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9 <br /> ORANGE COUNTY <br /> NORTH CAROLINA <br /> SOLID WASTE MANAGEMENT <br /> 1207 Eubanks Road Phone(919)968-2788 <br /> PO Box 17177 Fax(919)932-2900 <br /> Chapel Hill,North Carolina 27516 <br /> Memorandum <br /> To: Bonnie, Hammersley, Orange County Manager <br /> CC: Gary Donaldson, Chief Financial Officer <br /> From: Robert Williams, Orange County Solid Waste Direc <br /> Subject: Recycling Markets - Commodity Markets& Hurricane Florence <br /> Date: September 27, 2018 <br /> Background <br /> The County recycles approximately 14,000 tons per year and shares the revenue and costs with a <br /> recycling processor. When recycling commodity markets are robust the County receives revenues, <br /> known as a "rebate",for the material delivered to the recycling processor. However,the corollary of a <br /> down commodity market results in the County having to pay to have material recycled. In the last <br /> eight (8) months, the Solid Waste Management Department (SWMD) has experienced unexpected <br /> expenditure increases in the Recycling Processing account (50352020-682005). In February 2018, <br /> and again in July 2018, the SWMD reported expected budget shortfalls due to falling recycling <br /> commodity market prices. Following Hurricane Florence, in September 2018, SWMD experienced an <br /> additional cost increase related to supply chain issues and infrastructure damage to recycling <br /> processing facilities located throughout the Carolinas. <br /> Table 1 below highlights the past three years of recycling processing fees and rebates; the current <br /> market rate is at a historical low. <br /> $20.00 Table 1: Recyding Rebates and Payments <br /> $10.00 <br /> $- <br /> $(10.00) <br /> $(20.00) <br /> $(30.00) <br /> $(40.00) <br /> $(50.00) — <br /> $(60.00) – <br /> $(70.00) — <br /> $(80.00) <br /> Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 <br /> Recycling Market Conditions <br /> Over the last year, recycling commodity values have continued to drop to historically low levels. In <br /> addition, China, has limited the amount of material they are willing to accept through the enactment <br /> of the National Sword Policy. China has historically accepted the majority of the United States <br /> www.orangecountync.Rov/recycling <br />