Background
A city is evaluating implementing a Tag a Bag program. This program will allow residents to dispose of two additional bags of waste bi-weekly (in addition to their regular amount) by placing a Tag, that they have pre-purchased from the City, on their extra garbage bags.
Deliverable
Your assignment is to help the city to determine the cost to charge per Tag (cost neutral, no profit markup), as well as the additional operating, capital and FTE requirements. Please use the data in tables below to complete this assignment. Complete a simple slide presentation (5 slides maximum) to summarize your work and show your recommendation. Submit both a spreadsheet and presentation 4 pager slide
Data for Assessment
| Key Factor | Assumption |
| # of households in the city | 250,000 |
| # of bags allowed per household per collection | 2 |
| Max bag weight permitted (kg) | 20 |
| Estimated households fully utilizing Tag a Bag (#) | Min: 4% Max: 8% |
| Collection Frequency | Every 2 weeks |
Every 2 million annual kg of waste collected for this program requires the following (all costs are annual, unless otherwise noted):
| Item | Cost |
| 1 collection vehicle (10 year life) | $350,000 |
| 1 driver | $75,000 |
| Vehicle fuel and maintenance | $20,000 |
The overall program administration requires:
| Item | Cost |
| 1 safe for tags (10 year life) | $300,000 |
| 1 clerk for program administration | $50,000 |