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Goldberg to Castles/Water Line Upsizing Costs`!i r y fit_,; ri January 22, 2008 Frank Castles Public Works City of Kalispell 306 First Avenue East Kalispell, MT 59901 RE: USFS Building - 650 Wolfpack Way Water Line Upsizing Costs Dear Frank: In response to your correspondence related to the Water Line Upsizing we are becoming very concerned that the costs we incurred to upsize the water lines are not going to be reimbursed as we had been instructed they would be. When we initiated design of the project and made our original submittal of the water line design in the late fall of 2006 our construction manager, Don Lawhead, and our engineer Dan Lozar of the Kalispell Office of TD&H, advised us that the City of Kalispell requested an Upsizing of the water lines from 12" to 14" lines along Stillwater Road. If I am to understand the reimbursement offered by the City, this part of the "upsizing" has been approved by the City and the corresponding reimbursement of 59,305.21. This correlates with our understanding and we agree with the reimbursement. In your letter of November 1, 2007 to Mr. Steve Lorch with the DNRC you assert that the DNRC is responsible for the reimbursement to Kalispell USFS LLC of the upsizing costs in Wolfpack Way from an 8" water line to a 12" water line. We do not agree with your assertion that the DNRC is responsible to reimburse this amount. During the entire process of submittal of engineered plans, permitting of those plans, installation, and approval of the water infi-astructure the City of Kalispell was the only party who requested the upsizing of these specific water lines. To this end, we are in receipt of a letter from you dated September 19. 2000 to Dan Mr. Dan Lozar of TD&H which specifically describes the upsizing of the lines along Wolfpack and the last sentence of the letter clearly states that "The City will pay the cost of upsizing of this main from 8" to 12". It has been our clear understanding from various meetings, telephone conversations, and e-mail Communication with the City as well as your September 19, 2006 that the City of Kalispell would reimburse for the water upsizing of both the extension down Stillwater Rd. and within Wolfpack Way. We are in receipt of the City's check for S9.305.00. for the Stillwater upsizing and we will look forward to receiving the Wolfpacic upsizing costs of S8,882.23 from the City. Sincerely, t, Grant,R. Nelson On:behalf of Kalispell USFS LLC Cc: Jim Patrick, City Manager Charlie Harball, City Attorney Jim Hansz, Public Works Director/City Engineer Swank Enterprises Attention: Grant E. Kerley P.O. Box 10007 Kalispell, MT 59904 Steve Lorch Mike Sullivan Montana DNRC