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~~N <br /> City Attorney <br /> Civil Department <br /> City of Eugene <br /> 360 East 10th Avenue, Suite 300 <br /> Eugene, Oregon 97401 <br /> (541) 682-5080 <br /> March 27 2007 <br /> Mr. Mark Eves ' <br /> Eves & Wade LLP <br /> 3236 S.W. Kelly Avenue, Suite 200 <br /> <br /> Portland, Oregon 97239 <br /> Dear Mr. Eves: <br /> This letter is in response to your letter of March 1, 2007, regarding the City of Eugene <br /> Delta Ponds Vegetation Enhancement Contract, Job #4243 (Contract). Attached to your letter of <br /> March 1, 2007, was a letter from Henderson Land Services LLC (Henderson) to Scott Milovich <br /> at the City of Eugene requesting payment for replanting work done. <br /> As our previous correspondence demonstrates, the parties are in substantial disagreement <br /> about certain terms of the Contract, as well as Henderson's performance under the Contract. <br /> Most of the parties' disagreements center around allocation of responsibility for the replanting of <br /> "missing plants" -plants that are neither alive, standing dead, nor demonstrably dead as the <br /> result of, vandalism or herbivory. The City has notified Henderson of deficiencies in his most <br /> recent planting work and has requested that Henderson bring the work into contract compliance. <br /> The Contract consists of three planting and three clearing and grubbing phases. To date, <br /> Henderson has been paid in full for the two completed clearing and grubbing phases of the <br /> Contract. In addition, Henderson has been paid for all three planting phases of the Contract, <br /> including $11,102.12 paid by the City for Phase V planting work that has nat yet been <br /> completed. . <br /> Although the City disputes Henderson's entitlement to compensation, the City offers the <br /> following to settle all disputed claims under the Contract. The City's offer is this: Henderson is <br /> released from any further performance under the Contract. Henderson may retain monies <br /> already paid by the City on the Contract, including the $11,102.12 paid by the City for Phase V <br /> planting work that has not yet been completed. <br /> This settlement offer will release Henderson from all performance obligations for the <br /> upcoming Phase V clearing and grubbing and Phase V planting pieces of the Contract. <br /> Henderson will not be paid for Phase V grubbing operations, but is released from any <br /> performance obligation for those operations under the Contract. The City will keep the 5% <br /> retainage fee it is entitled to under the Contract. <br /> 09-O6-~J7 A 1 1~ ~:)3 I N <br /> <br />