Agenda Packets - 2006/04/24 - Laserfiche WebLink

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8 The bank and form of the letter of credit or other security shall be subject to the approval of the City. The letter of credit shall be automatically renewable until the City releases the developer from responsibility. The letter of credit shall secure compliance with the terms of this Agreement and all obligations of the Developer under it. The city may draw down on the letter of credit without notice if the obligations of the Developer have not been completed as required by this Agreement. In the event of a default under this Agreement by the Developer, the City shall furnish the Developer with written notice by certified mail of Developer’s default(s) within thirty (30) days of receiving notice provided however if the Developer commences to cure within said thirty days, the time to cure shall be extended for a reasonable time not to exceed 60 days; the City may draw on the letter of credit provided funds are used to complete the Improvements. With City approval, the letter of credit may be reduced from time to time as financial obligations are paid and Developer installed improvements completed to the City’s requirements. In the event the City does not recover its costs for completing the Improvements under the provisions of this paragraph, as an additional remedy, City may, at its option, assess the Property in the manner provided by Minnesota Statutes, Chapter 429, and Developer hereby consents to the levy of such special assessments without notice or hearing and waives its rights to appeal such assessments pursuant to Minnesota Statutes, Section 429.081, provided the amount levied, together with the funds deposited with the City under this paragraph, does not exceed the expenses actually incurred by the City in the completion of the Improvements. 2.06. Insurance. The Developer shall furnish proof of liability insurance in an amount of at least $1,000,000, acceptable to the City, covering any public liability or property damage by reason of the operation of the Developer's equipment or laborers in connection with the Improvements. Developer agrees to keep the insurance in force at all times during construction of the Improvements and until acceptance thereof by the City. The insurance must name the City as an additional insured and must provide that the insurer will give the City not less than 30 days written notice prior to cancellation or termination of the insurance policy. 2.07. Unsatisfactory Labor or Material. In the event that the City rejects as defective or unsuitable any material or labor supplied by the Developer regarding the Improvements, the rejected material must be removed and replaced with approved material and the rejected labor must be done again to the specifications and approval of the City and at the sole cost and expense of the Developer. 2.08. Final Inspection/Acceptance. Upon completion of the Improvements, representatives of the City and the Developer will make a final inspection of the work. Before final payment is made to the contractor by the Developer, the City must be satisfied that all work is satisfactorily completed in accordance with the Plans, and the Developer’s engineer shall submit a written statement attesting to the same. The City shall have no obligation to accept the Improvements if they are not consistent with the Plans or not in compliance with all City ordinances and standards related thereto. Final approval and acceptance of the Improvements shall be by a resolution duly adopted by the City Council of the City.