REPORT TO THE CITY COUNCIL
December 5, 2019
FROM: MICHAEL CARBAJAL, Director
Department of Public Utilities
SUBJECT
Title
Approve Amendment No. 6 to the Copper River Ranch Water Supply Implementation Agreement approved by Fresno City Council on November 17, 2016 (Council District 6)
Body
RECOMMENDATION
The Administration recommends the City Council approve Amendment No. 6 to the Copper River Ranch Water Supply Implementation Agreement (Agreement) for the convenience of the Developers to address defaults and failures to timely fulfill Agreement obligations by the Developer of the Copper River Ranch Development (Copper River or the Project Area)
EXECUTIVE SUMMARY
The Fresno City Council approved the Agreement on November 17, 2016, whereby Developers are to provide 4,900 GPM of firm water supply capacity within the Project Area in accordance with a mutually-agreed upon project completion schedule. The Agreement also includes a payment schedule for Developers' fair share contribution (Development Fee) related to the City's Northeast Surface Water Treatment Facility (NESWTF). The Agreement has previously been amended five times for the convenience of the Developers to extend deadlines set forth therein. The current amendment request is for a sixth extension so Developer's deadline to construct PS 371 may be extended by two years to December 1, 2021. The Administration recommends the City Council approve the amendment.
BACKGROUND
Pursuant to the Agreement, Developers are obligated to provide water for the Copper River Ranch Development via the construction of new wells, pay a fair share fee for the NESWTF, and construct a Disposal Bypass Line - all to occur based upon an agreed timeline. Developers have previously defaulted on agreed upon deadlines five times. For the first three defaults, City provided deadline extensions in exchange for Developer accelerating its payment for the NESWTF fee. The NESWTF fee is now paid in full and developer seeks...
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