REPORT TO THE CITY COUNCIL
March 23, 2017
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
SUBJECT
Title
Approve Amendment No. 1 to the Copper River Ranch Water Supply Implementation Agreement approved by Fresno City Council November 17, 2016
Body
RECOMMENDATION
The Administration recommends the City Council approve Amendment No. 1 to the Copper River Ranch Water Supply Implementation Agreement (Agreement) for the Developers of the Copper River Ranch Development (Copper River or the Project Area). Amendment No. 1 is provided for the convenience of the Developers to address default conditions caused by the Developer's failure to timely fulfill the obligations required by the Agreement.
Amendment No. 1 to the Agreement has been approved as to form by the City Attorney.
EXECUTIVE SUMMARY
On November 17, 2017, the Fresno City Council approved a Water Supply Implementation Agreement (Agreement) with the Developers to provide 4,900 GPM of firm water supply capacity within the Copper River Ranch Development Area (Project Area) in accordance with a mutually-agreed upon project completion schedule. The Agreement also included a payment schedule for approximately $3.8 million to recover the Developers' proportionate share of the cost of connecting to the City's existing water system, including the Northeast Surface Water Treatment Facility (NESWTF). The signatory parties for the Developers are Mr. Darius Assemi and Mr. Gary McDonald. On March 1, 2017, the Developers defaulted on the Water Supply Implementation Agreement (Agreement) authorized by the Fresno City Council by failing to timely fulfill the obligations set forth in the Agreement.
The Administration recommends City Council approve Amendment No. 1 to the Copper River Ranch Water Supply Implementation Agreement (Agreement) for the Developers of the Project Area. Amendment No. 1 is provided for the convenience of the Developers to address default conditions caused by the Devel...
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