06-22-1983 - Special (2)
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CITY COUNCIL OF EDGEWATER
SPECIAL MEETING
JUNE 22, 1983
MINUTES
Mayor David Ledbetter called the Special Meeting to order at 3:30 PM in the Community
Center.
ROLL CALL
Mayor David Ledbetter
Councilwoman Gigi Bennington
Councilman Neil Asting
Councilman Jack Spencer
Present
Present
Present
Arr i ved Late
City Attorney Jose' Alvarez
City Clerk Nancy Blazi
Pol ice Chief Earl Baugh
Present
Present
Present
Mayor Ledbetter stated the purpose of the meeting is to discuss and take action on Mr.
J. C. Carder's letters of credit regarding Pel ican Cove West.
City Attorney Alvarez said the two issues are the legal protection for the City and the
financial aspects of the letters of credit. He said the letter can be enforced and is
enforceable.
City Clerk Nancy Blazi read the letter of recommendation from Finance Director Connie Kinsey
which stated there was a second letter of credit received that date for the $5,000.00
balance held on the performance bond. Ms. Kinsey recommended the letters be returned
to the bank for the additional statement suggested by Brent, Millikan "has failed in the
opinion of the City's consulting engineer to properly maintain the streets, water system
and sewer system." Ms. Kinsey also stated that both letters of credit were val id and
appeared to be in order but the legal aspect would have to be determined by the City Attorney.
City Attorney Alvarez suggested Council review the additional wording and they could take
action if desired to approve the substitution subject to Mr. Carder's presentation of a
new letter of credit with the new language which would el iminate having another meeting.
Councilman Spencer arrived at the meeting at this time.
Finance Director Connie Kinsey said she'd contacted the bank and incorporating the additional
statement would not be a problem to them.
Mr. Paul Katz, an attorney representing Belmont Homes, reviewed the language in the
letter of credit submitted opposed to the suggested language. He read the first sentence
of the June 9th letter regarding the $20,150.00, which stated that the City can draw at
sight up to the $20,150.00 to be accompanied by a certified statement of an official of
the City of Edgewater that Belmont Homes, Inc. has failed in the proper maintenance of
streets, water systems, and sewer systems in Pel ican Cove West. He suggested that where
the original letter says "an official of the City of Edgewater" it be instead "the
consulting engineers of the City of Edgewater".and felt that was the intent of the auditors.
City Attorney Alvarez said it appears that what's lacking in the letters of credit is
clarification as to who is the official responsible to make the determination of whether
or not Mr. Carder has compl ied.
Councilman Asting said any official of the City could go out and approve but it might not
meet the engineering requirements. Councilwoman Bennington said sheld like to take the
auditor's advice to include that statement regarding the engineers.
Councilman Spencer moved that the Council accept the letter of credit No. 21 with the
modification and terminology relative to an official of the City being identified.
Councilwoman Bennington seconded the motion if they could authorize the deletion to avoid
having another meeting on this subject. City Clerk Nancy Blazi said his motion was at
the suggestion of the City auditors and she asked that it be modified by making a
certified statement of a consulting engineer. Councilman Spencer agreed to this
and City Clerk Nancy Blazi read the motion as:"accept the letter of credit for No. 21
as soon as it is modified and changed to a certified statement of consulting engineerl'
which would be in place of 'Ian official of the City". Motion CARRIED 4-0.
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Councilman Spencer made a _motion identical to the first one except now pertaining to
letter of credit No. 20 for the $5,000.00. Councilwoman Bennington seconded the motion
for discussion. Councilwoman Bennington said she understood the $5,000.00 was for improve-
ments when they're necessary and it might not be ready within the year's time on this
letter of credit. Mr. Katz said they could get an extension on the letter of credit, and
he said he understood the $5,000.00 was placed because certain drainage systems were not
installed and was for the protection of the road. He said within the next year they should
have sufficient rainfall to determine whether the road will flood. Councilman Asting asked
if the words could 'be added' I!an :extension to"be given'I.' to this and Mr. Katz said not to
the letter of credit as banks cannot go beyond a year but he's seen them extended from year
to year. Councilman Asting asked if they could get a statement from Mr. Carder that hel11
extend it if necessary. Mr. J. C. Carder, Belmont Homes, said he will be glad to give a
letter stating that they will renew their$5,00nOO bond at the end of one year if they have
not finished at that time. Motion CARRIED 4-0.
Mr. Katz suggested a provision be incorporated in the subdivision ordinance to provide for
irrevocable letters of credit with the approval of the City Attorney so Council would not
have to meet each time a letter of credit is presented.
Councilman Spencer moved to adjourn the Special Meeting. Councilman Asting seconded the
motion. Meeting was adjourned.
Lura Sue Koser
Minutes submitted by:
COUNCILMAN - ZONE FOUR.
ATTEST:
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CITY CJERK 1
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-2- Special City Council Meeting Minutes
June 22, 1983