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18;7 Dr. Long defended this fact by stating that there were some 3900 feet of trails on his property and the people now using it did not go beyond his property. Councilman Gerton stated he agrees with Mr, Johnson's remarks in part but also felt that the trails on Dr. Long's property would be the beginning of a trail sys- tem in Pleasanton. He also stated that this was the first hillside development within the City which will be a low density and a high class development, and will add something that Pleasanton does not have now. Mayor Reid emphasized that the issue before the Council is that a determination of public benefit must be made and has this changed from the original proposal made a year ago. After considerable discussion of this matter, it was moved by Councilman Gerton and seconded by Councilman Beratlis that the City of Pleasanton determine that the proposed trail system for Tract No. 2892, Longview, is a public benefit. The roll call vote was as follows: AYES: Councilmen Beratlis, Gerton and Mayor Reid NOES: Councilmen Pearson and Spiliotopoulos ABSENT: None Review of Bidsi Award of Contract Re: Constr~'~.tion of Improvements on Black Avenue Mr. Campbell presented the results of the bids on the construction of improve- ments on Black Avenue and recommended that the low bid in the amount of $55,842.24 from S. & J. Engineering Contractors be accepted and a contract awarded. It was moved by Councilman Beratlis and seconded by Councilman Spiliotopoulos that Resolution No. 70-104, awarding a contract for the installation of street improvements on Black Avenue to S. & J. Engineering Contractors, No. 2 Sheldon Court, Walnut Creek, in the amount of $55,842.24, be adopted. The roll call vote was as follows: AYES: Councilmen Beratlis, Gerton, Pearson, Spiliotopoulos and Mayor Reid NOES: None ABSENT: None Report Re: Review of Bids; Determination of Course of Action; Fire Station No. 3 Mr. Fales read his report dated May 4, 1970, regarding the construction of Fire Station No. 3, to be located at the intersection of Santa Rita Road and Las Positas Boulevard. Mr. Fales emphasized the fact, that although there was money from the sale of bonds which could only be used for the construction of the Fire Station, there was not money to man the station during 1970-71. Mr. Fales further stated that the General Fund revenue estimates for 1969-70 reveal a 10% reduction in actual annual revenue from the original estimates. He stated that these deficits amounting to $140,000.00 occur primarily in the lack of sales taxes, building and other permits and public works insDection fees. Mr. Fales indicated that the low bid on the Fire Station was some $18,000.00 less than the estimate and doubted that the City would receive such a low bid again. Mr. Fales stated that the only alternative would be to build the Fire Station now and use the building, with the permission of the bond counsel, for another City purpose on an interim basis. Mr. Fales concluded by recommending that the bids for the construction of Fire Station No. 3 be rejected and that construction of the station be deferred to the Spring of 1971. Considerable discussion ensued between Mr. Fales and the Council regarding this matter and was concluded by the Council asking Mr. Fales to investigate the alter- native he suggested in his report and discuss this again at the next meeting. ~eport of the Assistant City Manager Re: Proposed Water Service Fee Increase Mr. Edgar reviewed his report, dated May 1, 1970, regarding the proposed water rate increase necessitated by Zone No. 7 increase. Mr. Edgar pointed out that the proposed rate structure is a complete departure from the rate structure to which the City is currently accustomed and will provide a lower minimum charge and a charge for the actual water used and also off-set the 38% increase charged the City by Zone No. 7. After considerable discussion, it was moved by Councilman Gerton and seconded by Mayor Reid that Ordinance No. 602, adopting the following Water Rate Schedule, be introduced: