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HomeMy WebLinkAboutTract 30030 - Release 1 Yr Maintenance Security (Alpine Lane) - Sound Management, LLCCITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST: Release One Year Maintenance Security for Tract 30030 (Alpine Lane) SUBMITTED BY: Mark Greenwood, City Engineer APPLICANT: Sound Management, LLC Mr. Phil Rafnson 1109 Xylon Avenue South Bloomington, MN 55438 DATE: May 13, 2004 Recommendation: By minute motion, authorize the City Clerk to release the subdivision improvement maintenance security for Tract 30030 in the amount of $15,579.00. Background: Tract 30030, Alpine Lane, is located north of Frank Sinatra Drive and west of Portola Avenue, adjacent to the Kaufman and Broad project. The development plan provided for the creation of residential lots and a public street system. A bond, which was originally posted for the construction of the various public improvements, was released in May 2003, and an Irrevocable Standby Letter of Credit in the amount of $15,579.00 was accepted for the one year maintenance period as is required by the Palm Desert Municipal Code. The Public Works Department has recently re -inspected this project to insure that all improvements remain as they were originally accepted in May 2003. The one year maintenance period is now complete and staff recommends that the City Council authorize the release of the maintenance obligation. Submitte Mark Green ' ood, P. City Engineer Approval: AC for Deve op nt Services Michael Errante, P.E. Director of Public Works City Manager Irrevocable Standby Letter of Credit No. 337202 Date: May 23, 2003 Beneficiary: City of Palm Desert Amount: $ 15,579.00 Sound Management, LLC. 1109 Xylon Avenue South Bloomington, Mn. 55438 Re: The Boulders at Palm Desert, Tract # 30030 Alpine Lane To Beneficiary: We hereby establish our irrevocable Standby Letter of Credit in your favor, by order of Sound Management, LLC., 1 109 Xylon Ave. South, Bloomington, Mn. 55438. The amount set forth above will be available to you by submission of your Sight Draft(s), through proper clearing channels (consult your bank), accompanied by this original Letter of Credit and Beneficiary's officially -signed statement certifying that Customer has failed to comply with requirements of the City and has been so notified in writing. Each draft must state on its face, "Drawn under Canyon National Bank Letter of Credit No. 337202 dated May 23, 2003. Drafts may not be presented for purposes that pre -date this Letter, or under any circumstances, later than the expiration of the Letter on May 23, 2004. This Letter of Credit is transferable only upon our prior approval and payment of an appropriate transfer fee. We hereby agree to duly honor drafts properly drawn on, and in strict compliance with the terms of, this Letter of Credit, on presentation during normal banking. hours to this bank at 1711 E. Palm Canyon Drive, Palm Springs, CA 92264, ATTN: Note Dept. This Letter of Credit is subject to the law of the State of California, including the Uniform Commercial Code, and International Chamber of Commerce rules pertaining to Uniform Customs and Practice for Documentary Credits (ICC Publication #500, 1993 revision) TO BE VALID, THIS LETTER OF CREDIT MUST BE SIGNED BY TWO OF THIS BANK'S CORPORATE OFFICERS. CANYO NATIONAL BANK By. By: Robert M. Cross B.D. King Senior Vice President Vice President Chief Credit Officer .,...a' Commercial Lo 1