HomeMy Public PortalAbout2006_05_09_r082
The Town of
Leesburg,
Virginia
PRESENTED:Mav 9. 2006
RESOLUTION NO.
2006-82
ADOPTED: May 9. 2006
A RESOLUTION: APPROVING A SUBSTITUTE PERFORMANCE GUARANTEE FOR
PUBLIC IMPROVEMENTS INSTALLED IN POTOMAC CROSSING
SECTION 10
WHEREAS, Council Resolution #2002-152 adopted on September 10, 2002, approved a
corporate surety bond from the Lumbermens Mutual Casualty Company in the amount of
$1,646,282.66 as security to guarantee installation of public improvements as shown on plans
approved by the Director of Engineering and Public Works for Potomac Crossing Section 10;
and
WHEREAS, Council Resolution #2005-109 adopted on July 12, 2005 approved a
reduction of the performance guarantee from the Lumbermens Mutual Casualty Company in the
amount $1,646,282.66 to $393,120.00; and
WHEREAS, according to the State Corporation Commission Bureau of Insurance listing
dated April 21, 2005, the Lumbermens Mutual Casualty Company had their Virginia license
suspended or otherwise restricted; and
WHEREAS, Arcadia Development Company, the developer of Potomac Crossing
Section 10, 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 Lumbermens
Mutual Casualty Company and is requesting approval of the same;
WHEREAS, the Director of Engineering and Public Works recommends approval of a
substitute performance guarantee for Potomac Crossing Section 10.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as
follows:
-2-
A RESOLUTION: APPROVING A SUBSTITUTE PERFORMANCE GUARANTEE FOR
PUBLIC IMPROVEMENTS INSTALLED IN POTOMAC CROSSING
SECTION 10
SECTION I. The substitute corporate surety bond from the Arch Insurance Company in
the amount of$393,120.00 is approved as security to guarantee installation of the public
improvements for Potomac Crossing Section 10 as shown on plans approved by the Director of
Engineering & Public Works.
SECTION II. The corporate surety bond from the Lumbermens Mutual Casualty
Company in the amount of $393,120.00 for Potomac Crossing Section 10 is released contingent
upon receipt of the substitute corporate surety bond from the Arch Insurance Company in the
amount of$393,120.00.
PASSED this 9th day of Mav 2006.
. U stattd, Mayor
Town of Leesburg
ATTEST:
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R06:PotCrsSeclO SubstBond