If Option 1 was to be serviced in-house with Local 82 employees, it is expected to cost $146,600 for 2 FTE, and an additional $24,000 for possible WSIB costs. The current fleet used for night garbage collection could be used for bulk collection during the day shift. While there is no initial cost for fleet, the double shifting of these vehicles may alter the replacement schedule of the units. These additional operating costs could be offset by those same FTEs performing other duties such as street sweeping (thereby reducing the overtime wages by $8,000); and performing sidewalk sweeping (currently not part of the base operating budget, but for which Council approved one-time funding of $250,000 and $100,000 in 2014 and 2015 respectively).
It is anticipated that the associated tipping fees would be in the range of $77,000 (based on 25% of homes requesting the service at 250 lbs. each). The resulting total incremental operating cost of this option is $239,000.
A user pay system (Option 3) would provide $180,000 in revenue offset if utilized in conjunction with Option 1, thereby resulting in a net cost of $59,600. This is based on the collection of 9,000 items per year. Should the number of items vary, the funding would alter accordingly.
In Option 2, the estimated cost for contracted collection service is $140,000 per year. In addition, it is anticipated that the associated tipping fees would be in the range of $77,000 (based on 25% of homes requesting the service at 250 lbs. each), for a total incremental program cost of $217,000. These are estimates. It is anticipated that at the onset of any new program the initial demand will be high and difficult to properly estimate.
Once again, if a user pay system is selected (Option 3), it would provide $180,000 in revenue offset if utilized in conjunction with Option 2, thereby resulting in a net cost of $37,000. This is based on the collection of 9,000 items per year. Should the number of items vary, the funding would alter accordingly.
Assuming 25% of the population would take advantage of the coupon (at one item weighing 250 lbs.), the tipping fee would be around $77,000; 50% of the population would equate to an estimated $153,990 and 100% of the population could result in $307,980.
In Option 4 (Big Bin Event), the contracted costs come from the rental and service of bins and equipment (such as bobcats). The cost for labour/benefits is a result of overtime cost for established employees. Therefore, no additional staff would be required.
The difficulty with all of the Options is estimating the tipping fees. Those residents that are currently following proper disposal options will cease to do so with curbside