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AG 95-266BT FOR ~DNTRACT PREPARATION/DOcUMENT REVIEW/51BNATURE Rou~ / Applicant: 4R Construction Company, inc. Bond #: Project: Bellacarino Woods Permit#: ROW 95-0482 Property Address: S.W. 352nd Place Bond Amount: t~2,520.00 Federal Way, WA Cash Deposit Amount: $100.00 CITY OF FEDERAL WAY AGREEMENT AND PERFORMANCE/MAINTENANCE BOND THIS AGREEMENT ("Agreement") is dated effective this 6th day of December, 1995. Theparties ("Parties") to this Agreement are the City of Federal Way, a Washington municipal corporation ("City") and 4R Construction Company, Inc., a Washington corporation ("Applicant"). A. The Applicant is required to perform certain work and/or complete certain improvements, including removal of sidewalks and curbs/gutters and replace with driveway approaches at the above referenced address located in Federal Way, Washington in connection with Applicant's Land Use Application under the above-referenced permit number ("Permit"); B. The improvements will be constructed or the work performed in accordance with record drawings and approved plans on file with the City ("Plans"); C. The City has determined that the Applicant must post security with the City pursuant to Sections 22-146 through 22-159 of the Federal Way City Code ("FWCC") as now existing or hereafter adopted or amended, to guarantee Applicant's performance of the 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. Improvements. Applicant shall construct all improvements and perform all maintenance pursuant to the Plans, to the City's satisfaction ("Work"). The obligation to maintain the improvements shall continue for 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. Completion of Work. The Applicant shall complete the Work to the City's satisfaction, within the time period prescribed 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 Bond to the City in the form attached hereto as Exhibit "A" and incorporated by this reference ("Bond"), to guarantee Applicant's performance of the construction of the improvements and/or maintenance of the improvements pursuant to the Plans. 4. Release of Bond. If the Principal constructs the improvements in accordance with the terms of the Bond, the Permit 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. Right to Comolete Work. 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 costs and expenses in performing such Work in excess of the amount of the Bond. 6. Notice. The Community Development Department of the City shall be given forty-eight (48) hours notice prior to the commencement of the Work. 7. Indemnification. Applicant agrees to indemnify and hold the City, its elected officials, officers, employees, agents, and volunteers harmless from any and all claims, demands, losses, actions and liabilities (including costs and attorney fees) arising from, resulting, or connected with this Agreement and the Bond, including without limitation, the City's performance of the Work pursuant to Section 5 herein. 8. Administrative Cash Deposit. 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 Deoosit Up to $20,000 5% of Bond (minimum $100) $20,001 - $50,000 4% of Bond $50,001 - $100,000 3% of Bond 8100,001 and up 2-1/2% of Bond The cash deposit may be used by the City to cover its actual expenses in administering this Agreement and, if necessary, collecting and using the proceeds from the Bond. 9. Remedies Cumulative. 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. 10. General Provisions. This Agreement may not be amended except by written agreement signed by the Parties. 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 -2- 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. 4R CONSTRUCTION COMPANY, INC. By: Mike Jacobsen Its: President P.O. Box 5100 Kent, WA 98064 (206) 947-3214 CITY OF FEDERAL WAY BY:~er 33530 1st Way South Federal Way, WA 98003 EST: City Clerk,. N. Christine Green, '~'M~ APPROVED AS TO FORM: Londi K. Lindell, City Attorney -3- EXHIBIT A Project: Bellacarino Woods Permit 8: ROW 95-0482 CITY OF FEDERAL WAY PERFORMANCE/MAINTENANCE BOND KNOW ALL PEOPLE BY THESE PRESENTS: We, the undersigned, 4R Construction Company, Inc., as principal ("Principal"), and AAA Insurance & Bonding Company, the undersigned corporation organized and existing under the laws of the State of Washington, and legally doing business in 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 Two Thousand Five Hundred Twenty and no/100 Dollars ($2,520.00)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. The Principal has entered into an Agreement with the City of even date to have the Principal remove sidewalks and curbs/gutters and replace with driveway approaches at 706, 712, 716, 720 and 717 S.W. 352nd Place, Federal Way, Washington. NOW, THEREFORE, if the Principal 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 under the Agreement, and shall pay all laborers, mechanics, subcontractors and material men or women, and all persons who shall