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J. Reuuest to Authorize Staff to Draw Upon a Letter of Credit for Chapam Corporation The Board reviewed memo from County Attorney Charles Vitunac dated May 5, 1992: TO: Indian River County Board of County Commissioners FROM: Char s Vitunac' County Attorney DATE: May 5, 1992 SUBJECT: REQUEST TO AUTHORIZE STAFF TO DRAW UPON A LETTER OF CREDIT FOR CHAPAM CORPORATION SD -90-05-004 It is requested that the data herein presented be given formal consideration by the Board of County Commissioners at its regular meeting of May 12, 1992. DESCRIPTION AND CONDITIONS: On February 26, 1991, the Board of County Commissioners granted final plat approval for the Treasure Trail Subdivision. The applicant, Chapam Corporation, was required to provide an executed 1 -Year Warranty/Maintenance Agreement to guarantee the performance of the subdivision's publicly dedicated improvements and post security to guarantee the Warranty/Maintenance Agreement. The applicant submitted an Indian River National Bank Letter of Credit for $17,415,75 to satisfy the security requirement. The Warranty/Maintenance Agreement is provided by a developer for the County's protection against faulty subdivision improvements. Following expiration of the 1 -year warranty period, staff inspects the subject subdivision to determine if any repairs to the subdivision are required. If no repairs are required, the Warranty/Maintenance period expires and the posted security is released. If repairs are required, the developer is notified that the required repairs must be completed prior to expiration of the posted security. If the repairs are not complete, the County must act to draw upon the corresponding security which shall fund completion of the required repairs by the County. ANALYSIS: Staff's 1 -year inspection of the subject subdivision revealed that repairs to the subdivision's drainage system were required in order to bring the subdivision into compliance with its corresponding St. Johns River Water Management District (SJRWMD) Stormwater Permit. The applicant was notified that repairs were required and has begun completing the work, pending final approval of remaining repair work by the St. Johns Water River Water Management District. The applicant has requested permission to extend the current Letter of Credit for an additional ninety (90) day period to accommodate completion of the final remaining repair work. Staff has no objection to such a request. However, the current Letter of Credit is due to expire on May 15, 1992 and a renewed or replacement Letter of Credit has not yet been received by staff as of the date of this report. To ensure that there will be no lapse in posted security and to ensure that the County will not incur the cost to complete the final remaining required repairs, staff is requesting 13 MAY 12 1992