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Comprehensive Review of S olid W aste Collection and Disposal Options v2.1 A -16 10/22/12 If the Town were to stop providing collection to commercial-businesses customers, the following changes to the Town’s budget would likely occur:  Staffing and Staffing Related Expenses. SCS assumed that the Town’s collection staffing would change if the commercial-business collection service was eliminated. Under this scenario, one (1) of the three (3) equipment operator staff allocated to commercial collections services would be removed from the Solid Waste Services Division’s payroll (and potentially reassigned elsewhere in the Town if position were available) The remaining two (2) equipment operators would continue to collect weekly from the commercial-multi-family customers using the two (2) front loader trucks. The projected budgetary staffing impact for this scenario is presented above in Exhibit A-11, Collection Scenario B.  Fleet Usage/Maintenance Charges. SCS assumed no change in fleet use charges, since both of the commercial vehicles would likely still be used and require the same degree of maintenance. This is a conservative assumption, since some reduction in maintenance likely would result if the commercial-business accounts were no longer serviced.  Fuel. SCS assumed a 68% reduction in fuel charges, which is based on the proportional distribution of pickups between “Town” and “Commercial-Business” accounts (see Exhibit A-6). In other words, commercial-business pickups represent 68% of the total commercial pickups serviced by the Town in a given week.  Vehicle Replacement Cost. SCS assumed that the vehicle replacement costs would be reduced if the commercial collection services were eliminated. The current vehicle replacement cost budget was reduced by the 7-year amortization rate of the commercial collection vehicles (4% interest).  Tip Fees. SCS assumed the Town would no longer be responsible for paying tip fees for commercial-business accounts, except for waste collected at Town-owned properties. If the Town were to eliminate the commercial-business collection services (keeping multi- family), SCS estimates that the Town could realize approximately $330,000/year in reduced costs; however, approximately $308,000/year in revenues would be lost, for a net savings of approximately $22,000/year (see Exhibit A-12). This probably represents a wash given the assumptions associated with the cost allocations between commercial-business and commercial- multi-family operations and the uncertainties inherent in these types of cost projection and allocation models.