AGENDA MEMO

CITY COUNCIL

MEETING DATE: April 19, 2010

Issue Statement

Approval of a resolution declaring a default and demanding payment under a certain letter of credit for the bituminous base repair, and the final bituminous surface course for James Peter Court in the amount of $12,120.00. RESOLUTION

Background

The James Peter Court Subdivision was approved via Ordinance No. O-02-05, on February 22, 2005. The subdivision consists of 6 residential lots and a new street (cul-de-sac). The development is located immediately east of Cass Avenue and within the 7200 block. The subdivision is 75% built out with five of the six residential lots built. The developer has the following public improvement:

Bituminous Base Repair-Bituminous Surface Course

The proposed road work was bid with the City’s annual road maintenance contract. Attached is the schedule for the road work, see Attachment 1.

The Planning and Development Committee discussed the James Peter Court Subdivison deficiencies at their September 28, 2009 meeting. Mr John Farano, Jr. was present at the meeting and requested an extension due to the current state of the economics. The Committee’s recommendation was to provide a 60 day extension, or a completion date of November 23, 2009 to complete the revised deficiencies. On October 5, 2009 the City Council approved Resolution R-66-09 declaring a default and demanding payment under a certain letter of credit. Recently, the City Attorney has been in communication with the bank representatives and the City is required to provide an amended resolution for the outstanding improvement with the revised value, see Attachment 2. Please note the following public improvements were forgiven based on that Mr. Farano was going to build his residence on the remaining lot beginning in November or December of 2009:

Sidewalk Installation-Fronting Lot 1-Forgiven

Minor Grading –Lot 1 Grading Forgiven

As of Agenda date Mr. Farano has not applied for a building permit. Regardless, when a permit is issued the property owner will be responsible for the abovementioned items.

Committee/Staff Recommendation

This item was not presented to the Committee due to time constraints. Staff recommends approving the resolution declaring a default and demanding payment under a certain letter of credit for the bituminous base repair, and the final bituminous surface course for James Peter Court in the amount of $12,120.00.

Alternate Recommendation

Not approving the resolution.

Decision Mode

This item will be considered by the City Council on April 19, 2010.