Explanation
1. BACKGROUND: The Department of Public Utilities, Division of Power has a need to enter into a Guaranteed Maximum Reimbursement Agreement with The Gravity Project 2, LLC, hereinafter designated the “Developer”.
On behalf of The Gravity Project 2, LLC, a private developer seeking to procure electric service with the Division of Power (DOP), DOP has agreed to reimburse the developer for a portion of the cost, up to $190,000 for the construction of concrete switchgear, manholes, five concrete transformer pads, and approximately 1,000 linear feet of electric duct bank. This work will be bid out through the city bid process, and the construction contract will be executed and administrated by the developer. DOP will provide all inspections at no cost.
Most of the work will be on private property at 455 W. Broad Street in the Franklinton planning area. However, there will be electric duct bank crossings installed on W. State Street and McDowell Street adjacent to the same parcel.
2. EMERGENCY DESIGNATION: Emergency designation is requested in order to meet the developer’s schedule.
3. VENDOR INFORMATION: The Gravity Project 2, LLC Tax ID# 83-1164189; DAX#033987, Expiration Date 11/4/2022
4. ECONOMIC IMPACT: By reimbursing the developer for costs related to procuring electric service from the Division of Power, the Division is able to enter into a long-term agreement with the developer to continue using the Division for service. By doing so, this will increase the Division’s net revenue, which will allow for increased system maintenance, system expansion, street lighting programs, and kilowatt-hour tax proceeds for the City’s general fund.
5. FISCAL IMPACT: The Division of Power will reimburse The Gravity Project 2 LLC up to a maximum of $190,000.00 from the Electricity Permanent Improvements Fund - Fund No. 6310. A transfer of funds within the Electricity Permanent Improvements Fund - Fund 6310 will be necessary, as well as an amendment to the 2019 Capita...
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