HomeMy WebLinkAboutMINUTES - 03141989 - 1.53 1-053
TO: BOARD OF SUPERVISORS C ra
Costa
FROM: Phil Batchelor, County Administrator
Carty
DATE: March 14, 1989
SUBJECT: Approving Irrevocable ,Standby Letter of Credit with Walsh
Construction Company in lieu of 10% construction Retention for
the West County Justice Center.
Specific Request(s) or Recommendations(s) & Background & Justification
RECOMMENDATION
APPROVE the irrevocable Standby Letter of Credit with Bank of America
NT & SA in favor of the County for account of Walsh Construction
Company up to 10% of construction contract for the West County Justice
Center, Project B, and AUTHORIZE the County Administrator or his
designee to execute the Letter of Credit.
FINANCIAL IMPACT
The cost of the Letter of Credit is borne by the contractor. There
should be no financial impact on the County.
REASONS FOR RECOMMENDATION/BACKGROUND
At the request and expense of the contractor, the California
Government Code Section 4590 permits the substitution of securities
for any monies withheld by a 'piyblic agency to ensure performance of a
contract. One of the listed eligible securities is the Standby Letter
of Credit. Through a series of exchanges, the . construction
contractor, their _bank and the County have developed mutually
acceptable language and are now ready to establish an irrevocable
letter of credit. This agreement defines the responsibilities of the
parties and the terms of release of funds. Currently, the County
withholds 10% of the Contractor's monthly progress payment request as
security for performance. By the end of construction, the 10%
retention offset may total as much as $304,000.
CONTINUED ON ATTACHMENT: YES Signature:
Recommendation of County Administrator
Recommendation of Board Committee
Approve Other
Signature(s):
Action of Board on:MAR 14 1989. Approved as Recommended )e Other
Vote of Supervisors: I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
X Unanimous (Absent ) AND ENTERED ON THE MINUTES OF THE
Ayes: Noes: BOARD OF SUPERVISORS ON DATE SHOWN.
Absent: Abstain: MAR 4 1989
Attested:
cc: CAO, Justice System Programs Phil Batchelor, Clerk of
Auditor-Controller the Board of Supervisors
Treasurer-Tag Collector and County Administrator
County Counsel � '
GSD-Accounting By: , DEPUTY
Walsh Construction Company via CAO
Bank of America via CAO
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