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AG 96-120 DATE IN: DATE OUT' To: CITY OF" ~EDERAL WAY LAW DEPARTMENT REc;lUEST FOR CONTRACT P.j.EPARATION/DOCUMENT REVIEW/SIGNATURE ROUTING SLIP " O",.,.^',." O.~ "0,"" 'f~~"" IIrØ'o -y¡,¡I"l""" 2. ORIGINATING STAF"F" PERSON: ; 'PAIl lj ~ EXT: ~ 3. DATE REIO. Bv: - + \ ~{jJ 4. TYPE OF" OOCUMENT REQUESTED (C"'ECK ONE): 0 PRe"ESSOONAL SERVICES AIJREEMENT 0 MAINTENANcE/LAseR AIJREEMENT 0 PUBLIC WeRKS CeNTRACT 0 SMALL PUBLIC WeRKB CeNTRACT 'Le.. YHAN 8'S,DDDO 0 SECURITY OeCUMENT «..., A..nNeNY .. Pe"'HA'N ..N., A..'.H.eN' a, FUND. 'H L'FU ., OaNDI 0 CONTRACTeR SELECTIDN OeCUMENT <c..., RF., RFO, RFCO AODRESS: AG#: 5, PROJECT NAME: --'3œQ¿ TYPE OF" PERSON OR ENTITY (CHECK eNE): 0 )NDIVODUAL 0 SOLE li'RePRIETeRSHIP STATE: 0 PARTNERSHOP 0 CDRPdRATODN TAX 10#(SS#: SIGNATURE NAME: TITLE: 7. SCOPE OF" WORK: ATTACH EXHISIT A - A COMPLETE AND eETAILED DESCRIPTION eF" THE SERVICES OR SCOPE OF" WORK. INCLUDING COMPLETION DATE$ .-oR EACH PHASE OF" WORK AND LOCATION OF" WORK. B. TERM: COMMENCEMENT DATE: COMPLETION DATE: 9. TOTAL COMPENSATION: $ !INCLUDES EXPENSES AND SALES TAX, IF" ANY) '" aALaULAnD .N HaU'LY LA.a. aHA'" - ATTAaH' .aHFDU'" .F F.D,ams TOT'" ANa H.U'LY "T'" REIMSURSASLE EXPENSES: DYes DNo IF" YES, MAXIMUM DOLLAR AMOUNT: $ Is SALES TAX OWED? 0 VEts 0 Ne IF" YES, $ PAlO Sv: 0 CONTRACTeR oCITY 1 C. SELECTION PROCESS USED (CHECK CINE): 0 RE"UEST mR BIDS 0 RE"UEST "DR PRDPeBAL" 0 RE"UEST CDR lOueTES d RE"UEST FeR QUAUFICATleNS 0 ARCHITECT & ENGINEER LIST 0 SMALL WORKS RDSTER 1 1. CONTRACT REVIEW INITIAL/DATE ApPROVEO 0 OIRECTCR 0 LAW IALL ceNTRACTS) 0 RIBK MANAGEMENT 'ALL a.NT..au FxaeFT AHeNa.FHTO, a.NT..aTaR .FLFaTODH a.aU.FNT' 0 PURCHASING 12, CcNTRACT SIGNATURE RcUTIN~ INITIAL/DATE ApPROVEO 0 LAW OEPARTMENT KCITY MANAIJER X CITY CLERK XSIGNED cepy S74lP ì"}f'~ATINGJlIj 0 AS"IGNED AG # . ;lJJ 0 PURCHASING: PLEASE CHARGE Tel -=-~¡;~? P- i..~D~~~~~~~~ 1 ~ Aet q&- /20 Applicant: Parklane Ventures, Inc. Project: Heritage Woods ¡Plat, Division I Property Address: Military Road & S. 282nd St., Federal Way, WA Bond #: 5836074 Permit#: SUB 92-0005 Bond Amount: $566,582.00 Cash Deposit $ 14,165,00 CITY OF FEDERAL WAY AGREEMENT AND PERFORMANCE/MAINTENANCE BOND THIS AGREEMENT ("A$ reement") is dated effective this 26th day of March, 1996. The parties ("Parties") to this Agreement are the City of Federal Way, a Washington municipal corporation ("City") and parklane Ventures, Inc" a Washington corporation ("Applicant"), A. The Applicant is required to perform certain work and/or complete certain improvements including prov ding storm drainage and roadway improvements at the above referenced address located in ¡federal Way, Washington, in connection with Applicant's Land Use Application under the above-~eferenced permit number ("Permit"); B, The improvements ¡will be constructed or the work performed in accordance with record drawings and approve~ plans on file with the City ("Plans"); C, The City has deterrTjined that the Applicant must post security with the City pursuant to Sections 22-146 through 2;2-159 of the Federal Way City Code ("FWCC") as now existing or hereafter adopted or amended, to guarantee Applicant's performance ofthe required construction of improvements or performance of work, maintenance or repair in accordance with the Plans as a condition of granting the Permit. NOW, THEREFORE, the Parties agree as follows: 1, ImDrovements. Applicant shall construct all improvements and perform all maintenance pursuant to the Plans, to th~ City's satisfaction ("Work"). The obligation to maintain the improvements shall continue 'or a period of two (2) years after issuance of the certificate of occupancy or final inspection, or such longer period as required by the FWCC or other applicable law, rule or regulation. 