TITLE
Recommendation to authorize the issuance of a refund in the amount of $158,683, to Far West Crescent, LLC, for a gas main and services installation project at the intersection of Walnut Avenue and Crescent Heights Street in Signal Hill. (Citywide)
DISCUSSION
During Fiscal Year 2017, Far West Crescent, LLC (Applicant), paid a deposit of $248,843 for gas main and services installation for the Crescent Square project (WO.170016). The estimate was based on the existing City of Long Beach fee structure that included Pipeline Engineering/Inspection, Pipeline Construction, and other fees/services associated with the project. The scope of the project changed during construction (Applicant completed the excavation, backfilling, and paving) resulting in a significant reduction in project costs. As a result, the Applicant is eligible for a refund in the amount of $158,683. In accordance with Long Beach Municipal Code Section 3.48.040, refunds exceeding $10,000 must be approved by the City Attorney and City Council. Approval to process the refund is requested on behalf of the Applicant.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on October 18, 2018 and by Revenue Management Officer Geraldine Alejo on October 22, 2018.
TIMING CONSIDERATIONS
City Council action is requested on November 13, 2018, to expedite processing of the refund.
FISCAL IMPACT
The amount of $158,683 will be refunded from the Gas Fund (EF 301) in the Energy Resources Department (ER). There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
ROBERT DOWELL
DIRECTOR OF ENERGY RESOURCES
APPROVED:
PATRICK H. WEST
CITY MANAGER