Agenda - Council - 08/24/2004 - Laserfiche WebLink

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The DEVELOPER agrees to construct the Stage I Improx(ements in accordance with the terms and conditions of this agreement and in accordance with the DEVELOPERS' plans submitted to the City. Said plans shall be in conformance with the Final Grading and Construction Plans prepared by Loucks McLagan Associates and. dated August 3, 2004 and as amended in the future. The construction plans are subject to the City Engineer's review and approval prior to commencement of construction. Stage I Improvements Completion Date. The Stage I Impi'ovements shall be completed on or before September 1, 2005. Stage I Improvement Financial Guarantee. 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 Eighty One Thousand Two Hundred Fifty Dollars and no cents ($181,250.00), 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 terms of any letter of credit shall include a 1 O-day notice period. The financial guarantee shall be deposited with the CITY at the time of execution of this agreement. From time to time as requested by the DEVELOPER, the CITY will review and amend the amount of financial guarantee based on the work completed. Upon total completion of Stage I Improvements (including the removal of "temporary" erosion control measures as identified in the approved Grading Plan) and acceptance by the CITY, the DEVELOPER may request a further reduction in the amount of the financial guarantee, but only if the maintenance guarantee required by Paragraph 8 below has been deposited. Inspection Fees. The DEVELOPER shall be responsible for' all inspection costs incurred by the City r~lated to the installation of Stage I Improvements.. The DEVELOPER shall make a cash deposit into the appropriate escrow account at the City and the City shall have the authority to draw upon these funds for the purpose of compensating for inspection services. The amount of the deposit shall be equal to five percent (5%) of the estimated cost of the Stage I Improvements, which equates to One Hundred Forty Five Thousand Dollars and no cents ($7,250.00) (5% x $145,000.00). Upon completion of the Improvements to the satisfaction of the City, any surplus balance remaining in the City's escrow account shall be re'funded to the DEVELOPER. Stage I Improvement Maintenance Financial Guarantee. In addition to the financial guarantee required by Paragraph 6 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 6 above. The amount of the maintenance guarantee shall be Ten Thousand Dollars and no cents ($10,000.00) or five percent (5%) of the cost of the Stage I Improvements ($145,000.00), whichever is greater. Said maintenance guarantee shall be held by the CITY f6r a one (1) year period fi'om the date of its deposit. This financial guarantee is for the purpose of Development Agreement/Village of Sunfish Lake 2nd Addition Page 3 of 12