recycling. This service is offered bi-weekly and

includes paper, metal scraps, cans, glass, and plastics and is picked-up on a different

day than regular solid waste removal. Curbside items include paper (mixed and

newspaper), aluminum and tin cans, glass, and plastics numbered one through six

(excludes plastics numbered as seven). These recyclables are taken to the Streets,

Sanitation, and Recycling Center to be sorted. The newspaper is transported to Regal

located in Indianapolis, mixed paper is transported to a Transfer Station located in

Frankfort, Indiana and scrap metal is transported to Oscar Winski, Co. located in

Lafayette.

The third service offered is yard waste removal. This service is offered year round

Mondays and Fridays although October through December there is an additional

service of curbside leaf pick-up while all other months of the year require that yard

waste be placed in a container. These items are then transported to Soil Maker, a

company in Lafayette which then makes compost, topsoil, garden mulch and garden

soil from the collected material.

The fourth service offered is bin drop-off for recyclables in neighborhoods. This

service is provided once a month to each neighborhood. Upon request, the Streets,

Sanitation, and Recycling personnel places a bin in a neighborhood to encourage

recycling amongst residents. Currently, Lommel Park and LaGrange Street are the

only communities participating. These bins are then taken to the Streets, Sanitation,

and Recycling Center to be sorted.

These four services are provided using specific trucks to remove the items

collected. There are three trucks used for yard waste removal, two trucks used for

solid waste removal, and two trucks used for recycling. Each service has six routes

and each truck has a crew of two workers. The yard waste trucks have a capacity of 6

tons. The solid waste removal trucks have a capacity of 12-13 tons and average 1.5-3

mpg when on their routes. The recycling trucks are multi-bin (5 bins) and average 3

mpg.

In 2007, 4275.29 tons of trash were collected. If we average this over 4650

households, it translates to 35.4 pounds of trash per household per week.

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B. Financial Information

The Pay-As-You-Throw project started in fall 2008. At that time, the latest

figures available from the sanitation department were for the year 2007.

Although we started working with these figures, along the way, we had to factor

in more recent values for brush pick-up and take into account variability for

recyclable resale value since sales of recyclables between 2007 and 2008 were

dramatically different. After this time we continually compared our values with

housing communities that use private haulers, for example Westfield, IN. Our

proposed rates were not only lower than their rates but also gave residents options to

choose the variability of can size. We took into account sensitivity towards the

environment and chose a system that encourages recycling. Our rate structures have

the ability to meet the expenditure incurred by the Streets and Sanitation Department

of West Lafayette. Although we have scenarios that could generate revenue, our main

goal was revenue neutrality.

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Table 1 Financial Information of Sanitation Department for the Year 2007 as provided by Dave Downey, public works director. * we were not able to determine the contribution from the general funds property tax but expect that it makes up the difference between the expenditures of the sanitation department and their revenue in 2007.

Expenditure of Sanitation Department

(2007)

Revenue of Sanitation Department (2007)

Account Amount ($)

Account Amount ($)

Salaries 246 831.97

Sanitation Fee to

Community 502 200.00

Insurance 91 362.13

Newspaper 21 772.64

Personal Service 5 931.20

Aluminum Can 31 724.00

Supplies (office, operating) 1 343.04

Bi & Scrap Metal 6 065.69

Communication & Promotion 3 255.49

Glass 4 121.71

Legal notices 27 070.91

Plastic 0.00

Utilities 4 539.55

Mixed Paper 26 090.75

Repair services 5 400.12

Oil 7 500.00

Contract (Trash) 169 544.82

Batteries 1 463.00

Contract (Brush) 100 000.00

Brush 0.00

Motor vehicle equipment 77 962.67

Total Recyclable

Revenue 98 737.79

Gasoline and Oil 37 763.58

Contribution from

General Fund's

Property Tax *

Tippecanoe County

Transfer Fee for Drop

Off Center 40 000.00

Total Cost 771 005.48

Total Revenue 640 937.79

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C. Need for PAYT

There are a few challenges faced by the current system. A fixed fee of $9 per

household is charged for variable quantities of trash thrown out by residents and this

creates unfairness. Moreover, the city expects that the system will reach its maximum

capacity within 2 years which may lead to an increase in residents‟ monthly bill.

Furthermore while many citizens recycle, recycling rates in West Lafayette could be

improved. The table below shows the breakdown of recyclables versus trash for the

year 2002 through 2007 for the City of West Lafayette as well as recycling rates.

Material 2007 2006 2005 2004 2003 2002

newspaper 481.83 500.75 431.45 711.07 603.08 694.93

aluminum 33.3 39.79 29.43 37 28.95 29.83

metal 73.03 66.66 61.34 78.72 52.8 78.06

glass 192.68 172.2 155.2 139.55 131.21 158.08

plastic 381.66 337.54 206.04 273.71 225.6 240.82 mixed paper 984.59 962.3 705.45 787.51 503.5 484

trash 4275.29 4244.1 4090.14 5045.03 4032.89 4073.17

total (tons) 6422.38 6323.34 5679.05 7072.59 5578.03 5758.89

% recycled 33.43% 32.88% 27.98% 28.67% 27.70% 29.27%

Examples of attainable recycling rates include Germany where they achieved a

recycling rate (not including composting) of 46% in 2007 (Eurostat, 2009) and the

State of California which successfully mandated that 50% of its waste be recycled

by 2000 through the Integrated Waste Management Act of 1989 (CA EPA, 2009).

Additionally Florida recently set a goal of recycling 75% of the waste the state

generates by 2020 (FL Department of Environmental Protection, 2009). The City

of West Lafayette should set similar goals and communicate them to its citizens.

PAYT can help with these goals. With the PAYT system, equity and recycling are

expected to increase. To suit the needs of the City of West Lafayette, the proposed

waste and recycling system must be easy to implement, provide a strong incentive

to recycle and should not come at an extra cost to the city.

III. Pay-As-You-Throw in depth

The following report is a modified version of a section of the book written by

Canterbury, Janice L. entitled the “Rate structure design setting rates for a pay-as-

you-throw program.” We give the author credit for the ideas that follow.

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A more recent version of this document can be accessed at the following web

address ( Lessons Learned | Pay-As –You-Throw. Environmental Protection

Agency (EPA). http://www.epa.gov/osw/conserve/tools/payt/tools/lessons.htm

last visited April 25, 2009)

A. Fundamental System

The residents in the Pay-as-you-throw system are billed according to what

they throw way, so it is similar to a typical utilities system (Canterbury, 1999). In

PAYT residents have an advantage; they pay less if they throw less trash away. The

Environmental Protection Agency (EPA) defines the two basic systems in PAYT as:

1) the volume based system and 2) the weight based system.

a. Volume-based Systems

In the volume-based system, residents are charged for waste pick-

up services based on the volume of the trash they throw away. The

residents can be charged according to the number of bags or cans put out

on the curb or they can be charged by making them purchase tags or

stickers that include the cost of waste collection in the cost of the sticker

or tag.

