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Q&A
Cost estimates and challenges for BID compliance with containerization rules
0:42:53
ยท
6 min
Council Member Feliz inquires about cost estimates for BID compliance with new containerization rules, highlighting concerns from smaller BIDs about affordability. Commissioner Gross explains the variability in costs and challenges in providing a single estimate.
- Some BIDs report compliance costs potentially exceeding their entire budget
- Costs vary significantly based on BID size, geography, and current containerization status
- Factors affecting costs include container type, labor, and transportation methods
- Commissioner Gross unable to provide a specific cost estimate due to high variability
Oswald Feliz
0:42:53
Yeah and I've spoken with bids again, really important work making sure that our commercial corridors are clean, something that we all want.
0:43:00
I've spoken with bids who have simply said, hey, we don't have the funds to be able to purchase these bins, especially the smaller bids who have a budget of let's say a hundred thousand dollars.
0:43:10
Some of them have said complying with the rule might cost more than their entire budget, more than a hundred thousand dollars.
0:43:15
Many of them have stated, you know, if we're required to do something that we don't have the funds for, we're just gonna stop cleaning because we're not gonna have the resources to be able to do that.
0:43:25
So do you think SBS should play a role in helping them resolve that economic factor or do you think that's not under SBS?
Dynishal Gross
0:43:35
SBS should absolutely play a role as the entity within city government that has a close understanding and working relationship of bids functions and budgets and we will continue to lift up the perspective and needs of bids within the administration.
Oswald Feliz
0:43:54
Is there anything in the FY 2026 preliminary plan to help them with this economic issue?
Dynishal Gross
0:44:01
I don't believe that there's currently any allocation specifically scoped to manage increased bid costs related to a transition to containerization.
0:44:14
However, know I may not have the full awareness of plans and other agencies, but not within SBS's budget.
Oswald Feliz
0:44:22
And based on your conversations with the many bids, I'm sure they've all reached out about this issue.
0:44:27
Approximately what would be the average cost for compliance of this rule based on the feedback that you've gotten from different bids?
0:44:36
And maybe the cost for the smaller bids, mid sized bids, and the larger bids.
Dynishal Gross
0:44:40
So I think the cost of implementation would vary significantly across the bids as their geographies and assessment assessments are very different and where they currently stand with respect to containerization also differs significantly.
0:44:58
And so I can't give you an aggregate cost across the network but we have sought information from the bids about their progress and planning toward implementation and budget impacts and I know that the bids are considering that both individually and discussing it collectively.
Oswald Feliz
0:45:18
Yeah based on the feedback though that you've received, what are rough numbers that bids have thrown around in terms of compliance with this new rule?
0:45:27
And I know we're still analyzing how much it it will cost, but based on the feedback that you've gotten from them, what are rough numbers that you've received?
0:45:35
Even if they're not fully accurate given the costs?
0:45:39
Yeah.
Dynishal Gross
0:45:42
So I think it will depend on the style of containers that can be accommodated in the district and used by the bids whether those are city bins which range from you know a few hundred dollars to other options for larger types of containers or they plan to manage it by increasing supplemental, you know cleaning of the corridor.
0:46:04
Another option DSNY has asked bids to consider is actually you know moving the bags themselves to a nearby sanitation depot.
0:46:13
So all of those costs like create a lot of variety across the network as do, as I said, the stages that the bids are currently in in terms of containerization.
0:46:25
Some of the larger bids have you know don't just put bags on the street, sweep and put bags on the street and service the corner cans and leave bags nearby but are already transporting.
0:46:35
So there is, you know, a lot of variation and labor is also a variable.
0:46:40
Some bids, you know, have large employees supplemental sanitation crews while others are contracting out for the service.
0:46:48
So I can't quite narrow that in with a with a total across the network cheerfully, but we're happy to continue to work to understand the financial impacts on bids as they come to describe the operational solutions that make sense for their programs.
Oswald Feliz
0:47:05
And if a bid decides to have the containers in the commercial strip, do you think it'll be a stretch to say that having the containers could cost more or less a hundred thousand dollars?
0:47:15
Do you think that'll be a stretch or is that within the range that you've heard?
Dynishal Gross
0:47:22
I think it really varies council member based on the type of containers, the traffic on the corridor, how much those containers would need to be serviced, cleaned, how often they would need to be replaced.
0:47:37
Again staffing costs, many variables.
0:47:40
So we're aware of some of the you know basic costs for individual types of containers but it varies so much across bids and even for geographies within beds within bids what types of solutions will be appropriate for for those locations.
Oswald Feliz
0:48:00
Right.
0:48:00
Let's take an example though, a high traffic area, super busy area and a bid decides to get, I guess, the most expensive option which I'm sure would be the the larger bins and etcetera.
0:48:12
Do you think a super rough number of a hundred thousand dollars might be in the range of compliance?
Dynishal Gross
0:48:19
I think the You should
Oswald Feliz
0:48:20
get super rough number.
0:48:21
If you don't have the I know we don't have the exact numbers, but just like super rough number just so we could know what range we're talking about when we're talking about this rule.
Dynishal Gross
0:48:29
So I I think the way to build toward that understanding would be to look at the geography, the number of containers that would be required to manage the number of bags serviced by the bids on an annual basis and then use that as a multiplier to understand the cost of the containers and then labor to service those containers and get the cans into those containers and meet up with whatever method would be used to transport those to the depots whether that would be DSNY pickup or a bid or a new contract would be an additional cost.
0:49:09
I'm sure every bid would appreciate an additional hundred thousand hundred thousand dollars to help manage those costs.
0:49:15
I don't want to say that that would be, you know, sufficient for all bids.