Here is the situtation--- Choosing best public policyproposal to take --- READ ALL and show calculations. Assignment isbelow

As you know, Soundville currently has no municipal trashcollection and so residents must either burn their trashindividually or take it to one of several transfer stations locatedaround the town. Recent legislation has put restrictions on theoutside burning of trash in populated areas, and residents of thetown have been complaining about the inconvenience of carryingtheir own trash to the transfer stations. And the town is growing;recent mid-decade census estimates show that we are now the largesttown in North Carolina that has no municipal trash collectionsystem.

The town council has assigned me the task of asking you toanalyze three different proposals for trash collection. I will needyour report by February 10.

The first proposal entails the town organizing a sanitationdepartment. Projections show that the town would need one garbagetruck, costing $100,000 with annual maintenance costs of $18,000.Two new town employees whose salaries and benefits would cost$22,000 per year per employee would need to be hired. A supervisorwould be necessary at salary and benefits project­ed to run about$45,000 per year. The truck would reach the end of its useful lifein fifteen years and thus would need to be replaced with a newtruck costing about the same amount of money (pre-discounted). Thisproposal would include once a week back door (meaning that trashcans would not have to be put on the curb) trash collection.

The second proposal would involve buying a automated side load(ASL) garbage truck. The manufacturer of this truck says that it isso advanced that a sanitation supervisor would be unnecessary and Icould take on the few additional duties of supervising sanitation.However, since I would be performing these duties in addition to mynormal duties, a new part-time administrative assistant would needto be hired at a salary of $11,000 per year (no benefits forpart-time employees). There would only need to be one newsanitation employee hired at the same rate as above. Rather than$100,000, the new truck would cost $185,000 and would have slightlyhigher annual maintenance costs of $20,000. This truck’s usefullife is promised to be ten years so it would need to be replacedafter each ten-year cycle. This proposal would include once a weekcurbside trash collection. Residents would be supplied with specialgarbage containers at no cost; the city paying a one-time fee of$12,000 for the cans.

The third proposal entails contracting with a private companyfor trash collection. Waste Disposal Inc. (WDI) has indicated tothe town that it would provide trash collection services on acontract basis for a fee of $175,000 per year. Their bid assumestwice a week curbside trash collec­tion. Residents would besupplied with special garbage containers as part of the WDIcontract (at no cost to residents).

You should assume a 30 year time frame for your compari­sons anda 3% discount rate.

Looking only at the total cost to the town government, which ofthese three alternatives would you recommend to the council? If youadded a second criterion of effectiveness of garbage removal(defined as how often garbage is picked up), what would yourrecommendation be? If you added a third criterion of residents’convenience (defined as how little work residents must do todispose of garbage) what would your recommendation be?

The council is also interested in whether this is an exhaustivelist of options for trash disposal in Soundville. If you candevelop any other ideas please list them and, if the council findsthem interesting, they may ask you to analyze those against thethree given options