RDR LLCRDR LLC

The purpose of this presentation is to attract an investor / partner who believes in our vision of providing a single-stream curbside recyclable collection service for municipalities within the North Carolina Triad area.

By the end of this presentation you will understand the opportunity and profit potential that exists for an investor who will partner with RDR LLC to provide recycling collection services for the City of High Point, North Carolina.

RDR LLCRDR LLC

20% of the City of 20% of the City of High Point’s High Point’s

Environmental Environmental Services Budget Services Budget

Goes to Goes to Recyclable Recyclable Collection Collection ServicesServices

City Cost Savings for outsourcing City Cost Savings for outsourcing RDR LLCRDR LLC

0

200

400

600

800

1000

1200

1400

1600

1 2 3 4 5

RDR LLC Service Costs

City Recycling Costs

Homes (units) served

Thousand

Year

• Year 1 : $ 210,000

• Year 2 : $ 221,000

• Year 3 : $ 204,000

• Year 4 : $ 202,000

• Year 5 : $ 210,000

Five Year Savings$ 1,047,000

How will RDR LLC do it ?How will RDR LLC do it ?

The City annually expends $219,000 for miscellaneous expenses associated The City annually expends $219,000 for miscellaneous expenses associated with its Curbside Recycling Collection program.with its Curbside Recycling Collection program.

RDR LLC will expend an average of $100,000 for miscellaneous expenses......RDR LLC will expend an average of $100,000 for miscellaneous expenses......that is a yearly difference of $119,000 that is a yearly difference of $119,000

The City annually expends $227,000 for motor vehicle expenses associatedThe City annually expends $227,000 for motor vehicle expenses associatedwith its Curbside Recycling Collection program. with its Curbside Recycling Collection program.

RDR LLC will expend an average of $100,000 for motor vehicle expenses…….RDR LLC will expend an average of $100,000 for motor vehicle expenses…….that is a yearly difference of $127,000.that is a yearly difference of $127,000.

Our ability to cut costs in these areas and others will save the City a yearlyOur ability to cut costs in these areas and others will save the City a yearly

average of average of $209,000$209,000

RDR LLCRDR LLC

How does RDR LLC operate so How does RDR LLC operate so efficiently ?efficiently ?

RDR LLCExpenditures

Year 1 Year 2 Year 3 Year 4 Year 5

Office Rent $ 26,100 $ 16,100 $ 19,800 $ 16,800 $ 16,800

Employee Salary / Benefits

495,000 495,000 495,000 495,000 495,000

Insurance Fees 150,000 150,000 150,000 150,000 150,000

*Fleet 50,000 42,000 42,000 42,000 42,000

** Gas & Maintenance

$ 60,000 60,000 60,000 60,000 60,000

Expenditure / month per truck

$ 8,460 8,460 8,460 8,460 8,460

Education & Outreach

12,000 12,000 15,000 18,000 18,000

Marketing & Website

12,000 12,000 15,000 18,000 18,000

Investor / Loan 120,000 140,000 140,000 140,000 160,000

Profit Sharing 45,000 45,000 50,000 50,000 55,000

Federal / State Tax

75,000 77,000 81,000 86,000 91,000

Miscellaneous 100,000 100,000 100,000 100,000 100,000

Total Expenditures

$ 1,145,100

$ 1,149,100

$ 1,167,800 $ 1,169,800

$ 1,205,800

More City BenefitsMore City Benefits Earn an extra $ 12,000 – 20,000 / per year for recycling awareness programs

Reduce Greenhouse Gas Emissions by 3% in High Point, North Carolina

RDR LLC will hire 3 employees from the city who are dislocated due to the execution of this

public- private partnership: $95,000 annual savings for Environmental Services Department

Conduct the first public-private partnership with a minority-owned Environmental Service

vendor in the Triad area and outperform Guilford County’s African-American MWBEParticipation expenditure by 100%

The city will no longer have to allocate 4 trucks for recyclable collection, each city recycling

truck costs an average of $100,000: that is a potential $400,000 cost savings without including

gas and maintenance costs

RDR LLC will use it’s reporting mechanisms to give the city an idea of what sector of the city

needs to increase their recycling participation efforts

RDR LLCRDR LLC

Operation AreaOperation Area

What does RDR LLC want from What does RDR LLC want from me ?me ?

