11-09-1992 Council Minutes2 - Laserfiche WebLink

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k HINUTES OF THE REGULAR ORONO COUNCIL MEETING HELD OCTOBER 20, 1992 NAYOR/COUNCIL REPORT - CONT. Go«tten reminded them the City Is a service oriented business and should run that way. Mayor Peterson stated there may be underlying circumstances. B) Jabbour reported after research he has discovered the City may not be saving money by installing the underground gas tanks, and may In fact, save money by buying at the pump. He reminded them the original budget called for 3 tanks, and they are only installing 2, and that is the reason they are underbudget in this area. He added, the amount of diesel fuel stored In one tank will supply the City for a three year period. Mayor Peterson felt they may have been mislead on more than one I tern. Jabbour stated they had promised the residents this project would not be staff-driven. He added the City may end up purchasing tank insurance which will be an additional expense. Barrett Indicated he was sure the City did not have any 'nsui'ance for clean-up from the tanks. Jabbour stated the Council was told the City was Insured for clean up under the current policy. Goetten asked If It was too late to cancel the contract for the tanks. Jabbour stated It was presented to the Council that the City would aave money by buying In bulk rather than going to a station, which he has found to be untrue. He added, the cost of the bond needed to purchase the tanks and the Interest will add to the cost of those tanks. He stated the City’s liability for having the tanks is a factor. He added, the amount of fuel one tank will hold will last the City three years, and felt that an exorbitant amount. Craig Linden, 2655 North Shore Drive, suggested the Council cancel the order for the tanks and pay the cost involved to cancel. He felt the long-term negative affect of the tanks would outweigh the initial loss. Moorse stated he would check the following day and report to the Council immediately. 6