GENGSTAF Genstar Development Company
A Pacific Region
Suite 104, 4585 Canada Way
Burnaby, B.C. V5G 4L6
Telephone (604) 299-4325
Telecopier (604) 294-5214

May 23, 1989

City of Port Coquitlam
2580 Shaughnessy Street
Port Coquitlam, B.C.
V3C 2A8

Attention: Mr. Tony Chong, P.Eng.
City Engineer

Dear Sir:

Re: Drainage from the Hazel Trembath School Site

As you are aware, on two occasions during November 1988, the
storm sewer intake on the Hazel Trembath School Site becane
plugged. Attached hereto is a copy of two invoices that
Genstar Development Company recently received from the City in

respect of these incidents.

As you are also aware from my letter of December 23, 1988,
Genstar took the position that we had no responsibility for
the clean up costs relating to these incidents.

Although Genstar does not accept any legal responsibility for
these claims, we are prepared, without prejudice to our
position, and on a goodwill basis in keeping with the cost
sharing agreements with School District No. 43, to offer to
contribute an amount equal to 50% of the costs shown on the
attached invoices. The offer to contribute one-half of the
attached invoiced costs is conditional upon the City releasing
Genstar Development Company from any further. costs,
obligations or liabilities related to drainage from in or
about the Hazel Trembath School Site. YF the offer meets with
the acceptance of the City, we would request that the Cit
exertute and return the attached release.

As Mr. D.G. Riecken indicated in his letter dated December 23,
1988, that School District No. 43 had agreed to accept full
responsibility for the maintenance of the works on their
property in their letter of December 19, 1988, it would appear
that our request for a release is quite reasonable.