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R-88-1096 - 3/10/1988ATTEST: C22RESLTCRE 41 01e.hei.t' /&041./ LAND, i y Secretary RESOLUTION NO. /096k k MIKE ROBINSON, Mayor City of Round Rock WHEREAS, the City of Round Rock has previously drawn upon a Letter of Credit issued by Texas American Bank /Fort Worth ( "Bank "), and WHEREAS, a Contract has been prepared whereby the balance of the cash drawn will be returned to Bank in exchange for it completing certain improvements to the City's water system, and WHEREAS, the City Council wishes to enter into said Contract, Now Therefore, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS That the Mayor is authorized and directed to execute on behalf of the City, a Contract with Texas American Bank /Fort Worth, a copy of such Contract being attached hereto and incorporated herein for all purposes. RESOLVED this 10th day of March, 1988. DATE: , March 7, 1988 SUBJECT: Council Agenda, March 10, 1988 ' ITEM: 9A. Consider a resolution authorizing the Mayor to execute a contract with Texas American Bank Ft. Worth regarding refund of a letter of credit.,- a STAFF RESOURCE PERSON: Sam Huey, Steve Sheets, and Jim Nuse STAFF RECOMMENDATION: - Accept the resolution and,,return the balance ` of the Letter of Credit. ' ECONOMIC IMPACT: This agreement is to return the balance of the cashed $240,000 Letter of Credit in exchange for new scaled down Letter of Credit from Texas American Bank. Guaranteeing the construction of an interconnect that would benefit the City. - • GTABCONTR CONTRACT STATE OF TEXAS • • COUNTY OF WILLIAMSON This contract is entered into by and between the City of Round Rock, Texas, a Texas municipal corporation ( "City ") and Texas American Bank /Fort Worth, N.A., a national bank corporation ( "Bank ") and is as follows: Recitals WHEREAS, City and Boardwalk Joint Venture, a Texas joint venture ( "Boardwalk ") have previously entered into an agreement whereby Boardwalk agreed to construct certain City water system improvements which were necessary to provide service to real property owned by Boardwalk, and WHEREAS, pursuant to said agreement, a Letter of Credit issued by Bank in the amount of Two Hundred Forty Thousand and No /100 Dollars ($240,000.00) was deposited with City to secure Boardwalks compliance with said agreement, and WHEREAS, Boardwalk failed to begin or complete said improvements and City drew upon said Letter of Credit in the sum of $240,000.00, and WHEREAS, Bank has now acquired ownership of the real property previously owned by Boardwalk, and WHEREAS, Bank wishes to enter into an agreement whereby Bank will construct certain water system improvements, deposit a Letter of Credit in the sum of $104,110.60 and City agrees to return the $240,000.00 cash now held by City, NOW THEREFORE IT IS AGREED BY THE UNDERSIGNED AS FOLLOWS: I . A. Bank agrees to construct in accordance with City standard specifications and ordinances certain water system improvements described as follows: (1) a twelve inch (12 ") watermain from the intersection of Greenlawn Blvd. and County Road 170, north along Greenlawn Blvd. to connect with the existing twelve inch (12 ") watermain presently located in the Kensington subdivision, and (2) a sixteen inch (16 ") watermain from the intersection of Greenlawn alvd. and County Road 170, east along County Road 170 to an existing sixteen inch (16 ") watermain located approximately at the eastern boundary of the tract owned by Bank. The improvements to be constructed are also shown on Exhibit A, attached hereto and incorporated herein. B. Bank further agrees to begin such construction within six months of date hereof and to complete said improvements no later than one year from date hereof. C. Bank further agrees to deposit with the City a Letter of Credit substantially in the form as that shown as Exhibit B attached hereto and incorporated herein. II. A. Upon execution of this agreement and receipt of the aforementioned Letter of Credit, City agrees to refund to Bank the sum of $240,000.00 plus interest at the rate of 6.09% per annum from June 3, 1987, less $2,800.00 for improvements actually installed and $195.00 for legal fees incurred. Bank agrees to promptly reimburse City for any additional legal fees incurred arising out of preparation of this Contract and ot}r matteys related to this 2. transactios � Y n B. City further agrees that upon final acceptance of the aforesaid improvements that Bank will be entitled to reimbursement for oversize cost pursuant to Chapter 8, Section 6 J.(4) for the watermain in excess of eight inches (8 ") of diameter. C. City further agrees that any future development of the property or construction of utility improvements to the property, will be done in accordance with City ordinances and regulations. III. A. This contract shall be construed under and in accordance with the laws of the State of Texas, and all obligations of the parties created hereunder are performable in Williamson County, Texas. ATTEST: B. Should any litigation be commenced between the parties hereto conerning this Contract, the party prevailing in such litigation shall be entitled in addition to such other relief as may be granted, to a reasonable sum as and for attorney's fees and costs. C. This contract shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, successors and assigns where permited by this agreement. D. This contract constitutes the sole and only agreement of the parties hereto and supersedes any prior understandings or written or oral agreements between the parties respecting the within subject matter. E. This contract is executed in multiple originals on the dates indicated beside each signature and shall be effective as of the date executed by the Mayor of Round Rock. nne Land, City Secretary TEXAS AMERICAN BANK /FORT WORTH, N.A. b y : £� CITY OF ROUND ROCK by: Mike Robinson, Mayor 3. 