1. Capital Cost Comparison Regional System vs Decentralized Alternative

2. (Slide #22)

3. Proposed System in Ehlers Financial Analysis 2004 Alternative Studied: Decentralized Wastewater Treatment System* Useful LifeTrunks last 40-60 years20 years Capital Costs City Infrastructure Village Trunks Wetland Treatment (1) MCES SAC Fee (2) Total $6.38M $0 $2.42M $8.8M $0 $12.75M $0 $12.75M Other Costs Laterals Private Cost to Abandon Septic and Plumbing Similar in both options CapacitySystem more flexible and expandable Maximum 1,333 REC's Additional Requirements N/ASludge disposal or treatment required * Information from 2004 NAWE Wetland Treatment System Plan (1) Estimated 2004 cost was $10.9M; if inflated 4% annually would be $12.75M in 2008 (2) $2.42M = 1,333 REC's x $1,825/REC (2008 MCES Fee) Slide #22 from Oct. 30 Ehlers Presentation

4. Proposed System in Ehlers Financial Analysis 2004 Alternative Studied: Decentralized Wastewater Treatment System* Useful LifeTrunks last 40-60 years20 years Capital Costs City Infrastructure Village Trunks Wetland Treatment (1) MCES SAC Fee (2) Total $6.38M $0 $2.42M $8.8M $0 $12.75M $0 $12.75M Other Costs Laterals$7.69M (3)$0 Total for Old Village$16.49M$12.75M Private Cost to Abandon Septic and PlumbingSimilar in both options CapacitySystem more flexible and expandable Maximum 1,333 REC's Additional RequirementsN/A (MCES fees NOT a capital expense) N/A (Sludge disposal fees NOT a capital expense) * Information from 2004 NAWE Wetland Treatment System Plan (1) Estimated 2004 cost was $10.9M; if inflated 4% annually would be $12.75M in 2008 (2) $2.42M = 1,333 REC's x $1,825/REC (2008 MCES Fee) (3) $7.69M = 1333 RECs x $5770/REC Slide #22 with CORRECT information