12-21-1993 - Tract #48997 - Bond Substation - U.B.S. PartnersCity of West Covina
Memorandum
TO:
FROM:
SUBJECT:
City Manager and City Council
Harry W: Thomas
TRACT NO. 48997
BOND SUBSTITUTION - U.B.S. PARTNERS
AGENDA
ITEM NO.. c-5
DATE December 21, 1993
SUMMARY: U.B.S. Partners are requesting the substitution of its two
Bonds with Pacific States Casualty Company, who are in
liquidation proceedings, instituted by the California
Insurance Commissioner. The Bonds will be substituted for
the same amounts and will now be with American Motorist
Insurance Company.
BACKGROUND
At the time Tract No. 48997, located on Woodside Drive south of Amar Road, was approved
by City Council, Surety Bonds for the placement of grading, drainage, streets, storm drains,
sanitary sewers, street lights, water systems and other appurtenant and incidental work were
submitted and accepted. That bonding company, Pacific States Casualty Company has
entered liquidation process as of July of 1993. As a result of this liquidation, U.B.S.
Partners is requesting American Motorist Insurance Company, by and through Lou Jones
Associates, its managing agent, to replace Pacific States Bonds.
ANALYSIS
The substitute bonds from American Motorist Insurance Company will be for the same
improvements as the .Pacific States Bonds and for the same bonding amount. Other than the
bonding company, nothing else will change.
FISCAL IMPACT
None.
ALTERNATIVES
None, the bonds from the liquidated company must be replaced.
RECOMMENDATION
Staff recommends the City Council authorize the release of Pacific States Casualty Company
Bond Nos.7590 and 7591 in the amount of $337,000 and $10,000, respectively, and accept
the American Motorist Insurance Company Bonds 3SM799 270 and 3SM799 265, in the
amount of $337,000 and $10,000, respectively, as replacement bonds.
arry W. Thomas
Public Works Division
Manager/City Engineer
HWT:AGV:cn
tr48997.bnd