The cost involved with implementing the volume based system in a

city is comparatively lesser than the weight based system. This is probably

one of the biggest advantages of the volume based system. The potential

disadvantage is that, because this system is volume based, some residents

may try to use other means to reduce the volume of their waste; these can

include compacting their waste. This works against the two goals of

PAYT: to reduce waste and to charge all residents equitably.

b. Weight-based System

In the weight-based systems, residents are charged based on the

weight of their waste. The residents are either supplied with standard cans

or they can use their own cans, and thus pay for them respectively in a

monthly bill. With this system, trash needs to be weighed at curbside

before dumping it in the garbage truck. This system is deemed to be fairly

easier for residents to understand and to perceive as fair.

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Compared to the volume based system, the weight based system is

more expensive to implement because with this system special equipment

is required in order to weigh the garbage before it gets dumped into the

trucks. The billing system is comparatively simpler because residents have

to pay only the monthly bill. The weight-based system also provides the

residents who want to reduce their trash, an option to change their

container size as they wish.

B. Container Types:

a. Cans:

Residents can be provided with either a single, large container or

small cans with variable sizes. The EPA suggests that if the first option is

pursued, the large cans have a capacity of about 50 to 60 gallons.

Residents are then charged according to the number of cans they use.

There is one main advantage to this system: the revenue generated by the

sanitation department will remain stable. A big disadvantage however is

that residents who want to throw less trash away will not have an option to

be able to pay less compared to people who fill the 60 gallon container

completely.

The small cans range from a 20 to 60 gallon capacity as suggested

by the EPA. Residents have the option to select the size and the number of

cans they want to use. Residents get billed monthly for the can they

choose. An advantage with the small cans system is that environmentally

conscious residents who want to reduce the amount of trash they throw

away are able to do so by subscribing to a can of a smaller size than they

currently use. This system would be inconvenient for customers who

generate a large quantity of waste, but works towards PAYT‟s goal of

encouraging residents to reduce trash.

b. Bags:

As the name suggests, bags are prepaid trash bags that the residents

pay for in the beginning. Only trash that is placed in these bags gets

collected. According to the EPA, these bags can be of varying sizes and

should range from 20 to 60 gallons in capacity. Residents can buy these

bags from the sanitation department or from local grocery stores.

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Prepaid bags encourage reduction in waste because residents have

the option to buy a smaller sized bag if they throw away less trash. They

can also change the size of the bag they use simply by buying a bag of a

different size. In this system, there is no bill that is sent out to the

residents. They pay for the trash service when they buy these bags. This

system is relatively less costly to implement. The disadvantage with

prepaid bags is that the revenue generated by such a system can vary in the

duration of a year. There are some people who might buy a lot of these

bags in the beginning of the year without buying any for the coming

months; this makes the revenue generated unstable. Also bags are weaker

containers as compared to cans, so these bags can tear because of bad

weather conditions or rough usage, etc, potentially causing some garbage

to spill.

c. Tags or Stickers:

In this system, the residents are required to put tags that they will

attach to their trash bag or trash can before setting it out for pickup. The

price of the tag goes up as the size of the bag/can increases. Residents

can keep buying the same bags they have been buying in the past from

their preferred manufacturer.

Like bags, this system encourages waste reduction. Residents can

start buying fewer tags once they are sure they will throw out less trash.

This system, however, offers less revenue stability just like the prepaid

bag system. Another potential disadvantage is that the stickers could fall

off in inclement weather. The solution to this is making sturdy stickers

that residents can purchase.

C. Merits of using PAYT

a. Decrease in Waste:

This is one of the primary goals of PAYT. According to the EPA

handbook for PAYT, “Some communities who use PAYT program

reported 25 to 45 percent reduction in the amount of waste generated.” So

there is a net reduction in the waste generated by the community and as a

result the sanitation department saves the money required for tipping fees

in order to put the waste into landfills. An added benefit is that landfills

will reach capacity later than anticipated since they will be accepting trash

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from communities that have adopted PAYT at a slower rate (assuming the

community population stays unchanged).

b. Equity in resident’s fees:

In PAYT, a resident pays only for as much trash as s/he generates.

This was another primary goal of the PAYT system we designed for West

Lafayette. In this system, the residents have full control over the money

they spend on their trash. PAYT is a tool for residents to save money,

improve the environment and also do good for their community.

c. Conservation in Energy:

With PAYT, residents modify their waste disposal habits so that

they make use of the incentives the program offered with waste reduction.

These changes in a resident‟s attitude towards waste are more than just

beneficial for decreased waste. In the long run, these habits lead to

reductions in the use of energy and raw materials.

d. Reduction in Waste Disposal Costs:

With the reduction in waste that PAYT encourages, the total

amount of waste that will be required to be disposed of by the sanitation

department will be reduced as well. As a result, the Municipal Solid

Waste Management costs decline. So the money thus saved can be used

for other purposes like improving recycling programs and/or composting

programs.

e. Increased Involvement:

With the PAYT program, residents will get more involved with

recycling and composting programs as an alternative to throwing away

their waste. According to Janice Canterbury‟s book on PAYT, recycling

and composting programs are the perfect complement for PAYT.

“Analysis of PAYT shows that composting and recycling programs

divert 8 to 13 percent in waste when used in conjunction with a PAYT

program”.

f. Increased Understanding:

In the conventional sanitation systems, residents are most likely

unaware of the economic costs associated with waste treatment. With

PAYT, residents are able to conceptualize this problem and can have an

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active part in solving our waste issues. Thus the costs incurred by

communities to deal with waste management become clearer to the

residents. When residents begin grasping their impact on the

environment, they will start making better decisions and take action

about their waste disposal habits.

