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7.1.F. - Page 10 <br /> in the State of California,or such other surety as may be acceptable to the City Engineer("Surety <br /> Company"). <br /> (a) Performance Security. Developer shall furnish and deliver performance <br /> security in the amount of Seven Hundred Fourteen Thousand and No/100 Dollars <br /> ($714,000.00), concurrently with the execution of this Agreement, which security must <br /> meet the requirements of Government Code section 66499.1 and Redwood City Code <br /> Section 30.80 and be acceptable to the City Engineer. The security shall be conditioned <br /> upon the faithful performance of this Agreement with respect to the Work and shall be <br /> released by City in accordance with Section 14 below upon final acceptance of the <br /> Improvements as described in Section 12.2 and Developer's delivery of the Warranty <br /> Security described in Section 13.1(c). <br /> (b) Payment Security. Developer shall furnish and deliver labor and <br /> materials security in the amount of Seven Hundred Fourteen Thousand and No/100 <br /> Dollars($714,000.00),concurrently with the execution of this Agreement,which security <br /> must meet the requirements of Government Code section 66499.2 and Redwood City <br /> Code Section 30.80 and be acceptable to the City Engineer. The security shall secure <br /> payment to the contractor(s)and subcontractor(s)performing the Work and to all persons <br /> furnishing labor,materials or equipment to them. City shall retain the security until both <br /> City accepts the Work in accordance with Section 12.2 above. The security amount may <br /> thereafter be reduced or released by the City Engineer in accordance with Section 14. <br /> (c) Warranty Security. Developer shall furnish and deliver warranty security <br /> in the amount of Seventy One Thousand Four Hundred and No/100 Dollars($71,400.00), <br /> upon acceptance of the Improvements and prior to release of the Performance Security. <br /> The security shall be in a form acceptable to the City Engineer and shall guarantee and <br /> warrant the Work for a period of one (1) year following the completion and acceptance <br /> thereof against any 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 /> REV:03-31-14 VR <br /> Page 5 of 21 <br /> ATTY/AGR.2014.045/Indigo 525 Middlefield - Improvement Agreement <br />