Explanation
1. BACKGROUND
This ordinance seeks authorization for the Director of Public Service to modify a contribution agreement and to accept additional funding from MORSO Holding Co. relative to the construction of the Stelzer Road and Easton Way Intersection Improvements (the “Project”).
Pursuant to Ordinance No. 1088-2017, the City and MORSO Holding Co. entered into a Construction Contribution Agreement, effective June 9, 2017 (the “Agreement”), whereby MORSO Holding Co. agreed to deposit funds with the City in the amount of $860,073.18 toward the completion of the Project.
In September 2017, the City accepted bids for the Project, and the lowest, responsive, responsible, and best bid was higher than the original estimate of construction costs. As a result, it is necessary for MORSO Holding Co. to contribute additional funds to support that effort.
This ordinance authorizes the Department of Public Service to modify the Agreement with MORSO Holding Co. and to accept additional funds in the amount of $42,173.88, for a total developer contribution of $902,247.06.
2. CONTRACT COMPLIANCE INFORMATION
The contract compliance number for MORSO Holding Co. is CC005390, which expires on April 28, 2019.
3. FISCAL IMPACT
The estimated cost to complete the Project is $1,402,247.06, with MORSO Holding Co. contributing a total of $902,247.06 thereto. MORSO Holding Co. already has deposited $860,073.18 with the City pursuant to the terms of the Agreement authorized by Ordinance No. 1088-2017 and will contribute an additional $42,173.88 to support the Project.
4. EMERGENCY DESIGNATION
The Department of Public Service is requesting emergency action be taken in order to allow construction of the project to proceed immediately, thereby allowing the City and MORSO Holding Co. to maintain the current project schedule and to meet community commitments.
Title
To authorize the Director of the Department of Public Service to modify a Construction Contribution Agreem...
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