Head to Dark Meadows Estate. Try to talk to the guard only to get pepper sprayed. Head to Jimbo's shop in the northwest side of town and purchase a gas mask. Return to the guard in the estate and talk to him again.
This time, the pepper spray won't work and you'll have to defeat him in battle. You'll get the Billy Club of Smithing after defeating him. Enter the estate and grab the items in Token's garage attic. Knock on the door to deliver the letter and complete this task. Token will be registered as your friend as well.