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Hein/WGEZ Radio TowersLakeside County Water & Sewer District 253 Bierney Creek Road, P.O. Box 300, Lakeside, Montana 59922 (406)844-3881 Fax (406)844-3996 jimheim@lcwsd.net March 3, 2009 Fred Leistiko C/o City of Kalispell P.O. Box 1997 Kalispell, Montana 59903 RE: KGEZ Radio Towers Dear Fred: The Lakeside County Water & Sewer District Board of Directors discussed the KGEZ radio tower relocation proposal at their regular monthly Director's meeting yesterday. The consensus was that they did not want to spend any more of the District's money in further exploration of the possibility of relocating those towers to District owned land. We had asked our attorney, Dan Johns, for an opinion about the document of intent regarding the property purchase option that you presented to me awhile back. As the result of his search and discovery of the issues, we have incurred $985.00 worth of attorney services to -date. Since the Board feels it is not proper to use ratepayer funds for such speculative endeavors, they asked me to forward the results of yesterday's discussion to you. If the District were to be reimbursed for such costs, the Board may be agreeable to continue the consideration of the proposed tower relocation. A second item that has caused the Board to be less than enthusiastic about the whole issue is the ultimate cost to the District as related to any benefit to the ratepayers of the District. When we were first approached by the City about the proposed tower relocation, it was surmised that if the District were to exercise the land option in question, the rent/lease/easement proceeds would cover the majority of any District cash outlay. With the new information regarding another parcel of land adjacent to the original parcel being involved, the cost appears to be getting higher; and that again raises the cost/benefit viability of the proposal from a ratepayer's perspective. Fred Leistiko March 3, 2009 ",age 2 A third item that may end the discussion anyway is the issue of the radiating tower ground wires protruding into the District's wastewater disposal field that has a buried irrigation system control wire around the perimeter of the 160 acre f ield. We have written notes on our engineering drawings of the center pivot irrigation system that says any other wires nearby should be limited to not be within twenty five (25] feet of that control wire that is located approximately 100 feet from the property line and buried 30-36 deep. Verbal inquiries to our irrigation vendor revealed that he agrees with that restriction. However, field testing of such wires interfering with the center pivot operational controls, may prove that statement to be unfounded. That would be up to you to make that determination via a written report of any such f ield testing. In summary, the District's Board of Directors does not want to spend any money to f urther investigate the tower relocation proposal. At this time, they do not see any benef it to the District's operations or its ratepayers regarding the ownership of the land options. Finally, if the tower ground wires disturb the farm practices of the irrigation system, there is no point to continue this effort at the currently viewed location. Our Board also realizes that this relocation scenario may never occur as the City pursues its course of action with the radio station owner. But to continue with the current proposal knowing there may be un-resolvable issues, they wanted to convey these thoughts and concerns to you as soon as possible. If there is a solution here that does not require the District to purchase new land, and there is no restriction to our farming operations, there may still exist the potential to use this site for the City's originally intended purpose. 5incerely, A&mes R. Heim, General Manager Lakeside County Water & 5ewer District