Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 24-R91, Relating to Draw Down of Funds for Construction of Incomplete Infrastructure for River Place on the St Lucie No 10 1st Replat.
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Submitted By: Clyde Cuffy, P.E., Public Works
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Not Applicable.
2. Parties: City of Port St. Lucie , River Place Builders, LLC and River Place on the St. Lucie Community Development District.
3. Purpose: To draw down on the Irrevocable Standby Letter of Credit to provide funding to construct the remaining infrastructure improvement identified in the River Place on the St. Lucie No. 10 1st Replat.
4. New/Renewal/Modified: Related
5. Duration: N/A
6. Benefits to Port St. Lucie: This will allow River Place Builders, LLC to complete the remaining plat infrastructure in accordance with the approved plans.
7. Cost to Port St. Lucie (Annual and Potential): There is no cost to the city.
Presentation Information: Staff will be available to answer any questions.
Staff Recommendation: Move that the Council approve the Resolution authorizing the Irrevocable Letter of Credit for River Place on the St Lucie No 10 1st Replat to be resolved.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the letter of credit to be resolved.
2. Move that the Council not approve and provide staff direction.
Background: River Place Builders, LLC (Developer) provided an Irrevocable Letter of Credit (“LOC”) as a surety for infrastructure associated with the River Place on the St Lucie No. 10 1st Replat. The requires infrastructure was outlined in an associated Completion Contract and required to be installed within two (2) years of the related plat being recorded. The related plat was recorded on May 16, 2018. The Developer has still not completed several components of the required infrastructure including, pavement repair, final pavement and final striping. Additionally, the River Place Community Development District (“CDD”) has requested the Developer install streetlights that were not included in the Letter of Credit. The Developer has indicated that it has no funds available to complete the remaining plat infrastructure; however, has requested for the City to draw down on the Letter of Credit to utilize these funds for the remaining work.
Issues/Analysis: The LOC requires that in the event that the Developer does not fulfill its obligations, the City, acting through its City Engineer, shall inform the surety of such default and that the notification to draw down must be accompanied by: (1) certification from the City Engineer that Developer is in default under the Completion Contract; (2) a specific list of items that are not complete; (3) the cost to complete such items; and (4) a certified copy of a resolution by the City Council resolving that the proceeds drawn under this LOC are to be used solely for the completion of uncompleted items required by the Completion Contract.
Consequently, the purpose of this item is for the City Council to satisfy prong (4) of the draw down requirements to facilitate completion of the required improvements for the community. Additionally, the CDD and Developer have requested that the City provide the CDD with the funds to complete the required improvements upon drawdown of the related funds. In the event such transfer is agreed to by the City, the City and CDD would need to enter into an Interlocal Agreement to ensure the CDD utilizes the funds in compliance with the terms of LOC and Completion Contract.
Financial Information: There is no cost to the city.
Special Consideration: N/A
Location of Project: River Place on the St. Lucie
Attachments:
1. Resolution
2. Exhibit “A” to Resolution - Engineer’s Certification
3. Contractor’s Proposal
4. Completion Contract
5. Original Letter of Credit
6. Amended Letter of Credit
7. Reduced Letter of Credit
8. Location Map
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 24176-11
Legal Sufficiency Review:
Reviewed by Elizabeth L. Hertz, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.