CONTRACT COMPARISON November 20,2008

CONTRACT COMPARISON

November 20,2008

COVANTA TIP FEE

CRRA

$65/ton tip fee for Year 1 (2010).

$67.45-$75.30 estimated tip fee for Year 1 (2010). ~ Tip fee estimate for Year 1 based on Fair Market Value assumption of $23.5 million.

Tip fee changes based on CPI (Northeast Urban Less Energy) with floor (1.75) and ceiling (3.5).

Yearly tip fee determined by net cost of operations.

Every 5 years tip fee subject to reset based on market average No other municipality will be offered a contract with a lower tip fee by Covanta without extending the same to participating municipalities ("most favored nation" status).

COMMITTED TONNAGE

FACILITY OWNERSHIP

Year 2010 estimate: 18,900

Year 2010 estimate: 43,200

Committed tonnage is adjusted annually by a formula that uses rolling averages. This is to adjust for increased recycling that a town may achieve.

Committed tonnage is adjusted annually by a formula that uses rolling averages.

Private ownership by Covanta with an option for municipal purchase in year 20.

Public ownership by CRRA but no municipal ownership option.

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COVANTA

CRRA

Host benefit based on $11/ton for all accepted solid waste.

Host benefit based on property tax that facility would pay escalated at 3%/year.

Host benefit estimated at $1,600,000 for 2010.

Host benefits decline from $1.2 million over initial 5-year period to the value of property tax as escalated which is approximately $764,000 in year 5 assuming a $23.5 million Fair Market Value.

FLOW CONTROL

Contract requires no immediate action to address MSW delivery to the facility; but, Town may need to address flow control in the future if tonnage delivered to the plant shows reduction, if there is a possibility for lower cost, or if law changes require action.

Town required to pass flow control ordinance directing all MSW to facility

RESERVES

No reserves required by contract

New project reserves (estimated at $7,000,000) to be funded with current project reserves on a pro rata basis among participating towns.

HOST COMMUNITY BENEFITS

Balance of other nondedicated reserves of current project returned to towns on pro rata basis.

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