HomeMy WebLinkAboutSR - C25570B - Conditional Agmt - Sec 29 AD 2004-02 Contract No. C25570B
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: Authorize Execution of Conditional Agreement in Support of
Letter of Credit for Assessment District 2004-02
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
APPLICANT: Skanska USA Civil West
1995 Agua Mansa Road
Riverside, California 92509-2405
DATE: April 24, 2008
CONTENTS: Conditional Agreement
Vicinity Map
Recommendation:
By Minute Motion, authorize Mark Greenwood, P.E., Director of
Public Works, to execute the Conditional Agreement in support of
the letter of credit between Skanska USA Civil West and the City of
Palm Desert.
Discussion:
During the placement of asphalt rubber hot mix paving for the Section 29
Assessment District 2004-02 (A.D. 2004-02), concerns were raised with respect
to the material quality. After much discussion and analysis it was determine that
the most expeditious course of action in resolving these concerns would be for
the contractor, Skanksa USA Civil West, to post a negotiable letter of credit with
the City of Palm Desert in the amount of$250,000.
The purpose of the letter of credit is to provide a financial guarantee and avenue
for recourse in the event that the intended pavement life is not fully realized. In
order to secure the irrevocable stand-by letter of credit a conditional agreement
specifying the terms and conditions quantifying levels of pavement failure has
been prepared.
Staff Report-Authorize Execution of Conditional Agreement for A.D.2004-02
Page 2 of 2
April 24, 2008
Therefore, staff recommends that City Council, by minute motion, authorize Mark
Greenwood, P.E. Director of Public Works, to execute said Conditional
Agreement on behalf of the City of Palm Desert.
Department He :
Mark Greenwood, P.E.
Director of Public Works
Approval:
Homer Cro aul Gibson
ACM for Devel ment Services Finance Director
�ITY COt7NC�eTzoN:
A,.PPROVED DENIED
Carlos L. Ortega �ECEIVED aTHER .
City Manager ��TZNG D�TE - r /�
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A�sE�i'r s
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VB�tIFIEI) BY:
'�ri.c,�.nal on File � th City Clerk's Offic�
G:IPub WorkslStaff Reports120081April 24107 Conditional Agreement for Letter o(Credit with Skanska AD 29 2004-021Authorize MG to execute Conditional
Agreement.doc
Contract No. C25570B
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: Authorize Execution of Conditional Agreement in Support of
Letter of Credit for Assessment District 2004-02
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
APPLICANT: Skanska USA Civil West
1995 Agua Mansa Road
Riverside, California 92509-2405
DATE: April 24, 2008
CONTENTS: Conditional Agreement
Vicinity Map
Recommendation:
By Minute Motion, authorize Mark Greenwood, P.E., Director of
Public Works, to execute the Conditional Agreement in support of
the letter of credit between Skanska USA Civil West and the City of
Palm Desert.
Discussion:
During the placement of asphalt rubber hot mix paving for the Section 29
Assessment District 2004-02 (A.D. 2004-02), concerns were raised with respect
to the material quality. After much discussion and analysis it was determine that
the most expeditious course of action in resolving these concerns would be for
the contractor, Skanksa USA Civil West, to post a negotiable letter of credit with
the City of Palm Desert in the amount of$250,000.
The purpose of the letter of credit is to provide a financial guarantee and avenue
for recourse in the event that the intended pavement life is not fully realized. In
order to secure the irrevocable stand-by letter of credit a conditional agreement
specifying the terms and conditions quantifying levels of pavement failure has
been prepared.
Staff Report-Authorize Execution of Conditional Agreement for A.D.2004-02
Page 2 of 2
April 24, 2008
Therefore, staff recommends that City Council, by minute motion, authorize Mark
Greenwood, P.E. Director of Public Works, to execute said Conditional
Agreement on behalf of the City of Palm Desert.
Department He :
Mark Greenwood, P.E.
Director of Public Works
Approval:
Homer Cro aul Gibson
ACM for Devel ment Services Finance Director
Carlos L. Ortega
City Manager
/cls/d hl
G:IPuDWork5lStafl Reporfs12008'„4p�i124107 Condtlanal Agreement lor Letter oI Credit with Skanska AD 29 2004-021Authorize MG to execute Conditional
Agreementdoc