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Home My WebLink AboutC25570B - Skansa - Conditional AgmtSKANSKA March 19, 2008 City of Palm Desert 73510 Fred Waring Drive Palm Desert, California 92260 Subject: Section 29 AD2004-2 Street Improvements Skanska Job # 15-0509 Skanska USA Civil West California District Inc. 1995 Agua Mansa Road Riverside, CA 92509-2405 Phone 951 684 5360 Fax 951 684-1644 Web www skanska.com Contract No. C255708 Skanska USA Civil West California District, Inc. 1995 Agua Mansa Road Riverside, California 92509 This is a conditional agreement between the City of Palm Desert, herein referred to as "Owner", and Skanska IJSA Civil West California District, inc., herein referred to as "Contractor". This letter of credit, in the amount of $250,000.00, shall serve as guaranty to the Owner for AHRM material placed on the Section 29, Assessment District 2004-02, on October 10`h, 11 `h and 1 Z�h 2007. The Contractor agrees that starting on the last date this asphalt was placed on the referenced project and up to 3 years from that date, if at any time this material shows irregular wear and tear and signs of "failure", (failure is defined as outlined in attachment A) the Owner shall give the Contractor 30 days from the date of notification to mobilize in order to remove and replace this material and perform all other incidental work to the satisfaction of the Owner. It is agreed that if the Contractor should refuse or fail to make the corrections to the Owners satisfaction within a timely manner, the Owner shall be authorized to act upon and cash this letter of credit in order that funds be available to make the necessary corrections. Jac ues eag , J�c�'/� Mark Greenwood Vi esi ent � Skanska U Civil West Director of Public Works City of Palm Desert California District, Inc. SKANSKA Attachment "A" Contract No. C'L5570B List of Warranty Indicators/ signs of "failure" for asphalt concrete on Section 29, Assessment District 2004-02 Signs of Failure 1- Rutting 2- Alligator Cracking 3- Raveling 4- Shoving 5- Potholes Threshold Value Rut Depth equal to 0.5 inch or greater Area of an occurrence of alligator cracking is equal to or greater than 1 sq. yard. Area of an occurrence of raveling is equal to or greater than 1 sq. yard. An occurrence of a localized depression greater than 1 inch. An occurrence of pothole with an area of 1 sq. ft or greater and depth greater than 1 inch. (DRAFT DATED 2/29/08) IRREVOCABLE STANDBY LETTER OF CREDIT NO. S08XXX Amount: $250,000.00 (United States Doilars Two Hundred Fifty Thousand and 00/100) Date of Issuance: March , 2008 Expiration Date: � Applicant: Skanska USA Inc. On behaif of: Skanska USA Civil West California District Inc. 1995 Aqua Mansa Road Riverside, California 92509-2405 Beneficiary: City of Palm Desert 73510 Fred Waring Drive Palm Desert, California 92260 Subject: Section 29 AD2004-2 Street Improvements Skanska Job # 15-0509 Gentlemen: By the order of our client, Skanska USA Inc., on behalf of Skanska USA Civil West California District Inc., 1995 Agua Mansa Road, Riverside, California 92509 (the "Contractor"), we hereby establish our Irrevocable Standby Letter of Credit No. S08XXX in favor of City of Palm Desert, 73510 Fred Waring Drive, Palm Desert, California 92260 (the "Owner'), for a sum not exceeding $250,000.00 (United States Dollars Two Hundred Fifty Thousand and 00/100 only). This Letter of Credit is effective immediately and shall expire at our offices located at 875 Third Avenue, 4'h Floor, New York, New York 10022-7218, with our close of business on , 20 . Funds under this Standby Letter of Credit are availabfe to you against your draft(s) drawn on us at sight, mentioning thereon our Letter of Credit No. S08XXX, accompanied by the original of this Letter of Credit and a manually signed and dated statement by a person purporting to be the authorized officer of the City of Palm Desert (the "Owner"), stating: "The undersigned being a duly authorized officer of the Owner certifies that the amount of the attached draft represents funds due and payable because Contractor has failed to fulfill its contractual obligations to Owner for the AHRM material placed on the Section 29, Assessment District 2004-2 Street Improvements on October 10`", 11`" and 12`" 2007." Letter of Credit No. S08XXX Page Two March _, 2008 This Letter of Credit sets forth in full the terms of our undertaking, and such terms shall not, in any way be modified, amended or amplified by any document, instrument or agreement referred to in this Letter of Credit, in which this Letter of Credit is referred to or to which this Letter of Credit relates. Any mention herein of a contract or order number is for reference purposes only and is not to be construed as being an integral part of this Letter of Credit. We hereby irrevocably undertake to accept your statement, (if drawn in compliance the terms of this Letter of Credit) in the terms referred to in paragraphs above as conclusive proof that the Beneficiary is entitled to the amount drawn. Partial drawings are permitted. Drafts drawn hereunder must be marked "Drawn under Letter of Credit No. S08XXX dated March , 2008." We engage with you that your draft(s) drawn hereunder in compliance with the terms of this Letter of Credit will be honored by us on delivery of documents as specified, if presented at this office on or before Expiry date of this Letter of Credit. This Letter of Credit is subject to the Uniform Customs and Practice for pocumentary Credits (1993 Revision International Chamber of Commerce Publication No. 500. Very truly yours, Authorized signature (Svenska) Authorize Signature (Svenska) ........................................................................� DRAFT APPROVED: For Skanska LC's up to $4M, we need below two joint signers as follows: One signature of One from Panel A(Salvatore Mancini or Conny Ek) with: One signature of One fro Panel B(Barry Ross or John S. Withers) Authorized Signer (Panel A) ISSUE DATE Authorized Signer (Panel B) Drafts/YeagerC i ryPa I m022908.dft VICINITY MAP ASSESSMENT DISTRICT 29 Project 627-05