03.02A Final Plat of The Range - Development Agreement

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extent that any cash or letter of credit referred to herein is ever utilized and found to be deficient in amount to pay or reimburse the City in total, the Developer agrees that upon being billed by the City, the Developer will pay within ten(10) days of the mailing of said billing, the said deficient amount. If there should be an overage in the amount of utilized security, the City will, upon making said determination,refund to the Developer any monies, which the City has in its possession, which are in excess of the actual cost paid to the City. All securities deposited with the City for Developer Improvements shall be used by the City at City's discretion to defray City's costs and expenses. The City may in its discretion reduce the security to 10% of the estimated cost during the warranty period, subject to review by the City Engineer. The security requirements of this section(the"Security")may be satisfied by furnishing annually renewable letters of credit in the form attached hereto as Elchibit D. Individual Security Instruments may be for shorter terms provided they are replaced at least 30 days prior to their expiration. The city may draw down the security, without notice, for any violation of the terms of this agreement or if the Security is allowed to lapse prior to the end of the terms of this agreement or if the Security is allowed to lapse prior to the end of the required term by presenting the bank/escrow agent with a written demand or an affidavit signed by the city administrator or the city Administrators designee attesting to the cities right to draw down and receive funds under the Security. If the required improvements are not completed at least 30 days prior to the expiration of the Security, the City may also draw the Security down. If the Security is drawn down, the proceeds shall be used to cure the default. Upon receipt of proof satisfactory to the City or its engineer that work has been completed and financial obligations have been satisfied, with City approval, the Security may be reduced from time to time by ninety (90)percent of the financial obligations that have been satisfied. Ten percent(10%) of the amounts certified by the developers engineer shall be retained as Security until a) all improvements have been completed,b) iron monuments for the corners have been installed, c) all financial obligations to the City have been satisfied, and d)the required "record"plans have been received by the city. XIII. Pre-Construction Activities. The Developer and its engineer shall schedule a pre- construction meeting with the City to review a proposed schedule for construction of the Developer Improvements. XIV: Commencement of Construction of Developer Improvements. Upon obtaining all necessary governmental approvals, licenses, and permits, subject to unavoidable delays, Developer may commence construction of the Developer Improvements. XV. Faithful Performance of Construction of Developer Improvements and Guaranty. i Developer shall install, construct, and maintain the Developer Improvements in i accordance with the terms of this Agreement. Developer guarantees and warrants the workmanship of Developer Improvements for a period of one year following City's , acceptance of the same for the utility or maintenance purposes ("Guarantee Period"). The security described herein shall remain in place until all applicable warranty and guarantee periods have expired.