AgdaPkt 2016-12-12 Closed and Joint SA PFA

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6.2.A. - Page 8 required by Section 13.1 above, for one hundred percent (100%) of the revised Estimated Cost of Work. 13.5 The City's approved bond forms are attached hereto as Exhibits B, C and D. 14. Partial Reduction or Release of Improvement Security. 141 Partial releases or reductions in the Developer's improvement security may be authorized prior to the City's acceptance of all Improvements required hereunder, as provided in this Section 14. 142 Upon acceptance of all or any specified category of the Improvements by the City Council and upon request of the Developer, the improvement security may be reduced or released as follows: (a) Security for Performance: The security for performance shalt be released upon the final completion of the Work, the City's acceptance of the Improvements and Developer's delivery of the warranty security described in Section 13.1(c). At the request of Developer, the Director of Public Works may release a portion of the security for performance in conjunction with the acceptance of part of the Improvements; provided, however, that no such release shall be for an amount less than ten percent (10%) of the total security for performance and such security shall not be reduced to an amount less than seventy-five percent (75%) of the total security for performance until final completion and City acceptance of the improvements. In no event shall the Director of Public Works authorize a release of the security for performance which would reduce such security to an amount below that required to guarantee the completion of the remaining Work and any other obligation imposed under this Agreement, (b) Security for Payment: Security furnished to secure payment to contractors, subcontractors, and to persons providing labor, materials or equipment shall, six (6) months after acceptance of all of the Improvements, be reduced to an amount equal to the total amount claimed by all claimants for whom liens have been filed and of which notice has been given to the City, plus an amount reasonably determined by the City Engineer to be required to assure the performance of any other obligations secured by the security. The balance of the payment security shall be released upon settlement or release of all claims and obligations for which the security was given. (c) If Developer's obligations relating to any Improvements are subject to the approval of another governmental agency, the City shall not release the improvement security thereof until the obligations are performed to the satisfaction of such other governmental agency. Such agency shall have thirty (30) days after Developer's performance of the obligation to register its satisfaction or dissatisfaction. If at the end of that period such agency has not registered its satisfaction or dissatisfaction, it shall be conclusively deemed that the Developer's performance of the obligation was done to its satisfaction. 143 In the event of an authorized assignment under this Agreement, any improvement security imposed pursuant to this Section 14 inclusive, shall be released in favor of Developer subject to City's right to impose suitable replacement security or securities on Developer's successor in interest. REV: 02-20-15 VR Page 6 of21 AM/AGR.2015.4341SunCap Redwood LLC (IA)