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HomeMy WebLinkAboutResolution 3593-03-2008A Resolution NO 3593-03-2008 A RESOLUTION FINDING THAT NEWPORT HOLDINGS, INC. HAS NOT PAID FOR THE COSTS OF CONSTRUCTING WATER, SEWER AND/OR DRAINAGE IMPROVEMENTS TO SERVE NEWPORT VILLAGE AT TRINITY WHEREAS, on March 8, 2006 Newport Holdings, Inc. (the `Developer") executed a community facilities agreement m the form of an Informal Developer Agreement (the Agreement") with the Crty of Fort Worth for construction of the water sewer and drainage improvements required to serve Newport Village, and WHEREAS as required by the Policy for the Installation of Community Facilities, the Developer provided a financial guarantee m the form of Development Bond No 886336S issued by Developers Surety and Indemnity Co (the `Surety") m the amount of $355,550 00 to guarantee performance of and payment for the construction of the water sewer and drainage improvements required by the Agreement (the `Bond ') and WHEREAS, Developer contracted with Steed, Inc (the `Contractor") to construct infrastructure required by the Agreement; and WHEREAS, the Contractor has signed a sworn affidavit providing that the Contractor is owed $83 731 43 by the Developer for payment for costs of constructing improvements required by the Agreement and guaranteed by the Bond. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS That the Newport Holdings, Inc. has not paid for the costs of constructing water sewer and/or drainage improvements to serve Newport Village and required by a community facilities agreement m the form of an Informal Developer Agreement executed by Newport Holdings, Inc and guaranteed by Development Bond No 8863365 issued by Developers Surety and Indemnity Co Demand shall be made upon Developers Surety and Indemnity Co under Development Bond No 8863365 to pay said costs of construction. Adopted this 4th day of March 2008 APPROVED ~~=~.~ CITY COUI~CII~ A~~`~ ~""="~ ~~ MAR 0 4 2008 ~' j .~ -~ x y .~ ~ ~ _ 1 „~ ~ ~ y ~~ ~ ys B~f~~ Marty Hendrix ty,S:e:cretary City©tr-esr.~waxGh,T'axa:. f +~ ;~~ Yom' ~'~ '.n '~. ~": '~.~„ ham' ~ , d~ e ! ~ ., Lt ~.-.y City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION Approved on 3/4/2008 Res No # 3593-03-2008 DATE Tuesday March 04 2008 LOG NAME 60NEWPORT REFERENCE NO **G 16070 SUBJECT Adopt a Resolution Finding that Newport Holdings Inc has not Paid for the Costs of Constructing Water Sewer and/or Drainage Improvements to Serve Newport Village at Trinity RECOMMENDATION It is recommended that the City Council adopt the attached resolution finding that Newport Holdings, Inc. has not paid for the costs of constructing Water Sewer and/or Drainage Improvements to serve Newport Village at Trinity in northeast Fort Worth DISCUSSION On March 8 2006 Newport Holdings, Inc (the `Developer") executed a community facilities agreement in the form of an Informal Developer Agreement (the Agreement") with the City of Fort Worth for construction of the water sewer and drainage improvements required to serve Newport Village at Trinity As required by the Policy for the Installation of Community Facilities the Developer provided a financial guarantee in the form of Development Bond No 886336S issued by Developers Surety and Indemnity Co (the `Surety") in the amount of $355 550 00 to guarantee performance of and payment for the construction of the water sewer and drainage improvements required by the Agreement (the Bond") Afterward the plat was filed in accordance with City of Fort Worth policy The Developer contracted with Steed Inc. (the `Contractor") to construct infrastructure required by the Agreement. To date the Contractor is owed $83 731 43 by the Developer for payment for costs of constructing improvements required by the Agreement and guaranteed by the Bond For more than 20 months the Contractor has been working through the Water Department to obtain payment from the Developer for construction services rendered Under the Bond upon receipt of a resolution adopted by the City Council of the City of Fort Worth indicating that the costs of constructing the improvements have not been paid the Surety shall pay the costs for construction of the improvements. Upon adoption of the attached resolution demand will be made on the Surety to collect $83 731 43 to pay the Contractor This project is located in COUNCIL DISTRICT 2 FISCAL INFORMATION/CERTIFICATION The Finance Director certifies that the action will have no material effect on City Funds. Logname 60NEWPORT Page 1 of 2 TO Fund/AccountlCenters FROM Fund/AccountlCenters Submitted for City Manager's Office by: Fernando Costa (8476) Originating Department Head. S Frank Crumb (8207) Additional Information Contact: S Frank Crumb (8207) Logname 60NEWPORT Page 2 of 2