10/10/2011 Council Packet - Laserfiche WebLink

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• • • City. The City reserves the right to draw, in whole or in part, on any portion of the Irrevocable Letter of Credit for the purpose of guaranteeing the terms and conditions of this contract. The Irrevocable Letter of Credit shall be automatically extended for additional periods of one year from present or future expiration dates. B. The Developer may request reduction of the Letter of Credit, or cash deposit based on prepayment or the value of the completed improvements at the time of the requested reduction. The City may retain a minimum value to guarantee and assure that unfinished improvements can be completed. Prior to the final acceptance of the Developer's Improvements the City shall require a Letter of Credit or Cash Escrow to cover the warranty provisions of the agreement. The amount shall be determined by the City Engineer. VI. REIMBURSEMENT OF COSTS. A. The Developer agrees to establish a non - interest bearing escrow account with the City in an amount established by the City Engineer or his designee for the payment of all City fees and costs incurred by the City related to the On -site and Off -site Work, including, but not limited to, the following: Total Estimated (Budget) Costs for Escrow Account $5,000.00 Administration (Legal, Engineering, Planning, and Contract administration) - Existing project escrow as of August 10, 2011 $1,550.00 Additional escrow deposit required: $3,450.00 B. The City shall have a right to reimburse itself from the Escrow. Upon request, the City shall provide the Developer written notice and reasonably detailed invoices of the City's expenses charged to the escrow. If it appears that the actual costs incurred will exceed the estimate, then Developer and City shall review the costs required to complete the project. In such case, Developer shall deposit additional sums with the City to pay for the agreed upon increase. If the escrow account drops below 10% of the original deposit amount, the City may require the submittal of an additional escrow deposit sufficient to cover any anticipated expenses. VII. REMEDIES FOR BREACH A. The City shall give prior notice to the Developer of any default hereunder before proceeding to enforce such financial guarantee or before the City undertakes any work for which the City will be reimbursed through the financial guarantee. If within ten (10) days after such notice to it, the Developer has not notified the City by stating in writing the manner in page 5 of 9 P98