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acceptable to the City Engineer. The security shall be conditioned upon the faithful <br /> performance of this Agreement with respect to the Work and shall be released by City in <br /> accordance with Section 14 below upon final acceptance of the Improvements as <br /> described in Section 12.2 and Developer's delivery of the Warranty Security described in <br /> Section 13. 1 (c). <br /> (b) Payment Security. Developer shall furnish and deliver labor and <br /> materials security in the amount of Two Hundred Fifty Thousand Dollars ($250,000), <br /> concurrently with the execution of this Agreement, which security must meet the <br /> requirements of Government Code section 66499.2 and Redwood City Code Section <br /> 30.80 and be acceptable to the City Engineer. The security shall secure payment to the <br /> contractor(s) and subcontractor(s) performing the Work and to all persons furnishing <br /> labor, materials or equipment to them. City shall retain the security until both (i) City <br /> accepts the Work in accordance with Section 12.2 above and (ii) the statute of limitations <br /> to file an action under Civil Code section 8410 et seq. has expired. The security amount <br /> may thereafter be reduced or released by the City Engineer in accordance with Section <br /> 14. <br /> (c) Warranty Security. Developer shall furnish and deliver warranty security <br /> in the amount of Twenty Five Thousand Dollars ($25,000), upon acceptance of the <br /> Improvements and prior to release of the Performance Security. The security shall be in a <br /> form acceptable to the City Engineer and shall guarantee and warrant the Work for a <br /> period of one ( 1) year following the completion and acceptance thereof against any <br /> defective work or labor done, or defective materials furnished. <br /> 13.2 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 /> ATTY/AGR/2015.127/ 718 CANYON SUBDIVISION IMPROVEMENT AGREEMENT <br /> REV:06-22-15 VR <br /> Page 5 of 20 <br />