2. ComDletion of Work. The Applicant shall complete the Work to the City's satisfaction, within the time period prescrib~d by the City, and in full compliance with the Plans, including any approved amendments thereto, and in conformance with all applicable laws, rules or regulations, 3, Performance/Maintenance Bond. Applicant shall deliver the fully executed Performance/Maintenance Bohd to the City in the form attached hereto as Exhibit "A" and incorporated by this refererjce ("Bond"), to guarantee Applicant's performance of the construction of the improvements and/or maintenance of the improvements pursuant to the Plans. ORIGINAL 4. Release of Bond. If the Principal constructs the improvements in accordance with the terms of the Bond, the Permi~ and all applicable law, the sum of the Bond shall be reduced by seventy percent (70%) after final inspection and approval of the improvements by the City and the City will deliver to Principal the fully executed Partial Release of Bond attached hereto as Exhibit "B". Except as set forth in the preceding sentence, the Bond shall remain in full force and effect. That portion of the Bond equal to thirty percent (30%) of the original penal sum shall remain in full force and effect for two (2) years after final inspection and approval, as a maintenance bond to guarantee against defective materials and workmanship in the construction of the improvements and to insure continued maintenance of the improvements. Two (2) years after final inspection and approval of the improvements and performance of the maintenance, the City will release the remaining portion of the Bond by executing and delivering to Principal the Full Release of Bond attached hereto as Exhibit "C", 5. Riaht to Comelete Vl(ork, In the event the Applicant fails to perform the Work, the City may, but in no event is it obligated to, request the disbursement of the Bond from the surety and perform any of the necessary Work, Upon demand, Applicant agrees to pay the City an amount equal to all of the City's cost~ and expenses in performing such Work in excess of the amount of the Bond. 6. Notice. The Commuhity Development Department of the City shall be given forty-eight (48) hours notice prior to the 'commencement of the Work. 7, Indemnification. Apþlicant agrees to indemnify and hold the City, its elected officials, officers, employees, agents, alnd volunteers harmless from any and all claims, demands, losses, actions and liabilities (includirjg costs and attorney fees) arising from, resulting, or connected with this Agreement and the ßond, including without limitation, the City's performance of the Work pursuant to Section 5 herein, 8. Administrative CashiDeeosit. In addition to the amount of the Bond, Applicant agrees to pay a cash deposit to the City pursuant to Section 22-151 of the FWCC, upon the execution of this Agreement equal to the following percentages of the amount of the Bond: Amount of Bond Amount of Cash Deeosit Up to $20,000 $20,001 - $50,0100 $50,001 - $100,000 $100,001 and up 5% of Bond (minimum $100) 4% of Bond 3% of Bond 2-1/2% of Bond The cash deposit may ~e used by the City to cover its actual expenses in administering this Agreement and, if necesS!ary, collecting and using the proceeds from the Bond. 9. Remedies Cumulatil 'e. No remedy provided for by this Agreement shall be deemed exclusive, but shall be deemed cumulative and in addition to every other remedy available to the City at law, in equity or by statute, Applicant's liability under this Agreement is not limited to the amount of the Bond, -2- 10, ~. Applicant shall record a license in the form attached hereto as