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SUBJECT
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Consideration to ratify the Construction Agreement between the City of Laredo and International Freight Forwarding, Inc. for the reconstruction and concrete paving improvements to a portion of International Boulevard, including the City's contribution of $450,000.00 which will be paid to the escrow agent as stipulated in the contract and International Freight Forwarding, Inc.'s contribution of $134,546.00, for a total initial project escrow of $584,546.00; and authorizing the City Manager to execute any necessary related documents.
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PREVIOUS COUNCIL ACTION: N/A
BACKGROUND
The City of Laredo has existing easement rights over and across property owned by International Freight Forwarding, Inc. along a portion of International Boulevard. Due to recurring maintenance concerns and the condition of the existing asphalt roadway, the City identified the need to repave the affected portion of the roadway. The City's original intent was to reconstruct the roadway using asphalt.
International Freight Forwarding, Inc. requested that the planned asphalt improvements be upgraded to concrete in order to provide a more permanent roadway surface and reduce future maintenance requirements. The parties subsequently entered into a Construction Agreement establishing the responsibilities of the City and the property owner for the design, construction, funding, and completion of the concrete roadway improvements.
Under the agreement, the parties agreed to establish an escrow account for the project. The City of Laredo is required to deposit $450,000.00, while International Freight Forwarding, Inc. is required to deposit $134,546.00, for a combined initial escrow amount of $584,546.00. The escrowed funds are intended to cover applicable design, construction, escrow, and related project costs associated with the concrete roadway improvements.
The agreement further provides that International Freight Forwarding, Inc. is responsible for the cost difference associa...
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