98-24 Exhibits A - Evaluation Report for the Contract for Operation of West Orange Recycling Center - 2024.pdf

The Firewood Farm, Inc. Cost Criteria: The Firewood Farm, Inc, submitted an annual rent payment of $60,000/year for the full five - year term of the contract. The total rent proposed is $300,000 over five years. In addition to the above payments, the company is offering a 2% gross revenue share for each of the five years. To evaluate the financial value of the 2% revenue share, DeFeo Associates has used an average value for each of the major material streams at the facility. The breakdown is as follows: Incoming Class C = 19,542 cubic yards @ $12/cubic yard Compost/Topsoil sales = 14,242 cubic yards at $35/cubic yard Incoming Class B = 48,632 cubic yards at $26/cubic yard Sales of Mulch = 14,306 cubic yards at $25/cubic yard NOTE: Values based on 2022 Natures Choice reports for incoming and outgoing materials. Values adjusted for “no” charge on West Orange materials, volume reductions for compost and an average price value based on Natures Choice retail price sheets for each category of material. All values are estimates based on available data. Actual values may be lower or higher in any given year. Total value of Class C materials incoming = $12/cubic yard x 19,542 yards = $234,504/year x.02 = $4,690/year Total value of compost/topsoil sold = $35/cubic yard x 14,242 cubic yards = $498,470/year x .02 = $9,969/year Total value of Class B materials incoming = $26/cubic yards x 48,632 cubic yards = $1,264,432/year x .02 = $25,289/year. Total value of Class B materials sold (mulch) – 14,306 cubic yards x $25/cubic yard = $357,650/year x .02 = $7153/year. The total value of the price submission is thus $536,505 over five years. This figure is dependent on total retail sales and may factor higher or lower in any given year. The company has offered to increase berm sizes as its site improvement proposal. 6