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The Northwest's PremierRural living ExperienCe"

City of Baker City, Oregonp.o. BOl 650 . Baker City, OR 97814-0650

541523-6541 VoicelTDD . 541524-2049 FAX

April 21, 2003Mr. Steve Jones, PartnerJ & B Property Development LLC2485 Eagle Crest WayBaker City, OR 97814Dear Mr. Jones:I have here a copy of your letter ofApril 16, 2003 to Mr. Collins. I feel aneed to disagree with some ofyour comments:I. In your first paragraph, you stated: "Baker City held J & B to verystringent standards." As you will recall, the standard procedure anyimprovement such as water tanks is for the system to be designed by aRegistered Engineer and plans submitted to the City and the Oregon StateEngineer for approval BEFORE beginning construction. As it turnedout, you proposed a typical house foundation to support the tanks. Therewere no plumbing details at that point. I pointed out some serious

structural flaws and a possible solution. I expected at least a plan forreview that included plumbing details and the reinforced foundation. Thenext thing I knew the foundation had been poured without plans, andwithout even the notification that excavation was done, so it could beinspected before the foundation was poured. Because the foundation wasbuilt on disturbed soil that was not adequately compacted, and thefoundation cracked and settled, it became necessary to reinforce thefooting with a fill berm that was compacted in under the footing. I had tospend considerable time to make sure the tanks were plumbed inproperly, and the fill around the tanks was compacted properly to bereasonably sure the tanks would stay. I liad to have city crews survey thetank and fittings, draw up the constructed layout, put my engineers stampon the drawing, and assure the state Engineer that the city is willing totake special steps to pump out the tank when the need arises to work onthe tank, to avoid the expense to you of a complete redesign andconstruction of new tanks meeting state standards. You have not been

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billed for any ofthis time and expense. To say we held you to a verystringent standards is not near the truth. The truth is, you were not evenheld to the minimum standards of getting a design done and submitted tothe City and the State for approval before beginning construction, or ofconstructing a tank with a drain in the very bottom as required by Statestandard.2. Regarding the repairs on Reservoir road. You insisted on a fixed cost forthe sewer line and for the street repairs. We gave you a fixed cost, andyou agreed to that cost. It was our plan from the beginning to resurfacethe entire street, because it is difficult to do spot repairs on a chip sealstreet. To do a patch would have cost more than the chip seal and wouldnot have lasted as welL We did widen the street to improve safety andaccess to the developments on the hill including ScenicVista. To claimthat we did not accomplish the repair is ridiculous. We did install somesewer taps in exchange for the needed right ofway. This was foradditional work done by city forces, at no cost to you. The improvementsin no way diminish the fact that the sewer was installed, the street wasrepaired, and you will pay for the repair as you agreed. The laterals thatwere installed will mean that we do not have to interrupt access to yourdevelopment for those future developments that will use those laterals,and the street will not need to be dug up and patched. This is certainly notto your detriment. .

3. The decision to go with a double tank was yours and yours alone. I gaveyou the total gallons required to provide domestic water and fire flow. Asyou stated to me, It was cheaper for you to install two factory builttransportable tanks than to build a tank on site. I did not promise to payfor the double tanks. If I had asked for an enhancement to an existingapproved plan, that would have been negotiable, but I spent a lot of timetrying to prevent you from spending money for unsuitable constructionthat would have had to be redone at your expense. You did not have anapproved plan when the two tanks were delivered, so your assertion thatit was not necessary for an approvable plan is bogus.

Completion of this project by you was promised as a condition ofplatapproval by September 15,2002. There are still several items that are notdone, including but not limited to, adequate cover over the water lines,proper placing of the control circuit junction boxes, street lights, touch uppaint on the tanks, an adequate freeze protection over the elbows into thetank flanges and several repairs and completions to the project. When theseare done, we still need to do a complete final inspection. We have also not

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received an adequate certification from your design engineer. I expect this isbecause you refused to fund adequate inspection by the engineer on thisproject, so he is not sure whether the project was built according to theplans, or not. We still have not received the as built plans for this project.We still have not received the corrections to the easements so the easementsstraddle the water lines rather than having the water lines wander off theeasements. We still have not received the pump control panel manual, so wecan fix the inevitable problems that will arise.Regarding the final reimbursement contracts, that is something that will beworked out. The ordinances ofBaker City control that process, so it is notleft up in the air. For the reimbursement on the wastewater line, if you haveworked out any agreements with property owners along the way, we need toknow that in order to make the proper determinations. We have been unableto proceed until we receive a complete report in writing listing any privateagreements you may have made with property owners along the way.Regarding a special benefit zone for the higher level reservoir system, anitemized section by section cost breakdown is needed. The cost of thedistribution system is to serve the Scenic Vista Development. The cost of thepumps, tanks, controls, and the line up the hill to the tanks should be sharedwith future users outside the Scenic Vista Subdivision who need the systemfor fire flow and domestic water service pressure. Please submit theinformation at your earliest convenience, so we can begin the process ofcalculating a per lot charge. There is at least one home under considerationthat could benefit from the higher pressure system.Sincerely,4 d ~Dick Fleming P.E. 7Public Works Director

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