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<br />;;,; 't , <br /> <br />2690 Prairie Rd. P.O. Box I-X Eugene, Oregon 97440 541-688-8746 , <br /> <br />June 10, 1997 <br /> <br />Exhibit "K" <br /> <br />Jerry Behney <br />Project Manager Job #3437 <br />City of Eugene <br />244 East Broadway <br />Eugene, OR 97401 <br /> <br />Dear Jerry: <br />As we have discussed by phone and in person it is doubtful that we would hook up to <br />the sewer immediately after completion for the following reasons: <br /> <br />#1. The costs we were anticipating have increased from $52,379 to $74,867 based <br />on the data given to us in your letter of August 16, 1996, compared to the <br />latest figures you have provided us. <br /> <br />Assessed Area 91,085 <br />Service Hookup <br />Waste Water system Change <br />@ 2V2ct total sq.ft. 140,383 <br />Re gional SDC <br /> <br />AUf!Ust 16. 1996 <br />@ 40ct = 36,434. <br />2,000. <br /> <br />May 30. 1997 <br />@ 58ct = 52,829. <br />4,308. <br /> <br />3,510. <br />O. <br /> <br />3,510. <br />3,437. <br />+ 348. <br />64,432. <br />10.435. <br />74,867. <br /> <br />Subtotal City <br />On-Site Installation <br />Total <br /> <br />41,944. <br />10.435. <br />52,379. <br /> <br />Using an interest cost of 10% per armum we would spend $7,486 in interest plus an annual <br />sewer bill of approximately $840. for a total cost of $8,326/year. We are presently paying <br />about $8400. per year now for hauling the sewage from our holding tank. At the original <br />$52,379 figure we would have had $2,200 left to apply towards the principal- at $74,867 we <br />have nothing to pay towards the principal. <br /> <br />#2. As you know construction in the Eugene area is at an all time high putting <br />those bidding on the projects at an advantage as you can see from the extreme <br />range of bids you received. <br /> <br />In summary we certainly would like to be hooked up to the sewer, but not at a price that we <br />cannot afford. I would recommend that you take a break and rebid the project a year or so <br />from now and hopefully our cost will be in a range we can afford. <br /> <br /> <br />Weare willing to take that chance! <br /> <br />Sincerely, <br /> <br />, i <br />\ \ , <br />'_ . \,' 1,0.- ._, <br /> <br />Dwi~ht FOfaey <br />o 0 <br />General Manager <br /> <br />cc: Board of Directors <br />