Public Hearing Regarding Building Moratorium and MBR Expansion  The Southside Water and Sewer Board of Directors, having pursued several alternatives to expand our wastewater treatment capacity over the last few years, have decided on a Membrane Bioreactor (MBR) system as the solution for Southside Water and Sewer’s (SSWS) sewer moratorium.  MBR is the state-of-art treatment method for municipal wastewater.  It includes membrane filtration as part of the process.  The discharge from this system exceeds all current and anticipated Environmental Protection Agency (EPA) and Idaho Department of Environmental Quality (IDEQ) discharge requirements.  The waste water will be discharged into the main Pend Oreille River channel year round.  We will continue to operate the existing land disposal system with the MBR basically treating the excess load. Preliminary engineering estimates put the cost at $2,800,000 for the first 150 Equivalent Residential Unit (ERU).  The infrastructure for the MBR plant will support 450 ERU.  Each additional 150 ERU added will cost approximately $1,100,000. All current and future users connected to the sewer will pay for part of the debt with monthly sewer fees.  Future patrons hooking up to the system will also pay with part of their hook-up fee.  The increase in user fees depends on how many hook-ups are purchased each year and will change yearly.  We will also raise hook-up fees.  Though final cost for users is not known, we anticipate that the monthly sewer cost may double from its current $52 per month. We have submitted our updated application for a discharge permit to EPA and are awaiting a draft permit. Once issued the draft permit will be reviewed by IDEQ and then be available for a 30 day review period by the general public. Assuming we are issued a final permit we plan to use Judicial Confirmation to obtain the authorization to issue a revenue bond.  Once the revenue bond is secured final engineering will take five months and construction will take 12 months.                                                                                                                                                                      October 8, 2008