HomeMy WebLinkAboutS- 4 Remaining Payments to be paid in full to Hazama Corp. r6t A
� ���� The City Azusa SA of
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Police Department
John Broderick,
Chief of Police
AGENDA ITEM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JOHN BRODERICK,CHIEF OF POLICE & SAM GONZALEZ, ,...Q
VIA: JOE HSU,INTERIM CITY ADMINISTRATOR
DATE: APRIL 6, 1998
SUBJECT: REMAINING PAYMENTS TO BE PAID IN FULL TO HAZAMA CORP.
Background
Hazama Corporation, general contractor for the Azusa Police Department Addition and Alteration
Project,has completed work totaling more than 50%of the contract amount. It is permissible at this
time to make remaining payments in full for actual work completed, since satisfactory progress is
being made. However, the City will continue to withhold $175,955.74 retention until the entire
project is satisfactorily completed.
Findings
Federal regulations limit the amount of arbitrage earnings the City may earn. It is advisable at this
time to pay retention to Hazama Corporation to avoid the risk of returning investment earnings back
to the lender.
Recommendation
Staff recommends that Council authorize full payment to the Hazama Corporation for actual work
completed and not withhold 10%retention at this time.
Sam Gonzalez, Lt., for
John Broderick, Chief of Police
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Phone# (626) 812-3200 • 725 North Alameda Avenue, Azusa, California 91702-2504 • FAX#(626) 8119308