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' ~ Peat Marwick <br />Peat Marvvick Main & Co. <br />RepublicBank Center <br />700 Louisiana <br />P.O. Box 4545 <br />Houston, TX 77210-4545 <br />ICJ <br />Telephone 713 224 4262 Telecopier 713 224 4566 <br />Telex 286705 PMMT UR (RCA- <br />July 8, 1988 <br />Mr. Robert T. Herrera <br />General Manager <br />La Porte Area Water Authority <br />P. 0. Box 1115 <br />La Porte, Texas 77571 <br />Dear Mr. Herrera: <br />This letter will confirm Peat Marwick Main & Co.'s agreement to conduct a <br />limited review and analysis of contractor prequalification submissions for <br />capital projects of the La Porte Area Water Authority (LPAWA). This letter <br />confirms the objectives and scope of our assistance, our approach to <br />accomplish the objectives, and a schedule of our professional fees to complete <br />the work. <br />BACKGROUND AND OBJECTIVES <br />Given the decline in local economic conditions, an increasing number of <br />firms contracting with local entities, such as LPAWA, to accomplish capital <br />projects are severely impaired financially or even going out of business. <br />Consequently, the LPAWA has decided to pre-qualify contractors on both project <br />and financial capability. <br />Member Firm of <br />Klynvettl Peat Marwick Gcertleler <br />