HomeMy WebLinkAboutCC 10 BOND REDUCTION 04-17-89 ~ NO. 10 ,
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TO:
WILLIAM HUSTON, CITY MANAGER
FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
SUBJECT: REQUEST FOR'BOND REDUCTION - TRACT NO. 12763
RECOMMENDATION:
That the Tustin City Council at their meeting of April 17, 1989
authorize the reduction of Tract No. 12763 Faithful Performance Bond
#5241-0525 from $1,138,000.00 to $284,500.00 and the Labor and Materials
Bond #5241-0525 from $569,000.00 to $142,250.00.
BACKGROUND:
As a part of the approval process of Tract No. 12763, the developer, The
Irvine Company, was required to post the following bonds pertaining to
the public improvements:
Faithful Performance ....... #5241-0525 ...... $1,138,000
Labor and Materials ........ #5241-0525 ...... $ 569,000
Subdivision Warranty ...... ,#5241~0525 ...... $ 113,800
Monumentation ............... #5241-0526 .... ~. $ 32,000
DISCUSSION:
The Irvine Company (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/Material bonds. Staff has reviewed this
request and concurs with same due to the remaining work being relatively
minor and its value being well under the remaining 25% of the bond
amounts. The requested reductions would be as follows:
From To
Faithful Performance
Labor and Materials
$1,138,000
$ 569,000
$284,500
$142,250
The subdivision warranty and monumentation bonds cannot be reduced Or
released at this time.
Bob Le~d[en'decker
Director of Public Works/City Engineer
BL:mv
THE IRVlN COMPANY
Marc~28, 1989
Mr. Bob Ledendeeker
Director of Public Work
CITY OF TOST/N
300 Centennial Way
Tustin, California 92680
The Irvine C~ currently has a bond c~ file with the city of Tustin
for streets, utilities and la~pe ~mprovements within Tract 12763.
~ bond (#52410525) is in the amount of $1,138,000.
At the present time, the only work. rema/ning covered by this bond consists
of the Final Map course of paving on Parkcenter, 'Legier and Heritage Way
with an associated cost of apgrox/mately $96,000 ar~ a portion of
landscap~ along Bryan Avenue from the Edison s~ation to Myford Road with
an assoc~~ cost of ap~zuximately $105,000. Ail other work is either
complete or the dollars associated with this ~ork have been deposi~ with
tbs City of Tustin to cause this work to be oc~)l~ un~.r the City's
The Irvine Company would like to request a 75% reduction in the bond
amount so that we may inc=ass~ our bond ca[mbility for other projects.
Sincerely,
Tosh Neminsky
Project Manager
~ TUSTIN PUeLIC WORKg DEPT.
550 Newport Center Drive, P.O. Box I, Newport Beach, California 92658-8904 · (714) 720-2000 .