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June 15, 2009 Gregg Wood Project Development Coordinator City of Missoula 435 Ryman Missoula, MT 59802 RE: West Reserve Interceptor Phase 3 Water/Sewer Project Change Order No. 1 Dear Gregg: HDR has completed review of the final quantities, change proposal requests, and claims associated with the above referenced project and hereby recommend approval of the attached Change Order No. 1. This change order is the first and final change order for this project and adjusts the total contract amount from $3,744,648.73 to $4,210,087.00 a total increase in the contract amount of $465,438.27. There are three components to this change order. They include changes in unit price bid quantities ($122,938.27), liquidated damages assessed due to a contract time overrun of 105 days (-$52,500.00), and costs associated with the mutual release and settlement agreement between Embe Contracting, Inc. and the City of Missoula ($395,000.00). Once the City has approved this change order a final pay request will be processed. Please contact me if you have any questions. Sincerely, Craig T. Caprara, PE Project Manager HDR Engineering, Inc. Cc Woody Germany, WGM Group Jeff Smith, WGM Group