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<br />88 <br />Page 37 <br /> <br />For reference purposes, a historical record of Allied's commodity sales prices from the <br />Shoreway facility are provided in Table 6. Table 6 shows a marked increase in the value of <br />residential recyclables (note that the large increase in 2003-4 is attributable to California <br />Redemption Value (CRV) payments by the State). The table also shows a pricing decline during <br />the last economic recession, 2000-2001, with a quick recovery and period of relative price <br />stability until the summer of 2008. The SBWMA asked proposers to provide commodity pricing <br />achieved by the companies over the past year. During 2007 (Q-4), SBR and HBC sold <br />commodities at an average per ton value of $228 and $204, respectively. By contrast, in <br />today's commodity markets, prices have fallen into a range of $100 to $120 per ton. <br /> <br />Table 6 <br />Historical <br />Commodity Prices <br /> <br />Year Actual Avg"PH6e <br /> <br />1996 $86.00 <br />1997 $63.00 <br />1998 $58.00 <br />1999 $74.00 <br />2000 $98.00 <br />2001 $87.00 <br />2002 $105.00 <br />2003 $119.00 <br />2004 $150.00 <br />2005 $155.00 <br />2006 $158.00 <br />2007 $200.00 <br />2008 $207.00 <br /> <br />Restatement of the Buyback Center Commodity Revenue and Impact <br /> <br />on BEST's Ranking <br /> <br />After the original proposals were received, evaluated, and ranked by the Selection Committee, <br />BEST claimed that the Committee had misunderstood the company's intent regarding the Buy <br />Back Center (BSC) commodity revenue. Though it was not clear in their proposal, BEST told <br />the Evaluation Committee that the BSC revenues were not to be shared, but rather, the <br />SSWMA was to receive 100% of the revenue. To clarify their position, BEST prepared and <br />resubmitted cost forms. The change in BSC revenue distribution had the positive impact of <br />offsetting operations costs by approximately $2.2M and thus reducing the company's total <br />annual cost of operations from $17.5M to $15.3M. <br /> <br />Factoring in the changed method of distributing the BBC revenues resulted in a 5 point increase <br />in BEST's total score. This change raised BEST's Total Score from 405 points to 410 points. <br />The adjustment did not result in a change to BEST's relative ranking (see Table 7) and had no <br />impact on the recommendation of the Selection Committee. <br /> <br />SBWMA - EC Report <br /> <br />Page <br />19 <br /> <br />1/15/2009 <br />