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F I N A N C I A L
Mailing Address
4450 24th Avenue
Vero Beach, FL 32967
P: 561,982.4700
T. 800.873.5100
F: 561.226.5415
To: City of Sebastian
1225 Main Street
Sebastian, FL 32958
To Whom It May Concern:
IRREVOCABLE LETTER OF CREDIT
Letter of Credit: No. 76
Date: 8/14/2024
Project: Hangar D Office Space Build Out at
Sebastian Municipal Airport (24-14-ITB)
Contractor: Passage Island Construction, LLLP,
a Florida Limited Partnership
Expiration Date: 8/14/2025
(Cannot be renewed or extended without the written
permission of Passage Island Construction, LLLP)
This letter of Credit is provided to you as required per Bid Bond procedures for the Hangar D
Office Space Built out (24-14-ITB).
We hereby establish our Irrevocable Letter of Credit No. 76, the "Letter of Credit' in the amount
of $2 5 00 .00 in your favor for the account of the above -referenced Contractor. This Letter of Credit is
available against your draft(s) at sight drawn on us and accompanied by:
1. Your signed statement (purportedly signed by an officer) stating one or more of the following:
"The Contractor has failed to perform certain of the undertakings, covenants, terms, and
conditions of 24-14-ITB within the time provided therein and any extension granted by
Beneficiary, and during the life of any guaranty required from the Contractor, resulting in costs
incurred or to be incurred by Beneficiary in the amount of $2 5 000.00."
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"Me Contractor has failed to make prompt payment to persons supplying labor and material,
which may include utilities service and equipment rentals, in the prosecution of the work under
the Contractor, in the amount of $295.000.00."
OR
"The Letter of Credit is scheduled to expire in less than thirty (30) days from the date hereof, and
Beneficiary has not received a renewal or replacement for the Letter of Credit."
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2. This Letter of Credit sets forth in full our understanding to you, and strict compliance with each
and all of the terms of this Letter of Credit are required. This Letter of Credit shall not be in any
way modified, amended, amplified or limited by reference to any document, instrument, or
agreement referred to herein, and any such reference shall not be deemed to incorporate herein by
reference any such instrument, document or agreement. No change, extension of time, alteration,
addition or omission to the terms of 24-14-ITB or the work to be performed thereunder or the
specifications accompanying same shall in any way affect the terms of this Letter of Credit.
Partial draws are permitted. Any partial drawing hereunder shall be endorsed hereon by us and
the Letter of Credit shall be returned to the holder hereof (except after a drawing which exhausts
the available credit hereunder).
This Letter of Credit is transferable upon written notice from you informing us of the name and
address of the transferee.
The venue is Indian River County, Florida, and any disputes will be governed by the laws of
Florida.
We hereby agree with drawers, endorsers and bona fide holders of draft(s) drawn under and in
compliance with the terms of Letter of Credit that the same shall be duly honored upon
presentation at our counters, on or before the Expiration Date
Requested"Authorized by:
B Adams, General Panner
Passage Island Construction, LLLP
iTHINK Financial Credit Union
Issuing Financial Institution
By
Anthony Funno
Title Assistant Vice President
Jessica Graham
From:
Jennifer Cockcroft
Sent:
Thursday, August 15, 2024 12:00 PM
To:
Jessica Graham
Subject:
RE: Availability for a quick chat? - Question on payment/performance bonds
:Agreed. Thank you for the synopsis.
Sincerely,
Jennifer Cockcroft
City :attorney
From: Jessica Graham<jessgraham@cityofsebastian.org>
Sent: Thursday, August 15, 2024 11:35 AM
To: Jennifer Cockcroft <JCockcroft@cityofsebastian.org>
Subject: RE: Availability for a quick chat? - Question on payment/performance bonds
Jennifer,
Thank you for the call and for confirming my thoughts on accepting the letter of credit.
To recap our conversation, Passage Island Construction was awarded ITB 24-14 for Hangar D Office Space Build Out. The
contractor provided a Letter of Credit from their financial institution (iThink Financial) in lieu of a payment and
performance bond. Per Florida Statutes 255.05 " In lieu of the bond required by this section, a contractor may file with
the state, county, city, or other political authority an alternative form of security in the form of cash; a money order; a
certified check; a cashier's check; or a domestic corporate bond, note, or debenture as authorized in s. 625.317." As the
letter of credit is backed by a financial institution and our code does not preclude the City from accepting a letter of
credit, we can accept the letter of credit, and the vendor can continue with their contract.
Jessica Graham, CPPB
Procurement/Contracts Manager
City of Sebastian
P:772-388-8231
Email: Jess¢raham@citvofsebastian.org
From: Jessica Graham
Sent: Thursday, August 15, 202410:50 AM
To: Jennifer Cockcroft JCockcroft@citvofsebastian.ore>
Subject: Availability for a quick chat? - Question on payment/performance bonds
Good morning,
Are you available this afternoon for a quick chat? I need guidance on a payment/performance bond question
Jessica Graham, CPPB
Procurement/Contracts Manager
City of Sebastian
1225 Main Street
Sebastian, FL 32958
P:772-388-8231
E:Jesseraham OciWofsehastian.or
SEBASTIAN