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7.1.A. - Page 7 <br /> respect to the Work and shall be released by City in accordance with Section 14 below <br /> upon final acceptance of the Improvements as described in Section 12.2 and Developer's <br /> delivery of the Warranty Security described in Section 13.1(c). <br /> (b) Payment Security. Developer shall furnish and deliver labor and <br /> materials security in the amount One Hundred Ninety Four Thousand Six Hundred <br /> Fourteen Dollars and Fifty Cents ($194,614.50), concurrently with the execution of this <br /> Agreement, which security must meet the requirements of Government Code section <br /> 66499.2 and Redwood City Code Section 30.80 and be acceptable to the City Engineer. <br /> The security shall secure payment to the contractor(s) and subcontractor(s) performing <br /> the Work and to all persons furnishing labor, materials or equipment to them. City shall <br /> retain the security until both (i) City accepts the Work in accordance with Section 12.2 <br /> above and(ii)the statute of limitations to file an action under Civil Code section 8410'et <br /> seq. has expired. The security amount may thereafter be reduced or released by the City <br /> Engineer in accordance with Section 14. <br /> (c) Warranty Security. Developer shall furnish and deliver warranty security <br /> in the amount of Nineteen Thousand Four Hundred Sixty One Dollars and Forty Five <br /> Cents ($19,461.45), upon acceptance of the Improvements and prior to release of the <br /> Performance Security. The security shall be in a form acceptable to the City Engineer <br /> and shall guarantee and warrant the Work for a period of one (1) year following the <br /> completion and acceptance thereof against any defective work or labor done, or defective <br /> materials furnished. <br /> 132 If the improvement security is a corporate surety bond and, in the opinion of the <br /> City,any surety or sureties thereon become insufficient,the Developer shall renew or replace any <br /> such surety with good and sufficient surety or sureties within ten (10) days after receiving from <br /> City written demand thereof. <br /> 13.3 Improvement security consisting of corporate surety bonds shall be kept on file <br /> with the City Engineer. If a corporate surety bond is replaced by another approved bond, the <br /> replacement shall be filed with the City Engineer and made a part of and incorporated into this <br /> Agreement. Upon filing and approval by the City Engineer of a replacement bond, the former <br /> improvement security shall be released. <br /> 13.4 Modifications of the Plans and related specifications, and modifications of the <br /> Improvements,not exceeding ten percent(10%) of the original Estimated Cost of Work,shall not <br /> relieve or release any improvement security furnished by Developer pursuant to this Agreement. <br /> If any such modifications exceed ten percent (10%) of the Estimated Cost of Work, Developer <br /> shall furnish additional improvement security for, performance, warranty, and payment, as <br /> required by Section 13.1 above,for one hundred percent(100%) of the revised Estimated Cost of <br /> Work. <br /> 13.5 The City's approved bond forms are attached hereto as Exhibits B,C and D. <br /> 14. Partial Reduction or Release of Improvement Security. <br /> 14.1 Partial releases or reductions in the Developer's improvement security may be <br /> authorized prior to the City's acceptance of all Improvements required hereunder, as provided in <br /> this Section 14. <br /> ATTY/AGR/2015.048/IMPROVEMENT AGR-1250 EDGEWOOD RD <br /> REV:03-16-15 VR <br /> Page 5 of 19 <br />