D. Demerits of using PAYT

a. Issues with Dumping:

There is apprehension amongst people that the PAYT program will

encourage illegal dumping. This notion can be countered by educating the

residents about the effects PAYT has had on other communities and how

much it affected them with regard to illegal dumping. According to the

EPA handbook, “Communities with PAYT reported that illegal dumping

proved to be a less of a concern than anticipated,” (Canterbury, 1999).

b. Revenue Generation:

PAYT has different rate structures, one of which is the variable

rate structure. Since PAYT gives the residents the option to choose how

much they want to pay for the trash they throw away, there is always a

chance for unsteady revenue generation. In order to mitigate this effect,

the sanitation department must implement the most suitable rate structure

for their community. By doing this, the department can eliminate a part of

the uncertainty that is involved with revenue generation.

c. Multi-family Housing:

Servicing residents in multi-family housing can be difficult

because the waste generated from these households is collected in a

general area at the time of pick up. It can be a difficult to separate the

amounts of waste generated by each household so the sanitation

department needs to experiment with rate structures and implement

something that will suit such housing better.

d. Administrative Costs:

With the various billing systems that PAYT offers, it is likely that

the administrative costs associated with the billing system will increase. The

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sanitation department needs to make sure it sets a pricing structure so that

these administrative costs are taken into account as well.

E. Case Studies

a. Bloomington Case Study*

i. Background information

According to STATS Indiana, Bloomington‟s population was 69,017 in 2005.

It is the home of a Big 10 university: Indiana University at Bloomington. The

City of Bloomington started the Pay as You Throw Program in 1993.

ii. Regular Sanitation Services

Trash and Yard Waste (Tag System)

Residents are required to purchase trash and yard waste stickers. A correct

number of stickers should be attached to the handles of the resident‟s trash bin

or the neck of their trash bag. As of 2008, trash stickers cost $2 each while

yard stickers costs $1 each. They are available from convenience shops such as

local supermarkets and gas stations. Residents can also order the stickers

directly from the Department of Public works by phone or mail.

Trash is collected once a week. One trash sticker is required per bag. Trash

bags must be no larger than 35 gallons nor weigh more than 40 pounds.

Yard waste is collected once a week during the spring, summer and fall. One

yard waste sticker is required on each paper yard waste bag or a 35-gallon bin

or a bundle of string-tied sticks and branches.

Bulk items

Large items such as sofas, chairs, mattresses, box springs, tables and similar

items are collected curbside once a week. Two trash stickers are required on

each of these items.

Large appliances such as refrigerators, stoves, washers, dryers, lawn mowers,

grills and similar items are collected once a month. Two trash stickers are

required for each of these items as well. Residents are required to call the

Sanitation Department beforehand to inform them they will be putting out such

an item.

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Recycling

Recyclables are collected once every two weeks. This service is free of charge.

The sanitation department gives one free recycle bin per household. This

recycle bin can be requested by phone or email. Residents are asked to sort

recyclables into two categories: paper products and comingled recycling. Paper

products include mixed office paper, newspaper, cardboard and paper board.

Comingled recycling includes plastics 1-7, plastic bags, steel and aluminum

cans, as well as glass.

iii. Special Services and Seasonal events

Spring Cleanup: During the end of April and the beginning of May,

residents are allowed to place large items and appliances curbside without

attaching any stickers. It helps to remove items left behinds by the student

population before summer break.

Free Fall leaf pickup: Starting at the end of September, the sanitation

department gives out free leaf bags. Residents can set leaf bags out for

collection until early January.

Flag stop program: Pick-up services are provided to residents who are

physically unable to set out their trash or recycling for collection. A resident

must meet certain requirements to be placed on the Flagged stop program.

iv. Implementation

According to Shelby Walker, Director of Sanitation for the City of

Bloomington making information readily available to residents is paramount to

the successful implementation of a Pay as You Throw System. In

Bloomington, a Trash, Recycle and Yard Waste Services Brochure is sent to

residents every year. The brochure explains clearly which sanitation services

are provided by the city of Bloomington, how they operate and what the related

charges are. Residents also get magnets which give detailed information on

trash, recycling and yard waste collection dates. More comprehensive

information on sanitation services is made available and easily accessible on

the website of the City of Bloomington.

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v. Policing policy

Sanitation workers only pick up collectable items with the right amount of

stickers on and within the limits set for size and weight. There is one

bathroom scale on each truck which can be used to check the weight of the

trash bags, although workers explained that within a short amount of time they

were able to tell offhand if a bag or can was over the weight limit. In this case a

sanitation notice would be left to explain the problem and the trash or recycling

(in the case of non-sorting of items) would not be picked up.

Residents are not allowed to place containers out more than 24 hours in

advance and they must remove everything left uncollected from the curb after

the pick-up. Violations may result in a fine of up to $50 a day, each day a

violation continues*.

* Sanitation Department of City of Bloomington

<http://www.bloomington.in.gov/sanitation> last visited April 13, 2009

b. East Lansing Case Study*

i. Background information

The city is located directly east of Lansing, Michigan, the state's capital. The

population was 46,525 at the time of the 2000 census. It is best known as the

home of Michigan State University.

ii. Regular Sanitation Services

Trash

The City provides waste collection services for single family households,

duplexes and households with one to four units. Residents can dispose waste in

either an Easy Cart OR Yellow City-issued trash bags.

City Trash Bag (Bag system)

Residents need to purchase city trash bags and are allowed to put 32 gallons of

trash in each bag. Bags are available at many convenience stores. The cost is

$5 for a package of five bags, i.e. $1 per 32 gallon bag.

Easy Carts (Bin system)

Residents can subscribe to a trash cart with the desired capacity. Carts are

available in the following sizes:

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Cart Size (gallon) One-time Purchase price Annual Collection Fee

32 $55 $0

64 $55 $0

96 $70 $50

Residents need to call the sanitation department to sign-up for the easy-cart

service.

Bulk items

Large items over 32 gallons and/or 40 pounds, such as appliances and

furniture must be tagged with a bulk collection sticker ($15). Items that

contains refrigerant (refrigerator, dehumidifier, etc) require a special

hazardous materials sticker ($40). Stickers are available at City hall and the

Department of Public Works (DPW).

Residents also need to call the DPW to schedule a collection.

Yard Waste (Bag and tag system)

Weekly Curbside Yard Waste Collection starts on March 31 and ends on

December 1, 2008. Residents must request yard waste pickup by phone or

email. Yard waste must be contained in $1 City yard waste paper bags or

bundled with a ($1) City yard waste sticker. Brush bundles should be no

more than 4 feet long and 1 foot in diameter. A weight limit of 40 lbs applies

to both paper bags and bundles. A composting bin is also available for

$39.50.

