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8 preparedmhi.ch awarded the contract to the lowest bidder, rejected all other bids, waived any informality in the accepted bid, and made a finding that public necessity requires the Council to consent to the subletting of certain protions of the work to certain listed sub—contractors not originally listed. This was followed by discussion of the provisions of the resolution and the facts constituting the public necessity. The City Attorney called the attention of the Council to the fact that, two letters of protest were on file, one from Hub Pacific Company and one from Stevenson Pacific, Inc. t; 6W Councilman Spillers offered RESOLUTION 2157 AWARDING CONTRACT FOR CONSTRUCTION OF POLICE STATION BUILDING: CONSENTING TO THE SUB—CONTRACTING OF CERTAIN PORTIONS OF SAID WORK; AND, FINDING THAT PUBLIC NECESSITY REQUIRES SAID SUB—CONTRACTING and moved its adoption, seconded by Councilman llreiss and carried on roll call. COUNCILMAN WEISS REGARDING CINNABAR OPERATIONS. Councilrban Weiss remarked about a. letter in the Forum Column PM under the title Mercury Mining. He stated that he made inquiries on this question some time ago and was informed that no formal contract is on file in the City Clerk's office. He requested that the City Manager be instructed to submit to the Council at the first meeting in January, 1957, a complete and comprehensive report on this project. He further stated that at about the same time a use permit was granted for cinnabar mining on the properties known as Farm Hills, adjacent to Stulsaft Park. It is his recollection that said use permit contained certain stipulations as to time, etc. Councilman Weiss was of the opinion that it thus appears logical that at the same time as report is submitted on the Stulsaft Park proposal, they should have a report on every other facet bearing on the cinnabar operations in this community. Councilman Weiss moved that this matter be referred to the City Manager for a report a the first meeting in January, 1957, seconded by Councilman Spillers. Mr. C. B. Currie stated that.no formal lease agreement between the City and Oddstad Homes had been prepared. He stated that he now has a letter from Oddstad Homes binding them to the City. This is in agreement with the terms stated at prior meetings with the City. Mr. IW" Currie presented the letter to the Clerk to read to the Council. The letter reads as follows: • This will confirm my understanding of the terms of the Lease between the City of Redwood City of Redwood City and me with regard to the awarding of this lease to me by the Council of Redwood City. I have recently been made aware of the fact that formal lease was never executed, and the following is ny understanding of the terms and conditions of such lease: 1. Lease shall be subject to all of the terms and conditions of the Call for bids dated September 7, 1955, and all of the terms and conditions as set forth in my letter of proposal of September 22, 1955 and October 282 1955- ,29 The City is to receive as royalty, an amount equal to 11% of the sales price of the mercury extracted from the ore and thereafter the profits.derived from the sale of the mercury shall be split equally between the City and the undersigned, after deducting the expense of mining and processing the ore and the 11% gross rayalty paid to the City. 3. Our understanding was that the lease would commence not before February 1, 1956, or when necessary permits were granted for cinnabar operations, whichever date was later, the term of the lease being one yar from that date. On April 30, 19562 after extended hearings, a Use Permit was granted to permit operation of a plant on Harbor Road in Redwood City. It required over two months thereafter, to construct the plant and put it into operation. Since only then were we in a position to commende mining operations, it is our opinion that the lease should start July 1, 1956. As indicated in my proposal, it is our feeling that if a mutually satisfactory operation is conducted, the term of the lease should be extended in accordance with standard mining practice. The cost of raining and processing the ore is guaranteed not to exceed $27.00 per ton, and the amount charged as an expense shall be $27.00 per ton or actual expense, whichever is lesser. If you desire a formal lease executed, please furnish same. A. F. Oddstad Councilman Spillers stated that after hearing this letter that he could not see any reason why the City manager needs to make a report. He withdrew his second to the motion. Mr. Currie stated that it would be to the best interest of the City not to have the ore taken from the ground until after the rains. He was of the opinion that the July lst date was in order. This was followed by discussion -in regard to the date of the lease. The City Attorney stated that no extensions could be provided for without re—advertising I'