HomeMy WebLinkAboutCC 9 BOND REDUCTION 02-06-89TO: WILLIAM HOUSTON, CITY MANAGER
FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
SUBJECT: REQUEST FOR BOND REDUCTION - TRACT NO. 13053
RECOMMENDATION:
That the Tustin City Council at their meeting of February 6, 1989
authorize the reduction of the Tract No. 13053 Faithful Performance Bond
#1253 from $888,200.00 to $355,200.00 and the Labor and Materials Bond
#1253 from $444,100.00 to $177,600.00.
BACKGROUND:
As a part of the approval of Tract No. 13053 for developer J. M. Peters
Company, the following bonding for public improvements was. required:
Faithful Performance ......... #1253
Labor & Materials ............ #1253
Subdivision Warranty .......... #1253A
Monumentation ................ #1254
$888,200.00
$444,100.00
$ 88,820.00
$ 18,000.00
DISCUSSION:
The developer has requested a reduction in the bond amounts in the
maximum of 75% of the original bond amounts for the Faithful Performance
and Labor/Materials bonds. Staff has reviewed this request and concurs
with a reduction but not in the maximum amount of 75%. Due to the
remaining work to be completed inclusive of removal and replacement of
sizeable quantities of curb and gutter, sidewalk, and street paving,
staff recommends a bond reduction of 60% of the original bond amounts as
follows:
From To
Faithful Performance ......... $888,100
Labor and Materials .......... $444,100
$355,200
$177,600
The subdivision warranty and monumentation bonds cannot be reduced or
released at this time.
Bob Ledendecker
Director of Public Works/City Engineer
BL:mv