• A $500,000 investment in the form of capital, equipment or

supplies

• Partnership as we expand operations in North Carolina

• Knowledge of industry tactics, costs, & pitfalls

• Assistance as we apply for grants, loans & other forms of

capital

RDR LLCRDR LLC

RDR LLC FinancialsRDR LLC Financials5 -YEAR REVENUE / EXPENDITURE PROJECTIONS

Profit Loss

* Investor Cash Inflow

RDR LLC Year 1 Year 2 Year 3 Year 4 Year 5 Final Cash Balance

Opening Cash Balance

* $ 500,000

405,243

355,220 363,762 432,758 $ 517,007

Units 32,511 32,811 33,111 33,411 33,711

Monthly Charge per unit

$ 2.60 2.70 2.87 3 3.10

Recyclable Processing Revenue / month

$ 3,000 3,000 3,000 3,000 3,000

Total Revenue

$ 1,050,343

1,099,076

1,176,343

1,238,796

1,290,049

Total **Expenditures

$ 1,145,100

1,149,100

1,167,800

1,169,800

1,205,800

Earnings after expenditures

$ 94,757 50,023 8,543 68,996 84,249

What’s in it for me ?What’s in it for me ?

• 30% equity in RDR LLC. • Annual average internal rate of return of 30% over 5 years.• Investor Claw Back Initiative• Opens opportunity to conduct Electronic Recyclable

Collection Program (NC State Bill 1030)• Boost City MWBE Participation rate and sets precedence

for other public-private partnerships with Triad municipalities and prime contractors

• Expenditures increase at a modest 3 % per year• Opens opportunity to bid for $400,000 contract to collect

recyclables at attached units in High Point, NC, (In year 4)• RDR LLC will hire 3 employees from investors

management team• 1.5 times the original investment of $500,000 by year 5

RDR LLCRDR LLC

Opportunities & ConsiderationsOpportunities & Considerations• Municipalities located in the Triad area make an annual investment of at of least $25 million to their cities

waste management programs • Because we will form a North Carolina LLC, our company will be a separate entity from the owners and

shareholders. If our company is named in a lawsuit, there are legal provisions to protect the owners, directors, and shareholders from personal liability.

NC Senate Bill 1030: A county in North Carolina that amends its solid waste management plan to include a section on recycling electronic devices and implements an electronic devices recycling program is eligible to receive distributions from the state Electronics Recycling Account.

• The current system for municipal waste management services within the Triad area pick up computer monitors only. Municipalities and corporations (i.e. Dell Computers) do not have a collection service for electronic circuit boards, batteries, and color cathode ray tubes (CRTs) that contain hazardous materials such as lead and mercury.

• Citizens will view these partnerships as a good-faith effort by municipalities and big business to involve minorities in the community development process.

• During the 2005 legislative session, the North Carolina General Assembly passed House Bill 1518, requiring holders of certain specific ABC permits (liquor licenses) to recycle all beverage containers.

• Self-Help, North Carolina’s community development banking group, administers the Recycling Business Loan Component of its Environmental Business Loan Fund. Loan deals have ranged from $10,000 to more than $1 million (with an average loan size of $75,000).  Self-Help has extended more than $6 million in finance recycling business’s.

• N.C. Division of Pollution Prevention and Environmental Assistance (DPPEA) has a Recycling Business Development Grant. For Fiscal Year 2006 - 07, DPPEA committed $300,000. Applicants may request any amount of funding up to a maximum of $30,000. Applicants must provide at least a 50 percent cash match to the requested amount.

• Carolina Environmental Systems (CES) has dedicated mechanics and a 23,000 sq. ft. service facility to effectively serve waste management service needs. They could be a good partner and service provider.