RES 87145 - Laserfiche WebLink

Park Homeowners Association had already retained counsel for their possible lawsuit relating defective construction. In fact, the project had had a somewhat tortured history (chronology attached). The original developer sold the project to a contractor, who died while the project was in the early phases and the project was repossessed by American Savings and Loan. American Savings obtained the necessary building permits and then resold the project to yet another developer, who then hired a southern California contractor to finish the job. Finally, as a result of the October 1986 appearance by the neighbors, the City Council directed that staff pursue legal action against American Savings if necessary to obtain compliance with the public improvement obligations of the original developer. Analysis American Savings has officially maintained that it has no legal obligation to do the work, but it nevertheless has consented as a gesture of goodwill. The terms that have been worked out are as follows: 1. American Savings will give the City a $20,000 check in exchange for a release from further obligations relating to the public improvement agreement for Tract 4821. 2. The Hyde Park Owners Association has retained a contractor who has agreed to finish the outstahding work for $19,300. The City will release money directly to the Hyde Park Owners Association based upon progress on the job. 3. Of the remainder, $566.09 will be presented to Jim and Ann Dillon, neighbors, whose fence was destroyed by a negligent contractor on the Hyde Park job, and who have never been reimbursed for the cost of their fence repair. 4. That leaves $133.91, which could be retained by the City as a cost of administration of the contract or otherwise directed at the City Council's pleasure. SR 87:137