Exhibit "D" and incorporated herein by this reference with the King County Department of Records. immediately upon the execution of this Agreement and at Applicant's cost, 11. General Provisiorns. This Agreement may not be amended except by written agreement signed by the Parti~s. Any provision of this Agreement which is declared invalid, shall not invalidate the remaining provisions of this Agreement. The failure or delay of the City to declare any breach or default shall not waive such breach or default. This Agreement may not be assigned by any Party without the written consent of the other Party. This Agreement shall be binding upon and insure to the benefit of the Parties' successors in interest. Time is of the essence, :RK~NElf!C ItS:~' II 31620 - 23rd Avenue S" #320 Federal Way, WA 98003 (206) 946-3652 CITY OF FEDERAL WAY By: I12r4 M~ tó«enneth E. Nyberg, City Manager 33530 1 st Way South Federal Way, WA 98003 '->;E/í J~i~~ City Clerk, N. Christine Greeni CMC APPROVED AS TO FORM: p , Wt,r)~ dell, City Attorney K,\BONDS\HERITAGE.PMA 03.26-96 -3- Bond No. 5B36074 EXHIBIT A CITY OF FEDERAL WAY PER~ORMANCE/MAINTENANCE BOND KNOW ALL PEOPLE BY TH~SE PRESENTS: We, the undersigned Parklanø Ventures, Inc., a Washington corporation; Kohl Excavating, Inc., a Washington corporation, (~Principals") and SAFE CO INSURANCE COMPANY OF AMERICA, the undersigned corporation brganized and existing under the laws of the State of Washington and legally doing business i~ the State of Washington as a surety ("Surety"), are held and firmly bound unto the City of' Federal Way, a Washington municipal corporation ("City") in the penal sum of Five Hundred $ixty-Six Thousand Five Hundred Eighty-Two Dollars and no/100 ($566,582.001 for the payment of which they firmly bind themselves and their legal representatives, successors 'and assigns, jointly and severally, This obligation is entered into in pursuant to the statutes of the State of Washington and the ordinances, regulations, standards and policies of the City, as now existing or hereafter amended or adopted. Parklane Ventures, Inc. has entered into an Agreement with the City of even date to provide storm drainage and roadway improvements within the site of Heritage Woods, Division I in accordance with the approVE!d Plans on file with the City of Federal Way, Washington, under Permit #SUB 92-0005. NOW, THEREFORE, if Parklarje Ventures, Inc, shall perform all the provisions of the Agreement in the manner and within the'time period prescribed by the City, or within such extensions of time as may be granted urder the Agreement, and shall pay all laborers, mechanics, subcontractors and materialmen or women, and all persons who shall supply the Principals or subcontractors with proviáions and supplies for the carrying on of said work, and shall hold the City, their officials, agents, employees and volunteers harmless from any loss or damage occasioned to any person or þroperty by reason of any carelessness or negligence on the part of the Principals, or any subèontractor in the performance of said work, and shall indemnify and hold the City harmless f~om any damage or expense by reason of failure of performance as specified in the Agreement, or from defects appearing or developing in the material or workmanship provided or performed under the Agreement within a period of two (2) years after its final acceptance thareof by the City, then and in the event this obligation shall be void; but otherwise, it shall be and remain in full force and effect. And the Surety, for value rqceived, hereby further stipulates and agrees that no change, extension of time, alteration ;or addition to the terms of the Agreement or to the work to be performed thereunder