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Council approves extra local match to preserve CDBG-DR Sunset Neighborhood water and sewer project
Summary
Council authorized the city to cover construction cost overruns so the Sunset Neighborhood water and sewer replacement—funded primarily by a roughly $1M CDBG-DR grant—would proceed; staff said construction material inflation raised total project cost to about $1.265M.
Council approved a resolution April 28 authorizing the City of Orange to provide a final local match for a Community Development Block Grant-Disaster Recovery (CDBG-DR) project in the Sunset Neighborhood after construction costs rose.
City staff explained the grant originally covered $1,000,000 in project costs (about $783,000 for construction, $117,000 for engineering and $100,000 for administration). When construction bids and costs increased, staff said the overall project cost rose to about $1.265 million; the city agreed to cover the difference so the grant would not be forfeited.
"Construction costs have gone up since then," a staff presenter told council, saying the city "had to bite the bullet" and pay the additional amount to keep the grant and complete the neighborhood's water and sewer replacements.
Council voted to approve the resolution authorizing the mayor and/or city manager to execute required documents and to provide the local match so the project could proceed. Staff said neighborhood residents should see completed improvements once work is finished.
The motion carried by voice; the resolution formalizes the city's commitment to cover the overrun so grant-funded infrastructure work may be completed.
