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374 the Council wishes to influence as being more effective than merely transmitting copies of resolutions. MOTION: Title having been read, Councilman Norris in- troduced the following resolution, and moved, seconded by Councilman Rhodes, its adoption; and that the reso- lution will be transmitted by letter to all of those named in paragraph 4 and the following : Russell Train, %wig Environmental Protection Agency; Governor Edmund G. Brown, Jr. ; Director of State Resources Agency Claire { Dedrick; and to Don Benninghoven, Executive Director of the League of California Cities and to all members of the Board of Directors of the League : RESOLUTION NO. 7413 OPPOSING PROPOSED CONDITION ON CLEAN WATER GRANTS RESTRICTING USE OF SANITARY SEWERAGE FACILITIES The resolution was adopted with the addition of the list of addressees. (MINUTE ORDER NO. 75-93) Report re bids received by Mobil Oil Estates (Redwood) Limited for construction of water reservoir, GID No. 1-64 City Manager Fales referred to his report of May 9, 1975 regarding the subject reservoir and attaching a letter from Mobil dated May 7 with associated documents and a. memorandum from the Director of Public Works, dated , May 9, relating to the same subject. In response to question, Mr. Pales advised that the "w Council need not act in approving the bids and that if there is no strong objection, Mobil will proceed to award contract and construct the reservoir, but that Mobil has requested Council recognition of the cost of the reservoir by their approval of the low bid received. Attention was called to the third paragraph on page 2 of the Mobil letter regarding Mobil ' s obligations, and City Attorney Schricker advised that there was no in- tent to amend or modify the Settlement Agreement. Harry Jackson, attorney representing Mobil. Oil Estates (Redwood) Limited, stated that Mobil ' s May 7 letter anticipates cost overrun will occur on the project in excess of the $1.8 million Settlement Agreement. Mr. Jackson advised that the Council should not have the impression that Mobil will proceed to complete projects at costs exceeding the total maximum obligation they have . Mr. Jackson requested Council recognition that the contract is to be awarded at this time, observing that before Mobil enters into a contract to expend the money for a reservoir, some statement should be made by the Council for a public works project funded and super- vised by a private party. .., , MOTION : Councilman Norris moved, seconded by Councilman Barrett, that the bid of Peter Kiewit Sons ' Co. in the -7- t Reg.Mtg. 5/12/75 .. , a_ _._r . ._