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<br />Page 2 <br /> <br />;YAN@ <br /> <br />WYi./W. RYAN CO lvIP AN I ES. CO M <br /> <br />BUILDING LASTING RELATIONSHIPS <br /> <br />Section S(c) of the Preliminary Development Agreement required the following process for changes to line- <br />items in the Budget: <br /> <br />"If the City proposes to.. ..(ii)allocate savings in a line-item in the Budget to pay additional <br />expenses over the amount for another line-item, the City will (before engaging the <br />consultant or incurring the additional line-item expense) provide the Developer with at least <br />10 business days notice, including...a written description of the consultant or staff, the <br />scope of work and the estimated cost; and an explanation of the line-item change; and in <br />either case offering Developer an opportunity to comment within the 10 day period." <br /> <br />The City followed this process for its first line-item change on 3/12/2008, but failed to notify the Developer <br />of the line-item changes prior to incurring the expenses that have been billed-to-date. Attached to this letter is <br />a detail of the City Billings broken out by PDA Category and invoice date. <br /> <br />As a result, we are formally objecting to the billing of these expenses since we did not have the opportunity to <br />comment. <br /> <br />Sincerely, <br /> <br />Eric Anderson <br />Director of Development <br /> <br />Enc. <br /> <br />C: Rick Collins <br /> <br />]:\PRO]-NEW\900\900\900-909 TCAAP 2003\ARDEN HILLS-TCAAP\PURSUIT COSTS\PDA BILLINGS\OB]ECTION TO COSTS IN EXCESS OF BUDGET 5.27.09.DOC IE <br />