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Patrick to Wachholz/Water Impact FeesCity of Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406) 758-7000 Fax - (406) 758-7758 April 22, 2008 Mr. Paul Wachholz Wachholz and Company 1205 S. Main St. Kalispell, MT 59901 RE: Water Impact Fees for Fun Beverage Dear Paul, Thank you for your inquiry concerning the computation of Fun Beverage's water late comer's fee. I asked the Public Works Department to verify the amount, which they have completed. As you know, the late comer's fee is based on the contract the City has with Montana Venture Partners. The contract allows the investors to collect part of their investment back from users connecting to the water and/or sewer main they paid for. Their engineers have the cost of installation, and have computed the charges for capacity consumed. Based on the diameter of the water main Fun Beverage installed which determines capacity of the lines being consumed, the charges Fun Beverage received are correct in accordance with the contract. The City only administers the contract by collecting the agreed upon fees and distributing them to the investors. The City can not deviate or adjust the fees without the consent of the investment group. Should you have additional questions, please do not hesitate to contact me. Sincerely, James . Patrick City Manager