O-2006-2895 - Laserfiche WebLink

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: June 12.2006 Appropriation Requested By: .John .JOf'rns Source of Funds: Department: A dmiRistntioll Account Number: Report: Resolution: Ordinance: x Amount Budgeted: Exhibits: Ordinance 2006- Amount Requested: Exhibits: Utility Extension A2reement Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION Prior correspondence to Council and the TIRZ/Redevelopment Authority noted that the developer of Lakes at Fairmont Greens could not secure financing for the development because of significant up front costs associated with the trunk sewer and lift station, even though the TlRZ/ Authority could eventually reimburse the developer. With this cost center removed, the developer was able to secure financing. During 05-06 budget preparation, Council approved $645,000 for the construction of the trunk sewer and lift station based on the understanding that the TIRZ/ Authority would reimburse the City from future increment. This agreement is a Utility Extension Agreement (UEA) that establishes the City's oversight and control over the design and construction of the trunk sewer and lift station. The design and construction contracts would be let/owned by the developer with the City issuing joint checks to the developer/designer or engineer and developer/contractor as certain approvals and milestones are met. New cost estimates are being prepared by the developer's engineers. The agreements provide for the possibility that the bids may exceed budgeted funds (see Section 8 of the UEA). The TlRZ/ Authority approved this agreement at the May 24 meeting. The developer has approved and signed the agreement. Action Reauired bv Council: Consider approval of Ordinance 2006-_ authorizing a Utility Extension Agreement between the City of La Porte, TIRZ #1, La Porte Redevelopment Authority and 65 La Porte, Ltd. APprove~o~~o8il ~~ L ~bm B. feazed., City anag... If fJ-u-lJ~ Date