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hok Public Works Maintenance Division March 3, 2011 Mark Losco Pacific Recycling, Inc. P.O.Box 2633 Eugene, OR 97402 RE: Cross /Davis Street Repairs Dear Mark: City of Eugene 1820 Roosevelt Blvd. Eugene, Oregon 97402 (541) 682 -4800 (541) 682 -4882 FAX www.eugene.or -gov Once again thank you for meeting with Jenifer, Damon and I last month to discuss street repair options on both Cross and Davis Streets. This letter is to formalize our discussion and agreement regarding the planned work and cost sharing between the City and Pacific Recycling, Inc. Over the past year Pacific Recycling, Inc. has been in contact with the Public Works Department regarding the condition of both Cross and Davis Streets adjacent to your business. As you know both streets are classified as unimproved streets, and thus receive limited maintenance under the Public Works' Street Maintenance Policy and Procedures manual. Pacific Recycling, Inc. has an interest in partnering with the City to upgrade the condition of both streets, but not to the extent which would be considered full urban street standards. The City is equally interested in partnering with your company to assist in arriving at what we believe is a mutually beneficial solution to some of the chronic pothole problems on these streets, at least on a temporary basis. Specifically, the project limits will be Cross St. (Maple St. — Davis St.), and Davis St. (Cross St. — Meadow Ln.). The treatment will include pulverizing the existing surface together with rototilling and cement stabilization of the existing sub -grade and base courses. This process is classified as Full Depth Reclamation (FDR). Following the sub -grade and base course preparation, we will place a 3 -inch depth asphalt surface approximately 18 -20 feet in width within the project limits. Additionally, driveway aprons and road shoulders will receive treatment as per Public Works Engineering's (PWE) itemized project estimate. PWE has provided a project cost estimate which you received. At this time the project is estimated to cost $109,686. Our agreement was that project costs would be shared at an equal split bases on the above mentioned estimate ($54,842 ea.). If the actual project is completed under the estimate, both parties will see an equal reduction in their shared cost. If the project exceeds this estimate, the City will be liable for those costs. When final bids are received, the City reserves the right to cancel this project if costs exceed project estimates at a rate we feel is not feasible. Payment from Pacific Recycling, Inc. will be collected once the final invoice is received from our contractor. It is my understanding that Pacific Recycling, Inc. does not intend on soliciting funds from other adjacent property owners. In the event that your company does approach property owners to participate in the project cost, the City will look to Pacific Recycling, Inc. to arrive at a fair apportionment of costs among other property owners and to serve as the point of collection and remitting the associated funds. It is also my understanding that Pacific Recycling, Inc. is interested in the installation of a stormdrain system. The associated cost for engineering, permits and installation of such system will be borne by Pacific Recycling, Inc. and is not included in this project scope. The project will be managed by PWE. Property owners within the project limits will be notified in advance of the project start date. At this time our estimate is that this project will take place late summer or early fall of 2011. Based on similar projects of this scope I anticipate the duration of time not to exceed 10 working days. Property owners should be aware that both streets may be brought up to full urban street standards at some indeterminate future time and in that event, the abutting property owners would be assessed for the cost of those Page 1 of 2