Recycling

Weekly curbside recycling is free and occurs on the same day as refuse

collection. Recyclables must be placed in a blue recycling bin, which can be

purchased at the DPW for a one-time fee of $5.50. Residents can also drop

off recyclables at the various Recycling Drop-off Locations.

iii. Special Services and Seasonal events

Project Pride (spring cleanup)

Christmas tree recycling

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Fall Bulk Leaf collection

Computer and Electronics Collection

Book and Textile Recycling

Pharmaceutical Waste Collection

iv. Implementation

In East Lansing, a DPW pamphlet is published and given to residents twice a

year. The journal explains clearly what and how different sanitation services

are provided. It encourages recycling by giving information on special

recycling events and recycling tips*. More comprehensive information on

sanitation services is made available and easily accessible on the website of the

City of East Lansing.

* Public Works Department of city of East Lansing

<http://www.cityofeastlansing.com/Home/Departments/PublicWorks/RefuseYardWas

teRecyclingCollections/> Last Visit April 24, 2009

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c. Comparison Table

Blo

om

ingto

n T

ag s

yst

em

Ad

van

tages

-No billing system needed

-Easy to purchase

-Easy for collection personnel

-Free recycling creates incentive to recycle

Dis

ad

van

tages

-Hauler might not be able to easily find the tag(s)

-People can steal stickers off other resident‟s garbage bags and

put them on their own

-Stickers can fall off in rainy or cold weather

-Creates uncertain revenue

-Predicting solid waste volume difficult

East

Lan

sin

g-C

art

/bin

syst

em

Ad

van

tages

-People are given options to dispose their waste in desired

ways

-Free recycling creates incentive to recycle

-Greater revenue stability for the bin system as the revenue

changes only when residents change their subscription level

(bin size).

-Carts prevent litter from blowing and animals from scattering

trash

Dis

ad

van

tages

-Reduced waste reduction incentive, as residents are charged

the same amount as long as the amount of waste is below their

subscription level

-Additional cost incurred for inventory and distribution system

for cans

-Billing system needed

d. Trends and Changes

An analysis of 212 U.S. cities that switched to PAYT programs and had

no recycling program in place before the PAYT program was put in place were

able to decrease their average trash pickup by as much as 14-27%. Cities that

already had recycling programs in place and did not modify them when they

switched to a PAYT program saw increases of 32 to 59 percent in the weight of

materials recycled (Canterbury, 1999). In 2007 the city of West Lafayette

generated 481.83 tons of newspaper, 33.3 tons of aluminum, 73.03 tons of bi and

scrap metal, 192.68 tons of glass, 381.66 tons of plastic, 984.59 tons of mixed

paper and 4275.29 tons of trash. Thus the recycling rate was 33.4% (assuming

that the plastic was truly recycled). Nota Bene: we do not consider oil, batteries,

brush or leaves as trash and as such they are not included in the above

calculations. While this recycling rate is above U.S. national average, we can

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expect that with the implementation of a PAYT system, with proper education

and outreach and no modification to the current recycling system, the recycling

rate in West Lafayette could be tremendously improved.

IV. Implementation

A. Rate Structure

a. Goals

• Environmental Sustainability: Effective promotion of waste reduction

• Equity: Delivery of economically fair services

• Economic Stability: Recovery of cost of services through stable revenue

b. Options

There are 3 possible pricing structures to choose from in Pay-As-You-Throw:

proportional, variable or multi-tiered. The numbers below are examples of rate

structures inspired from our case studies. For the variable and multi-tiered rate

structures we developed various scenarios for the City of West Lafayette.

These can be found in Appendix III.

Proportional: Involves the use of tags placed around the necks of bags. These

bags are placed curbside. Residents are responsible to buy the tags from the

city or from previously agreed-upon vendors such as local grocery stores. We

did not consider this option for the City of West Lafayette.

Table 2 Example proportional Rate Structure from the City of Bloomington, IN

per

trash

tag

price

per

yard

tag

price trash revenue yard revenue total revenue trash cost yard cost total cost

Anticipated

total profit

$ 2 $ 1.00 $ 558,000.00 $ 111,600.00 $ 669,600.00 $ 62,367.00 $ 13,876.80 $ 76,243.80 $ 593,356.20

$ 1.5 $ 0.75 $ 418,500.00 $ 83,700.00 $ 502,200.00 $ 48,417.00 $ 11,086.80 $ 59,503.80 $ 442,696.20

$ 1 $ 0.50 $ 279,000.00 $ 55,800.00 $ 334,800.00 $ 34,467.00 $ 8,296.80 $ 42,763.80 $ 292,036.20

Variable: Involves the use of varying can sizes on behalf of the residents.

Residents subscribe to a can size and are charged on a monthly basis for the

provision of the pick-up service. In the example below we assume that 1/3 of

the population subscribes to the each option for the can sizes. The smallest can

size (30 gallons) is provided at the same cost as the current system: $9 per

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month. The increase in price for increased can sizes is meant to deter the use

of the larger can sizes. We use 4650 as the number of households in West

Lafayette that would be affected by this plan and assume that 1/3rd

of the

households would pick each bin size. With the tipping fee from Tippecanoe

County for the drop off center ($40,000) and assuming a profit of $20,000 from

the sale of recyclables (conservative but necessary because of current economic

climate), the revenue generated would approximate the expenses for the DPW

from 2007 (see Table 1). The smallest bin size was chosen as 30 gallons

because it is smaller than the average amount of trash West Lafayette

households generate weekly and therefore provides an incentive to reduce trash

for most people. The other bin sizes correspond to commonly found trash

containers.

Table 3 Example Variable Rate Structure for City of West Lafayette, IN*

Scenarios Households Price per month Revenue Generated

1 1/3 - 30 gallon $9.00 $167,400.00

1/3 - 56 gallon $13.00 $241,800.00

1/3 - 96 gallon $16.00 $297,600.00

Total

$706,800.00

Multi-tiered: Involves the use of tags and cans. This system also has a fixed fee

attached to it. We recommend setting up this type of system for the city of

West Lafayette because it provides a stable revenue base for the DPW and

gives residents choices as well as clear incentives to reduce their trash by

choosing products with less packaging or recycling more. Again, the smallest

bin size is 30 gallons. In this scenario, hereafter referred to as scenario 1,

residents also have the option of choosing to purchase tags for $1 per tag. All

households must pay the $5 flat fee, but if they think that they generate less

than 30 gallons of non-recyclable waste a week, then they can use the tag

system. In scenario 1 we assume that the household which selected the tag

option would use 3 tags a month, i.e. fill less than 90 gallons worth of trash in a

month. In this case they are charged $8 a month compared to $9 a month if

residents choose the 30 gallon bin option with a maximum of 120 gallons

worth of trash in a month. Other bin choices are more expensive. The tag

option can also be used by residents who have subscribed to any bin size to

accommodate times where they may have more trash than regularly, for

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example when they have guest or undergo construction. The tags can be

attached to bags or trash bins, provided they are less than 30 gallons.

