HomeMy WebLinkAbout09 REL BONDS/LENNAR/MARBLE MTN PTNERS 01-15-08AGENDA REPORT
MEETING DATE: JANUARY 15, 2008
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
SUBJECT: RELEASE OF FAITHFUL PERFORMANCE BONDS FOR LENNAR/MARBLE
MOUNTAIN PARTNERS, LLC
SUMMARY
Pursuant to a Cooperative Agreement between the City and Lennar/Marble Mountain Partners, LLC, related to
the construction of the Valencia Avenue/Armstrong Avenue improvements, the Developer was required to post
Faithful Performance Bonds for their fair share of the Tustin Legacy Backbone Infrastructure Program.
Subsequently, a Community Facilities District (CFD 06-1) was formed, bonds were sold, and the City has
received funds for a portion of the Developer's fair share of Legacy backbone improvements. Lennar/Marble
Mountain Partners, LLC has requested release of their Faithful Performance Bonds to reflect City receipt of
CFD 06-1 funds.
RECOMMENDATION
It is recommended that the City Council release Faithful Performance Bonds, No. 24020614, No. 08745352,
and No. 929355472 in the total amount of $17,400,280.
FISCAL IMPACT
There is no fiscal impact to the City with this action.
BACKGROUND
The City and the Developer (Lennar/Marble Mountain Partners, LLC) entered into a Cooperative Agreement in
February 2005 that required fair share participation in the Tustin Legacy Backbone Infrastructure Program.
The Agreement identified infrastructure improvements to be funded by the Developer as their fair share for
development of Legacy Parcels 23, 24, 35, 36, and 37. The Agreement also provided for the establishment of
a Community Facilities District (CFD) to fund the Developer's portion of the Tustin Legacy Backbone
Infrastructure Improvements. Prior to establishment of a CFD and award of the Valencia Avenue/Armstrong
Avenue Project the Developer posted Faithful Bonds for their fair share costs of these improvements.
The City received five bonds in the total amount of $32,994,089 for the Developer's fair share of Legacy
Backbone Infrastructure Improvements. CFD 06-1 has been formed, bonds have been sold at a public sale,
and the City has received funds for a portion of the Developer's fair share of backbone infrastructure
improvements. The City acknowledges that there will be future adjustments to the fair share distribution of the
Tustin Legacy Backbone Infrastructure Program costs that may affect the Developer's fair share responsibility.
At this time the City is comfortable releasing Lennar/Marble Mountain Partners, LLC Faithful Performance
Bonds No. 24020614 in the amount of $6,844,453, No. 08745352 in the amount of $7,828,148, and No.
929355472 in the amount of $2,727,679 for a total amount of $17,400,280.
Christine A. Shingleton Tim D. Serlet
Assistant City Manager Director of Public Works/City Engineer
CAS:TDS:ccg:Releas of Faithful Perf bond for Lennar.doc