City of Baker City, Oregon

p.o. BOl 650 . Baker City, OR 97814-0650

541523-6541 VoicelTDD . 541524-2049 FAX

The Northwest's Premier Rural living ExperienCe"

April 21, 2003

Mr. Steve Jones, Partner J & B Property Development LLC 2485 Eagle Crest Way Baker City, OR 97814 Dear Mr. Jones: I have here a copy of your letter of April 16, 2003 to Mr. Collins. I feel a need to disagree with some of your comments: I. In your first paragraph, you stated: "Baker City held J & B to very stringent standards." As you will recall, the standard procedure any improvement such as water tanks is for the system to be designed by a Registered Engineer and plans submitted to the City and the Oregon State Engineer for approval BEFORE beginning construction. As it turned out, you proposed a typical house foundation to support the tanks. There were no plumbing details at that point. I pointed out some serious structural flaws and a possible solution. I expected at least a plan for review that included plumbing details and the reinforced foundation. The next thing I knew the foundation had been poured without plans, and without even the notification that excavation was done, so it could be inspected before the foundation was poured. Because the foundation was built on disturbed soil that was not adequately compacted, and the foundation cracked and settled, it became necessary to reinforce the footing with a fill berm that was compacted in under the footing. I had to spend considerable time to make sure the tanks were plumbed in properly, and the fill around the tanks was compacted properly to be reasonably sure the tanks would stay. I liad to have city crews survey the tank and fittings, draw up the constructed layout, put my engineers stamp on the drawing, and assure the state Engineer that the city is willing to take special steps to pump out the tank when the need arises to work on the tank, to avoid the expense to you of a complete redesign and construction 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 very stringent standards is not near the truth. The truth is, you were not even held to the minimum standards of getting a design done and submitted to the City and the State for approval before beginning construction, or of constructing a tank with a drain in the very bottom as required by State standard. 2. Regarding the repairs on Reservoir road. You insisted on a fixed cost for the sewer line and for the street repairs. We gave you a fixed cost, and you agreed to that cost. It was our plan from the beginning to resurface the entire street, because it is difficult to do spot repairs on a chip seal street. To do a patch would have cost more than the chip seal and would not have lasted as welL We did widen the street to improve safety and access to the developments on the hill including Scenic Vista. To claim that we did not accomplish the repair is ridiculous. We did install some sewer taps in exchange for the needed right of way. This was for additional work done by city forces, at no cost to you. The improvements in no way diminish the fact that the sewer was installed, the street was repaired, and you will pay for the repair as you agreed. The laterals that were installed will mean that we do not have to interrupt access to your development for those future developments that will use those laterals, and the street will not need to be dug up and patched. This is certainly not to your detriment. . 3. The decision to go with a double tank was yours and yours alone. I gave you the total gallons required to provide domestic water and fire flow. As you stated to me, It was cheaper for you to install two factory built transportable tanks than to build a tank on site. I did not promise to pay for the double tanks. If I had asked for an enhancement to an existing approved plan, that would have been negotiable, but I spent a lot of time trying to prevent you from spending money for unsuitable construction that would have had to be redone at your expense. You did not have an approved plan when the two tanks were delivered, so your assertion that it was not necessary for an approvable plan is bogus. Completion of this project by you was promised as a condition of plat approval by September 15,2002. There are still several items that are not done, including but not limited to, adequate cover over the water lines, proper placing of the control circuit junction boxes, street lights, touch up paint on the tanks, an adequate freeze protection over the elbows into the tank flanges and several repairs and completions to the project. When these are done, we still need to do a complete final inspection. We have also not

received an adequate certification from your design engineer. I expect this is because you refused to fund adequate inspection by the engineer on this project, so he is not sure whether the project was built according to the plans, 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 easements straddle the water lines rather than having the water lines wander off the easements. We still have not received the pump control panel manual, so we can fix the inevitable problems that will arise. Regarding the final reimbursement contracts, that is something that will be worked out. The ordinances of Baker City control that process, so it is not left up in the air. For the reimbursement on the wastewater line, if you have worked out any agreements with property owners along the way, we need to know that in order to make the proper determinations. We have been unable to proceed until we receive a complete report in writing listing any private agreements you may have made with property owners along the way. Regarding a special benefit zone for the higher level reservoir system, an itemized section by section cost breakdown is needed. The cost of the distribution system is to serve the Scenic Vista Development. The cost of the pumps, tanks, controls, and the line up the hill to the tanks should be shared with future users outside the Scenic Vista Subdivision who need the system for fire flow and domestic water service pressure. Please submit the information at your earliest convenience, so we can begin the process of calculating a per lot charge. There is at least one home under consideration that could benefit from the higher pressure system.
Sincerely,

4d~
Dick Fleming P.E.

Public Works Director