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HomeMy Public PortalAbout2006_01_10_r004The Town of Leesburg, Virginia RESOLUTION NO. A RESOLUTION: 2006-04 PRESENTED January l0,2006 ADOPTED January l0,2006 APPROVING A SUBSTITUTE PERFORMANCE GUARANTEE FOR PUBLIC IMPROVEMENTS INSTALLED IN LANSDOWNE ON THE POTOMAC SECTION 42 & 43 WHEREAS, Council Resolution #2002-79 adopted on May 29, 2002, approved a corporate surety bond from the American Motorists Insurance Company in the amount of $441,067.00 as security to guarantee installation of public improvements as shown on plans approved by the Director of Engineering and Public Works for Lansdowne on the Potomac Sections 42 & 43; and WHEREAS, Council Resolution #2003-113 adopted on October 15, 2003 approved a reduction of the performance guarantee from the American Motorists Insurance Company in the amount $441,067.00 to $44,107.00; and WHEREAS, Council Resolution #2004-79 adopted on May 25, 2004 approved a time extension to May 20, 2005, and Resolution #2005-124 adopted on August 9, 2005 approved a time extension to May 30, 2006 for completion of the public improvements; and WHEREAS, according to the State Corporation Commission Bureau of Insurance listing dated April 21, 2005, the American Motorists Insurance Company had their Virginia license suspended or otherwise restricted; and WHEREAS, West Goose Creek, LLC, the developer of Lansdowne on the Potomac Sections 42 & 43, has requested that the Town Council accept a corporate surety bond from the ARCH Insurance Company as a replacement for the corporate surety bond from the American Motorists Insurance Company and is requesting approval of the same; A RESOLUTION: -2- APPROVING A SUBSTITUTE PERFORMANCE GUARANTEE FOR PUBLIC IMPROVEMENTS INSTALLED IN LANSDOWNE ON THE POTOMAC SECTION 42 & 43 WHEREAS, this subdivision is located in Loudoun County and the town's bonded improvements are water and sanitary sewer only; and WHEREAS, the Director of Engineering and Public Works recommends approval of a substitute performance guarantee for Lansdowne on the Potomac Sections 42 & 43. THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows: SECTION I. The substitute corporate surety bond from the ARCH Insurance Company in the amount of $44,107.00 is approved as security to guarantee installation of the public improvements for Lansdowne on the Potomac Sections 42 & 43 as shown on plans approved by the Director of Engineering & Public Works. SECTION II. The corporate surety bond from the American Motorists Insurance Company in the amount of $44,107.00 for Lansdowne on the Potomac Sections 42 & 43 is released contingent upon receipt of the substitute corporate surety bond from the ARCH Insurance Company in the amount of $44,107.00. PASSED this 10'~ day of January 2006. ATTEST: ~C. ~Jmstatid,~l~Iayor "' ~ Town of Leesburg R06:Lansdowne42&43 SubstBond