HomeMy WebLinkAbout14 RELEASE FAITHFUL PERFORMANCE BOND FOR LENNAR/MARBLE MOUNTAIN PARTNERS• A enda Item 14
- - ~ ~ AGENDA REPORT Reviewed: ~
City Manager
Finance Director N/A
MEETING DATE: JULY 6, 2010
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: CHRISTINE A. SHINGLETON, ASSISTANT CITY MANAGER
DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
SUBJECT: RELEASE OF FAITHFUL PERFORMANCE BOND FOR LENNAR/MARBLE
MOUNTAIN PARTNERS, LLC
SUMMARY
Pursuant to a Cooperative Agreement between the City and Lennar/Marble Mountain Partners,
LLC, 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 06-01) was formed, bonds were sold, and the City received funds for a portion of the
Developer's fair share of Legacy backbone improvements. Lennar/Marble Mountain Partners, LLC
is requesting release of their last remaining bond for the infrastructure improvements.
RECOMMENDATION
It is recommended that the City Council release Faithful Performance Bond, No. 6311583 in the
amount of $7,044,557.
FISCAL IMPACT
There is no fiscal impact to the City with this action.
BACKGROUND
The City and Lennar/Marble Mountain Partners, LLC (the Developer) 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.
The City received five bonds in the total amount of $32,994,089 for the Developer's fair share cost
of improvements. Since January 2008 the City has released four of the bonds in the amount of
$25,949,532. The last remaining bond in the amount of $7,044,557 is now ready to be released.
Christine A. Shingleton
Assistant City Manag
S. Stack, P.E.
of Public Works/City Engineer