FY 2018
(July 1, 2017 through June 30, 2018)
PROPOSAL COSTS
Single Stream Recycling
Single Stream pricing formula:
ACR - Threshold = Revenue Share/ (Charge)
Average Commodity Revenue "(ACR)" - means the current market value for each recyclable
commodity (inchiding residue tons) less any direct costs of Processor related to transportation,
processing improvements, storage, or marketing of product divided by the total tons of commodities
shipped from that facility over the samme month.
Exceptions to this are recyclables received that would materially distort the ACR. In a case where the
current month ACR has an excessive shift in value, Processor reserves the right to make a mid-month
ACR adjustment to reflect the value for that month.
Revenue Share (Charge) - means the percentage of value paid to the Generator when the ACR is
greater than the Threshold. When the Revenue Share is negative, each dollar below the ACR will be
charged to the Generator.
Revenue Share Split = 50% to Generator when ACR ts above Threshold
Threshold - means the base rate required to process material and cover processing investments.
Threshold will be increased annually beginning on the anniversary date of the Effective date, and
each anniversary date thereafter, to an amount equal to the percentage increase of the BLS Water and
Sewer and Trash Collection Services Index as compiled by the most recent twelve (}2) month period
for which such data is available as compared with the comparable figure for the prior twelve month
period. Notwithstanding anything to the contrary, the increase shall not be less than two percent
2%) per year nor greater than five percent (3%) per year.
Example Pricing Scenarios
ACR above Threshold ACR below Threshold
ACR = $100 per ton
Threshold = $60 per ton
ACR = $50 per ton
Threshold = $60 per ton
Pricing Formula $100 - $60 = $40
Pricing Formula 350 ~ $60 = $16
Revenue Share: 50% over Threshold (to customer)
and dollar for dollar charge for the difference of ACR
and threshoid (to processor)
Revenue Share: 50% over Threshold (to
customer) and dollar for dollar charge for
the difference of the ACR and the threshold
{to processor)
Net Rebate (Revenue) to Generator is $20/ton
(S40/ton x 50% = $20/ton)
Net Invoice (Charge) to Generator is $10/ton
Single Stream Recycling Page 2 of 2
FY 2018
