This Section itemizes management costs, as realized by a managing entity, and describes how the percent of each cost associated with the management of each packaging stream is defined. For the purposes of this Section, the source of the money used to cover the municipal costs is irrelevant.
A.Labor Cost. The labor cost for an employee is the product of the percent of the employee's time spent managing a packaging stream and the total compensation and benefits paid to the employee. The labor cost of a packaging stream is the sum of the labor costs for each employee. Expressed as a formula, for all applicable employees: Labor cost = percent time * total compensation and benefits
The percent time is the time an employee spends managing a packaging stream divided by the total time worked. This includes administrative tasks, collecting, sorting, baling, transporting, and other activities used in the management of a packaging stream, but does not include time spent maintaining equipment and structures. It must be estimated and documented by the SO during a cost study and account for seasonal variation.
B.Equipment Cost. The equipment cost for each piece of equipment is the product of the percent of its use allocated to a packaging stream and its associated costs. Associated costs are maintenance and capital investment. The equipment cost for a packaging stream is the sum of the equipment costs for each piece of equipment used.
Expressed as a formula, for all applicable pieces of equipment: Equipment cost = percent use * (maintenance + capital investment)
(1) Estimating the percent use for a piece of equipment.(a) For off-road equipment, including but not limited to balers, forklifts, skid steers, and compactors, the percent use on a packaging stream is the time a piece of equipment is used to manage a packaging stream divided by the total time a piece of equipment is used. It must be estimated and documented by the SO during a cost study and account for seasonal variation.(b) For on-road vehicles, the percent use is the miles traveled during the management of a packaging stream divided by the total vehicle miles traveled. The miles traveled during the management of a packaging stream are the miles traveled on a route multiplied by the number of trips, for all routes traveled. During a cost study, the SO must document the routes used to manage each packaging stream and the number of miles per route. The number of trips for each route traveled and the total miles the vehicle traveled must be reported annually.(2) The maintenance cost is the amount spent on parts, labor, and supplies to service or operate a piece of equipment. This includes supplies like bale wire and personal protective equipment. Maintenance cost does not include capital investment into a piece of equipment that changes its expected lifespan. When staff performs maintenance, the labor cost for the maintenance must be figured as the hours spent maintaining a piece of equipment divided by the total annual hours worked multiplied by the total compensation and benefits paid. The maintenance cost must be reported annually.
(3) The capital investment cost is money spent to buy or lease a piece of equipment or to increase its expected lifespan. In cases where a participating municipality buys a piece of equipment or increases its expected lifespan, the capital investment cost is accounted for by dividing the total investment cost by expected lifespan or expected increase in lifespan. In the case of leased equipment, it is the cost of the lease divided by the length of the lease, in years. It is documented by the SO during a cost study.C.Structure Cost. The structure cost for each structure is the product of the percent of its use allocated to a packaging stream and its associated costs. Associated costs are maintenance and capital investment. Examples of structures include containers, warehouses, buildings, trailers, and roll-off containers.
The structure cost for a packaging stream is the sum of the structure costs for each structure used.
Expressed as a formula, for all applicable structures: Structure cost = percent use * (maintenance + capital investment)
(1) The percent use is the amount of floor space used in the management of a packaging stream divided by the total amount of floor space in a structure. It must be estimated and documented by the SO during a cost study and account for seasonal variation.(2) The maintenance cost is the amount spent in parts, labor, and supplies to service a structure. Maintenance cost does not include capital investment into a structure that changes its expected lifespan. When staff performs maintenance, the labor cost of the maintenance must be figured as the hours spent maintaining a structure divided by the total annual hours worked multiplied by the total compensation and benefits paid. Maintenance cost must be reported annually.(3) The capital investment cost is money spent to buy or lease a structure, expand or otherwise upgrade a structure, or increase its expected lifespan. In cases where a participating municipality buys a structure, upgrades a structure, or increases a structure's expected lifespan, the capital investment cost is accounted for by dividing the total investment cost by expected lifespan or expected increase in lifespan. In the case of leased structures, it is the cost of the lease divided by the length of the lease, in years. It is documented by the SO during a cost study.D.Energy Cost. The energy cost is the cost of energy that supplies equipment and structures during the management of a packaging stream. It must be figured for each structure and piece of equipment as the product of the allocation of metered energy to a piece of equipment or structure, the total metered energy, the average cost per unit of metered energy over the reporting year, and the percent of the equipment or structure's use that is allocated to managing a packaging stream. The energy cost for a packaging stream is the sum of the energy costs for each piece of equipment and structure used.
Expressed as a formula, for all applicable pieces of equipment and structures: Energy cost = percent metered energy used * total metered energy * average cost/unit of metered energy * percent use
(1) The total metered energy is the amount of energy provided on a given invoice or meter used to supply equipment or structures. It must be reported annually.(2) The percent metered energy used is the percentage of total metered energy that supplies a given piece of equipment or structure. It must be estimated and documented by the SO during a cost study and account for seasonal variation.(3) The percent use on a packaging stream is the amount of a piece of equipment's or structure's use that is allocated to a packaging stream.(4) The average cost per unit of metered energy is the total cost of metered energy divided by the total metered energy. It must be reported annually.E.Profit and Overhead Paid. The profit and overhead paid is the difference between the amount paid to a contractor and the sum of the labor cost, equipment cost, structure cost, energy cost, and profit and overhead paid realized by that contractor.06-096 C.M.R. ch. 428, § 6