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HomeMy Public PortalAbout2013_05_14_R059 Perf Guar for PMW Farms Sec 1 and Time Extension The Town of Leesburg, Virginia PRESENTED: May 14, 2013 RESOLUTION NO. 2013-059 ADOPTED: May 14, 2013 A RESOLUTION: MAKING A REDUCTION OF THE PERFORMANCE GUARANTEE FOR PUBLIC IMPROVEMENTS AT PMW FARMS SECTION 1 (TLCD-2009-0002) AND PMW FARMS SECTION 2 (TLCD-2010- 0005); AND AUTHORIZING A TIME EXTENSION FOR COMPLETION OF THE PUBLIC IMPROVEMENTS FOR PMW FARMS—SECTION 2 (TLCD-2010-0005) WHEREAS, the Town's Director of Public Works has reviewed the improvements installed to date for PMW Farms Section 1 and certified that the value of work performed is $3,132,100; and WHEREAS,the Town's Director of Public Works has reviewed the improvements installed to date for PMW Farms Section 2 and certified that the value of work performed is $3,171,600; and WHEREAS, a Corporate Surety Bond issued by Lexon Insurance Company in the amount of$3,494,000 was provided by the developer and approved by the Council to guarantee installation of public improvements at PMW Farms Section 1; and WHEREAS, a Corporate Surety Bond issued by Lexon Insurance Company in the amount of$3,524,000 was provided by the developer and approved by the Council to guarantee installation of public improvements at PMW Farms Section 2; and WHEREAS,the Director of Public Works recommends reducing the performance guarantees for public improvements installed at PMW Farms Section 1 and at PMW Farms Section 2; and WHEREAS, GTIS-HOV Festival Lakes, LLC, the developer of PMW Farms—Section 2 has not completed all the required public improvements in accordance with the approved -2- A RESOLUTION: MAKING A REDUCTION OF THE PERFORMANCE GUARANTEE FOR PUBLIC IMPROVEMENTS AT PMW FARMS SECTION 1 (TLCD-2009-0002)AND PMW FARMS SECTION 2(TLCD-2010-0005); AND AUTHORIZING A TIME EXTENSION FOR COMPLETION OF THE PUBLIC IMPROVEMENTS FOR PMW FARMS—SECTION 2 (TLCD-2010-0005) construction drawings and Town standards within the two-year period agreed to in the contract for public improvements; and WHEREAS, the developer has requested a time extension to complete the public improvements; and WHEREAS, the Town's Director of Public Works recommends a time extension to May 14, 2013 for PMW Farms— Section 2. THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows: SECTION I. The Corporate Surety Bond issued by Lexon Insurance Company for PMW Farms Section 1 in the amount of$3,494,000 is reduced to $361,900. SECTION IL The Corporate Surety Bond issued by Lexon Insurance Company for PMW Farms Section 2 in the amount of$3,524,000 is reduced to $352,400. SECTION III. A time extension to May 14, 2014 for PMW Farms— Section 2 is approved. SECTION IV. The Town Manager shall notify the developers that liability for the Corporate Surety Bonds has been reduced as outlined in Section I and Section II 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 at PMW Farms Section 1 or PMW Farms Section 2. -3- A RESOLUTION: MAKING A REDUCTION OF THE PERFORMANCE GUARANTEE FOR PUBLIC IMPROVEMENTS AT PMW FARMS SECTION 1 (TLCD-2009-0002)AND PMW FARMS SECTION 2 (TLCD-2010-0005); AND AUTHORIZING A TIME EXTENSION FOR COMPLETION OF THE PUBLIC IMPROVEMENTS FOR PMW FARMS—SECTION 2 (TLCD-2010-0005) PASSED this 14th day of May, 2013. Kris C. Umstattd, Mayor Town of Leesburg ATT. .T: Clerk of Co P:\Resolutions\2013\0514 PMW Farms Section 1 and 2 Bond Reduct.doc