Table 4 Possible Multi-tiered Rate Structure for the City of West Lafayette, IN*

scenarios* break up rate charged/house/month

revenue generated /

by each field

1 (1/3)-30 gal $4.00 $74,400.00

(1/6)-56 gal $14.00 $130,200.00

(1/6)-96 gal $17.00 $158,100.00

(1/3)-3 tags $3.00 $55,800.00

flat fee $5.00 $279,000.00

Total

$697,500.00

*For more scenarios developed for the City of West Lafayette, see appendix III

c. Recommendation and Example Rate Structure

A Multi-Tiered system tends to generate steady revenue, creates strong

incentive to reduce waste and residents are given options to chose from.

Compared to other rate structures, it helps to achieve the above stated goals. An

example rate structure we feel is best for the city is shown below and will be

referred to as scenario 2, hereafter:

• Flat fee: $6.50 / month

o 30 gallon: $2.50 / month

o 56 gallon: $5.00 / month

o 96 gallon: $7.00 / month

• if you need extra bags , or do not fall into above categories:

< 30 gallon bag cost: $2.00 per tag

• Brush pick-up: $2.00 per bag

• Seasonal pick-up: free

• Bulk item fee: $12.00 for any bulk item

• Recycling pick-up: FREE

This exemplifies a possible price structure and is one of many we developed so that

they may fit the needs of Pay-As-You-Throw in West Lafayette (according to the

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table of expenditure and revenues of the financial information of 2007 provided by

the sanitation department). In the case outlined above if 1/6th

of the households pick

the 30 gallon bin, another 1/6th

pick the 96 gallon bin options, and 1/3rd

of the

households pick the 56 gallon bin option while the remaining 1/3rd

use 3 tags per

month for 30 gallon bags or bins, the revenue generated would be $655,650 without

considering brush and bulk item pickup or recycling sales and the Tippecanoe County

fee.

If this rate structure were changed so that half of the population chose the 30 gallon

option, 1/8th

chose 56 gallon, 1/8th

chose 96 gallon and a quarter of the population

used three 30 gallon bags per month (without the use of a bin _ but still paying the

flat fee), the revenue would be $599,890. We feel that this would be an example of a

„worst-case‟ scenario financially but a „best-case‟ scenario environmentally since the

population would have clearly shifted to throwing out less waste. The added revenue

from sales of recycling (which can only go up since the earth‟s resources are finite)

would be expected to make up the potential shortfall in funds.

B. Survey

We designed a survey using methodologies described in Seymour (1976),

Dillman (1941) and Arcury and Quandt (1999). The survey, found in Appendix II,

opens with a disclaimer and an explanation of who it is being administered by. The

EPICS program is described as well as the Boiler Green Initiative Team. This section

is very important because it lets people taking the survey know that all of the

information they are giving is completely anonymous and voluntary. There is also a

list of objectives included in the disclaimer. This list simply lets survey takers know

why their participation in the survey is important. We also decided to mention that

survey takers were allowed to skip questions. This may be particularly useful to them

during our “Demographics” section because there are some questions asked that even

though the survey is confidential; people may not be comfortable answering.

The first group of questions is related to recycling. This section was designed to

quantify the amount of knowledge that residents of West Lafayette have about proper

recycling practices. This knowledge will be particularly useful when attempting to

educate the residents of West Lafayette about the Pay-As-You-Throw program. If

people know more about proper recycling practices they will be more likely to

recycle more often. The more knowledge the residents have about recycling, the more

likely it is that the PAYT program will be beneficial to them. Likewise, the more

PAYT becomes beneficial to residents, the bigger the impact will be on the

environment.

PAYT24

The next section involves questions related to regular trash pick-up. The main

objective of this section is to gauge the amount of trash that households leave for

curbside collection. With this information, the designers of the PAYT rate system will

be able to customize charges that are feasible for West Lafayette, taking into account

the current price for pick-up as well as the amount of revenue that the Streets and

Sanitation Department needs to generate.

After the trash section, there is a section that briefly describes the PAYT system

and also asks residents if they would like to see this system implemented in West

Lafayette. Also included in this section is an opportunity for the survey-taker to make

comments or ask questions. This section will prove to be important when residents

are educated about the PAYT system at length. If there are good questions asked and

concerns voiced at this time, it will be easier to address them during the PAYT

educational sessions or community forums that will be held prior to the

implementation of the program.

The last section asks demographic related questions. The role of this section is to

make sure that the entire desired population is represented equally. In any survey, if

the desired population is not represented equally, it will result in survey bias. Survey

bias, while unavoidable, can be controlled if the proper precautions are taken. The

goal of this section is to fairly represent all of the residents of West Lafayette. The

team was unable to do a mail or telephone survey because of lack of funds. We did

investigate going to certain locations and administer the survey to volunteers. Arcury

and Quandt (1999) recommended creating a list of locations in the community where

citizens from different socio-economic status, demographic status (i.e. gender and

age), and employment characteristics congregate and visiting these locations at

different times of day for multiple days to obtain a representative sample of the

population. Our list consisted of the local grocery stores including Walmart, the

CityBus change station in Lafayette, YMCA, YWCA and Morton Center, the

Tippecanoe Mall, local parks and the West Lafayette library. Because of logistical

issues we were unable to conduct this „site-based‟ survey.

We think that the easiest way for the city to implement the survey is to include a

link to the online version of the survey we created on the trash bill that residents‟

receive all the while advertising for the survey using local news services. We

attempted to do this but due to our semester schedule and some miscommunication

issues it was never put into place. The online version of the survey is available at

http://purdue.qualtrics.com/SE/?SID=SV_0StEZ5udEdLHjjS&SVID=Prod and

requires the following password: EPICS. For ease of fitting the URL onto the bill we

created a smaller URL to reach the survey: http://tiny.cc/PAYTsurvey . Paper copies

of the survey should be available at city hall for residents to pick up if they are not

comfortable with the online version (they can also print out a paper copy from

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http://docs.google.com/View?docid=dd4jds49_0fvmq6hcc&pageview=1&hgd=1&hl

=en ). Our recommendation to the city of West Lafayette is to administer the survey

before implementing PAYT and use the results to tweak the chosen rate structure.

Another scenario could be to add on to this survey with a section where residents are

given the rate structure proposed by the city and asked to give their preferred choice.

Upon analysis of the survey results, the city would have a better estimate of revenues

generated by the program and perhaps more confidence in their choice of a rate

structure. In contrast, the survey presented in this document was designed to be

implemented before considering switching to a PAYT to get a better sense of the

residents‟ potential concerns. In this case the survey should be followed by an

extensive education campaign and the results of the survey should also be used to

tweak the rate structure to better fit the city‟s goals.

