Development Surety Agreement FP 13-012n ADA COUNTY RECORDER Chrisloph^ Rich AMOUNT .00 i
BOISE IDAH01211?J13 12:25 PM
DEPUTY Vicky Bailey III IIIIIIIIIIIIIIIIIIIIIIIIIIIIIII III
RECORDED-REQUEST OF 11132?~2
Meridian City
City of Meridian
DEVELOPMENT SURETY AGREEMENT
THIS DEVELOPMENT SURETY AGREEMENT is made and entered into this tj~day
of~co.ru~.b~f , 20 ~ by and between the CITY OF MERIDIAN, a Municipal
Corporation, hereinafter referred to as CITY, and SDN, LLC, hereinafter referred to as
DEVELOPER.
WITNESSETH:
WHEREAS, DEVELOPER received approval from the CITY on July 30, 2013 of the
construction plans ("Construction Plans"), for the development known as Tradewinds
Subdivision Phase 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 entered into a Cooperative Construction and
Reimbursement Agreement with CITY on August 20, 2013 wherein DEVELOPER
agreed to construct and be reimbursed by CITY for certain oversized and additional water
and sanitary sewer system components requested by CITY; and
WHEREAS, in addition to the two year warranty surety required of DEVELOPER on the
Project Improvements, Developer agrees to purchase and administer a blanket warranty
surety that will include CITY's oversized and additional water and sewer system
improvements, and City agrees to reimburse DEVELOPER for the City's pro-rata share
of the cost of the blanket warranty surety.
WHEREAS, DEVELOPER has petitioned the CITY to accept the Subdivision Plat and
execute the fmal plat prior to the installation of the Improvements; and
WHEREAS, the Unified Development Code of the City of Meridian, Section 11-SC-1
through 11-SC-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
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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:
• 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 and all applicable City ordinances and
State Codes and in a manner acceptable to the CITY (hereinafter "City's
Requirements".
• 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.
• The DEVELOPER agrees that all said Improvements shall be completed on or
before July 30, 2014, 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 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.
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 Improvements as shown on the
Construction Plans. The amount of the Performance Surety for the Improvements
shall be the sum of $166,604.92 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
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amount which may be spent on completion of the Improvements.
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 Improvements in writing, the following shall occur:
• The DEVELOPER shall submit a written request to the CITY to release
the Performance Surety, including:
• A statement from the DEVELOPER that the required
Improvements are complete and have been constructed in
accordance with the City's Requirements ,and
• Two (2) hard copy sets, and one electronic copy of as-built plans.
The DEVELOPER shall submit to the CITY a Warranty Surety in a form
approved by the CITY in the estimated sum of $36,461.40 to provide for
correction of any defective materials or workmanship in such Required
Public Improvements for a period of two (2) years after final acceptance,
as defined in the City Public Works Construction Code. The Warranty
surety is calculated to include assurances to cover the CITY's upsized and
additional water and sewer system improvements ("Blanket" warranty
surety). 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.
• The CITY agrees to reimburse DEVELOPER for CITY's pro-rata share of
the cost of the Blanket warranty surety. The amount of CITY's warranty
surety fee reimbursement to DEVELOPER shall be calculated as the
CITY's percentage of the itemized bid amounts multiplied by the
DEVELOPER'S cost to acquire the surety. To receive payment,
DEVELOPER will provide CITY with a written invoice for
reimbursement. Upon receipt of such invoice, CITY will pay such invoice
within thirty (30) days after receipt.
The CITY agrees to accept the Required Public Improvements upon certification
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by the City Engineer
• That all Required Public Improvements have been constructed in
accordance with the City's Requirements.
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.
• 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.
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.
SDr
By:
STATE OF IDAHO
ss.
County of Ada )
On this day of ~CG~~~ 20 3 before me, the undersigned, a
Notary Public in and for the State of Idaho, personally appeared Donald G. Newell, known or
identified to me to be the Managing Member of SDN, LLC, who executed this instrument on
behalf of said Company, and acknowledged to me that such Company 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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Nota Public fo daho /~ , ~ ~ ~/~
~`> ~ ~ ` ~ My commission Expires:
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Donald G. Newell, Manager
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CITY OF MERIDIAN:
Tarhny de V_~e d, Mayor
STATE OF IDAHO )
. ss.
County of Ada )
On this~J~ day of ~C.2_~N1~2(' 20~ 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. /""~ ~
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