4.10 SR 06-06-2022 - Laserfiche WebLink

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(02) Security for Developers Performance. (A) No work shall be commenced under this Agreement, and the Final Plat of the Subdivision will not be released for recording, until the Developer has filed with the City a cash deposit or an irrevocable and unconditional Letter of Credit acceptable to the City, in the amount $1,746,687.60. Said Letter of Credit shall also provide that funds shall be paid to the City upon written demand of the City to the extent of default herein by Developer in the payment of any amount due or the performance of any other duty or obligation of Developer pursuant to this Agreement, including Developer's obligations to complete Improvements, to complete on -site Landscape Improvements, and to make payment of any amounts due hereunder. (B) The security provided in accordance with the above may be released periodically upon receipt of an invoice identifying work completed to date. The amount released each period will equal the amount of work completed by the Developer by the date of submittal, except that: (i) the security will not be released to an amount less than the amount of Developer's total indebtedness to the City pursuant to the terms of this Agreement;, and, (ii) the security will not be released below fifty thousand dollars ($50,000) until all Improvements pursuant to this Agreement have been completed in full and all other obligations of Developer under this Agreement have been fulfilled. (C) The Letter of Credit shall contain a provision that states that the Letter of Credit shall be automatically renewable annually unless the issuer of the Letter of Credit first gives the City 30 days written notice by certified mail of its intent not to renew the Letter of Credit. The letter of credit shall also contain a minimum initial period of 1 year. The Letter of Credit shall be a guaranty to the City that the Improvements and all other requirements set forth in this Agreement will be timely completed to the City's satisfaction. The Letter of Credit shall be maintained continuously by the Developer, except as reductions are authorized by the City, until the Improvements are completed to the City's satisfaction, including certification by the City engineer that all items are satisfactorily completed, pursuant to this Agreement. The Letter of Credit shall have no conditions and shall be subject to being drawn upon by the City upon any default under this Agreement, including failure to pay contractors, subcontractors or costs or expenses owed to the City. If at any time the City shall draw upon the Letter of Credit, the Developer agrees that within 10 days upon being notified of such withdrawal by the City, Developer shall either pay the deficient amount in cash to the City or have the Letter of Credit restored to current amount (03) Maintenance Bond. The Developer shall post maintenance bonds in the amount of twenty five percent (25%) of final certified construction costs to secure the warranty in Section 6 (12) hereof. The City shall retain ten percent (10%) of the securityposted by the Developer until the maintenance bonds are furnished to the Cit<r or until the warrant period expires, whichever first occurs. The retainage may be used to pay for warranty work, grading, erosion control. and as built survey escrow.