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<br />88 <br />Page 42 <br /> <br />Facility Operations Contractor Selection Committee Report dated January 15, 2009 <br /> <br />Updated pages 15-19 <br /> <br />a maximum financial benefit realized at or above $119.78 per ton. The one remaining <br />factor is to determine what commodity prices will be during the life of the contract. <br /> <br />For reference purposes, a historical record of Allied's commodity sales prices from the <br />Shoreway facitty are provided in Table 6. <br /> <br />Table 6 <br />Historical <br />Commodity Prices <br /> <br />",' . .... .. . . . . '" <br />';Y~a.r:;/'_Adtu~IA~9Bl'iC;~ ' <br /> <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 />Table 6 shows a marked increase in the value of residential recyclables (note that the <br />large increase in 2003-4 is attributable to California Redemption Value (CRV) payments <br />by the State). The table also shows a pricing decline during the last economic recession, <br />2000-2001, with a quick recovery and period of rei ative price stability until the summer of <br />2008. The SBWMA asked proposers to provide commodity pricing achieved by the <br />companies over the past year. During 2007 (Q-4), SBR and HaC sold commodities at <br />an average per ton value of $228 and $204, respectively. By contrast, in today's <br />commodity markets, prices have fallen into a range of $100 to $120 per ton. <br /> <br />Revenue Guarantee Summary <br /> <br />....'........: ...,...... ..... <br />. ... .. . . ..... ...... ... <br />........... .. ... . <br />. .... '..-" --: '. ,. ...,.. ... <br />..:.....:.. :.......:....:... .:.'. <br /> <br />. ~:m.~~dltf't~r.~~;:.... <br /> <br /> <br />: $BQ.98 < > $102.29 ! $102.29 <br />I r <br /> <br />$102.29 < > $119.78 <br /> <br /> <br />'. .. ........... .. <br />...................... <br />...... ... ...... . <br />'. .:...... ....... <br /> <br />Commodity Revenue Section Uodaled 3-30-09.docGGffiA~It~eAwa 4{1/200~.QOO 9:23 AM~.;.G2-PM <br />5 <br />