09-09-2002 Council Packet - Laserfiche WebLink

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SEP 0 9 2002 C»fY OfOHONO REQUEST FOR COUNCIL ACTION DATE: September 6,2002 15'ITEM NO: Departmeot Approval: Nine RonMoone Title City Administrator Administrator Reviewed:^enda Section: City AdministratOf*s Report Item Description: Wiilow Drive Property weil i^(recmcnt The probity purchased for the fire station on Willow Drive is encumbered by an agreement related to the joint use of a well located on the adjacent property to the north. The well agreement for the City, as the property owner, to pay the cost of maintaining and operating the well. Because the pressure tank and electrical service were located in the house that was demolished, it is necessary to replace these to enable the proper operation of the well. Mr. Miller has suggested that rather than the City replacing these, and continuing to pay for the maintenance and operation of the well, the City can buy out its obligations under the well agreement at a cost of $5,075.00. This is the cost of providing and installing a pressure tanir^ a small shed to house the pressure tank, and a generator to provide electricity for the well. While the City may be able to provide for the continued operation of the well at a somewhat lower cost, or may be able to make a case for the termination of the well agreement based on the fact that the demolition of the house on the City’s property voids the well agreement, the potential indirect costs to the City of either of these alternatives could make the overall City costs very similar to the buy-out amount. Therefore, it is recommended that the City accept the buy-out proposal. COUNCIL ACTION REQUESTED: Motion to approve the buy-out of the well agreement with Ed Miller in the amount of $5,075.00, and to amend the General Fund budget to reflect the expenditure. L