Reading through the MWH report raises a question about how it tracks back to the Sales Contract: the consultant estimates, with numbers a few years old, that System Separation will cost anywhere from $13 Mill to $21 Mill. The Sales contract to NJAW states the buyer will pay for Separation costs outside the City, and the City will pay for Separation Costs inside the City. There is some analysis of the different components of the separation costs, but it is not clear at all on the allocation of costs to the two parties.

The problem is: in the 5-year Analysis the City has done, where are the costs for Separation? The City estimates a $4 Million annual reduction in Operating Costs due to the Agreement, but where are the costs – which could be anywhere between $5 - $10 Million – for the separation?

Are the costs in a Capital Budget that has not been released? And how are those costs to be financed? From the sale proceeds? That doesn't seem likely due to the restrictions on how the sale proceeds can be spent.

From operating receipts? If that is the case, that will mean that a much smaller customer base (water users within the city limits) will be saddled with several million dollars in capital costs that will in no way benefit them or the truncated Water Works, but will only pay for creating two systems where there had only been one.