Background:

The Environmental Services division currently collects Greater Essex County School Board (GECSB) and Windsor Essex Catholic District School Board (WECDSB) schools within the City limits, which includes 11 GECSB schools producing revenues of $23,408 annually based on 44 weeks in a standard collection year; as well as 18 WECDSB schools, and producing revenues of $38,192 annually base on 44 weeks in a standard collection year. Despite this having been a long-standing service, there is no formal agreement to do so. In May 2020, the GECSB & WECDSB approached the City of Windsor to formalize an agreement for the existing service as well as an expansion of the service to all schools within Essex County; the agreements would be independent of each other.

Discussion:

Collection of schools provides the City of Windsor with a revenue stream to offset operational costs. The Environmental Services Division currently services 11 of the 46 schools of the GECSB and 18 of the 39 for WECDSB. Environmental Services has two Front End Loader (FEL) trucks and staffing available to service all 85 schools in Essex County. The only additional costs would be additional fuel to drive to the county, the cost to purchase and maintain FEL bins, and the additional tipping fees. The per lift service fee charged will offset all of the additional costs.

Should the City of Windsor not enter into an agreement with the GECSB & WECDSB we would no longer service the 29 schools currently serviced within the City of Windsor, effective September 2020, and would lose revenue of approximately $61,600 per year based on our current rate per lift. While this loss in itself is not a large amount, it contributes to the overall reduction of revenue in this service area over the years including revenue losses realized from the many successful condominium conversion applications resulting in non-recoverable service for the converted building.

Should the City of Windsor enter into the agreements with the two Boards, there will be a gain of 56 schools, effective September 2020, and an increase in revenue related to the new schools added plus increased fees for the currently services schools of approximately $141,178 per year related to all services provided. This revenue gain will be partially offset by an increase in tip fees and the cost to purchase and maintain the required 6-yard bins. A formal agreement will also provide revenue certainty over the next three years.

Risk Analysis:

As with any agreement, there are stipulations that the service provider must adhere to. Some of these stipulations carry some risk. Many of the risks identified by Administration were addressed through negotiations with the GECSB and the WECDSB, however some risks remain.