C. Education and Outreach

a. EPA Pay-as-you-throw handbook-Lessons learned segment

EPA‟s Unit Pricing Roundtable came to a conclusion that well informed

residents will be easier to serve and will be more likely to be satisfied with the

new program. It will therefore be essential to build public support by providing

program specifics which need to be done months ahead of date of program

implementation. EPA‟s PAYT handbook provides guidelines for education and

outreach.

i. The handbook states that all efforts for education should convey to residents

the exact structure of a new PAYT program. The residents must be provided

with all essential information, including:

The types and costs of all services offered under the new program

The schedule for collections

The means by which the fees will be collected

The methods or outlets for purchasing cans, bags, tags, or stickers

ii. The ways in which the Sanitation Department can provide residents with

detailed information about the new program is by:

Distributing flyers or a letter from a local official or recycling coordinator.

Enclosing inserts in utility bills that discuss the program and answer

common questions. Direct mailings to households can also be used.

PAYT26

Distributing flyers in all public places like libraries, schools, and stores.

Especially the stores that will be selling these bags, tags and stickers. The

retail stores can hand the flyers out and the retailers can familiarize

themselves with the program.

Producing newsletters that discuss the need for the program and answer

questions and provide updates about the progress of the program. The

newsletters can be sent to all Home Owner Associations and schools in the

area.

Establishing a telephone hotline to provide residents with immediate

answers to their questions.

b. Application to the City of West Lafayette

We recommend the following:

The use of local media (newspaper, radio, television) in order to get the

word out about the new program and how to use it appropriately

Contact school and colleges in order to inform students, teachers, and

faculty

Create an up to date a, informative and interactive web-site and use it as a

forum where residents can ask questions and look up the questions of others as

well

Use of fliers and brochures

i. Neighborhood Coaches and Block Leaders

Contact community leaders in order to gain support of the project

“Connected” people can be recruited to help their neighbors overcome the

barriers that might otherwise prevent them from considering the program.

The use of opinion leaders within existing networks is a key element of

diffusion theory (Rogers, 2003)

Support peer groups with trained volunteers who have been involved in the

project

Community forums

ii. Word-of-mouth

Provide program participants with an experience of such quality that they

will want to tell others about it.

Leave participants with "show and tell," and other promotional materials to

encourage them to tell others about the program.

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Consider arranging introductory sessions to which participants can invite

their friends and acquaintances.

Provide feedback on individual and group achievements that participants

can share with others.

iii. Workshops

Interactive Workshops

Web Based Workshops-Interactive

iv. Financial Incentives and Disincentives

Certain rewards can be given to random people who implement the PAYT

program and actively recycle (see examples of such rewards for different

programs in the table below). Some recommendations for rewards include:

Make sure that the disincentives are large enough to deter people

Ensure that the incentive is noticeable.

Design the incentive/disincentive to discourage evasion

Some example incentives and disincentives are shown below

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c. Proposed lesson plan for education outreach

Objectives: This lesson is designed for fourth grade students. The main objectives

of this lesson are to identify and create awareness about how much garbage we

produce, identify landfills and their purposes, and explain how recycling saves

energy and resources while reducing pollution.

Materials Needed: Rubber bands, brown paper bag, tape, crayons, scissors, 1

gallon glass jar, measuring cup (250ml), red food coloring, 1 gallon jug water, paper

plate, china plate, paper towel, terry cloth dish towel, plastic bag, plastic foam cup,

glass, plastic wrap, reusable refrigerator container, carrots in a plastic bag, carrots

out of plastic bag.

This lesson is designed for whole class participation.

Activities: Do an activity called Test Your Recycling Sense. Tell students that you

are going to hold up two objects and that they must tell you which object is better for

our environment. Paper plate-china plate, paper towel-terry cloth dish towel, plastic

Potential incentives Case study examples

Cash The Roach Coach Project

gifts, passes, prizes Guelph 2000, Norway Public School, The Clean Air

Commute

reduced price, discount coupons

BC21 PowerSmart, JEEP, Go Boulder, Peterborough

Green- Up, The Clean Air Commute, The Environment

Network, Oregon's Air Quality Public Education and

Incentive Program

no charge (composters, trees)

Earth-Works, Guelph 2000, Quinte Regional Recycling

low interest loans ReCAP, Pacific Gas and Electric, The Environment

Network

tax increase deferral WaterSmart

Disincentives Case study examples

user pay Quinte Regional Recycling

Fines Water Smart

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bag-paper bag, plastic foam cup-glass, carrots in plastic bag and carrots out of plastic

bags. (Note: The second items in each pair are better for our environment.)

A second activity is an experiment showing how pollution affects wildlife. Pour one-

half cup of water

into the gallon jar. Add and stir in two drops of food coloring. Add one cup of

water at a time to the jar until the red color disappears. It takes about 7 or more

measuring cups of clear water to make the red color disappear. The children should

know that when pollutants are put into streams, they go through

the entire stream. They do not disappear. They merely spread out just like the food

coloring did in the experiment. However, they are still present in the stream and

various negative impacts on both wildlife and humans.

A third activity is an experiment with rubber bands to determine one effect of

plastic garbage pollution on sea animals. Hook one end of the rubber band around

your little finger. Stretch the rubber band across the back of your hand and hook the

free end on your thumb. Try to remove the rubber band without touching anything.

Seals and fish do not have hands. How can they remove the plastic rings from six-

packs of beverages if they get these around their bodies?

A fourth activity is to have students construct a folder for their schoolwork using

recycled brown paper bags. The intent is to make students aware of the benefits of

reusing materials before discarding them. The cover of the newly created folder can

be decorated as an art project.

1. Unglue and unfold the bottom of a large brown bag.

2. Flatten bag by placing the advertising toward you. Pull the front edge with

your left hand, and the back folded edge with your right hand.

3. Cut off the bottom at the last fold.

4. Tape the top edges of the bag together. Tape the bottom edges of bag

together.

5. Measure 30 cm (12 inches). Down from the top edge, then fold the bottom

edge up.

6. Tape edges only. You may want to use staples or glue instead.

7. Fold in half and decorate.

Performance Assessment: At the conclusion of this lesson students should have a

more solid understanding of various issues surrounding our trash disposal habits, as

well as the importance of reducing, reusing and recycling (in that order).

