Quote Quoting jk
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Doesn't make any difference.

That statement was their permission to allow the fence there, therefore, no adverse possession. You had a license to occupy and they cancelled your license.

They knew you were on their property and allowed it so it is not adverse to the govt.

I read the statute as the acceptance of the fence as a common mistake of where the property line is. There was no mistake of fact. They, and you, knew where the correct line was and is.
Here's where it gets tricky. The document, due to an error in measurement, authorized a fence 3ft over the line. Actually the fence was 8ft over the line. The City took the position that the document never authorized the fence to be where it was, so I read it as adverse, and that document is moot.