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In December 2004, the City Council approved an agreement by which the Remick partnership, in exchange for the City's providing a paved access road and utilities that would serve the partnership development as well as the reservoir site, would grant to the City the property necessary for the reservoir and related easements and would pay the City $28,500. That Agreement (dated January 28, 2005) is attached. Engineering staff has worked with the Planning Department staff and the City's Planning Commission over the past six months to develop the final tank location, and the layout and vertical/horizontal alignment of the tank access road, which, as mentioned, will also serve as a private road for residential development of the Remick property. The Planning Commission recently approved a Planned Unit Development plan for the partnership property, including the location of the reservoir, rough-graded road and seven building lots. That development is also on the Council's August 15, 2006 agenda for consideration. Engineering staff has also been working with the Remick partnership to describe with greater specificity the terms and conditions of the Purchase and Sale Agreement. A First Amendment to the Purchase and Sale Agreement for the tank site parcel has been prepared and is attached. .The Amendment describes more specifically the improvements to be constructed on the Remick Partnership property. For example, unlike the original Agreement, -the First Amendment describes (by way of an exhibit) an 18 foot wide paved roadway with shoulders, concrete masonry walls, water and sewer lines of a specific diameter; the removal (and replacement) of trees, etc. The First Amendment also provides that if the partnership, rather than the City, constructs the particular improvements, then the City will reimburse the partnership for its pro rata share of the improvements. From the City's point. of view, however, the fundamental consideration of the original Agreement -- the partnership's transferring the necessary property to the City for the reservoir and the access road, plus the payment of $28,500 -- remains intact. BIDDING PROCESS Reservoir and Rough-Graded Access Road Sealed bids for the reservoir and rough graded access road (the project) were opened on May 25, 2006. Prior to the bid, the consultant engineer's latest estimate for this project was $3.4 million. There were a total of four bids received, which ranged from $3,942,206 to $5,572,770. Three of the four bids were within ten percent (10%) of the lowest bid, indicating a very competitive bid grouping for this type and size of construction project. The low bid of $3,942,206 was received from Gateway Pacific Contractors Inc. All bid documents were found to be in order. Gateway Pacific has successfully constructed a number of similar buried concrete reservoirs and has considerable experience with similar work. The contractor's past work was verified to be satisfactory. A bid summary for all bids received is included below: SR 06:152 Page 5 of 13