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V. Conclusion

Our proposal is one that incorporates successful ideas that have already been

implemented in many municipalities in the United States. The rate structures that

were given in this report are examples of possible choices for the city of West

Lafayette. We recommend that the city pick a preliminary rate structure based upon

our recommendations, implement an education and outreach campaign and then

switch to a PAYT. It is very important for citizens to have a clear understanding of

the choices they will have under the system and the reasons behind it as well as rules

and regulations about switching between services and non compliance issues.

Residents should be informed of the recycling rate improvements as they occur to

ensure the viability of the system over time. The city can also adjust the rates every

few years to suit their needs best and deal with changing costs. It is also possible that

with the success of PAYT, the recycling system may need to be modified in the

future. These changes could include switching to single stream recycling or

potentially providing residents with a stackable bin and giving them the option of

purchasing additional stackable bins to ease the sorting of recyclables.

Because the West Lafayette‟s recycling rate has only shown a slight increase over the

past few years (from 29.3% in 2002 to 33.4% in 2007) we feel that the city should

provide incentives to recycle more and a PAYT program will accomplish this task.

Our report shows that PAYT is economically feasible in West Lafayette and provides

social and environmental benefits.

PAYT31

VI. References

Arcury, T. and S. Quandt (1999), Participant recruitment for qualitative research: A

site-based approach to community research in complex societies. Human

Organization, 58(2): 128-133.

CA EPA (2009), The history of the California Environmental Protection Agency.

Last visited May 2009, http://www.calepa.ca.gov/About/History01/ciwmb.htm

Canterbury, Janice L. (1999), Rate structure design setting rates for a pay-as-you-

throw program (SuDoc EP 1.2:P 29/3). Washington DC: U.S. Environmental

Protection Agency, Solid Waste And Emergency Response.

Dillman, D. (1941) Mail and telephone surveys: the total design method.

Environmental Protection Agency, prepared by Janice L. Canterbury (U.S. EPA

Office of Solid Waste). Pay As You Throw: Lessons Learned About Unit Pricing of

Municipal Solid Waste. April 1994.

EPA Pay-as-you-throw handbook Lessons Learned Part 4-Implementing and

Monitoring Unit Pricing, last visited Feb 13, 2009,

http://www.epa.gov/osw/conserve/tools/payt/pdf/llpart4.pdf

Eurostat (2009) Municipal Waste News Release, last visited May 2009,

http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/8-09032009-BP/EN/8-

09032009-BP-EN.PDF

FL Department of Environmental Protection (2009) 75% recycling goal, last visited

May 2009, http://www.dep.state.fl.us/waste/recyclinggoal75/default.htm

Public Works Department of city of East Lansing

<http://www.cityofeastlansing.com/Home/Departments/PublicWorks/RefuseYardWa

steRecyclingCollections/>

Rogers, E. (2003) Diffusion of Innovations, 5th

Edition, New York: Free Press

Sanitation Department of City of Bloomington

<http://www.bloomington.in.gov/sanitation>

Seymour, S. (1976) Applied sampling (Quantitative Studies in Social Relations)

STATindiana <http://www.stats.indiana.edu>

Tools of Change website http://www.toolsofchange.com/English/firstsplit.asp, last

accessed April 29, 2009.

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U.S. environmental protection safety <

http://www.epa.gov/osw/conserve/tools/payt/top3.htm>

VII. Acknowledgements

This project has been an enjoyable and educational experience for all of us who have

worked on it including those of us from the previous semester. We wish to thank

EPICS for the opportunity to research this project for class credit. Particular thanks

go to Professor Oakes, Carla Zoltowski and Pam Brown for all their support during

this project. We also wish to thank Dave Downy and members of the West Lafayette

Go Green Commission for their input throughout the process. Lastly, but not least we

extend our gratitude to Reverend Bunder for his continued assistance with our

project, for being patient with us and giving us constructive feedback as we

progressed through the research that needed to be completed. We hope that this

system will be beneficial to West Lafayette and that other cities use the report to

conduct similar studies in their area and implement PAYT systems.

Contributors:

Udit Pandey (Project Leader)

Yitian Hu

Hua Xia Hui Huang

Caroline Early

Bhakti Khandagle

Taizhi Tan

John Townsend

Gaurav Srivastava

Rachel Roberts

Heather Carhart

Amelie Davis (Advisor)

Dan Schuster (Advisor)

Sanket Naik (Teaching Assistant)

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Appendix I. Flow chart of Sanitation services provided in West Lafayette, Indiana

Collectable Trash from Household

Municipal Solid Waste

Collected once a week

Solid Waste & Large Items

Tippecanoe County

Transfer Station

Large Appliances (without

chemicals)

Oscar WinskiLafayette

Recyclable: Paper, metal scraps &

cans, glass , plastic

Collected once every two weeks

Streets, Sanitation,

and Recycling Center of W.L.

Newspaper to Regal

Indianapolis

Mixed Paper to Transfer

Systems Frankfort

Scrap metal to Oscar Winski

Lafayette

Yard waste

Collected once a week

(Oct - Dec can be on curb but other times in

a can)

Soil Maker

Drop off Bins for Specific Neighborhoods: mixed

paper

Collected once a month and require a contact with

Sanitation Department to start service

Streets, Sanitation, and Recycling Center of W.L.

Transfer Systems

Frankfort

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Appendix II. Survey Questionnaire

DISCLAIMER: This survey is intended for the residents of West Lafayette who have curbside pickup and therefore come under the jurisdiction of the streets and sanitations department of the City of West Lafayette. This survey is confidential and voluntary. At any point if you do not feel comfortable answering a particular question, please move on to the next question. The objectives of this survey are to: - Gage current trash disposal habits. - Gage current recycling habits. - Gage knowledge regarding trash disposal program that encourages recycling. - Gage amount of trash citizens throw out

Recycling Related Questions 1. How often do you recycle? (If never, move to question #5) Always ___ Sometimes___ Never___ 2. What type of items do you recycle? (Mark all that apply.) a. Brown Glass ___ e. Plastics 1-2___ i. Tin Cans___ b. Clear Glass___ f. Plastics 3-5___ j. Newspaper___ c. Green Glass___ g. Plastics 6___ k. Mixed Paper___ d. Aluminum___ h. Plastics 7___ 3. Do you sort your recyclables (i.e. plastics from paper)? Always ___ Sometimes___ Never___ 4. Are you aware of the recycling information available on the city council’s website? Yes___ No___ 5. Did you know you can get a free recycling bin from the city? Yes___ No___

Trash Related Questions 6. What trash pickup schedule are you on? (See map below.) “A”___ “B”___ “C”___ “D”___ “E”___ “F”___ Not sure___

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If you’re not sure, what day does your trash get picked up? _________________ 7. On average, how many 55 gallon garbage bags do you leave for curbside pickup every week? Less than 1 bag___ 1 bag___ 2 bags___ 3 bags___ 4 bags___ 5 or more bags___ 8. To what extent do you agree with the statement, “I am willing to throw away less in order to save money?” (This implies that you would have to recycle more, or buy products with less packaging.)

