Question-and-Answer Session
Operator
(Operators Instructions). Your first question will be from the line of Daniel Fidell of Brean Murray, Carret. Please proceed.
Daniel Fidell
Good morning gentlemen.
Edward Graham
Good morning Dan
David Kindlick
Good morning Dan
Daniel Fidell
Just a few quick questions, I guess. First can you give us an update on the status of your Union Contract negotiations, I know that as such it expires at the end of the year?
Edward Graham
Yes. In terms of our Union Contract the expiration date is January 2009 and we are working closely with the union leadership, and we expect to really complete something before the year is out. Very good direction in terms of inclusion of performance and productivity as part of the contract. So its not only about economics, but about productivity.
Daniel Fidell
Okay. And is that something that we should look for later in the year, because some are all kind of -- period before we are likely to know something more definitive?
Edward Graham
I thinks that reasonable expectations.
Daniel Fidell
Okay, great. And then another question on the onside, can you give us a may be a little more specific in terms of he timing of the Borgata Tower coming on line and the potential incrementality to earnings that we might expect from it?
Edward Graham
The Borgata Tower is expected to come online in the beginning of June. And in terms of incrementality we expect to have a nice additions or income stream, it’s hard to layout the economic directly for you. But I will put it in this term, in terms of the two expansions that Borgata has experienced, in total the clock was at or about 25 million to service in terms of capital expenditures. 23 million of that is already in service and depreciating. So for this incremental income stream only $2 million more we are going service in terms of depreciation and other costs. So this should clearly be more profitable and I will add than our previous business.
Daniel Fidell
Alright, and thanks. And maybe just a final question on the retail business. Can you just talk a little bit about that business, you had a good quarter and you are capturing conversion customers? You talked about steady growth in the second maybe if you could just touch on it little more?
Edward Graham
In terms of retail business which is predominantly our plant, service and HBAC activities. We serve both residential and commercial markets. We are seeing an addition in both installation activity of new gas equipment, probable a good part of that deriver might be conversions from oil as well as ongoing road for our warranty business. What also was a key improvement is we did put some efficiency measures in and how we manage that business that we are seeing benefits already. So its also a much better start this year and we see bounce at the year being favorable.
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