HomeMy WebLinkAboutOaks West Subdivision No. 1ADA COUNTY RECORDER Phil McGrane 2019-057931
BOISE IDAHO Pgs=7 BONNIE OBERBILLIG 07/02/2019 08:26 AM
CITY OF MERIDIAN, IDAHO NO FEE
AMENDMENT NO. 1
TO
AND RESTATEMENT OF
City of Meridian
DEVELOPMENT SURETY AGREEMENT
Oaks West Subdivision No. 1
THIS FIRST AMENDMENT TO THE DEVELOPMENT SURETY AGREEMENT for the Oaks
West Subdivision No. 1 is made and entered into this I�j'day of �� l , 2019 by
and between the CITY OF MERIDIAN, a Municipal Corporation, hereinafter referred to as CITY,
and HAYDEN HOMES IDAHO, LLC, hereinafter referred to as DEVELOPER.
WITNESSETH:
WHEREAS, on the 26th day of September, 2018, Developer entered into a Development Surety
Agreement for the development known as Oaks West Subdivision No. 1, and
WHEREAS, Developer and City desire to incorporate additional terms and conditions into the
Development Surety Agreement, and
WHEREAS, the text of the September 26, 2018 Agreement are set forth below, and the additional
terms and conditions pursuant to this Amendment No. 1 are set forth in underlined text, and
WHEREAS, DEVELOPER received approval from the CITY on August 7, 2018, of the
construction plans ("Construction Plans"), for the development known as Oaks West Subdivision
No. 1 ("Subdivision Plat") located in the City of Meridian, which Construction Plans include
improvements for public life, safety and health ("Required Public Improvements") and
improvements for non -life, non -safety and non -health improvements ("Required Development
Improvements") (The Required Public Improvements and Required Development Improvements
may be collectively referred herein as "Improvements"); and
WHEREAS, DEVELOPER has petitioned the CITY to accept the Subdivision Plat and execute
the final plat prior to the installation of the hnprovements; and
WHEREAS, the Unified Development Code of the City of Meridian, Section 11-5C-1 through 1 l -
5C-4 and applicable ordinances and laws of the CITY require that the DEVELOPER execute and
file with the CITY an agreement providing for, among other things, the period within which all
required improvements shall be made within said Subdivision and that if the Improvements are
not completed within the period specified, the CITY may complete the same and recover the full
cost and expense thereof from the DEVELOPER; and
DEVELOPMENT SURETY AGREEMENT—Oaks NYest Subdivision No. l —Page 1
WHEREAS, the CITY is agreeable to acceptance and filing of said Subdivision Plat upon the
execution of this Agreement and compliance by the DEVELOPER with the provisions of the
Unified Development Code of the City of Meridian.
NOW, THEREFORE, in consideration of foregoing mutual promises, covenants and agreements
of the parties, it is hereby agreed as follows:
1. The DEVELOPER agrees to install all of the Required Public Improvements and bind
themselves to use such materials and to so construct all of the Improvements in compliance
with Construction Plans, specifications, and all applicable City ordinances and State Codes
and in a manner acceptable to the CITY (hereinafter "City's Requirements").
2. The DEVELOPER agrees to restore at no cost to the CITY any monument erected or used
as a survey marker or boundary of any tract, plat or parcel of land which monument is
broken down, damaged, obliterated, removed or destroyed, whether willfully or not, by the
DEVELOPER, or the agents, employees or contractors of the DEVELOPER.
3. The DEVELOPER agrees that all said Improvements shall be completed on or before
August 7, 2019, and that the DEVELOPER will correct, repair and maintain all such
Required Public Improvements from any defects, omissions or irregularities in the
construction, materials or work thereof for a period of two (2) calendar years from the date
of written acceptance of such hnprovements, with the exception that for certain Required
Public Improvements specified below, the DEVELOPER will correct, repair and maintain
the specified Required Public Improvements from any defects, omissions or irregularities
in the construction, materials or work thereof for a period of five (5) calendar years from
the date of written acceptance of such Improvements. The DEVELOPER agrees that if
they abandon the Improvements, fail to make satisfactory progress on the Improvements,
or fail to complete the Improvements by the date specified, the CITY may cause the
Improvements to be completed by another person under contract, by its own forces, or both
and that DEVELOPER hereby grants a License for such purposes. The DEVELOPER
shall be jointly and severably liable to the CITY for any and all loss and damage from such
abandonment or failure, either from the greater expense of so completing or repairing faulty
or damaged Improvements, or from any other cause related to DEVELOPERS failure to
complete the Improvements, which expense shall not be limited by any surety.
4. Upon execution of this Agreement, the DEVELOPER shall deliver to CITY a performance
surety (Irrevocable Letter of Credit, Corporate Surety Bond or Cash Deposit)
("Performance Surety") for the purpose of assuring DEVELOPER'S full and faithful
completion of the required hnprovements as shown on the Construction Plans. The amount
of the Performance Surety for the Improvements shall be the sum of $1,587,476.32 as set
forth on Exhibit "A" attached hereto and incorporated herein. The amount of such
Performance Surety is based upon 125% of an itemized contractor's bid for the completion
the Required Public Improvements, and 110% of all other Required Development
Improvements. CITY'S acceptance of such assurance shall not be construed as a limitation
on the amount which may be spent on completion of the Improvements.