or the $pecifications accompanying the same shall in any way affect its obligation on this bond, and !it does hereby waive notice of any change, extension of time, alterations or additions to the terms of the Agreement or to the Work. The Surety hereby agrees that modifications and changes may be made in the terms and provisions of the Agreement without notice to Surety, and any such modifications or changes increasing the total amount tq be paid the Principals shall automatically increase the obligation of the Surety on this Perforrrance Bond in a like amount, such increase, however, not to exceed twenty-five percent (115%) of the original amount of this bond without the consent of the Surety. Within forty-five (45) days Of receiving notice that Parklane Ventures, Inc. has defaulted on all or part of the terms of th$ Agreement, the Surety shall make a written commitment to the City that it will either: (a) cl. re the default itself within a reasonable time period, or (b) tender to the City, the amount necl:essary for the City to remedy the default, including legal fees incurred by the City, or (c) in the event that Surety's evaluation of the dispute is not complete or in the event the Surety di$putes the City's claim of default, the Surety shall notify the City of its finding and its intent, 'if any, to interplead. The Surety shall then fulfill its obligations under this bond, according to the option it has elected. Should Surety elect option (a) to cure the default, the penal sum of the Bond shall be reduced in an amount equal to the costs actually incurred by the Surety in curing the default. If the Surety elects option (b), then upon completion of the necessary work, the City shall notify the Surety of its actual costs, The City shall return, without interest, any overpayment made by the Surety and the Surety shall pay to the City any actual cost$ which exceed the City estimate, limited to the bond amount. Should the Surety elect option (c), the Parties shall first complete participation in mediation, described in the below para!ilraph, prior to any interplead action. In the event a dispute should arise between the Parties to this Bond with respect to the City's declaration of default by the! Principals, the Parties agree to participate in at least four hours of mediation in accordance with the mediation procedures of United States Arbitration and Mediation ("USA&M"). The' Parties shall proportionately share in the cost of the mediation. The mediation shall be administered by the Seattle USA&M office, 4300 Two Union Square, 601 Union Street, Seattle, washington 98101-2327, The Surety shall not interplead prior to completion of the mediation. DATED this ~ day of April ,1996, CORPORATE SEAL OF PRINCIPAL: PARKLANE ~ By: P(.e./ér- WtSik: (Name of Person Executing Bond) Its: Pr-t'SI'chnf (Title) 31620 - 23rd Avenue S" #320 Federal Way, WA 98003 (206) 946-3652 -2- CORPORATE SEAL OF PRINCIPAL: KOHL EXCAVATING, INC. By: 4 {JLR/~A ./ (Name of Person Executing Bond) Its: V. ,P, (Title) 3330 East Valley Road Renton, WA 98055 (206) 251-8820 CORPORATE SEAL OF SURETY: SAFECO INSURANCE AMERICA COMPANY OF By: ~I~t~ (Attach Power of Attorney) Ma ry A. Dobbs (Name of Person Executing Bond) 1800 9th Ave.. Suite 1500 Seattle, WA 98101 (Address) (206) 682-5656 (Phone) APPROVED AS TO FORM: CERTIFICA,TE AS TO CORPORATE SEAL OF PRINCIPAL I hereby certify that I am the (Assistant) Secretary of the Corporation named as Surety in the within bond; that ,who signed the said bond on behalf of the Surety, was of the said Corporation; that I know his or her signature thereto is genuine, and that said bond was duly signed, sealed, and attested for and in behalf of said Corporation by authority of it~ governing body. K,\baOOo\hM".....maI95-1881 Secretary or Assistant Secretary -3- ACKNOWLEDGMENT STATE OF WASHINGTON) ) COUNTY OF KING) ss I certify t~at I know or have satisfactory evidence that ~1"h7 ~S'1»r"/?JCY1 si gned thi s i nstrument 0 on oath stated that :he was àuthori zed to execute the i ns~ment ¡a,and Elcknowl edged i t as the j/¡u;:- ,ç'æ.P5I):?