City Council Agenda and Packet 1987 08 04

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Mohr moved that Council authorize the Public Works Department to obtain bids on the Treated Water Storage Tank, pertinent pipeline and the the Water Treatment Plant Site Paving. Mayor Fauson seconded. Unanimous. APPROVAL OF AMENDMENT TO THE TREATED WATER STORAGE TANK SITE PURCHASE OPTION AGREEMENT Phare informed Council that during site evaluation for the Treated Water Storage Tank, Rocky Mountain Consultants conducted a site survey. The site survey indicated that the south property line of the tank site was approximately 70 to 40 feet south of it's anticipated location. The consequences to the City is that our option agreement for the tank site property is tied to a 1/16th section line that is not at the anticipated location. It is Rocky Mountain Consultant's opinion that should the issue be pressed, the property line would be as identified by their site surveys. However, the time involved in resolving this issue could be extensive and set back the project by a number of months. In order to resolve the issue and maintain the project timeline, staff and Rocky Mountain Consultants discussed the situation with the property owner. Discussions with the property owner, Mesa Sand and Gravel, indicated that they were receptive to modifying the purchase option agreement provided one change was made in the current option agreement. This proposed change is that any fill used from the Mesa Sand and Gravel Site would be purchased at $1.00 per yard for all suitable fill up to 12,500 yards. Any material used between the quantity of 12,500 and 15,000 yards was at no cost. Should additional amounts of material be needed above 15,000 yards, it was to be purchased at $1.00 per yard. Therefore, the financial consequences to the City is that an additional $2,500 would be paid to the property owner for fill under the modified agreement versus the existing option agreement. Rocky Mountain Consultants have indicated that it is essential to maintain the timeline if the City wants to complete the project by the end of this year. Also, in reviewing the additional cost for fill versus the potential for additional cost due to project cost escalation and delays, and the current investment in the staff and consulting engineering services, it is apparent that the additional cost for fill would be less costly overall. Anderson voiced concern over Mesa Sand i Gravel representing certain boundaries when they didn't know what they were and yet the City ends up paying for the mistake. Anderson stated that he sees that the City is getting something for that ... squaring 5