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RES REM

I spoke with Mr. Ron Main, P. Eng., of N.D. Lea Consultants Ltd. regarding their proposal and
their submission that the fee be a fixed fee for the projects. Mr, Main agreed that since we
cannot be 100% definitive in the full scope of work nor in the actual timing for construction

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fe ue based on approval of grants etc. that rather than a fixed fee that the $96,925 is an upset fee for
purposes of this project. For example, if after the design phase we did not receive a grant in
1992 and the project had to be postponed to 1993, then the consultant can simply be laid off by
paying him his costs to date. |

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C.F. (Kip) Gaudry, P. Eng.
Deputy City Engineer