08 Plat approval, variance, easement acceptance and subdivision improvements

Home Browse Search

completion and warranty of the Public Improvements, as described herein, in the form of a cash deposit, letter of credit or performance and payment bond as provided below: (a) A performance bond and a payment bond from the Contractor perForming the work in the amount one hundred and thirteen percent (113%) of the estimated cost to complete the Public Improvements and insuring the completion of the Public Improvements and payment of all subcontractors and materials providers. The bonds shall be in a form and substance acceptable to the City Attorney of the City of Paris (hereinafter, collectively called the "Bonds"). The Bonds shall be signed by a corporate Surety or Sureties authorized to do business in the State of Texas, and shall be signed by the Contractor performing the work as principal. The City shall be named as a co- beneficiary in the Bonds. A power of attorney shall be attached to the Bonds evidencing that the agent signing the Bonds has authority to sign the Bonds on behalf of the Surety. The Bonds shall additionally insure that the Public Improvements shall be free of defects for the period of warranty set forth in Article II of this Agreement; or (b) An irrevocable letter of credit in the sum of one hundred and thirteen percent (113%) of the cost estimated to complete the Public Improvements and in a form and substance acceptable to the City Attorney of the City of Paris. The Letter of Credit shall be issued by a local national bank approved in advance by the City, which approval shall not be unreasonably withheld. The Letter of Credit shall be payable at sight to the City upon presentation of the City's written statement stating that Developer is in default of this Agreement or that the City is otherwise entitled to draw down on the Letter of Credit. Such certificate shall be conclusive to allow the City to draw the proceeds of the Letter of Credit. In no event shall the City be required to prove to the issuer that the Developer is actually in default or to specify specific grounds of default in order to draw proceeds of the Letter of Credit. The Letter of Credit is intended to be security for the faithful completion of the Public Improvements and to ensure against defects for the warranty period specified in Article II of this Agreement; or (c) A cash deposit in an amount equal to one hundred and thirteen percent (113%) of the estimated cost to complete the Public Improvements ("Cash Escrow"). The Cash Escrow shall serve as financial security (in lieu of a Letter of Credit) for the faithful completion of the Public Improvements and to ensure against defects for the warranty period specified in Article II of this Agreement. 3.02. Duration of and Reductions of Letter of Credit or Cash Deposit (a) The Letter of Credit shall be issued for a period of at least one (1) year. If the Public Improvements have not been accepted by the City within thirty (30) days of the expiration date of the Letter of Credit, and Developer has not provided a new Letter of Credit for an additional period of at least one (1) year, (identical in amount unless the Letter of Credit was previously reduced in amount pursuant to Section 3.02(c)) and in all other respects to the original Letter of Credit (unless the City Attorney or his/her designee approves in writing any changes to the new Letter of Credit), which approval SUBDIVISION IMPROVEMENT AGREEMENT PAGE 4 LAS -Y