supply the Principal or subcontractors with provisions 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 property by reason of any carelessness or negligence on the part of the Principal, or any subcontractor in the performance of said work, and shall indemnify and hold the City harmless from 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 thereof 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 received, 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 specifications 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 to be paid the Principal shall automatically increase the obligation of the Surety on this Performance Bond in a like amount, such increase, however, not to exceed twenty~five percent (25%) of the original amount of this bond without the consent of the Surety. Within forty-five (45) days of receiving notice that the Principal has defaulted on all or part of the terms of the Agreement, the Surety shall make a written commitment to the City that it will either: (a) cure the default itself within a reasonable time period, or (b) tender to the City, the amount necessary 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 disputes 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 costs 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 paragraph, 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 Principal, 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 ,199__. CORPORATE SEAL OF PRINCIPAL: 4R CONSTRUCTION COMPANY, INC. By: Mike Jacobson Its: President P.O. Box 5100 Kent, WA 98064 (206) 947-3214 -2- CORPORATE SEAL OF SURETY: AAA INSURANCE & BONDING COMPANY By: Attorney-in-Fact (Attach Power of Attorney) (Name of Person Executing Bond) (Address) (Phone) APPROVED AS TO FORM: L DI K. LINDELL, CITY ATTORNEY CERTIFICATE AS TO CORPORATE SEAL I hereby certify that I am the (Assistant) Secretary of the Corporation named as Principal in the within bond; that , who signed the said bond on behalf of the Principal, 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 its governing body. Secretary or Assistant Secretary -3- EXHIBIT B PARTIAL RELEASE OF BOND # The undersigned hereby acknowledges that a portion of the conditions of the Agreement and Performance/Maintenance Bond for 4R Construction Company, Inc., Permit No. ROW 95- 0482, have been satisfied and hereby authorizes the release of an amount equal to One Thousand, Seven Hundred Sixty-Four and no/100 Dollars ($1,764.00). The remaining funds equalling thirty (30%) of the cost of the work or improvements shall be retained by the City for a period 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 an,d maintenance of such improvements. DATED this day of ,199__. CITY OF FEDERAL WAY By: (Name, Title) EXHIBIT C FULL RELEASE OF BOND # 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 Bellacarino Woods, Permit No. ROW 95-0482, have been completed to the City's satisfaction and that the City is not aware of any defect in workmanship or materials. Accordingly, the undersigned hereby releases the sum of Seven Hundred Fifty-Six and no/100 Dollars ($756.00). DATED this day of , 19 CITY OF FEDERAL WAY By: (Name, Title) K:~Bonds~Bellerow.prf 12-5-95 {95-4131 ®~"IAMERICAN STATES AMERICAN STATES INSURANCE COMPANY PAGE1 CD=6 ) JINSURANCE .... LINCOLN NATIONAl. CORPORATION INDIANAPOLIS, iNDIANA I NOTICE OF REINSTATEMENT I vs #001050246-6 POLICY NUMBER 01-CC-858030-50 POLICY PERIOD FROM 07-10-95 TO 0"7-10-96 NAMED 4R CONSTRUCTION COMPANY INC. AGENT AAA INSURANCE INC INSURED PO BOX 5100 NAME 33305 1ST AVE S STE 205 AND AND MAILING KENT, WA 98064 ADDRESS P O BOX 6318 ADDRESS FEDERAL WAY, WA 98063 46-00152 (001) (206) 838-5220 MAI 1 8 996 CITY OF FEDERAL WAY ,v~ _ 33530 1 ST WAY S CiTYO :,, :~ FEDERAL WAY, WA 98003 I1,1,,I,,I,I1,,,11,,,,,11,,11,,,,I,1,,I,1,,,111,1,,I,1,,,,,111 YOUR POLICY WAS TERMINATED. IT HAS BEEN REINSTATED EFFECTIVE 02-12-96. THE AMOUNT DUE, IF ANY, WILL BE BILLED UNDER VARI-BILL ACCOUNT #001050246 . THIS POLICY IS SUBJECT TO FINAL AUDIT. 9-RS (0%89) COMPANY USE ONLY SEATTLE 27 (10008) OTHER INTEREST COPY PREPARED 03-14-96 ¢5- ^ ~'t · LINCOLN NATIONAL CORPORATION INDIANAPOLIS, INDIANA NOTICE OF CANCELLATION ] A AAA INSURANCE INC G 33305 1ST WAY SUITE 100 E POLICYNUMBER 01-CC-858030-50 N P O BOX 6318 T FEDERAL WAY, WA 98063 46-00152 (001) (206) 838-5220 CITY OF FEDERAL WAY 33530 1 ST WAY S ~(;~l%f~t~ FEDERAL WAY, WA 98003 JUN - 3 1996 I1,1,,I,,I,I1,,,11,,,,,11,,11,,,,I,1,,I,1,,,111,1,,I,1,,,,,111 ,imYO-~-,~-~ ~ THE POLICY WILL BE CANCELLED AND ALL LIABILITY CEASE ON 06-15-96 I AT THE HOUR ON WHICH SAID POLICY BECAME EFFECTIVE. NO FURTHER NOTICE WILL BE SENT. (Specific information concerning the cancellation or nonrenewal has been given to the insured.) THIS CANCELLATION NOTICE SUPERSEDES ANY PRIOR NOTICE YOU MAY HAVE RECEIVED REGARDING THE TERMINATION OF COVERAGE UNDER THIS POLICY. ~ U % KENT, WA 98064 / 9-465 (04-84) SEATTLE 27 (50282) OTHER INTEREST COPY VB #001050246-6 PREPARED 05-29-96 L-OC-29-PRINTO02 O079-PA1(1~, D