5/21/1991 - Laserfiche WebLink

Home Browse Search

MAY 21 1991 BOOK 8, FA E431 ANALYSIS: Since the existing letter of credit will expire on June 3, 1991, the county will at that time be left with a breached contract and no financial security. The staff is requesting that the Board of County Commissioners adopt a resolution authorizing the staff to draw down the entire amount of the letter of credit prior to the June 3, 1991 expiration date, should the required improvements remain incomplete on May 22, 1991. The County is to use the -funds to have the necessary improvements constructed and return any overage, after all costs associated with the construction are complete and paid for, and after the one year warranty period expires. RECOMMENDATION: Staff recommends that the Board of County Commissioners adopt the attached resolution authorizing staff to draw upon the full amount of the $72,000.00 Letter of Credit for Copeland's Landing Phase I. ON MOTION by Commissioner Scurlock, SECONDED by Commissioner Eggert, the Board unanimously approved staff's recommendation and adopted Resolution 91-63, certifying the default of Copeland's Landing under the terms of Contract SD -87-05-06 and authorizing draft on Barnett Bank of Central Florida, N.A., letter of credit No. 073690 dated 12/06/90. Dean Leuthje with Carter and Associates, representing the developer, explained the request is for a 30 -day extension because construction work is very near to being complete, down to one valve being changed and just a little bit of painting. Construction can be done before the June 3rd deadline of that letter. The one timing aspect is the effective certification of the DER which takes two to three weeks so we need about a 30 -day extension. Commissioner Scurlock asked why staff is not recommending the 30 -day extension. Planning Director Stan Bowling recapped the history of the project. He mentioned the existing letter of credit expires June 3, 1991 and emphasized that we have had two contracts before on this. The contract deadline passed February 27, 1991 and we have been telling them to get the project finished. He felt at this point in time the Board should authorize staff to draw upon the letter of credit. He thought what Mr. Leuthje is talking about is the ability, perhaps, to come in with another letter of credit and extend it. Once the June 3rd deadline passes, the letter of credit is gone and there is no more security to back a contract that already has been breached. Regardless of what the Board does, he felt authorization should be given to draw on the letter of credit even if an extended letter of credit is allowable. Chairman Bird noted that although we have already voted, we could reconsider the item. 53