RecycleMore Board of Directors 1 Agenda Item 8.2 - Workshop - - PowerPoint PPT Presentation

RecycleMore Board of Directors 1 Agenda Item 8.2 - Workshop - RecycleMore 2021 Post- Collection Rates OCTOBER 8, 2020

2021 Post-Collection Rates 2 Topics • Republic’s Initial 2021 Blended Per Ton Rates • RecycleMore’s Initial 2021 Post-Collection Rates • Policy Question on Funding for State Compliance Actions • Board Q&A • Board Direction

2021 Blended-Per Ton Rate 3 Republic’s Initial 2021 Blended Per Ton Rates  Compensation to Republic for Post-Collection Agreement (PCA) services  Compensation is not tied to actual cost of operation  Annual adjustments per PCA Section 5.3 for five components  Material Specific – Escalates at 85% of CPI  HHW– Set based on Board approved HHW Budget  Authority– Set based on CY 2021 revenue projection  Recycling Rebate – Changes with market conditions  Gov. Fees – Changes with tons and fee adjustments

2021 Blended-Per Ton Rate 4 Republic’s Initial 2021 Blended Per Ton Rates  Current 2020 Per Ton Rate = $106.26  Calculated 2021 Per Ton Rate = $110.14  Increase of $3.88/ton (3.65% increase)  Material Specific = +$1.59/ton  Authority = $1.50/ton  Recycling Rebate = +$.70/ton  Gov. Fees = +$0.10/ton  CalRecycle Compliance = +$0.10/ton  HHW = -$0.11/ton  Tonnages increased 3.7% from 156,334 in 2020 to 162,164 in 2021

2021 Draft Post-Collection Rates 5 RecycleMore’s Initial 2021 Post-Collection Rates  Republic’s Blended per Ton Rate sets the annual compensation amounts owed to Republic  Payment of that compensation is through rates charged to customers via Post-Collection Rate  RecycleMore sets the Post-Collection Rate based on Republic’s Blended per Ton Rate  RecycleMore’s Post-Collection Rates are the sole compensation to Republic for PCA services

2021 Draft Post-Collection Rates 6 RecycleMore’s Initial 2021 Post-Collection Rates  Post-Collection Rates are set by:  Multiplying the Blended per Ton Rate times PCA tonnages from prior 12-months ($110.14 times 162,164 tons = $17,860,580 annual revenue requirement)  Allocating annual revenue requirement to Residential, Commercial and Industrial Sectors based on tonnages of garbage, dry waste, and C&D (not recycling or organics)  Calculating per customer amounts based on container size (Residential), cubic yards (Commercial), and tons (Industrial)

2021 Draft Post-Collection Rates 7 RecycleMore’s Initial 2021 Post-Collection Rates  Residential – increase in monthly rates  20-gallon: $0.94 increase (from $5.80 to $6.74)  35-gallon: $1.65 increase (from $10.17 to $11.82)  65-gallon: $3.07 increase (from $18.91 to $21.98)  95-gallon: $4.60 increase (from$28.37 to $32.97)  Commercial – increase in per CY rate  $12.35 per CY to $13.59 per CY  Industrial – increase in per ton rate  $161.77 per ton to $179.27 per ton

2021 Draft Post-Collection Rates 2021 $ 110.14 Blended per ton x 162,164 total tons = 17,860,580 Annual Revenue 8 Residential Commercial Industrial 20- 35- 95/100- Per Cubic 60/65-Gallon Per Ton Gallon Gallon Gallon Yard TOTAL 2020 2020 Rates $ 5.80 $ 10.17 $ 18.91 $ 28.37 $ 12.35 $ 161.77 $ 161.77 2020 Tonnage Basis 44,959 28,791 28,938 102,688 2020 % of Tons 44% 28% 28% 2020 Unit Basis* 59,570 377,178 28,938 2020 Revenue $ 7,273,118 $ 4,657,638 $ 4,681,370 $ 16,612,126 2021 2021 Rates $ 6.74 $ 11.82 $ 21.98 $ 32.97 $ 13.59 $ 179.27 $ 179.27 2021 Tonnage Basis 47,404 27,940 24,287 99,630 2021 % of Tons 48% 28% 24% 2021 Unit Basis* 59,910 368,637 24,287 2021 Revenue $ 8,497,974 $ 5,008,700 $ 4,353,906 $ 17,860,580 Year-to-Year Change 2020 Rate $ 5.80 $ 10.17 $ 18.91 $ 28.37 $ 12.35 $ 161.77 $ 161.77 2021 Rate $ 6.74 $ 11.82 $ 21.98 $ 32.97 $ 13.59 $ 179.27 $ 179.27 $ Increase/(Decrease) $ 0.94 $ 1.65 $ 3.07 $ 4.60 $ 1.24 $ 17.50 $ 17.50 * The "unit basis" is: monthly service expressed in 35-gallon equivalents (Residential), annual cubic yards (Commercial), and annual tons (Industrial). Container counts are as of August 2020 and require updating to September 2020 prior to adoption.

2021 Draft Post-Collection Rates 9 2021 Post-Collection Rates Workshop  Board Q&A and Direction  Republic’s Initial 2021 Blended Per Ton Rates  RecycleMore’s Initial 2021 Post-Collection Rates  Board Consideration of 2021 Post-Collection Rates scheduled for November meeting