10.E.
City Council Meeting - FINAL
- Meeting Date:
- 04/02/2013
- From:
- Michelle D'Andrea, Deputy City Attorney
Information
TITLE:
Authorization for Legal Action: Against American Contractor's Indemnity Company (ACIC) to enforce the provisions of the Presidio in the Pines landscaping bond.
RECOMMENDED ACTION:
Authorize the Interim City Attorney to bring a legal action against American Contractor's Indemnity Company (ACIC) to enforce the provisions of the Presidio in the Pines landscaping bond.
Policy Decision or Reason for Action:
This will be discussed in Executive Session on March 26, 2013.
Financial Impact:
The City will incurr legal fees, but may be able to recover them. This will be discussed in Executive Session on March 26, 2013.
Connection to Council Goal:
This lawsuit is connected to the Council goal of effective governance.
Previous Council Decision on This:
This will be discussed in Executive Session on March 26, 2013.
Options and Alternatives:
This will be discussed in Executive Session on March 26, 2013.
Background/History:
The City required the former developer of Presidio in the Pines subdivision to post a landscaping bond at the time that the subdivision plat was recorded. The former developer purchased the required bond from ACIC. After the former developer defaulted on the project, the City called the landscape bond . ACIC has acknowledged that it is liable to the City under the bond and has partially performed under the bond but is now refusing to pay on the bond or construct the landscaping. The lawsuit will demand payment on the remainder of the bond ($1,390,100) or construction of the landscaping.
Council Action:
04/02/2013 - EAB - Council approved unanimously.
Attachments
No file(s) attached.