HomeMy Public PortalAbout1992_02_25_R025The Town of
Leesburg,
Virginia
RESOLUTION NO.
A RESOLUTION:
PRESENTED February 25, 19923
92-25 ADOPTED February 25~ 1992
APPROVING A SUBSTITUTE PERFORMANCE GUARANTEE FOR THE
PAXTON SEWAGE PUNrPING STATION
Paxton Sewage PumpLngStation is hereby setatone year.
PASSED this 25th day of February, 1992.
ATTEST ..
Clerk of Council
Robert E. Sevila, Mayor
Town of Leesburg
WHEREAS, Council Resolution #92-6 approved a cash performance guarantee in the amount of
$126,300.00 as security to guarantee inst~ll-tion of public improvements by the Paxton Development
Corporation, as shown on plans approved by the Director of Enginee~ and Public Works for the Paxton
Sewage Pumping Station; and
WI-IEREAS, the Paxton Development Corporation, the developer of the Paxton Sewage Pumping
Station, has presented a letter of credit from Farmers and Merchants National Bank in the amount of
$126,300.00, confirmed by Crestar Bank, in place of the approved cash performance guarantee.
WHE~, the term of the letter of credit confirmed by Crestar from Farmers and Merchants
Bank is for one year with a provision for automatic renewal thereafter; and
WHEREAS, the normal term for a performance guarantee is 2 years as listed in the town's contract
for inst~llstion of public improvements.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows:
SECTION I. The letter of credit from Farmers and Merchants National Bank, cont'n~ned by
Crestar, in the amount of $126,300.00 is approved in place of the approved cash guarantee in the amount
of $126,300.00 from the Paxton Development Corporation to guarantee the installation of public
improvements for the Paxton Sewage Pumping Station.
SECTION II. The initial term of the contract for insta~llation of public improvements for the