City Council Minutes 1983 05 18 - Laserfiche WebLink

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INCREASED COSTS AUTHORIZED RICHARD W. FERGUSON - APPROVAL OF SALE AGREEMENT - DAVIDSON WATER SHARES AUTHORIZATION C & W ELECTRIC - APPROVAL OF SALE AGREEMENT - DAVIDSON WATER SHARES AUTHORIZATION Councilwoman Morris Leasing of Water WESTERN EMPIRE CONSTRUCTORS CHANGE ORDER #2 WASTEWATER --LANT 5/18/83 Page -3- Councilman Ferrera moved, Councilwoman Morris seconded that the increased costs in the amount of $1,160 by Public Service be approved for the Wastewater Plant. Question called for. All in favor. Motion carried unanimously. Counci1members had a copy of the sale agree- ment. Councilman Cussen moved, Councilman Ferrera seconded that the Mayor and Clerk be authorized to sign the sale agreement with Richard W. Ferguson for 20 shares of Davidson water in the amount of $20,000. Question called for. All in favor. Motion carried unanimously. Counci1members had a copy of the sale agree- ment. Councilman Cussen moved, Councilman Ferrera seconded that the Mayor and Clerk be authorized to sign the sale agreement with C & W. Electric Co. for 13 1/3rd shares of Davidson water in the amount of $13,333.33. Referred to page 10 of the Agreement relative to leasing the water during the 1983, 1984, and 1985 irrigation seasons - wished clari- fication. Attorney Rautenstraus advised this is a fairly standard type of agreement dealing with water shares. The City owns the water shares, but the seller has the main use of the water during the initial period of time. In this case for the first 3 years. In all probability the only way they are willing to sell the shares at the current price would be if they could lease back the shares for the first 3 years. Discussion by council if the City would need the water for the first 3 years. General consensus they would not, nor would have the storage capacity at this time. Question called for on the motion. All in favor. Motion carried unanimously. Counci1members had a copy of the Change Order. for off-sight material.