Basin Disposal Inc. Rate Report 22 October, 2019 Darrick Dietrich - PowerPoint PPT Presentation

Basin Disposal Inc. Rate Report 22 October, 2019 Darrick Dietrich – Basin Disposal Inc.

Agenda  Recycling Market Overview  Residential Total Collection Rate  Contractual Rate Adjustments

Recycling Market – Recap  July 2017 – China’s National Sword campaign  Ban on unsorted mixed paper and plastics  March 2018 - All scrap materials imported into China may not exceed 0.5% Contamination  Processing Standards for Washington Recycling Facilities aspire to 3-5%  China Freezes all scrap paper import permits Source: https://ecology.wa.gov/Waste-Toxics/Reducing-recycling-waste/China-s-recycling-ban

Recycling Market – Outlook  Overseas Markets are Saturated  Domestic Paper Mills are Adding Capacity  Enhancing Focus on Education to Reduce Contamination “Many Americans are either aspirational recyclers or they’re confused recyclers. Just because it’s made of plastic doesn’t mean it can be recycled.” -- David Biderman, Executive director and CEO of the Solid Waste Association of North America (SWANA)

Recycling Market – Overview $154 Decision to end $131 Curbside Recycling -Mar $91.90 2018 Recycling Cost as of Sept 2019 Current Solid Waste Disposal Per Ton

Residential Total Collection Service Rates  Unlimited Residential Service  January 1, 2018: Residential Total Collection Initiated  96 Gallon Cart Once a Week  No Charge for Extras  Bag, Boxed, Bundled  Bulky Items: OK (Call in)  Couches, Appliances, Refrigerators  Specialized Disposal Performed at Cost

Service Summary RESIDENTIAL WASTE STREAM Oct 2016 - Oct 2017 - Oct 2018 - Sept 2017 Sept 2018 Sept 2019 Avg Customer 2,966 2,981 2,954 6.1 lbs. per week Count increase per customer Residential 3,519 3,846 4,379 attributed to Total Garbage Tonnage Collection Program Residential 158 97 0 Recycling Tonnage Avg Setout 47.7 50.9 57.0 Weight Per Week

New Residential Total Collection Service Rates Disposal Collection Total Component Component 2020 Rate Residential Total Collection Monthly Rate (2019) $ 9.63 $ 11.45 $ 21.08 Disposal Cost Per Cart Per Month Due to Tonnage change $ 0.52 Adjusted Disposal Cost per Month $ 10.150 Sudbury Rate Change $91.90/ton to $94.10/ton (2.4% increase) $ 0.244 2020 CPI Change (2.08%) $ 0.238 Net Change $ 0.244 $ 0.238 New 2020 Disposal Cost Component $ 10.39 New 2020 Collection Cost Component $ 11.69 New RES_96G_1X rate for 2020 $ 22.08

2020 Rate Adjustment  New Rates Effective January 1 st , 2020  Overall Weighted Average Rate Change: 2.2%  Service Component (CPI): 2.1% Increase  Disposal Component (Disposal Fees): 2.4% Increase on Average

2020 Rate Adjustment (Cont.) % 2020 Service 2019 2020 Change with Tax Residential: 96 gallon Cart $21.08 $22.08 4.8% $25.08 – 1 x Per Week Commercial: 4 Yard Container $278.85 $284.94 2.2% $323.69 – 1 x Per Week Industrial: Disposal Fee Per Ton $91.90 $94.10 2.4% $106.90

Closing Actions  Continue to Monitor Recycling Market  CPI Adjusted Service Rates beginning Jan 1 st 2020  Continue Cost of Service Tracking with second true up scheduled for January 1, 2021

Questions?