This document discusses managing single-stream recycling under a blended value pricing model. It provides background on a contract with Waste Management to process single-stream recyclables, defining key terms like blended value, net value, and composition audits. It also shows commodity price indices from 2012-2016 that illustrate declines in most recyclable material values. Finally, it presents an example calculation of the blended value per ton and net rebate for a community's recyclables based on current composition and pricing.

1. Managing Municipal Materials in a Difficult Market
Topic: Managing Single Stream Recyclables Processing Under Blended Value Pricing
Presentation by: Jeff Kunz
Town of Braintree, Solid Waste Advisor
Contract background: Vendor: Waste Management, Avon Inc. (WM)
Term: 01/01/2015 – 06/30/2018
Pricing: Net value (“Blended Value”) of Single Stream Materials
Pricing Guides/Definitions:
Blended Value (BV) – total weighted value per ton of each recyclable and non-recyclable
component (including negatively-valued recyclables and transfer and disposal costs of non-
recyclables) for Single Stream materials delivered by or on behalf of customer to the designated
facility – each commodity value is added together to obtain the BV/ton
Net Value – amount paid to customer by the company or paid to the company by the
customer, after subtracting any charges owed by customer from the customer’s Value Share
(customer’s percentage of the Blended Value per contract terms)
Composition Audit – basis upon which Single Stream materials are measured to
determine the percentage of each recyclable and residue component – typically every six (6)
months
Vendor Composition – composition of all materials delivered to WM facility
Commodity Value – values are calculated monthly based on commonly accepted
published price guides or actual market values (contract Term Sheet)
Initial Company Fee – contracted cost/ton based on WM determination of costs
associated with running their business….may be adjusted annually using CPI price adjustment
information (negotiable)
Material Specifications – contractual Exhibit to any agreement to define acceptable and
unacceptable materials (includes definitions of ‘residue’ materials)

3. Material Commodity Index
2016 to
2012
change %
YTY
change %
2016 (YTD)
2015
Annual
AVG
2014
Annual
AVG
2013
Annual
AVG
2012 Annual
AVG
Newspapers,
magazines and
inserts
PPW ONP #8 -23% -1% 55.00$ 55.83$ 64.17$ 67.50$ 71.67$
Cardboard, and
brown papers
PPW OCC #11 -28% 0% 85.00$ 85.42$ 103.75$ 112.92$ 118.75$
Aluminum /
beverage cans
SMP for Aluminum
Cans (Sorted, Baled,
¢/lb, delivered)
-29% -15% 1,100.00$ 1,294.00$ 1,584.20$ 1,529.00$ 1,557.00$
Steel/Tin
SMP for Steel Cans
(Sorted, Densified,
($/Ton delivered)
-76% -66% 30.00$ 89.10$ 120.00$ 120.00$ 124.80$
Plastic #1
SMP for PET (baled,
¢/lb. picked up)
-63% -31% 180.00$ 261.20$ 382.80$ 401.80$ 481.40$
Plastic #2
Natural
SMP for Natural
HDPE (baled, ¢/lb.
picked up)
-9% -3% 590.00$ 607.40$ 975.80$ 715.40$ 650.60$
Plastic #2
Colored
SMP for Colored
HDPE (baled, ¢/lb.
picked up)
-14% -8% 440.00$ 480.80$ 594.20$ 446.20$ 509.00$
Glass (3 Mix) Actual -16% 6% (36.82)$ (39.35)$ (32.52)$ (16.59)$ (31.76)$
Note: All commodity index values expressed as a price per ton.

4. Blended Value Per Ton
A B
c D E
Material Component Commodity Value Actual Value
in$ff
Composition
Audit
Percentage
Blended Value
Contribution C*D
srr
Newspapers, magazines and
inserts
PPW ONP #8 HS NE $ 55.00 46.5% $ 25.56
Cardboard, and brown papers PPW OCC#l 1 HS NE $ 85.00 18.6% $ 15.80
Mixed Paper PPW #2 Mixed Paper HS NE $ 45.00 0.0% $ -
Aluminum I beverage cans SMP for Aluminum Cans (Sorted, Baled,
¢/lb, delivered) minus .25 ¢/lb
$ 1,000.00 0.7% $ 7.23
Steel/Tin SMP for Steel Cans (Sorted, Densified,
($ffon delivered) minus $10 I Ton
$ 20.00 1.7% $ 0.33
Plastic #1 SMP for PET (baled, ¢/lb. picked up) $ 180.00 3.1% $ 5.58
Plastic #2 Natural SMP for Natural HDPE ((baled, ¢/lb. picked
up)
$ 540.00 0.7% $ 3.90
Plastic #2 Colored SMP for Colored HDPE ((baled, ¢/lb. picked
up)
$ 350.00 1.0% $ 3.61
#3-#7 Plastics Actual Value $ 10.00 0.3% $ 0.03
Rigid Plastics Actual Value $ 60.00 0.5% $ 0.31
Glass Actual Value $ (34.18) 17.6% $ (6.00)
Non-Recyclables Costs T & D $ (63.00) 9.1% $ (5.74)
Scrap Metal Actual Va1ue $ 26.79 0.2% $ 0.06
Other (Insert) Actual Value 0.0% $ -
Total Blended Value- (BV, MV, AMv, RS) 100.00% $ 50.68
BLENDED VALUE
Feb-16
Processing Charge $ 78.00
Net Rebate - (Charge) $ (27.32)