HomeMy WebLinkAbout02 LTR CREDIT SAUSD 08-22-02AGENDA REPORT
NO. 2
08-22-02
150-50 ~
MEETING DATE: August 22, 2002 ~
TO:
FROM:
SUBJECT:
The Honorable Mayor and Members of the City Council
William A. Huston, City Manager
Letter of Credit: Santa Ana Unified School District Settlement Agreement
RECOMMENDATION
That the City Council authorize extension of the date to secure a letter of credit to
September 13, 2002.
BACKGROUND
The City's Settlement Agreement with the Santa Ana Unified School District concerning
the Tustin Legacy Project provides that the City will obtain a letter of credit to secure the
financial aspects of the Settlement Agreement. Under the Agreement, the letter of
credit was to have been obtained by August 14, 2002. The Agreement provides that an
extension of time may be mutually agreed upon.
Unstable financial markets, corporate scandals, major corporate bankruptcies, etc. have
affected the schedule for obtaining the letter of credit. The City has obtained the
approval of a large financial institution for a letter of credit. Negotiating the terms of the
letter of credit has been complicated by national economic events over the past two
months.
The Santa Ana Unified School District had agreed to an extension of time to August 27,
2002. The final details of the letter of credit are being negotiated and it will not be
possible to complete the transaction by August 27, 2002. At this point, it is expected
that the letter of credit will be in place on or before September 13, 2002.