RE: [GreenYes] Processing Fees at a Private MRF

["Reindl, John" <Reindl@co.dane.wi.us>]

Hi Justin ~

Dane County, Wisconsin has a 15 year contract with Waste Management for the
processing and marketing of recyclable material. The County is charged both
a fixed fee (to cover capital costs, property taxes, and other fixed costs)
and variable fees, to cover labor, utilities, maintenance, etc. In turn, the
County then charges the local municipalities and private users who deliver
material to the MRF. The County rates to these users for 2002 are:


	Paper, separated or commingled - newsprint, magazines and OCC   
				Fixed fee	$10.26 a ton
				Variable fee	$17.88 a ton
				Total fee	$28.14 a ton

	Separated glass, plastic, steel cans or aluminum cans		
				Fixed fee	$10.26 a ton
				Variable fee	$19.92 a ton
				Total fee	$30.18 a ton

	Commingled glass, plastic, steel cans and aluminum cans (loose)
				Fixed fee	$18.04 a ton
				Variable fee	$46.46 a ton
				Total fee	$64.50 a ton
	
	Commingled glass, plastic, steel cans and aluminum cans (in plastic
bags)
				Fixed fee	$18.04 a ton
				Variable fee	$54.49 a ton
				Total fee	$72.53 a ton

The fixed fees do not change during the 15 year life of the contract. The
variable fees are changed annually with the Consumer Price Index.

Along with these fees, the users are reimbursed with 80% of the revenue from
the sale of the material. The private contractor retains 20% as an incentive
to obtain the best possible market prices. A material composition study of
the recycles brought in by the various users is done on an "as needed" or
"as wanted" basis. For November, the revenues for our largest user (the City
of Madison), which delivers the containers in clear plastic bags, were
$58.35 a ton for paper, and $49.01 for containers. These revenues are for
the materials as delivered to the facility, including the non-recyclable
materials within the mix.

Thus, for Madison, the paper had a net revenue of $30.21 a ton, while the
containers had a net cost of $23.52. The largest cost of the containers was
the glass, which is 62% by weight of all the containers delivered by the
city. Clear glass (33% of all glass) had a gross revenue of $13.60 a ton,
brown glass (24% of the glass) had a gross revenue of $12.60 a ton, green
glass (16%) had a gross cost of $6.40 a ton, and mixed color glass (27%) had
a gross cost of $10.25 a ton.

I hope that these are helpful to you. If you would like, I would be glad to
send you the spreadsheets of our data and/or a copy of our contract (paper
copy only, unfortunately). 

In turn, I would be interested in knowing what you learn about communities
that are collecting glass separately or otherwise minimizing the mixed glass
problem.

Happy Holidays,

John Reindl, Recycling Manager
Dane County, WI 
				

> -----Original Message-----
> From: Justin Stockdale [mailto:jstockdale@co.santa-fe.nm.us]
> Sent: Thursday, December 19, 2002 12:48 PM
> To: green
> Subject: [GreenYes] Processing Rates
> 
> 
> I am looking for info regarding what municipalities are paying for
processing of recycling.
> If you know of anyone running in-house collections, but relying on an
> indendent contractor to sort, bale, sell material, I am interested in
> finding out what these services are costing elsewhere.
> 
> Also looking for cities collecting in a two stream system of
> 1)commingled plastic, tin, al, and fiber and 2)glass. And if this system
> is used in your neck of the woods, any comments on its efficacy or lack
> thereof would be appreciated.
> 
> Happy Solstice,
> Justin
> 
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