Curbside organics pickup will cost more than first thought, after council agreed to raise fees to cover future plastic toter purchases.
Council on Monday approved $3.7 million in costs next year to create a fully automated biweekly trash collection system by June 2011. The service will include normal pay-as-you-throw garbage and blue bag recycling pickup in addition to organics.
The new scheme will cost $260,000 more than recommended after council agreed to factor in replacement costs of plastic toters. The move means utility customers start paying for replacements now, as opposed to the city buying a new batch in 10 years.
"It's important for everything that we do … to have lifecycle replacement built into the budget," said Coun. Len Bracko, who introduced the motion. "If we don't do this, the costs are going to be unaffordable for future generations."
The new system will add $3.33 per month to the average household bill, including $1.10 per month for the replacement bins. That puts new trash and recycling fees in the range of $18.89 to $25.49, depending on the subscription level. Strathcona County and Spruce Grove pay $21 to $26 a month, respectively, for similar services.
The automated system will cost the city about $3.4 million to purchase five trucks and almost 20,000 toters. Council agreed to cover most of that with internal borrowing, paying it back with interest at 3.4 per cent.
The cost of borrowing amounts to $619,000 over 10 years, money that will go to the city municipal fund. Council defeated a motion by Bracko to use grant dollars instead of internal financing.
Weekly spring, summer pickup
Organic waste includes items such as yard waste and food scraps, items that would go into a toter. Environment manager Leah Jackson said the city will utilize a biweekly pickup most of the year, except for summer. Organics will be picked up weekly between mid-April and mid-October to reduce odours and to accommodate a larger volume of yard waste like grass clippings, she said.
The new system is expected to help the city cut down on waste, saving the city about $185,000 a year in operating costs.
Lifecycle costs
Administration's original plan was to internally borrow money for the new toters, which are expected to last about 10 years, and recoup those costs through utility rates. City manager Bill Holtby said the city would need to borrow again in 10 years to replace those bins.
"What Councillor Bracko is recommending is that, for this first set, we'd be paying for them as we're using them, plus putting money away so that 10 years from now we'd be able to pay cash for [new bins]," said Holtby.
Coun. Lorrie Garritty said he supported Bracko's idea, adding that the cost was small in comparison to the rest of the garbage collection fees. Charging the fee now would make purchasing the bins easier for the city, since administration would not need a loan to do it, he added.
"It's a small amount now and the benefits will be very clear 10 years from now when you replace the carts and start fresh."