Ð?J of ~L 'Jr:Mv)J"]'Ù7ér- , to be the free and voluntary act of 'deed of said corporation, for the uses and pu rposes the re i n :menti oned , WITNESS my hand and official seal hereto affixed on~/2/79~ .""""""" ", ~y.SVM.:f. "'~ "r:.~ .""'" O~~ -~ ~J""~G \ '6 3Ñ;;",,~ " ::O..q; ...\-.. = <: ! :::n:nd \ 'éñ \ : I", -l;'- ¡ ¡ : :'" AIfo'.I.ON 8: : : \,* *l {I, \. ~~~ NOI'ò'f.~"~1 ' ".. ""11- '...." ~"..~ "'" 3NI~~ ",." ,."...."" 0 ARY PUBLICi nand, for th~t c:'~ Washlngtono resldlng at , My appointment expires ~ Z /777 t/ EXHIBIT B PARrTlAL RELEASE OF BOND # 5836074 The undersigned hereby acknowledges that a portion of the conditions of the Agreement and Performance/Maintenanbe Bond for Heritage Woods Plat, Division I, Permit No. SUB 92- 0005 have been satisfied ard hereby authorizes the release of an amount equal to Three Hundred Ninety Six Thousahd Six Hundred Eight Dollars and no/100 ($396,608,00), The remaining funds equalling thirty (30%) of the cost of the work or improvements shall be retained by the City for a pe~iod of two (2) years as security for Assignor's performance of all maintenance for the above described project and as a guarantee against defective materials or workmanship in the construction and maintenance of such improvements. DATED this - day of ,19_, CITY OF FEDERAL WAY By: (Name, Title) EXHIBIT C FULL RELEASE OF BOND # 5836074 TERMINATION OF LICENSE The undersigned hereby acknowledges that the two (2) year maintenance period has expired, that the work or. improvements covered by the Agreement and Performance/ Maintenance Bond for Herit¡j¡ge Woods Plat, Permit No. SUB 92-0005 have been completed to the City's satisfaction arId that the City is not aware of any defect in workmanship or materials. Accordingly, the undersigned hereby releases the sum of One Hundred Sixty-Nine Thousand Nine Hundred Seventy-Four Dollars and no/100 ($169,974,00), The undersigned further releases all right, titl~ and interest granted to the undersigned by reason of a certain License Agreement recorded under King County Recording No, ("License Agreement") and acknowl8Ôges that all obligations and rights contained in the License Agreement are hereby terminated. DATED this - day of ,19_. CITY OF FEDERAL WAY By: (Name, Title) EXHIBIT D FILED FOR RECORD AT REQUEST OF: Parklane Ventures. Inc. (Applicant's Name) MAIL TO: CITY OF FEDERAL WAY 33530 1ST WAY SOUTH FEDERAL WAY, WA 98003 ATTN: Ron Garrow THIS SPACE RESERVED FOR: RECORDERS USE: LICENSE The undersigned owner of certain real property located in Federal Way, Washington and legally described as follows: Lsgal Descñption attaqhsd hereto as Exhibit "'" and incorporated herein by this reference ("Property") hereby grants an irrevoc lble license to the City of Federal Way ("City") and the City's agents, employees, contractors or representatives to enter upon the Property to inspect the construction of improvements, the performance of work or to allow the City to perfortn any necessary maintenance or work, all pursuant to that certain Agreement and Performance/Maintenance Bond of even date entered into between the City and the undersigned and incorporated herein by this reference. DATED this~day of Apro'( , ,1996, [Individual Notary] STATE OF WASHINGTON) ) ss. COUNTY OF KING ) On this day personally appe$red before me, to me known to be the individual(s) djlscribed in and who