HomeMy Public PortalAbout2002_05_14_r063The Town of
Leesburg,
xrgtnta
RESOLUTION NO.
A RESOLUTION:
PRESENTED
2 0 0 2 - 6 3 ADOPTED
MAKING A REDUCTION AND APPROVING
PERFORMANCE GUARANTEE FOR COMPLETION
May 14, 2002
May 14, 2002
A SUBSTITUTE
OF THE PUBLIC
IMPROVEMENTS IN DRY MILL SUBDIVISION SECTION lA
WHEREAS, Council Resolution #2000-102 adopted on June 13, 2000 approved a corporate
surety bond from the Amwest Surety Insurance Company in the amount of $206,265.00 for Dry Mill
Subdivision Section lA; and
WHEREAS, on June 29, 2001 the Town of Leesburg received notice that the Amwest Surety
Insurance Company became the subject of an Order of Liquidation, Declaration of Insolvency, and
Injunction and all bonds have been cancelled; and
WHEREAS, Powers Homes, the developer of Dry Mill Subdivision Section lA has requested
that the Town Council accept a letter of credit from the Middleburg Bank as a replacement for the
corporate surety bond from the Amwest Surety Insurance Company and is requesting approval of the
same; and
WHEREAS, the town's Director of Engineering and Public Works has reviewed the public
improvements installed to date in Dry Mill Subdivision Section lA and certified that the value of work
performed is $181,265.00; and
WHEREAS, the Director of 'Engineering and Public Works recommends reducing the
performance guarantee for public improvements in Dry Mill Subdivision Section lA and approval of
substitute performance guarantees for Subdivision Section lA.
THEREFORE, RESOLVED by'the Council of the Town of Leesburg in Virginia as follows:
SECTION I. The bond amount for Dry Mill Subdivision Section lA in the amount of
$206,265.00 is reduced to $25,000.00.
SECTION II. The substitute letter of credit from the Middleburg Bank in the amount of
$25,000.00 for Dry Mill Subdivision Section IA in a form approved by the town attorney is approved.
A RESOLUTION:
-2-
MAKING A REDUCTION AND APPROVING A SUBSTITUTE
PERFORMANCE GUARANTEE FOR COMPLETION OF THE PUBLIC
IMPROVEMENTS IN DRY MILL SUBDIVISION SECTION lA
SECTION III. The corporate surety bond from the Amwest Surety Insurance Company in the
amount of $206,265.00 is released contingent upon approval by the town attorney of the substitute letter
of credit from the Middleburg Bank.
SECTION IV. The town manager shall notify the developer that liability for letter of credit
funds has been reduced as outlined in Section I of this resolution and that this reduction does not
constitute acceptance of public improvements by the town or relieve the developer of responsibilities
outlined in the contract for public improvements for Dry Mill Subdivision Section lA.
PASSED this 14t~ day of May 2002.
ATTEST:
of Council
B.j~. We'd, hay~or~~
Town of Leesburg
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