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Cost-of-Service and Rate Studies

Rigorous Reviews Substantiate Sensible Rate and Compensation Terms

Fair and sensible collection rates play a key role in your solid waste and recycling equation. That’s why your jurisdiction needs to know if a request for a rate or compensation increase from your collection or material processing contractor makes sense. At HF&H, our in-depth rate and compensation reviews can prevent problems and ensure your collection rates are always right on the mark. Our clients trust HF&H to provide expert evaluations of contractor rate/compensation modification applications, financial statements, operations records, and ideas for rate structures. Our objective reviews and studies arm your jurisdiction with every statistic necessary to successfully address contractor rate/ compensation queries by:

  • Calculating contractor rates/compensation and alternative rate structures to cover specified contractor and municipal costs and to maximize waste reduction goals.
  • Ensuring all current and requested solid waste and recycling rates/compensation are reasonable and supported by accurate documentation.
See Client Success Stories

Cost-of-Service Studies and Rate Reviews:

We analyze hauler revenue and expenses, operations records, future plans, and projected financial results of operations to analyze the reasonableness of requested rate/compensation increases. We determine the equity of projected costs for providing a wide range of solid waste and diversion-related services—including the use of split-body trucks, weekly versus bi-weekly collection, and residential and commercial food waste collection and processing.

Compensation Procedures Reviews:

We develop policies and procedures that streamline and standardize the preparation and review of requested rate/compensation adjustments to ensure common expectations and avoid antagonistic relationships.

Rate Structure Reviews:

We establish alternative collection rate structures to encourage more efficient service, waste reduction, and diversion. As more agencies have engaged in diversion-focused pricing, we develop rate structures to maintain a revenue base sufficient to meet the cost of providing service.

Vehicle Impact Studies:

We analyze and assess solid waste and recycling vehicle, construction vehicle, and transit vehicle use in your community and measure negative impact on street quality. Our studies often find that the damage caused by such vehicles produces a disproportionate financial burden that can be alleviated.

Is Your Agency Paying Too Much For Service?

A recent HF&H processing facility compensation review resulted in a reduction in the facility operator’s requested annual compensation of $29.8 million to $27.8 million—a savings of $2.0 million.

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Client Success Stories