Resolution 2007-36 - Laserfiche WebLink

Home Browse Search

guaranty of work period set forth in Section 2.5 herein, and upon confirmation that any unsatisfactory condition or damagt: has been remedied pursuant to Section 2.5, the City will inspect the Project, and if approved, will issue its final acceptance of the Project in accordance with City Policy ("Final Acceptance"). At Final Acceptance of the Project by the City, the District shall convey the Project tOl the City free and clear of all liens and encumbrances by instrument(s) reasonably acceptable to the City, and City shall thereafter own the Project and be solely responsible for the operation and maintenance of the Project. Upon such final acceptance by the City, District shall have no further obligation to operate or maintain the Project except as set forth in any surety bond, and c~xcept as required in this Agreement regarding guaranty of work. 2.5 Guaranty of Work. District agrees to guarantee all work for the Project for a period of one year from the date of Construction Acceptance by the City. If any unsatisfactory condition or damage develops within the time of this guaranty due to materials or workmanship that are defective, inferior, or not in accordance with the City's requirements or standards, as reasonably determined by City, then the District shall, when notified by City, immediately place such guaranteed work in a condition satisfactory to City. The City shall have all available remedies to enforce such guaranty, except that City shall not have any work performed independently to fulfill such guaranty and require District to pay City such sums as were expended by the City for such work, unless the City has first given notice to the District of the deficiency and given the District a reasonable opportunity to cure the same; unless, in the City's determination an emergency exists requiring immediate action by the City. 2.6 Proiect Guarantee. District shall submit to the City a guarantee for the Project. Said guarantee shall be in cash. The minimum amount of the guarantee shall be $100,000 and shall be held through Final Acceptance by the City. In addition to any other remedies it may have, the City may, at any time prior to Final Acceptance, draw on the guarantee issued pursuant to this Agreement to correct deficiencies and complete improvements for the Project. If the City draws on the guarantee to correct deficiencies and complete improvements for the Project, any portion of said guarantee not utilized in correcting the deficiencies and/or completing improvements for the Project shall be returned to District within thirty (30) days after Final Acceptance. In the event the cost of improvement and construction is reasonably determined by the City to be greater than the amount of the security provided, then the City shall furnish written notice to the District of the condition, and within forty-five (45) days of receipt of such notice the District shall provide the City with a substituted qualifying guarantee, or augment the deficient security as necessary to bring the security into compliance with this section. If such guarantee is not submitted or maintained, then District is in default of this Agreement. 2.7 Payments for Engim:ering and Construction Costs of Future Proiect. The parties desire that the City shall act as the lead agency to design and construct the Future Project. The City will undertake the Future Proj1ect and directly incur the costs thereof. The City shall pay all costs for the Future Project, and District shall reimburse City for the costs attributable to the District's portion of the Future Project, as set forth herein and in Exhibit A. 4