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Riverchase(3)-CS 880317T E R R A I ~ March 17, 1988 Mr. Frank Trando Finance Director City of Coppell P. O. Box 478 Coppell, Texas 75019 Re: $41,560 owed by City of Coppell to Terra Corporate Joint Venture as successor to Riverchase Joint Venture Dear Frank: In accordance with your request, I am enclosing some of the pertinent documents from our file on the unpaid $41,560 owed by the City to us for reimbursement for water line installation in MacArthur Boulevard. They include copies of the following: (1) Original Water & Sewer Plan dated August 1984 with Ginn, Inc., approval stamp dated 9/24/85 calling for 24" RCCP Water (Reinforced Concrete Cylinder Pipe). (2) Record Drawings as built Water & Sewer Plans dated 1/23/87 showing deletion of 24" RCCP and insertion of 24" D.I. (ductile iron pipe). (3) My letter to Ginn, Inc. dated August 5, 1985, that predated Steve Goram's directions to use ductile iron pipe instead of concrete pipe. (4) Letter of Transmittal to me from Nathan D. Maier Consulting Engineers, Inc. dated 10/21/85 with change orders responding to Goram's directions to use ductile iron instead of concrete pipe. (5) Letter to you from Janet P. Vick dated February 27, 1987 requesting reimbursement of $134,885.98 with detailed cost breakdowns. (6) Letter to Wayne Ginn dated June 24, 1987, from Janet Vick requesting $41,560 remaining unpaid by the City. (7) Letter to Janet saying he was waiting for "extras." P. Vick dated July 23, 1987, from H. Wayne Ginn Steve Goram to return from vacation to verify the (8) Letter to Wayne Ginn dated September 3, 1987, from Jean B. Maier again inquiring about the reimbursement. TERRA COMPANIES 5944 LUTHER LANE SUITE 502 DALLAS, TEXAS 75225 214 691 5566 Mr.Frank Trando March 17, 1988 Page Two (9) My letter to Alan Ratliff dated October 6, 1987, requesting reimbursement of the $41,560. (10) Letter to Jean Maier dated October 19, 1987, from H. Wayne Ginn requesting documentation of City's authorization for change in materials. (11) Letter to Wayne Ginn dated November 5, 1987, from Mike Daniel enclosing letter to Jean Maier dated November 3, 1987, from Janet Vick confirming the material change from concrete pipe to ductile iron pipe was directed by Steve Goram. As you know, we at Terra follow the policy of doing what we say we will do, of developing land in a quality manner and of following the rules set forth by the cities we do business in. We agreed to install oversized water pipe in the Southern part of MacArthur as a proper accommodation to the City of Coppell. But for that accommodation, we would have used 12" PVC pipe to serve Riverchase as we did in the Northern part of MacArthur. We, in effect, loaned the additional costs to Coppell and are simply asking to be paid back. It strains the imagination to believe we would have changed materials from those approved by Wayne Ginn to much more expensive materials without someone from the City directing us to do so. I think you will find that Ed Powell, Gabe Favre and Randy Fleming will verify that Steve Goram directed the change in materials. Please pay to us the amount of $41,560 still owed to us by the City as well as the amount of $4,987.20 to reimburse us for interest we have paid on those borrowed funds since we requested payment on February 27, 1987 Thank you. ' Sincerely, TERRA CORPORATE JOINT VENTURE (successor to Riverchase Joint Venture) by Terra Land Development Co. jMp~/rJ~y ~r~on~, President enclosures cc: Mr. Alan Ratliff (no enclosures) Mr. Wayne Ginn (no enclosures) Mr. Steve Goram (no enclosures) Ms. Jean B. Maier (no enclosures)