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July 18' 2012 <br />Mr. Kurt Ulrich <br />City Administrator <br />City of Ramsey <br />7550 Sunwood Dr. <br />Ramsey, MN 55303 <br />Dear Mr. Ulrich: <br />Pursuant to our many discussions on the matter, PSD requests reimbursement for services performed <br />on the city's behalf. The following information describes the background of the unpaid invoice. <br />In 2006, toward the end of construction of the Ramsey Professional Building, Rehbein Companies, the <br />contractor, determined that the City's manhole and stub below Sunwood Drive was installed 1.1" below <br />the elevation designated in construction plans. This difference of 11" had to be corrected before any <br />property owner, including Ramsey Professional Building, could be connected to the sanitary line. This <br />required that the contractor to change the slope and elevation of the city's infrastructure. PSD <br />contacted the City Administrator and made him aware of this issue. The City Administrator then <br />requested Rehbein to correct the issue. Unfortunately, Rehbein was already owed $6 million from the <br />developer who eventually filed for bankruptcy. As a result, Rehbein could not perform the service <br />unless it was pre -paid for the work. <br />It is difficult for a government entity to pre -pay for a service. Accordingly, the City Administrator called <br />PSD and asked that it include the city's corrective work with the PSD work being performed by Rehbein. <br />The City Administrator promised that the bill would be promptly paid. Pursuant to this agreement, PSD <br />requested Rehbein to correct the manhole and pipe elevations. <br />in 2007, after the work had been completed and Rehbein's invoice was paid, PSD submitted the bill to <br />City. We heard no response, and resubmitted it again in 2008. The city replied that it needed to audit <br />all of the work on the project, including the corrective work by Rehbein. Brian Olson, the Director of <br />Public Works, performed the audit, and concluded that the invoice should be paid by the City. Even <br />though Mr. Olson recommended that the invoice be paid, the City failed to do so. 7533 Sunwood care, Suite 220 <br />Ramsey, MN 55303 <br />Phone: (763) 427-5955 <br />Fax: (763) 427-4151 <br />www.psd iandd evelop ment.com <br />