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6.H. - Page 15 of 27 <br />South Bay Recycling, LLC <br />REM <br />RECYCLING <br />containers from the Mixed Paper. As a result that paper will be higher quality and will be sold as High Grade <br />Paper, at a premium price above Mixed Paper. <br />Graph #2 below shows the actual monthly revenue in 2018 for the paper which was sold as Mixed Paper (MP) <br />compared to the monthly revenue for that same material if it was sold as High Grade Paper (HGP). The <br />cumulative incremental economic benefit from selling those tons as HGP amounts to over $1,100,000 in 2018, <br />and that would have been achieved had the new equipment upgrade been installed and operational. <br />Graph #2 <br />$160,000 <br />$140,000 <br />$120,000 <br />$100,000 <br />$80,000 <br />$60,000 <br />$40,000 <br />$ 20,000 <br />S - <br />$(20,a00) <br />$(40,000) <br />2018 Monthly Revenue Comparison <br />Mix Paper (actual) v High Grade Paper (if upgraded) <br />JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC <br />-2018 MP Rev -2018 HGP Revenue <br />The other economic benefit from the proposed upgrade is increasing the amount of cardboard (aka Old <br />Corrugated Containers, or OCC) being produced. Over the past 10 years there has been in increase in online <br />shopping which results in households generating more cardboard, and those cardboard pieces are smaller in <br />size and lighter in weight. As such a lot of that cardboard currently ends up in Mixed Paper. The proposed <br />system will remove most of it from the Mix Paper (a low value commodity) and recover it as OCC cardboard (a <br />higher value commodity). <br />Graph #3 below shows the actual monthly revenue in 2018 for the paper which was sold as Mixed Paper <br />compared to the monthly revenue for that same material if it was sold as Old Corrugated Containers (OCC). <br />The cumulative incremental economic benefit from selling those tons as OCC amounts to over $500,000 in <br />2018, and that would have been achieved had the new equipment upgrade been installed and operational. <br />SBWMA BOD PACKET 02/28/2019 <br />333 Shoreway Road I San Carlos, California 94070 <br />Tel 650.802.8355 1 Fax 650.412.2495 ( SBRecycling.net <br />AGENDA ITEM: 106 ATTACHMENT B — p4 <br />202 <br />