executed the foregoing License, and ,on oath swore that he/she/they execúted the foregoing instrument as his/her/their free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN my hand and official seal this - day of ,19_, (typed/printed name of notary) Notary Public in and for the State of Washington. My commission expires By: P-u [Corporate Notary] STATE OF WASHINGTON) ) ss. COUNTY OF KING ) On this d~ personally appeared before me P.tl. ~o/á:!!j , to me known to be the' of Parklane Ventures, Inc" the corporation that executed the foregoing License, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he/she was authorized to execute said instrument and that the seal affixed, if any, is the corporate seal of said corporation. 2. ORIGINAL m SAFECO@ POWER OF ATTORNEY SAFECO INSURANCE COMPANY OF AMERICA GENERAL INSURANCE COMPANY OF AMERICA HOME OFFICE: SAFECO PLAZA SEATTLE, WASHINGTON 08'85 No. 1045 KNOW ALL BY THESE PRESENTS: That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA, each a Washington corporation. does each hereby ¡ppolnt ""MARY A, DOBBS; STEVEN W. PALMER; GERALDINE C. STEWART; Seattle, Washington"""""""'" Its true and lawful attorney(sHn-fact. with full authority to execute on its behalf fidelity and surety bonds or undertakings and other docllnents of a Similar character issued in the course of its business. and to bind the respectiye company thereby. IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA have each executed and attested these presents this 3rd d~ of JanlJarV . 1 9 .sfi... . CERTIFICATE Extract from the BY-Laws of SAFECO INSURANCE COMPANY OF AMERICA and of ~ENERAL INSURANCE COMPANY OF AMERICA: "Article V. Section 13. - FiDELITY AND SUREty BCNOS , , , the President. a"" Vice President. the Secreta"" and any Assistant Vice President appointed for that purpose by the D/ficer in charge of surety operations, shall each have authority to appoint indiyiduals as attorneys-in-fact or under other appropriate titles with authority to execute on behalf of the comP""" fidolity and sUO'ety bonds and other docllnents of similar character issued by: the company in the course of its business. . . On any instrllnent making or evidencing such appointment. the signature. m~ be afflxe~ by facsimile. On arty instrllnent conferring such authority Dr on a"" bond or undertaking of the comP""". the seat, or a facsimile thereqf, m~ be impressed or affixed or in arty other manner reprOduced: provided, however, that the seal shall not be nece.sary to the yalidiW of a"" such instrt.ment or undertaking." Extract from a Re.oIution of the Board of Director. of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INS\JRANCE COMPANY OF AMERICA adopted July 28. 1970. "On any certificate executed by the Secreta", or an assistant secreta", of the Company setting out. ( ) The provision. of Article V. Section 13 of the By-Laws, and (ii) A copy of the power-Of-attorney ap!þointment. executed pursuant thereto. and (Iii) Certifying that said power-of-attorn8\! appointment is in full force and effect. the signature of the certifying officer m~ be by facsimile. and the seat of Ihe Comparty IT"'I be a facsimile thereof: I. R. A. Pierson. Secreta", of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA, do hereby certify that the foregDlng extracts o~ the By-Laws and of a Resolution of the Board of Oiractors of the.e corporations, and of a Power of Attorney issued pursuant therejo, are true and correct. and that both the By-Laws. the Resolution and the Power of Attorney are stili in full force and effect. IN WITNESS WHEREOF, I have hereunto set my' hand and affixed the facsimile seat of said corporation \ this 8th d~ of April 19~. S-OWEP 1103 @ R.glst.r.. tra..ma,' of SAFECO Corpo""on.