AgdaPkt 2002-11-04 - Laserfiche WebLink

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IO.F'z Staff is now proposing that IAC's contractor install the improvements to the intersection of Maple and Lathrop Streets. Engineering looked at the work and estimated that the costs for the City to bid such a small project would exceed the cost ceiling provided by lAC. This work was not part of either the City's or the developer's original scopes because the original plan had been to close off Lathrop. This additional work is similar to the original improvements in that the work benefits the developers of the Franklin Area and that this cost is therefore legitimately reimbursable by Shea's successor in interest. The City entered into an Improvement Agreement with lAC for the subdivision. This agreement included the contemplated closure of Lathrop Street at Maple Street. The City and Redevelopment Agency have now indicated the desire to leave Lathrop open to traffic. The action recommended to you therefore includes an amendment to the Improvement Agreement between the City and lAC to reflect this fact. In 1999-2000, the Redevelopment Agency was in the process of acquiring the parcels between Maple Street and the creek for a child care site. However, as the planning for this project progressed, it became clear that the site would only work if the creek was box culverted; and the cost to box culvert was more than four times the other site acquisition costs. The childcare center at this location was abandoned, and thus the need to close Lathrop. In fact, some of the businesses in the area had petitioned to have the street remain open; and City staff reconsidered the merits of the street closure. Alternatives 1. Do nothing, leaving the irregular pavement at the junction of the two streets 2. Bid the job, taking much longer and at possibly higher cost. Fiscal Impact The original $192,000 was committed in the Reimbursement agreement with lAC but the funds were not appropriated, in part because it was not clear in which budget year the payment would be made. Now it is clear that the request from lAC will occur in 2002-03, staff recommends the appropriation of $267 038 in'" a Age~ :v's 2002-03 t~udget to enab e the Agency to pay the original commitment pk.. the 575,000 cost to improve the Maple/Lathrop intersection. It should be noted that lAC has not yet requested payment under the original Reimbursement Agreement for all or part of the $192,000 discussed eadier. When they do submit the request for payment, the Agency will audit their numbers to determine if we agree with their request. ,x.~ /,? , Michael Church Ed Evere',tt Executive Director City Manager Attachments 1. Proposed Amendment to Reimbursement Agreement and associated resolution. 2. Proposed amendment to Improvement Agreement and associated resolution. 2