AgdaPkt 2020-10-26 Joint SA PFA - Laserfiche WebLink

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7.A. - Page 69 of 176 10/09/2020 (b) Payment Security. Prior to commencement of construction of the Levee Improvements or any work of deconstruction of the existing Seaport Centre Levee, SCOA shall furnish and deliver labor and materials security in the amount one hundred percent (100%) of the Final Design and Construction Budget, which security must meet the requirements of Government Code section 66499.2 and Redwood City Code Section 30.80 and be acceptable to the City Engineer. The security shall secure payment to the contractor(s) and subcontractor(s) performing the Levee Improvements work and to all persons furnishing labor, materials or equipment to them. City shall retain the security until such time as (i) City has accepted the Levee Improvements in accordance with Section 15 above, and (ii) the statute of limitations to file an action under Civil Code section 8410 et seq. has expired. The security amount may thereafter be reduced or released by the City Engineer in accordance with this Section 17. (c) Warranty Security. SCOA shall furnish and deliver warranty security in the amount of ten percent (10%) of the Final Design and Construction Budget, prior to City's acceptance of the Levee Improvements and prior to release of the Performance security. The warranty security shall be in a form reasonably acceptable to the City Engineer and shall guarantee faithful performance of SCOA's warranty obligations, including repair and replacement obligations described in Section 22 below, from the date on which the City accepts the Levee Improvements as complete until expiration of the Warranty Period. SCOA's Warranty Period obligations will not, however, be limited to the amount of warranty security. (d) Costs of Security. The costs of the performance, payment and warranty security shall be included in the Final Design and Construction Budget and the Final Project Costs (e) Filing and Replacement of Surety Bonds. Improvement security consisting of corporate surety bonds shall be kept on file with the City Engineer. If the improvement security is a corporate surety bond and, in the opinion of the City, any surety or sureties thereon become insufficient, SCOA shall renew or replace any such surety with good and sufficient surety or sureties within ten (10) days after City's written demand therefor. If a corporate surety bond is replaced by another approved bond, the replacement shall be fled with the City Engineer and made a part of and incorporated into this Agreement. Upon filing and approval by the City Engineer of a replacement bond, the former improvement security shall be released. The bonds shall be substantially in the forms attached hereto as Exhibits G-1, G-2 and G-3. (f) Increase in Security Due to Modification of Plans. Modifications of the Final Construction Documents and related specifications, and modifications of the Levee Improvements, not exceeding ten percent (10%) of the original Final Design and Construction Budget, shall not require any increase in the improvement security furnished by SCOA pursuant to this Agreement. If any such modifications exceed ten percent (10%) of the Final Design and Construction Budget, SCOA shall furnish additional improvement security for, performance and payment, as required by this Section 17, for one hundred percent (100%) of the revised Final Design and Construction Budget. (g) Release of Security. The security for performance shall be released upon the final completion of the Levee Improvements work, FEMA's accreditation of the New Levee, the City's acceptance of the Levee Improvements, SCOA's delivery of the warranty security described in Subsection 17(c) above, and SCOA's provision to City of lien releases from all OAK #4819-4834-1908 v19 22 ATTY/AGR/2020.230/SEAPORT LEVEE AGREEMENT 251