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construction, it will communicate in good faith with the owner of said driveway regarding any temporary disruption in access or other impacts that may be reasonably necessary during construction of the Public Improvements. 2.04. Financial Guarantee. Prior to commencement of construction of any Improvements, the Developer agrees to furnish the City with a cash escrow or irrevocable letter of credit from a bank in the amount of 125 percent of the estimated costs of the Public Improvements (the "Financial Guarantee"), and such estimate shall be based on received bids or other evidence satisfactory to the City engineer in its sole discretion after the Plans are approved. Upon failure of Developer to perform any of its obligations under this Agreement, the City may declare the Developer to be in default and, upon failure of the Developer to cure the default within 30 days of written notice, may immediately draw on and utilize the Financial Guarantee for purposes of curing said default to any extent it deems necessary. The City shall also be reimbursed through the Financial Guarantee for any attorneys' fees, engineering fees, or other technical, administrative, or professional assistance reasonably required in response to an event of default by the Developer. The Developer shall also be liable to the City in the event that the Financial Guarantee is inadequate to reimburse the City for its costs associated with curing a Developer's default. Upon completion of the Improvements and passage of any and all required inspections and final acceptance of the Public Improvements by the City, absent any default of the Developer, the Financial Guarantee may be released in full. If the Financial Guarantee consists of a letter of credit, it shall be issued by a bank determined by the City to be solvent and creditworthy and shall be in a form acceptable to 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. With City approval, at its sole discretion, the letter of credit may be reduced from time to time as financial obligations are paid and Improvements completed to the City's requirements, it being the intent to retain a financial security of no less than 125 percent of any outstanding Public Improvements at all times. If at any time the City reasonably determines that the bank issuing the letter of credit no longer satisfies the City's requirements regarding solvency and creditworthiness, the City shall notify the Developer and the Developer shall provide the City within 45 days a substitute for the letter of credit from another bank meeting the City's requirements. If the Developer fails to provide the City within 30 days with a substitute Letter of Credit from an issuing bank satisfactory to the City, the City may draw under the existing Letter of Credit. 2.05. Warranty/Maintenance. The Developer hereby provides the City with a warranty for the proper operation of the Public Improvements for a period of two years following acceptance of the Public Improvements by the City (the "Warranty Period"). To that end, upon completion of the Public Improvements and prior to their acceptance by the City, the Developer and/or Developer's contractors shall be required to furnish a two-year warranty bond in the amount of 100% of the total cost of the Public Improvements guaranteeing the work of the construction of the Public Improvements to the City. During the Warranty Period, the Developer shall be solely responsible for repairing any issues that may arise with respect to the proper operation of the Public 6 MU210-262-628764.v18