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CONFIDENTIAL A1-17ORNEY-CLIENT PRIVILEGE Mr. Scott Malin Cassel Malin Fagundes, LLP Septen-tber 9,2008 Page 5 The alternative remedies for the higher than expected wastewater strength are as follows: Wastewater Strength Remedy Alternative 1: Install pumps to enable segregation of the factor vrastewater,install an irrigation system to land apply 100,000 gallons per year of the factor%, wastewater to the eastern parcel, and obtain a waiver from the Regional Water Board. Wastewater Strength Remedy Alternative 2: Install aerobic treatment for BOD reduct on and petition the Regional Water Board and San Joaquin County to return the system to county regulation. Preliminary cost estimates were prepared for the remedies described above. The estimates were based on cost estimating guides and personal experience for a planning level of accuracy. The estimates included a 20"/o contingency. Bids should be sought _ for more accurate construction cast numbers. Priman- disposal system reconstruction costs are estimated to be $59,000 for Alternative 1 and$28,000 for Alternative 2, including engineering services, landscape replacement, contaminated soil disposal, and administration, but not including impacts to the retail store. Landscape replacement estimates for primary disposal system reconstruction Alternative 1 were based on a landscape cost estimates provided through Mr. Schenone. Aerobic BOD reduction (wastewater strength mitigation Alternative 1) is estimated to cost $39,000 for 500 mg/L BOD (the minimum that should have been used in initial design) and $43,000 for 1,000 mg/L BOD (approximate actual wastewater strength). This does not include petitioning the Regional Water Board and County for returning the system to county regulation. Factory wastewater segregation (wastewater strength m ligation Alternative 2) is estimated to cost $58,000,including the costs for obtaining a waiver from the Regional Water Board, but excluding the loss of potential commercial land use that must be converted to land application. Replacing the piping above the Biotubc filter with removable piping to enable filter and pump servicing is estimated to cost$2,000. Costs for compliance with the Regional Water Board permit and other costs that have already been incurred in relation to wastewater system failure are not included in the above costs.