RE: Ongoing Discussions regarding debris removal 

Dear Mr. Torres:

As a follow up to our ongoing discussions regarding the loading and hauling of debris from the Paris Road site, I thought it important to memorialize the status of our discussions to date:

Based on current population estimates of the parish, the amount of pre-Katrina curbside disposal, and the observed level of building activity, St. Bernard Parish Government (SBPG) believe it is placing approximately three thousand (3,000) tons or less of curbside garbage into the monthly stream delivered to River Birch.  We have agreed that beginning in October, 2008, the monthly tipping fees charged to SBPG at River Birch will be based on that amount of tonnage and will continue at that amount or less until such time that SDT has the ability to clearly identify the SBPG tonnage through the use of scales or through direct hauling to River Birch.

In-kind services performed by SDT at no cost to SBPG average approximately twelve thousand ($12,000.00) per month.  These in-kind services include providing sweepers, water trucks and personnel for the parade route, July 4^th Celebration and Trick or Trunk.  In addition, SDT has provided an executive bathroom for the Redfish Cup and port-o-lets for use at the recreation facilities and parade routes.  Further, SDT has provided general street sweeping of Paris Road and other locations.  These in-kind services will continue as long as SDT maintains a presence at the Paris Road site.  In regard to the Paris Road site, SDT shall cease using this site no later than May 1, 2009 unless an alternative site begins construction.

SDT advised SBPG there was a verbal agreement between SDT and SBPG that allowed for the collection of all SDT debris at the Paris Road site.  A Cooperative Endeavor Agreement (CEA) was prepared by SDT that included language consistent with the alleged verbal agreement but was never signed by the parties.