DEVELOPMENT SURETY AGREEMENT—Oaks West Subdivision No. 1 —Page 2
5. At such time as all Required Public Improvements have been completed in accordance with
the CITY'S requirements, the DEVELOPER shall notify the CITY of the readiness for
final inspection. Upon certification by the City Engineer that all requirements of the CITY
have been met and CITY formally accepts such hnprovements in writing, the following
shall occur:
A. The DEVELOPER shall submit a written request to the CITY to release the
Performance Surety, including:
i. A statement from the DEVELOPER that the required Improvements are
complete and have been constructed in accordance with the City's
Requirements , and
ii. Two (2) hard copy sets, and one electronic copy of as -built plans.
iii. A final accounting. of the finished costs of the Required Public
Improvements, substantiated by billing invoicing from the contractor(s)
performing the work.
B. The DEVELOPER shall submit to the CITY a Warranty Surety in a form approved
by the CITY in the estimated sum of $120,949.70 to provide for correction of any
defective materials or workmanship in such Required Public Improvements for a
period 6f two (2) years after final acceptance, as defined in the City Public Works
Construction Code. The amount of such surety assurances is based upon 20% of
the contractor's itemized bid for the completion of the Required Public
Improvements. At the expiration of the two year period, DEVELOPER shall
submit a written request to the CITY to release the Warranty Surety, along with a
statement from the DEVELOPER that the Required Public Improvements continue
to meet City's Requirements at the end of the two year warranty period. After
receiving such request the CITY shall conduct an inspection of the Required Public
Improvements to determine if any defects are present. If there are no defects, CITY
shall release/return the Warranty Surety to DEVELOPER.
C. In addition to the Warranty Surety provisions set forth in the preceding section 513,
The DEVELOPER shall submit to the CITY an additional Warranty Surety
form approved by the CITY in the stipulated sum of $37,000 to provide for
correction of any defective materials or workmanship in a specific portion of the
Required Public Improvements in Mc Dermott Road which have been constructed
with a pipe sag that is larger than would otherwise be allowable. This additional
Warranty shall be for a period of five (5) years after final acceptance, as
agreed to between DEVELOPER and CITY given the complexity of attempting to
remedy the sagging pipe prior to final acceptance. At the expiration of the five
,period specified in this section 5C, DEVELOPER shall submit a written
request to the CITY to release the Warranty Surety,ong with a statement from
the DEVELOPER that the portion of the Required Public Improvements identified
in this section 5B have not experienced additional pipe sag during the five year
warranty period. After receiving such request the CITY shall conduct an inspection
DEVELOPMENT SURETY AGREEMENT— 0:1Ics West Subdivision No. I — Page 3
of the specified Required Public Improvements to determine if any additional pipe
sag or other defects are present. If there are no defects, CITY shall release/return
the Warranty Surety to DEVELOPER.
6. The CITY agrees to accept the Required Public Improvements upon certification by the
City Engineer
A. That all Required Public Improvements have been constructed in accordance with
the City's Requirements.
B. That the City Engineer has received payment from DEVELOPER in the amount
of $5,000 which represents an agreed-upon amount to compensate CITY to
perform five (5) cleanings of the sewer main in McDermott Road as may be
necessitated by the sagging pipe condition described in Section 5C.
Such certification is not intended to relieve DEVELOPER or any contractor or material
supplier of their responsibility for any defects in materials or workmanship of such
Improvements.
7. In construing this Agreement, it is understood that either party may be more than one
person and if the context so requires, the singular pronoun shall be taken to mean and
include the plural, the masculine, and neuter, and that generally all grammatical changes
shall be made, assumed and implied to make the provisions hereof apply equally to a single
or several individuals.
DEVELOPINIENT SURETY AGREEMENT — Oaks West Subdivision No. I — Page 4
IN WITNESS WHEREOF, the parties shall cause this Development Surety Agreement to be
executed by their duly authorized officers the day and year first above written.
HAYDEN HOMES IDA O, LLC:
By: 4w(
Jim SaA sburn, Vice President of Finance
6 9E(1
STATE OF4D )
County of la )
On this_li�__"_day of20J4�j , before me, the undersigned, a Notary
Public in and for the State of Idaho, personally appeared Jim Sansburn, known or identified to me to be the
Vice President of Finance for HAYDEN HOMES IDAHO, LLC, who executed this instrument on behalf
of said LLC, and acknowledged to me that such LLC executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and
year first -above written.
SEAL
Notar Publ , for Idaho 1
My commission Expires:
OFFICIAL STAMP
KRISTI LYNN RINGIS
NOTARY PUBLIC — OREGON
COMMISSION NO. 952242A
(9MY COMMISSION EXPIRES JULY 19 2020
DEVELOPINI ENT SURETY AGREENIENT— Oaks West Subdivision No. I —Page 5
CITY OF MERIDIAN:
Tammy de Weerd, Mayor
STATE OF IDAHO )
ss.
County of Ada )
On this day of w 20L before me, the undersigned, a Notary
Public in and for the State of Idaho, personally appeared Tammy de Weerd, known or identified to me to
be the Mayor of the City of Meridian, Idaho and who subscribed her name to the within instrument and
acknowledged to me that the City of Meridian executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and
year first above written.
SEAL
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DEVELOPMENT SURETY AGREEMENT — Oaks West Subdivision No. 1 — Page 6
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