Agenda - Council - 04/08/2014 - Laserfiche WebLink

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DEVELOPER shall provide a financial guarantee to the CITY to provide for the actual construction and installation of the required Stage I Improvements and all other obligations of DEVELOPER provided for herein within a period specified by the City Council. The DEVELOPER shall provide a financial guarantee to the CITY guaranteeing the construction of the Stage I Improvements and their timely completion. The financial guarantee shall be in the amount of One Hundred Twenty Thousand Dollars and no cents ($120,000.00), which amount is 125% of the City Engineer's estimated cost of the Stage I Improvements. The financial guarantee required by this paragraph shall be in the form of cash or a Letter of Credit, approved as to form by the CITY. The financial guarantee required by this paragraph shall be deposited with the CITY at the time of execution of this contract. Upon total completion of Stage I Improvements and payment of all outstanding escrow account balances, and acceptance by the CITY, supported by lien waiver, the DEVELOPER can request (in writing) a total reduction in the amount of the Letter of Credit upon providing a maintenance guarantee. 8. Stage I Improvement Maintenance Financial Guarantee, In addition to the financial guarantee required by Paragraph 7 above, the DEVELOPER shall also post a Stage I Improvement maintenance guarantee with the CITY. Said maintenance guarantee shall be deposited with the CITY at the time Stage I Improvements are accepted by the CITY and prior to release by the CITY of the financial guarantee required by Paragraph 7 above. The $10,000 maintenance guarantee shall be held by the CITY for a one (1) year period from the date of its deposit. This financial guarantee is for the purpose of ensuring that the Stage I Improvements have been constructed in accordance with City standards and may be called upon at the CITY'S discretion during said (1) year period if the CITY determines it necessary to repair and/or replace any of the Stage I Improvements. Said financial guarantee shall be in the form of a letter of credit, approved as to form by the CITY. 9. Estimated Costs. It is understood and agreed that construction cost amounts set forth in this Agreement as Stage I and Stage II Improvements, unless specified as fixed amounts, are estimated. The DEVELOPER agrees to pay the entire cost of said improvements including interest, fiscal engineering and legal charges. 10.Date For Supplying Financial Guarantee. The DEVELOPER agrees to supply the financial guarantee as described above to the CITY prior to the CITY releasing the Plat for recording.