HomeMy WebLinkAboutAgenda Statement 1982/01/05 Item 15TEM TIT
COUNCIL AGENDA STATEMENT ,
Item 1~ 5
Meeting Date 1/5/82
Resolution ~~/7'~r Declaring L&L Development in default and
making demand upon Sumitomo Bank of California, its surety'.
UBMITTE BY: C$~ty Engineer
(4/5ths Vote: Yes Nox )
L&L Development has abandoned their work on Bonita Haciendas Sub-
div'sion. This resolution would require demand that its surety
put up the funds necessary to improve the property.
REC MMEND~ION: That Council adopt the resolution.
COMMISSION/BOARD RECOMMENDATION: N/A
DIS USSIO
On ecember 11, 1979, the City Council approved the map for Bonita
Hac endas'~and accepted the dedication of public streets within the
bou darieS of this subdivision. Prior to approving the map, the
Cit entered into a subdivision improvement agreement with L&L
Dev lopmemt Company in which L&L agreed to improve the property in
acc rdance with the Subdivision Map and the City Code. The improve-
men s were guaranteed by letters of credit issued by the Sumitomo
Ban of C~.lifornia.
L&L started to grade the property and to construct the public
imp oveme~.ts and apparently ran into financial difficulties.
Des ite numerous contacts from Engineering staff, they have been
eit er unwilling or unable to complete the improvements. The sub-
di ision ~.greement required the improvements to be completed by
th 17th of December and L&L is now clearly in breach of the
ag Bement;.
Th present condition of the property could result in erosion pro-
bl ms with consequent damage to downstream properties. Staff also
ha some concern that the unfinished public streets could constitute
a angeraus condition of public property resulting in liability to
th City. In orc?~r to either put the property into a safe condition
or to complete the improvements as called for in the subdivision
ag Bement, it will first be necessary for the Council to declare
L& Development in default of their obligation to the City and to
ma e a demand upon the funds that have been set aside to secure the
ag eemen~..
FI CAL I1~PACT: None to City if the action is taken.
~~~
Form A-~113 (Rev. 11/79)