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MEMORANDUM TO: Mayor Ruth H. Carter R Members of City Council FROM: John D. Havens, City Attorney DATE: January 30, 1997 RE: Tezak Haulage Road • III ~II~II~II~~II~II sss Attached is a resolution that Council may wish to adopt for purposes of authorizing the Mayor to execute a License Agreement between the City and Tezak Heavy Equipment Company. Inc. ("T.H.E."). The License Agreement would facilitate the construction of a haulage road from Tunnel Drive (near its intersection with U.S. Highway 50) [o T.H.E.'s quarry and mining operations west and northwest of the City's Water Treatment Plant and surrounding property. The haulage road would run through the City's property, which is the reason the License Agreement is needed. The roadway from Tunnel Drive to the mining operations will be paved and maintained by T.H.E. Once constructed, this roadway will allow for almost all truck traffic to :md from the mining operations to use the haulage road instead of Tunnel Drive. Establishment of a haulage road will be beneficial to the City in that maintenance burdens on Tunnel Drive should be significantly reduced. Furthermore, truck traffic on Tunnel Drive should decrease significantly and be less bothersome to neazby residents who live south of Tunnel Drive. Thus, impacts upon residents from T.H.E.'s mining operations will be mitigated somewhat, but certainl!~ will not be eliminated. As Council knows, affected citizens who live near to Tunnel Drive have opposed the continuation and expansion of T.H.E.'s mining operations. Efforts have been made to resolve differences between the parties, but a[ this time [here appear to be many unresolved matters of contention between T.H.E. and local residents. The Ciq• has generally remained neutral with respect to those disputes, which has been the desire of the members of the Public Works Committee. The haulage road, if authorized by Council, will be constructed and maintained at T.H.E.'s sole cost. The roadway will cross over certain water supply lines connecting the City's settling ponds with the water treatment plant. Because of their age, these two 30" water supply lines will be replaced and then encased (in concrete or steel) prior to the construction of the haulage road. T.H.E. will pay for the encasement and one-half of the cost of the replacement of these two lines. The other half of the replacement costs will be paid by the City in anticipation of additional useful life of the lines. This seemed fair to the Committee and will constitute a Water Department cost of approximately $40,000. T.H.E.'s costs to conswct the road has been estimated to be somewhere between $500,000 and $1,000,000, depending upon the time of the estimate. In any event, T.H.E.'s costs will be very significant, while the City's future road maintenance costs on Tunnel Drive should decrease.