THEY WANT TO DO IT ALL: RECONCILING SHORT TERM COLLECTION AGREEMENTS WITH LONG TERM RECYCLING FACILITY FINANCING

摘要

Often private haulers that collect waste pursuant to contract or franchise ask for contract or franchise terms of 15 or 20 years commensurate with the depreciation or debt amortization schedule of MRFs, C&D processing or yard waste composting facilities which they are developing. (By contrast the depreciation or debt amortization of bins and collection vehicles is only 5-7 years.) This presentation explores how local government's can protect their residents against possible collection service deterioration or unacceptable rate increases over such long terms by giving the contractor / franchisee the opportunity to earn contract or franchise extensions in increments of years, based on structuring diversion, performance-based criteria at the diversion facilities.