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9, 91 This was followed by discussion. Councilman Herkner stated that he would like the records to show that if the City does not take a stand at this time and the sales tax passes in the County, then the people of Redwood City would still have to pay the sales tax without benefit to Redwood City. The motion carried o4 roll call with Councilman Spillers voting NO and Councilman Britschgi being noted absent. CITY ENGINEER JAIN COMMUNCIATION REGARDING COWIRIBUTION TOWARD DEVELOPMENT OF MARSHALL STREET FROM WALNUT TO „ MAPLE STREET. The Clerk read the following letter submitted by the City Engineer: "Please refer to the recent action wherein the City Council agreed to pay the costs of the center twenty feet (201) of paving on that portion of Marshall Street between Walnut Street and Maple Street, as a consideration for the developer of Marshall Square, dedicating and improving an eithty foot (80t) right of way. A maximum of $40500.00 was tentatively set for this contribution. It has not been the policy of the State Highway Department to permit a direct contribution from gas tax funds to a street project unless the project was constructed and public bids taken for at�least that portion of the project toward which a gas tax contribution was being made. It has been suggested that the City contribute toward the cost of the right of way acquisitionrather than toward the cost of construction in carder to eliminate the need for public bid. We have checked with the State Highway Department, and they have given their approval to the City contributing to a maximum of #4,500.90 toward the right of way acquistion. This amount represents only a portion of the actual cost of the entire right of way to b e acquired, based upon recent appraisals for other partions of Marshall Street recently acquired. It is our roe tion that this method of contribution of gas tax funds be approved by the City Council. In order to a void delay, we have requested the State Highway Department to revise the Memorandum of Agreement for expenditures of gas tax funds, now being prepared by the State, to construction as originally submitted. Very truly yours, Glenn M. Jain, City Engineer" Councilman Spillers moved approval of the City Engineer's recommendation, seconded by Councilman Herkner. Mr. C. Be Currie, representing the property owners, stated that he had a deed for the right of wary and his client is prepared to enter into an agreement with the City for full improvements. He raised the question of the City's share in the expense ($4,500 for'the 201) and he ganted to know if the Council had made a definite stand as to the limit they would spend. The reason he brought this up was the possibility of the figure being too low after the bids are opened. This was followed by discussion. Mr. Currie asked the Council to first open the bids and then, if necessary, give further consideration to the possiblity of the City paying more than the $4,500. Mr. Jain stated that rather than have to go back and have the State reallocate funds, he suggested that, if necessary, the City could possibly absorb the inspection cost. Councilman Spillers included, in his motion that they hold up the matter of the $4,500 open for further consideration. The motion carried. Councilman Spillers moved that the City Attorney proceed in whatever procedure he feels is proper, seconded by Councilman Stout and carried. ATTORNEY REPORT REGARDING INDUSTRIAL WAY PROPERTY ACQUISTION. This report was made by Chester We Lebsack, acting attorney for the City in this matter. The Clerk read the letter wherein Mr. Lebsack asked for Council approval giving him the authority to pay $8,000 for parcels 42 and 43 which are the parcels owned by Mr. Disney and involved in the above entitled improvement district. Councilman Stout moved approval of the payment as requested, seconded by Councilman Spillers. Councilman Granger asked if this was in order. Mr. Currie stated that in all probability this will have to be reassessed. Councilman Granger asked that this be subject to approval of the City Attorney. Councilman Spillers included this in his motion which carried. FURTHER CONSIDERATION PLANNING COMMISSION APPROVING USE PERMIT TO SHELL OIL COMPANY SUBJECT TO COUNCIL APPROVAL. Councilman Spillers moved that this matter be turned over to the City Manager for a report back in one week, seconded by Councilman Stout. Ure W. Martin, representing Shell Oil Company, stated that he would see if he could get approval of the expenditure($561.00) for moving of the sign by his company. The motion carried. FURTHER CONSIDERATION PLANNING COMMISSION R ECOUKENDATION TO APPROVE J. D. TEHANSY REQUEST FOR VARIANCE TO ALLOW