Translate[Archived] Question # 41: What is the estimated fiscal and operational impact of ending the outsourced relationship for recycling collection and insourcing this service?
Question:
What is the estimated fiscal and operational impact of ending the outsourced relationship for recycling collection and in-sourcing this service? (Mayor Wilson)
Response:
The estimated impact of bringing the recycling collection in-house in year one would be approximately $2.4 million. In the first year, the City would need to purchase 6 collection vehicles (roughly $1.8M). This would represent a refuse fee of $528 ($117 above FY 2020) for the first year for billable households and result in a General Fund subsidy increase of $161,770 for the non-billable households. Alternatively, the purchase costs of the vehicles could be amortized over multiple years which would reduce the $117 increase to some degree, but insourcing would still remain materially more expensive. From the second year and on, the cost of recycling collections would be roughly $1.8M per year, which is $600,000 more than the current cost of contracted recycling operations. The annual fee would be $440.34 ($29.34 above FY 2020) for billable households and a General Fund subsidy increase of $40,460. This includes the salary and fringe benefits of adding 6 Equipment Operators and 12 Refuse Collectors, capital depreciation of 6 collection trucks, workers compensation, fuel, and vehicle maintenance.