PAYT36

Strongly Agree___ Agree___ Disagree___ Strongly Disagree___ 9. How much do you think you should have to pay for curbside pickup per month knowing that a commercial pickup service charges $16 a month to pick up for Tippecanoe County residents? $7-$10___ $11-$13___ $14-$16___ $17 and up___ 10. Does the amount of trash you throw away vary widely from week to week? Yes___ No___ a. If yes, what is the minimum and maximum amount of bags that you throw away? Minimum: 1-2 bags___ 3-4 bags___ 4-6 bags___ 7 or more___ Maximum: 1-2 bags___ 3-4 bags___ 4-6 bags___ 7 or more___ 11. Currently there is no additional charge for bulk items (couch, refrigerator, etc.) to be picked up with your normal trash collection. To what extent do you agree with the following statement, “It is reasonable to be charged more money in order for a bulk item to be picked up.” Strongly Agree___ Agree___ Disagree___ Strongly Disagree

Demographic Related Questions 12. How many people live in your household? 1___ 2___ 3___ 4___ 5___ 6___ 7 or more___ 13. What are the ages of people that live in your household? (Check all that apply.) Infant-4 years___ 5-12 years___ 13-18 years___ 19-35 years___ 36-50 years___ 50-70 years___ 70 and older___ 14. What is your highest level of education? (If you are not comfortable answering, please end the survey.) Some High School___ High School Diploma/GED___ Some College___ College Graduate___ Graduate Degree and Beyond___

15. What range does your household income fall in? $0-$20,000___ $20,000-$35,000___ $35,000-$60,000___ $60,000-$80,000___ $80,000-$100,000___ $100,000-$120,000___ $120,000 and up___

PAYT37

Appendix III Rate structure scenarios for the City of West Lafayette for two different options: variable and

multi-tiered, considering 4650 households. The ‘Totals’ do not consider Tippecanoe County Tipping Fee,

recycling revenue or brush and bulk items pickup revenue.

Variable scenarios: Some of the scenarios are given to show the stability of revenues with different breakdowns of

household choices and small adjustment of the fees (for example compare scenarios 2 and 5).

Scenarios 7 and 8 assume the ‘extra bag’ costs $1 per bag and that 4 bags are used per month for each household

who chooses that option as a complement to their bin choice.

Scenarios Households Price per month Revenue Generated Total

2 1/3 - 30 gallon $ 9.00 $ 167,400.00 $632,400.00

1/3 - 56 gallon $ 11.00 $ 204,600.00

1/3 - 96 gallon $ 14.00 $ 260,400.00

3 3/8 - 30 gallon $ 9.00 $ 188,325.00 $634,725.00

1/2 - 56 gallon $ 12.25 $ 341,775.00

1/8 - 96 gallon $ 15.00 $ 104,625.00

4 3/10 - 30 gallon $ 9.00 $ 150,660.00 $630,540.00

6/10 - 56 gallon $ 12.00 $ 401,760.00

1/10 - 96 gallon $ 14.00 $ 78,120.00

5 1/2 - 30 gallon $ 9.00 $ 251,100.00 $634,725.00

3/8 - 56 gallon $ 13.00 $ 272,025.00

1/8 - 96 gallon $ 16.00 $ 111,600.00

6 6/10 - 30 gallon $ 9.75 $ 326,430.00 $633,330.00

3/10 - 56 gallon $ 13.00 $ 217,620.00

1/10 - 96 gallon $ 16.00 $ 89,280.00

7 6/10 - 30 gallon $ 9.25 $ 309,690.00 $636,120.00

3/10 - 56 gallon $ 13.00 $ 217,620.00

1/10 - 96 gallon $ 15.50 $ 86,490.00

10% use extra bag $ 4.00 $ 22,320.00

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8 3/10 - 30 gallon $ 9.00 $ 150,660.00 $624,960.00

6/10 - 56 gallon $ 11.00 $ 368,280.00

1/10 - 96 gallon $ 15.00 $ 83,700.00

10% use extra bag $ 4.00 $ 22,320.00

Multi-tiered scenarios (Scenarios 1 and 2 are described in the body of the text).

scenarios break up rate charged/unit/month revenue generated / by each field

3 (1/3)- 30 gallon $ 6.00 $ 111,600.00

(1/6)-56 gal $ 8.00 $ 74,400.00

(1/6)-96 gal $ 12.00 $ 111,600.00

(1/3)-4 tags $ 2.00 $ 148,800.00

flat fee $ 4.00 $ 223,200.00

Total

$ 669,600.00

4 (1/3)- 30 gallon $ 6.00 $ 111,600.00

(1/6)-56 gal $ 8.00 $ 74,400.00

(1/6)-96 gal $ 11.00 $ 102,300.00

(1/3)-4 tags $ 3.00 $ 223,200.00

flat fee $ 4.50 $ 251,100.00

Total

$ 762,600.00

PAYT39

5 (1/3)- 30 gallon $ 6.00 $ 111,600.00

(1/6)-56 gal $ 8.00 $ 74,400.00

(1/6)-96 gal $ 13.00 $ 120,900.00

(1/3)-4 tags $ 3.50 $ 260,400.00

flat fee $ 4.50 $ 251,100.00

Total

$ 818,400.00

6 (1/2)- 30 gallon $ 6.00 $ 167,400.00

(1/8)-56 gal $ 8.00 $ 55,800.00

(1/8)-96 gal $ 13.00 $ 90,675.00

(1/4)-4 tags $ 3.50 $ 195,300.00

flat fee $ 4.50 $ 251,100.00

Total

$ 760,275.00

7 3/8 - 30 gallon $ 6.00 $ 125,550.00

1/4 - 56 gallon $ 8.00 $ 111,600.00

1/8 - 96 gallon $ 13.00 $ 90,675.00

(1/4)-4tags $ 3.50 $ 195,300.00

flat fee $ 5.00 $ 279,000.00

Total

$ 802,125.00

8 (1/2)- 30 gallon $ 5.50 $ 153,450.00

(1/4)- 56 gal $ 7.50 $ 104,625.00

(1/8)- 96 gal $ 10.50 $ 73,237.50

(1/8)- 4 tags $ 3.50 $ 97,650.00

flat fee $ 4.50 $ 428,962.50

Total

$ 857,925.00