The assignment is directly below-- Its a public policyquestion, with some calculations based on discounting-- Readbelow

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 organizinga sanitation department. Projections show that the town would needone garbage truck, costing $100,000 with annual maintenance costsof $18,000. Two new town employees whose salaries and benefitswould cost $22,000 per year per employee would need to be hired. Asupervisor would be necessary at salary and benefits project­ed torun about $45,000 per year. The truck would reach the end of itsuseful life in fifteen years and thus would need to be replacedwith a new truck costing about the same amount of money(pre-discounted). This proposal would include once a week back door(meaning that trash cans would not have to be put on the curb)trash collection.

The second proposal would involve buying aautomated side load (ASL) garbage truck. The manufacturer of thistruck says that it is so advanced that a sanitation supervisorwould be unnecessary and I could take on the few additional dutiesof supervising sanitation. However, since I would be performingthese duties in addition to my normal duties, a new part-timeadministrative assistant would need to be hired at a salary of$11,000 per year (no benefits for part-time employees). There wouldonly need to be one new sanitation employee hired at the same rateas above. Rather than $100,000, the new truck would cost $185,000and would have slightly higher annual maintenance costs of $20,000.This truck’s useful life is promised to be ten years so it wouldneed to be replaced after each ten-year cycle. This proposal wouldinclude once a week curbside trash collection. Residents would besupplied with special garbage containers at no cost; the citypaying a one-time fee of $12,000 for the cans.

The third proposal entails contracting with aprivate company for trash collection. Waste Disposal Inc. (WDI) hasindicated to the town that it would provide trash collectionservices on a contract basis for a fee of $175,000 per year. Theirbid assumes twice a week curbside trash collec­tion. Residentswould be supplied with special garbage containers as part of theWDI contract (at no cost to residents).

You should assume a 30 year time frame for yourcompari­sons and a 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