DeJana to Astle/KRMC Sewer ConnectionDEJA NA LAW EMO
Kilf Building, Site 0
200 First A venue East
P. 0. Rox 1757
KalisprllMT 59903
Richard DeJana
Attorney at Law
July 31, 1997
William Astle
Astle & Astle
Attorneys at Law
705 Main St.
Kalispell, MT59901
RE: Kalispell Regional Sewer Connection
Dear Bill:
Phone (40C))752-4120
Fax (406) 752-5015
I hopefully will have spoken to you before you receive this letter. You had requested an
agreement with in), clients allowing the hospital to "tap " the sewer lines but not convey sewage
though them
I have reviewed your request with Dr. Rogers and we most respectfully decline. The
agreement is fairly specific: "[N]or will the city allow any properties in the Gravity Service
Area, Lift Service Area, or Water Service Area to be connected without paying the Late Comer's
fee... " The property, in question is within the Gravity Service Area.
We decline so because we believe it is essential to support the legitimacy of the
agreement. There seem to be two issues in question. The first was whether the description's
using assessor's tract numbers was sufficient. As I advised you the document shows up in every
chain of title when the plat room does a computerized research. The obligation is to give notice
and notice was given.
The second deals with the annual increase of 13 % in the fee. One side seems to say this
is interest and illegal, our side is that this is compensation for the true cost of services. The time
value of money is a legitimate cost especially when the construction loan interest was much
higher. Very simply, 1984 dollars are not available and we have to use 1997 dollars. We are
sure the hospital will sell the lots at 1997prices and not 1984 prices. The hospital provides few
services at the 1984 cost but rather reflects honestly the real difference in purchasing power.
Thus, I believe there is no question that the annual increase is appropriate.
The other part of the problem is that the hospital seems to want my clients to await the
hospital's dispute with the title insurer. The title company does not provide liability protection
so as to normally deal directly with a third party, it provides first party protection. IMt
William Astle
Letter, page 2
July 31, 1997
happens between the hospital and the title company is of little or no concern to us.
I'm sorry we can not accommodate the hospital connecting to the lines. A payment to
my clients of $34,346. 71 by the hospital would not jeopardize their claim with the title company.
Sincerely,
Pz'
Richard DeJa4a
RDJlrwb
pc. Dr. and Mrs. Rogers
Chuck Vernon
Glen Neier