Existing boundaries for the water treatment facility limit options for future plant and distribution system expansion. To provide room for future modifications, Public Works has been purchasing land along the west boundary of the treatment facility as it has become available over a long period of time. The department has reached a tentative purchase agreement with the owner of a lot located at 2421 Belknap Avenue (South 180.70’ of Lot 1, Sandra Subdivision). A fair market value of $122,000 has been established for the property. The value was determined and an appraisal was completed by an independent certified appraiser, followed by a review of that appraisal by a second independent certified appraiser in accordance with City policy. Accordingly, we are seeking the Council's approval to complete this purchase for $122,000.

Water Plant property purchases are listed in the FY2010 Capital Improvement Plan. Sufficient money is available for the purchase of this parcel in the Water Production Capital Expenditures Account.

Staff recommends that Council approve purchase of the south 180.70 feet of Lot 1, Sandra Subdivision for $122,000.