5. FINANCIAL MATTERS:

Below is a table summarizing the incremental costs of the various options presented above. Please note that the cost estimates provided are purely speculative and are meant to acknowledge the cost factor only.

In Option A, there would be no financial impact to the current operating budget. The current illegal dump site budget is set at $101,000 per year and is used to clean up municipal properties and public right of way.

In Option B, the estimated cost for contracted collection service is $140,000 per year. In addition it image , is anticipated that the associated tipping fees would be in the range of $77,000 (based on 25% of homes requesting the service at 250lbs 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.

If Option B was to be serviced in-house with Local 82 employees it is expected to cost $146,600 for 2 FTE, an additional $24,000 for possible WSIB costs, and $67,200 yearly rental rate for the needed fleet. Furthermore, a new garbage truck would need to be purchased at a capital cost of approximately $300,000. However, 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). Assuming the same $77,000 in tipping fees indicated above is used, the total incremental operating cost of this option is $306,800.

Furthermore, during the winter months, these two FTE would form part of the Winter Control program and therefore their wages for December - March would form part of the winter control budget. The same tipping fees would apply. Although the total in-house bulk pick up would cost $306,800, it would include enhanced street and sidewalk sweeping as well as enhanced winter control staffing. If Option B, under either scenario, is selected, service is projected to commence in 2016. As additional funds are required, an issue will need to be brought forward as part of the 2016 Operating Budget process.