To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
TITLE
title
APPROVE EXECUTION OF THE CANCELLATION OF THE IRREVOCABLE STANDBY LETTER OF CREDIT AND THE REVISION OF THE INCREASE PENALTY RIDER AS AUTHORIZED BY THE SECOND AMENDMENT TO THE AGREEMENT WITH ARAKELIAN ENTERPRISES, INC. (DBA ATHENS SERVICES) APPROVED BY CITY COUNCIL ON MAY 19, 2026?
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EXECUTIVE SUMMARY
The second amendment to the Agreement with Arakelian Enterprises, Inc. (dba. Athens Services), approved by City Council on May 19, 2026, included the cancellation of the Letter of Credit and the commensurate increase to the Penalty Rider to preserve the City’s capacity for financial recourse in the Agreement. This action authorizes the Mayor to execute the documents on behalf of the City to complete the implementation of the provisions of the Second Amendment.
BACKGROUND
The second amendment to the Agreement with Athens Services included a provision to cancel the $250,000 Letter of Credit previously required of Athens Services and to increase the Faithful Performance Bond from $250,000 to $500,000, as outlined in Section 22 and Section 23 of the second amendment. Approval of this action authorizes the Mayor to execute the required financial documents, (cancellation of the Irrevocable Standby Letter of Credit and Increase Penalty Rider) necessary to complete the provisions of the Second Amendment.
An excerpt from the Athens Services Second Amendment – Sections 22 and 23 reads:
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COORDINATION
The cancellation of the Irrevocable Standby Letter of Credit and increased Penalty Rider have been reviewed by and approved as to form by the City Attorney’s Office.
FISCAL IMPACT
There is no fiscal impact related to this item. No other terms of the Agreement with Athens Services would be altered as a result of the recommended action.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
Document – Amendment to Irrevocable Standby Letter of Credit
?Document – Increase Penal...
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