REPORT TO THE CITY COUNCIL
March 22, 2018
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
SUBJECT
Title
Approve Amendment No. 3 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. 3 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. 3 is provided for the convenience of the Developers to address default conditions caused by the Developers' failure to timely fulfill the obligations required by the Agreement. In exchange for an extension to complete the construction of certain water supply facilities, the Developer has agreed to pay $567,623.50, which is the remaining balance due on the Developer's Development Fee obligation. Developer shall make the final payment by March 2, 2018.
EXECUTIVE SUMMARY
On November 17, 2016, the Fresno City Council approved the Agreement with the Developers of the Copper River Ranch Development (Developer) 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 included a payment schedule whereby Developer is to pay City a total of approximately $3.8 million for Developer's proportionate share of the cost of connecting the Project Area to the City's existing water system, including the Northeast Surface Water Treatment Facility (NESWTF). The signatory parties for the Developer are Mr. Darius Assemi and Mr. Gary McDonald.
On March 1, 2017, Developer defaulted on certain water supply construction obligations under the Agreement. In response to a notice of default, Developer requested an amendment to the Agreement for a one time extension to fulfill project conditions. In exchange, Developer...
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