2016-09-19 CC Packet Reduce LOCw
1bcr`tV1l1£ Mayor and Council Request for Action
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September 15, 2016
SUBJECT: CONSENT - HUNTERS PASS ESTATES 2NDADDITION - LETTER OF CREDIT
REDUCTION No. 4
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider
approval of the following motion:
MOTION TO: Reduce Letter of Credit No. 2220 held as security for the Hunters Pass 2nd
development from $15,973 to no less than $9,273, conditioned on any outstanding balances
owed to the City being paid in full.
BACKGROUND: Nathan Jones of Tollberg Homes has requested a reduction to the letter of
credit held for the Hunters Pass 2nd Addition. The Letter of Credit is held as performance and
warranty security for the road improvements and various site improvements and is currently in
the amount of $15,973.
Assuming the Developer is current with all fees owed to the City and based on work completed
to date, it is recommended that Letter of Credit No. 2220 be reduced to no less than $9,273. The
reduced balance is believed to be sufficient surety and is consistent with the development
agreement.
KEY ISSUES:
Current amount of LOC is $15,973 and it is recommended that it be reduced to $9,273.
Recommendation is consistent with agreements and approvals.
POLICY CONSIDERATIONS: It is City policy to have all letter of credit reductions
approved by the City Council
FINANCIAL CONSIDERATIONS: There are no financial implications for this request
LEGAL CONSIDERATIONS: The City has the legal authority under the Development
Agreement to reduce the letter of credit upon completion of the required improvements or deny
requests for reduction if the required improvements are found unacceptable.
Submitted Through: Adam Nafstad, City Administrator-PWD
On File: LOC Reduction History
M:\Public Data\City Council\Council Packet Information\2016\091916\Hunters Pass 2 RCA (LOC Reduct 4).doc
Meeting Date: September 19, 2016
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