Explanation of Request: In May 2020, in conjunction with the Right of Way Permit, Ocean Breeze East Apartments, LLC provided the City a Letter of Credit (NO. 27021) in the amount of $157,005.26 which expires May 2021.
In March 2021, the City received the design engineer’s final certification and the project’s as-builts. Staff performed a final inspection and confirmed the project’s conformity to the approved plans.
Per Chapter 2 - Subdivision, Platting & Development Regulations in the Engineering Department Design Criteria Handbook and Construction Standards, upon a project’s completion a bond can be reduced to 5% and held for one (1) year to protect against defects in workmanship and material.
The Public Works Department Engineering Division requests approval to reduce the surety, by the amount of $135,505.26 (95% of the construction costs - see attached bond reduction calculation) for the completion of the improvements in the right-of-way and extend the surety bond for an additional year. This will leave the remaining $21,500.00 to be held by the City for 1 year as a warranty against defects.
Upon the Commission’s decision, Ocean Breeze East Apartments, LLC will submit a replacement surety.