5.2 Well 10 Purchase Agreement
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Engineering City Engineer Wagner January 24, 2022
PRESENTER(s) REVIEWED BY: ITEM #:
City Engineer Wagner City Administrator/Finance Director Flaherty
City Attorney Kendall
5.2 – Purchase Agreement
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
Is a strong organization that is committed to leading the community through innovative
communication.
X Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends the City Council approve the purchase agreement of PID #118-245-001020 for
potential use as a municipal well.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
Yes No
BACKGROUND/JUSTIFICATION:
In concurrence with the Capital Improvement Plan, the City Council directed staff to find a suitable location
and complete a test well in 2022. City Staff has located a property adjacent to Pump House #4 which
appears sufficient for constructing Well #10. Well #10 is included in the 2020 Otsego Drinking Water
System Master Plan to facilitate source water needs for the growing drinking water demand of Otsego.
The purchase agreement is written to allow the City to perform its due diligence to determine the water
quality and potential water quantity prior to a May 24, 2022 closing date. City Council has negotiated a
price of $35,000 for the parcel with the property owner.
Staff recommends approval of the purchase agreement and will continue the process of due diligence
ahead of the May 24, 2022 closing date.
SUPPORTING DOCUMENTS ATTACHED:
• Purchase Agreement
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve Purchase Agreement for PID #118-245-001020 in the amount of $35,000 and all
associated transfer costs. The property is to be used as Otsego Well #10.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund 601 – Water Utility
Yes