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277 <br /> In response to question, Director of Public Works Pusich <br /> advised that it is anticipated that construction of the <br /> tank at grade would cost about $1.65 million, while the <br /> depressed alternate would cost about $1.76 million. Mr. <br /> Pusich observed that a year and a half ago when the first <br /> tank was planned, it was contemplated the cost would be <br /> under one million dollars. However, inflation has caused <br /> oft construction costs to rise. Mr. Pusich replied to ques- <br /> tions concerning details of the anticipated $100,000 <br /> r additional cost for construction of the depressed tank. <br /> Clay Shank, 540 Compass Drive, representing the Board <br /> of Directors of the Redwood Shores Homeowners Associa- <br /> tion, asked where funds would be obtained to pay any <br /> difference which might exist between the actual con- <br /> struction cost of the tank and the amount owed by the <br /> developer, in the event total cost should exceed the <br /> amount owed. Mr. Fales advised that the source of <br /> such funds is not known, but if they cannot be raised <br /> and the tank cannot be constructed, then the building <br /> moratorium which was lifted contingent upon the tank <br /> being built would have to be reimposed. <br /> Mr. Shank advised that the Board of Directors of RSHA <br /> supports construction of the tank at grade, being unable <br /> to find justification for the added expense of building <br /> a depressed tank. <br /> Ron MacQuarrie, 558 Keelson Circle, stated that it is <br /> his belief that the Board of RSHA does not want to face <br /> the possibility of an assessment if the cost of the tank <br /> exceeds that owed the District by the developer. He <br /> suggested the developer might be willing to contribute <br /> lbw the added cost of constructing the tank below grade, <br /> and urged the Council to require the tank to be con- <br /> structed below grade. <br /> Don Warren, 350 Marine World Parkway, representing Mobil <br /> Oil Estates (Redwood) Ltd. , advised that the steel for <br /> construction of the tank was acquired last summer and <br /> his organization had gone to bid on the assumption that <br /> the Army Corps of Engineers would promptly grant the <br /> City's application for a permit to construct the tank <br /> on the original site. Bids received were over estimate, <br /> the permit has not been granted after more than a year, <br /> and the City has decided to proceed on a site for which <br /> no permit is required pending receipt of the Corps per- <br /> mit for the preferred site. Mr. Warren urged Council <br /> to made a decision now with regard to the selection of <br /> an at-grade or depressed tank in order that Mobil may <br /> proceed to prepare the necessary design and plans and <br /> go to bid soon in order that bidders may base their <br /> bids on the lower summer costs of construction. Mr. <br /> Warren replied to questions concerning the $1.8 million <br /> commitment of Mobil, observing that most of it would <br /> have to be spent on the construction of the tank. <br /> ows <br /> Discussion followed and Mr. Warren, Mr. Fales and Mr. <br /> time Pusich replied to questions concerning the items to be <br /> included in the $1.8 million settlement; the proposed <br /> -3- <br /> Reg.Mtg. <br /> 2/3/75 <br />