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018 ;'V \.9 ) . PAGGI & MARTIN Consulting Engineers & Land Surveyors 0/ 54-56 Main Street Poughkeepsie, New York 12601 914-471-7898 914-471-0905 (FAX) f{ECE~.VED March 10, 1997 MAR 1 2 1997 FLAINE SNOWDEN nWN CLERK " Town Board Town of Wappinger P.O. Box 324 Wappingers Falls, New York 12590 Reference: Constance O. Smith Phase 3A Attention: Dear Supervisor Smith & Board Members: In a letter to the Town Board on Friday, February 21, 1997, we provided an economic analysis of all areas being considered for removal from Phase 3A. In a subsequent meeting on Monday, February 24, 1997, the Town Board requested further clarification of the data provided, and a discussion of what application it mayor may not have. The intent of this letter is to address these points. In the February 21, 1997 letter, the cost differential resulting from the addition of each area to the base area could be seen in Tables 1, 2, 3 and 4. The data presented allows only for the comparison of individual area to individual area, based on the effect each would have on the final cost per benefit unit. To illustrate this point, Table 1 from the February 21, 1997 letter has been reproduced below. TABLE 1 I II I COST ITEM COST/BENEFIT UNIT DIFFERENTIAL BASE AREA $ 931 ---- BASE + OPTION 2 $ 953 $ 22 BASE + OPTION 3 $ 938 $ 7 BASE + OPTION 4 $ 972 $ 41 BASE + OPTION 5 $ 992 $ 61 It can be seen from Table 1 that the addition of Option 4 to the Base Area results in a cost increase of $41 per benefit unit, above the cost of the Base Area alone. Similarly, if only Option 5 were added to the Base Area, the cost per benefit unit will inCf-8SSe by $61 per benefit unit. From an economic point of view, therefore, Option 4 is preferable to Option 5. Joseph E. Paggi. Jr., P.E. Ernst Martin, Jr., P.E., L.S. @ prmted on ,ecycled pape,