Capital Improvement Projects Presentation SBWMA Board of Directors Meeting February 28, 2019
Priori rities & Challenges Environmental/ More Diversion Regulations More Complicated Material-Mix MRF Commodity Market Crisis International Packaging/ Commodity Producers Markets 12-year Old Equipment Design
Mixed Paper Contamination and Sorting Options Current contamination level of Mixed Paper Composition Study Results: Sorted/Baled Mix Paper is 43% (composed of 32% cardboard, 11% containers). Mixed Paper Commodity Due to the expense of sort labor, automation Material Type % is the only practical way to remove contamination and Mixed Paper 57.11% make high-grade paper that can be sold at a premium. OCC 31.72% Mixed Paper Trash 5.17% OCC 5% Once contamination of cardboard and containers is sorted Trash #3-#7 1.29% 1% 1% 1% 0% 0% 0% 0% 1% 1% 1% from mixed paper, the cardboard and containers can be #3-#7 Film Plastic 1.22% sold for more revenue. Film Plastic Brown 1.11% Brown PET 0.83% PET 32% Wax OCC 0.65% 57% Wax OCC Aluminum 0.44% Aluminum Tin 0.18% Tin Bi-Metal Bi-Metal 0.14% HDPE Natural HDPE Natural 0.11% HDPE Color HDPE Color 0.04% Glass 0.00% Total 100% * Sample Period: 06/25/2018 -10/12/2018 HIGH-GRADE PAPER GRADE SPECIFICATION LESS THAN 3% CONTAMINATION
MRF Upgrade P Project ct – Summary o of B Benefits MRF Enhancement Cumulative Financial Benefit Summary Revenue Benefit MRF Capital Improvement Cost $ 15,579,944 • Increased Commodity Capture Revenue Benefit $ 24,950,510 • Higher-Quality Paper Commodity Cost Avoidance Benefit $ 6,529,164 Estimated Revenue & Cost Benefit (through 12 year useful life) $ 31,479,675 Cost Avoidance Benefit Cumulative Financial Benefit $ 15,899,731 • Reduced Labor Expense • Increased Throughput • Protection From Landfilling Paper • Increased Fire Risk Mitigation
Existing New Sort System Sort System
BHS Opti tical Fi Fiber S Sort E t Equipment V t Video
Poten ential I Indu ndustries es Case se Stud udy & M & Market A Assess ssessment • MRF Investment • Equipment Results • Commodity Quality and Marketability • Market Trends
CIP Projects and Sources of Funds
Suppo porting F Fina nanc ncial a and P Process Slides
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