Item B: Solid Waste Collection/Fee Structure

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8 Chapter Three Customization Required The Model must be customized to reflect each licensed hauler’s chart of accounts. However, the Model allocates expenses in a consistent manner that will enhance the comparability and usability of the data by City staff. Underlying Assumptions The Model is built around several underlying assumptions that reflect City rate policies and affect the Model’s calculations and allocations. The user should understand these assumptions to properly interpret the Model’s end product. Disposal and processing expenses are allocated between Eugene customers and All Other customers and among residential, commercial and drop box customers based on the volume of customers’ subscribed service levels. The Model assumes that approximately six and one-third 32-gallon cans equal one cubic yard and that all containers of equal size weigh the same. To the extent that customers in a community consistently dispose of heavier or lighter trash, the allocation of disposal and processing expenses could be skewed. Labor costs are allocated between Eugene customers and All Other customers and among residential, commercial and drop box customers based on the number of drivers that service the communities. Thus, the model assumes that each hauler’s drivers are compensated at the same level, regardless of the community they serve. To the extent that there are significant differences in wages paid to, or benefits earned by, drivers in different communities, the allocation of labor costs could be skewed. Vehicle costs are allocated between Eugene customers and All Other customers and among residential, commercial and drop box customers based on the number of routes in each community. Mixed routes (routes that service more than one community) are split based on the number of accounts on that route in each community. Thus, the Model assumes that the time to service each account on a mixed route is the same, regardless of other operational factors (e.g. traffic, housing density, distance to the disposal site, etc.). To the extent that the hauler has numerous mixed routes in very different service areas, the allocation of vehicle costs could be skewed. General and administrative costs are allocated between Eugene customers and All Other customers and among residential, commercial and drop box customers based on the number of customers. Thus, the Model assumes that each account takes the same level of administrative effort to service and maintain. To the extent that the hauler spends significantly more administrative effort on a particular customer base, the allocation of general and administrative costs could be skewed. Software Requirements To use the Model, users must have Microsoft Excel 97/98 for Windows or Microsoft Office 98 Excel Version 8.0 for Macintosh.