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Mr* Wm. Reinhardt 7 August 7, 1952 VII, Remove and Replace Pavement* Mr. Campbell feels that #76,564 should be eliminated from appraisal for this item since the area of pavements originally re­moved when redwood pipes were replaced with cast iron pipes was much less than included in our appraisal and that the public should not be penalized for the cost of any of this work« The item of "Remove and Replace Pave­ments" is a proper item for Inclusion in a reproduction estimate since under a repro­duction program all pavements existing as of date of reproduction would have to be removed and replaced regardless of condi­tions under which they were originally in­stalled. VIII. Credit to District. 1. The District takes the position that credit should be allowed on "Purchase Price" for the full amount of money remain­ing unrefunded on contracts with subdivid­ers at the date of sale or at the time they assume the obligations of these contracts. Amount unrefunded as of May 31» 1952, was #333,082.46. It was estimated by Mr. Wehe on the basis of past experience that only 70% of Subdividers’ Advances would be refunded, and it is my thought that "Management" would take this fact into consideration when the merit of the District’s claim is being considered. However, subject to your approval, I have included the full a— mount of Refund due Subdividers on the Railroad Company side of the appraisal, 2. Mr. Campbell in his letter states that the District feels they should receive