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

Decision to end Curbside Recycling -Mar 2018

Recycling Cost as

• f Sept 2019

Current Solid Waste Disposal Per Ton

$131 $154 $91.90

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 - Sept 2017 Oct 2017 - Sept 2018 Oct 2018 - Sept 2019 Avg Customer Count

2,966 2,981 2,954

Residential Garbage Tonnage

3,519 3,846 4,379

Residential Recycling Tonnage

158 97

Avg Setout Weight Per Week

47.7 50.9 57.0

6.1 lbs. per week increase per customer attributed to Total Collection Program

New Residential Total Collection Service Rates

Disposal Component Collection Component Total 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 1st, 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.)

Service 2019 2020 % Change 2020 with Tax

Residential: 96 gallon Cart – 1 x Per Week $21.08 $22.08 4.8% $25.08 Commercial: 4 Yard Container – 1 x Per Week $278.85 $284.94 2.2% $323.69 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 1st 2020
• Continue Cost of Service Tracking with second true up

scheduled for January 1, 2021

Questions?