Agenda - Council - 07/25/2017 - Laserfiche WebLink

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5. Pearson Park Financial Guarantee. The PERMITTEE shall provide a financial guarantee to the CITY guaranteeing the construction of the Stage I Improvements and their timely completion. The PERMITTEE shall be responsible for a financial guarantee in the amount of ($344,125.00), which amount is 125% of the City Engineer's estimated cost of the Pearson park Improvements ($275,300 x 1.25). Upon completion of Pearson Park Improvements (including the removal of "temporary" erosion control measures as identified in the approved Grading Plan), acceptance by the CITY, supported by appropriate lien waivers, The PERMITTEE may request a reduction in the amount of the financial guarantee. 6. Pearson Park Inspection Fee. The PERMITTEE shall provide an inspection fee to the CITY to inspect the Pearson Park Improvements. The PERMITTEE shall be responsible for an inspection fee in the amount of ($13,765.00), which amount is 5% of the City Engineer's estimated cost of the Stage I Improvements ($275,300 x .05). The inspection fee must be in the form of a cash escrow. The PERMITTEE may request a refund of the remaining balance in the escrow upon completion of the Stage I Improvements, acceptance by the CITY. 7. Warranty for Pearson Park Improvements. The PERMITTEE shall provide a one year warranty in the amount of $68,825.00 ($275,300 x .25), which is 25% of the cost of the Pearson Park Improvements. Said warranty shall be in force for one year following the final acceptance of any required improvements and shall guarantee satisfactory performance of said improvement. The warranty must be in the form of a Letter of Credit in a form acceptable to the CITY'S Finance Director or a cash escrow. [will the City be party to a contractor warranty]. 8. Credit for Lake Itasca Greenway. Credit will be provided for Lake Itasca Greenway per Item 4.a above at the time the phase requiring this improvement is constructed. 15