Red Hawk-CS120508 (2) T H E • C I T Y • O F
COPPELL
9
A S A 8
MEMORANDUM
TO: Jennifer Miller, Director of Finance
VIA: Ken Griffin, P.E., Director of Engineering/Public Works
FROM: Mike Garza,E.I.T.,Graduate Engineer
DATE: May 8,2012
REF: Letter of Credit for erosion control (Red Hawk)
Crestone Group, Ltd., the developer of Red Hawk was not able to provide a maintenance bond for
erosion control for a 2 year period which is required for a residential subdivision. Instead, they
provided an Irrevocable Letter of Credit. Please review and let me know if anything else is needed.
If you have any questions please contact me at your convenience,
Thank you for your attention on this matter.
GRAND 7e
BANK 40 4 //6 ---
IRREVOCABLE STANDBY LETTER OF CREDIT NO.2012
Date: April 18, 2012
Applicant: Beneficiary:
Creststone Group,Ltd. City of Coppell
225 East Highway 121 Suite 120 255 Parkway, P 0 Box 9478
Collell,TX 75019 Coppell,TX 75019
(214)488-5200
Amount: $7,285.50
Gentlemen:
Grand Bank(the"Bank")hereby establishes our Irrevocable Letter of Credit No 2012-04 in favor
of City of Coppell (the "Company") in an amount up to U.S. Seven Thousand Two Hundred
Eighty Five and 50/100 ($7,285.50), available by your drafts at SIGHT, drawn on the Bank, when
presented for payment at our office at 16660 Dallas Parkway, Suite 1700, Dallas, Texas 75248,
Attn: Lee M Dinkel.
Funds under this Letter of Credit are available to the Company against presentation of your draft
at sight, drawn on the Bank, in an amount not exceeding the face amount hereof, in the form of
the Draft and Certificate attached as Exhibit"A" accompanied by the following documents:
1) A signed statement by the City Manager of the City of Coppell or the City Manager's
designee, stating that "we certify that Creststone Group, Ltd has failed to fulfill their
contractual obligations under the construction requirements."
AND
2) The original of this Standby Letter of Credit and Amendments, if any.
The Draft and certificate may be presented for payment in person, by mail or by express
delivery, during normal banking hours in Dallas, Texas at the address listed above between
8:30 a.m. and 4:00 p.m. on regular banking days on or prior to the expiration date.
The terms and conditions of the Letter of Credit shall be strictly construed. The Bank will
effect payment to the Company no later than 3:00 p.m. (Central Time) in immediately
available funds in accordance with your payment instructions on the Draft and Certificate on
or before one day after the date on which demand for payment is actually received by Grand
Bank.
P.O. Box 700337, Dallas,Texas 75370-0337 16660 Dallas Parkway, Suite 1700, Dallas,Texas 75248
(972)735-1000 Fax(972)735-1009 www.gbtx.com
Member FDIC Equal Opportunity Lender
Page Two, which forms an integral part of Letter of Credit No. 1012-04
In the event there is interruption of the Bank's business on the expiration date, arising from
Acts of God, riots, civil commotions, insurrections, wars, or any other causes beyond the
Bank's control, or by any strikes or lockouts, the Bank agrees to effect payment, if the Letter
of Credit is properly drawn against, within thirty (30) days after the resumption of business
from such interruption.
This Irrevocable Letter of Credit is effective two years from date of final acceptance letter from
City but not later than June 1, 2014.
The laws of the State of Texas will govern this Irrevocable Letter of Credit and the construction
of its terms. The parties agree that Dallas County, Texas will be the legal venue for any suits
arising from this Irrevocable Letter of Credit; that all events giving rise to such claim occurred in
Dallas County, Texas, and that no substantial part of the events of such claim occurred in any
other county. The parties also agree that maintenance of an action in Dallas County, Texas does
not work an injustice to any party and is in the interest of the parties, and that transfer of the
action would work an injustice to the parties. The parties agree to file any suits in Dallas County,
Texas.
This Letter of Credit is governed by the Uniform Customs and Practice for Documentary Credits
(2007 Revision), International Chamber of Commerce, Publication No. 600, and the Uniform
Commercial Code.
Sincerely,
Lee M Dinkel
President and CEO
LMD/cf
EXHIBIT"A"
DRAFT AND CERTIFICATE
Draft for Payment Drawn Under Grand Bank,Dallas,Texas
Letter of Credit No. 2012-04
Date:
At Sight
Pay to the Order of the sum of
(U.S. $ ) Dollars drawn under Grand Bank, Letter of Credit No. 2012-04
dated
The undersigned, a duly authorized representative of City of Coppell certifies to Grand Bank,
(the "Bank") with reference to the above referenced Letter of Credit issued by the Bank that
City of Coppell is entitled to draw the above-mentioned sum of
(U.S. $ )Dollars upon the Letter of Credit.
By:
(Signature)
(Title)
To: Grand Bank
16660 Dallas Parkway, Suite 1700
Dallas,TX 75248
Attn: Lee M Dinkel
ESTIMATE
•MEADE SERVICING GROUP INC. HUB #1202908174700
PO BOX 2107
ROCKWALL,TX 75087
469-628-8070
FAX:972-772-0001 <CM
BDIXON @MEADEGROUP.NET International Erosion Control Association
N,
JOB NAVE ..� ..
RED HAWK?-1-11 I 7-1-11
BID ITEM UNIT 6 lJ I1'4Rii0 M'
CONSTRUCTION EXITS EA 1 $850.00 $850.00
REINFORCED SILT FENCE/STEEL POST LF 3512 $1.19 $4,179.28
INLET PROTECTION EA 16 $75.00 $1,200.00
BROADCAST SEEDING(BERMUDA MIX) AC 14 $365.00 $5,110.00
4'CURLEX(R.O.W STREET) LF 4828 $0.52 $2,510.56
4'CURLEX(R.O.W ALLEY) LF 1386 $0.52 $720.72
TOTAL $14,570.56
Exclusions:Clearing,cleaning,repair,maintenance,hand digging,rocky soil,inspections,re-vegetation of disturbed ground due to removal of erosion control
items,seedbed preparation,emulsified asphalt,water sources,water pump,water cost,debris/root/rock removal,back-filling&grading of any soil other than the
imported compost for(BOS)&(PB)bid items,soil analysis,traffic control,and mowing.Quotes for these items are available upon request.Please call 469-628-8070
Notes: ^
1)Inspection will be billed monthly and performed weekly. lO-C W L,L Uo 04..t_ S w P P P
2)Add$300.00 for NOI Fee if site is greater than 5 AC
3)1 Free Mobilization-Additinonal Mobilization @$225.00
4)The client is responsibe for providing a water source(including water&meter fees)for hydromulch seeding and sod,and is also responsible for the maintaining and
watering of seed and or sod after install.
Thank you for choosing Meade Servicing Group INC.
•