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CITY MANAGER S REPORT Page 3
APRIL 2 2012 CITY COUNCIL MEETING
SETTLEMENT AND RELEASE AGREEMENT REGARDING LINEAR PARK BONDS
would secure completion of the Public Improvements of Conditions 28 and 29 by
depositing Bond 5691375 The terms of the Letter Agreement DSIC provided the
City with a Subdivision Improvement Performance Bond in the penal sum of
98 185 and a Subdivision Improvement Labor and Material Bond in the penal sum
of98 185 each identified as Bond No 5691375 98K Bond
DSIC remains obligated under the respective bonds for Tract 3073 and TCN remains
obligated to complete the construction of corresponding linear parks until City
releases the corresponding bonds
The City agrees to release and return the originals of the Tract 3438 Park Bonds
upon completion of the improvements on the Tract 3073 Linear Park in accordance
with the drawings dated September 9 2011 by RD 17 TCN or surety through
construction or payment of penal sum by surety
Bond No 5691375 Secures completion of the Public Improvements which TCN
was required to construct for the Mossdale Landing Business Park which included
Conditions No 28 and 29 performance bond posted December of 2006 in penal
sum of98 185
On November 7 2006 the City and TCN executed a Park Improvement Agreement
for Tract 3073 in which TCN inter alia agreed to construct a portion of the Linear
Park designated as Parcel B of Tract 3073 construction of which would be secured
by a performance and payment bond from an admitted surety insurer and the City
agreed inter alia to pay TCN reimbursements as provided in Paragraph 1 of the
Park Improvement Agreement Tract 3073
In accordance with the terms of the Park Improvement Agreement Tract 3073
DSIC provided the City with a Subdivision Improvement Performance Bond in the
penal sum of287 00 403 and a Subdivision Improvement Labor and Material Bond
in the penal sum of143 50 701 each identified as Bond No 5691355
Considering all the covenants and agreements contained in the settlement
agreement all parties have agreed that within 20 days of the effective date of the
settlement agreement DSIC shall pay to City the sum of Fifty Three Thousand Six
Hundred Dollars53 600 which contingent on RD 17 completing the Linear Parks
in Tract 3438 and Tract 3073 The City agrees to release and return the originals of
the 98k bonds to counsel for DSIC upon payment by DSIC of the payment
referenced in paragraph 1 above The City shall adopt a Resolution confirming the
acceptance of this Agreement and the release of the 98K Bonds within twenty 20
days of the receipt of the payment provided
RD 17 was required to perform levee improvements to satisfy the 100 year flood
protection mandated by the StaYe and Federal regulation
RD 17 is near completion of the levee improvements and has offered to construct
both linear parks for a total cost of approximately 592K provided that the City
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