34. ire (date) • Y �COEK 1 TWO - F Mfl IY — IO.6-A BOARDWALK TRACT Al 1 O `FI E` /F# j March 8, 1988 EXHIBIT "A" Connection to Existing 12" Waterline 12" Waterline 3 Al L m m m m a m m o o m 16" t� m m m 16 Waterline CHI S« / MRS 0. ,, .Y / � H : {' W /L$ SKETCH OF PROPOSED WATERLINE PROJECT WITHIN GREENLAWN BLVD. AND COUNTY ROAD 170 MRS S it S«%H Connection to Southeast Round R. 16" Waterline Harntc K3!!:run &Gtas:!re. • Austin. Tc as Date: To: City of Round Rock Gentlemen: (letterhead of Texas American Bank /Fort Worth, N.A.) IRREVOCABLE LETTER OF CREDIT No. We hereby issue this Irrevocable Letter of Credit in your favor and authorize you to draw at sight on ourselves for the account of Texas American Bank /Fort Worth, N.A. for any sum or sums not exceeding in the aggregate One Hundred Four Thousand One Hundred Ten and 60/100 U.S. Dollars (U.S. $104,110.60). This letter of credit is being issued pursuant to the terms and provisions of that certain Contract between the City of Round Rock and Texas American Bank /Fort Worth, N.A. dated March 10, 1988 whereby Texas American Bank /Fort Worth, N.A. agreed to construct a twelve inch (12 ") watermain along Greenlawn Blvd. and a sixteen inch (16 ") watermain along County Road 170, (the "Facilities "). We do hereby agree with drawers, endorsers and bona fide holders of drafts negotiated under and in compliance with the terms of this Letter of Credit that the same shall be duly presented on or before March 31, 1989, but not thereafter. Any request for a draw hereunder shall be accompanied by the following documents: 1. This original letter of credit. 2. A certificate signed by the City Manager or Assistant City Manager of the City of Round Rock presented to Texas American Bank /Fort Worth, N.A. at its offices in Fort Worth, Texas requesting the exact amount to be drawn and stating that one or more of the following conditions exist: (a) One - hundred eighty (180) days have expired since the date of this letter of credit and the construction of the aforementioned Facilities has not begun, or Exhibit B City of Round Rock Date Page 2 is Credit is governed by the Uniform Commercial Code in force in the State of Texas on the date hereof and is subject to the Uniform Customs and Practices for Documentary Credits (1974 Revision), International Chamber of Commerce Publication No. 290. ATTEST: (b) One year has expired since the date of this letter of credit and the construction of the aforementioned Facilities have not been completed. The certificate shall contain a statement that the City of Round Rock considers the requested drawing on this credit necessary in order to complete any part or all of the Facilities. Texas American Bank /Fort Worth,, N.A. by: Its TEXAS ■■1 AMERICAN BANK FORT WORTH H. PLEASE ADDRESS REPLY TO INTERNATIONAL DEPARTMENT TELEX NUMBER 758275 CABLE ADDRESS: "TABANK" March 10, 1988 To: City of Round Rock Gentlemen: IRREVOCABLE LETTER OF CREDIT NO. 24491 We hereby issue this Irrevocable Letter of Credit in your favor and authorize you to draw at sight on ourselves for the account of Texas American Bank /Fort Worth, N.A. for any sum or sums not exceeding in the aggregate One Hundred Four Thousand One Hundred Ten and 60/100 U.S. Dollars (U.S. $104,110.60). This Letter of Credit is being issued pursuant to the terms and provisions of that certain Contract between the City of Round Rock and Texas American Bank /Fort Worth, N.A. dated March 10, 1988 whereby Texas American Bank /Fort Worth, N.A. agreed to construct a twelve inch (12 ") watermain along Greenlawn Blvd. and a sixteen inch (16 ") watermain along County Road 170, (the "Facilities "). We do hereby agree with drawers, endorsers and bona fide holders of drafts negotiated under and in compliance with the terms of this Letter of Credit that the same shall be duly presented on or before March 31, 1939, but not thereafter. Any request for a draw hereunder shall be accompanied by the following documents: 1. This original Letter of Credit. 2. A certificate signed by the City Manager or Assistant City Manager of the City of Round Rock presented to Texas American Bank /Fort Worth, N.A. at its offices in Fort Worth, Texas requesting the exact amount to be drawn and stating that one Post Off se Box 2050 Fort Worth, Texas 76113 104, o•na i To: City of Round Rock March 10, 1988 Page 2 or more of the following conditions exist: (a) One- hundred eighty (180) days have expired since the date of this Letter of Credit and the construction of the aforementioned Facilities has not begun, or (b) One year has expired since the date of this Letter of Credit and the construction of the aforementioned Facilities have not been completed. The certificate shall contain a statement that the City of Round Rock considers the requested drawing on this credit necessary in order to complete any part or all of the Facilities. This Credit is governed by the Uniform Commercial Code in force in the State of Texas on the date hereof and is subject to the Uniform Customs and Practices for Documentary Credits (1983 Revision), International Chamber of Commerce Publication No. 400. TEXAS AMERICAN BANK /FORT WORTH, N.A. BY: Its sistant Vice President ATTEST* I \ �I X � - ��.