HomeMy WebLinkAbout1404 Hinesburg Road - Landscaping - 6/14/2011soutwIntrillIgton
PLANNING & ZONING
MEMORANDUM
TO: Donna Kinville, City Clerk / Treasurer
FROM: Raymond J. Belair, Administrative Officer
DATE: June 6, 2011
SUBJECT: Reduction of Letter of Credit # 2010-10
The applicant's request for the reduction of the above -listed has been reviewed for the
following project. Summerfield #SD-09-32
The original amount of the surety was: $ 344,900
The surety is presently: $ 49,902.50
Based on our analysis, the applicant has qualified for a reduction to in the amount of the
public infrastructure surety to: $ 34,490
Please complete and sign the enclosed form authorizing the financial institution to reduce
the Letter of Credit to the amount listed therein.
575 Dorset Street South Burlington, VT 05403 tel 802.846.4106 fax 802.846,4101 www.sburl.com
yes PEOPLES TRUST UST COMPANY
�
P.O. Box 320 • St. Albans • Vermont 05478-0320
Fri 7
www.peoplestrustcompany.com
(800) 479-2196
Date 06-14-11
City of South Burlington
iKE: irrevocable Stand-by Letter of Credit #2011-9
Buckthorn Group, LLC
To Whom It May Concern:
We hereby establish our Irrevocable Stand-by Letter of Credit in your favor for the account. of
Buckthorn Group, LLC up to an aggregate amount of $34,490.00 available by your draft or drafts on
us at sight accompanied by a signed statement that these funds are due you under the terms of your
agreement with Buckthorn Group, LLC. All drafts must be marked under Letter of Credit #2011-9
valid 06/ 14/ 11 through 06/ 15/ 14.
We engage with you that all drafts drawn under and in compliance with the terms and conditions of
the credit will be duly honored on delivery of documents as specified if presented at this office on or
before 06/15/14.
The original of this Irrevocable Stand-by Letter of Credit must accompany drawings presented to us
hereunder.
Except so far as otherwise expressly stated, this credit is subject to the "Uniform Customs and
Practice for Documentary credits (1993 Revision), International Chamber of Commerce Publication
#500."
Verytruly urs,
ureen T�f
Sr.Vice es dent
r
/jp
south�_
VERPAONT
June 6, 2011
John O'Brien
Buckthorn Group, LLC
839 Oak Hill Road
Williston, VT 05495
Re: authorization for reduction of Irrevocable Stand-by Letter of Credit # 2010-10
Dear Mr. O'Brien
Please be advised that the City of South Burlington hereby authorizes a reduction in the amount
of the above -listed Letter of Credit required for public infrastructure improvements.
The Letter of Credit was established in the amount of $344,900 with Peoples Trust Company and
can now be reduced to $34,490. Please send the updated Letter of Credit to the City of South
Burlington.
Should you have any questions, please feel free to contact us.
Sincerely,
Donna Kinville
City Clerk/ Treasurer
575 Dorset Street South Burlington, VT 05403 tel 802.846.4106 fax 802.846.4101 www.sburl.corn
Page 1 of 1
ray
From: Justin Rabidoux
Sent: Monday, June 06, 2011 12:48 PM
To: ray
Subject: RE: Wildflower Drive
Ray,
That's OK with me.
From: ray
Sent: Monday, June 06, 2011 10:11 AM
To: Justin Rabidoux
Subject: Wildflower Drive
Hi Justin,
have received a request to reduce the Letter of Credit for the construction of Wildflower Dr. to 10% of the original
amount. They have just installed the final coat of pavement and will have to wait a year before we can accept the
street. Do you have a problem with reducing the amount to the 10 % amount? Thanks.
6/6/2011
Buckthorn Group
839 Oak Hill Road, Williston, VT 05495
(802) 878-6022 • fax (802) 878-6022
iohn—ob@myfairpoint.net • cathy—ob@myfairpoint.net
May 27, 2011
Ray Belair
City of South Burlington Planning and Zoning
575 Dorset Street
South Burlington, VT 05403
RE: Summerfield Subdivision, 1404 Hinesburg Road, South Burlington
Dear Ray:
PIease consider this a formal request to commence the release the Line of Credit that is
being held in lieu of completion of Wildflower Drive and its associated improvements
from the Buckthorn Group LLC to the City of South Burlington.
It is also my understanding that the warranty clock will also now commence. Can you
please clarify that?
The topcoat of the roadway was installed today and the shoulders will be completed
within a day or two. You will be receiving three complete sets of construction as-builts
directly from Krebs & Lansing Consulting Engineers. Also, please indicate to me what
other engineering documents, as well as legal documents will be needed to complete this.
If there are any legal documents to complete I will have David Cassier send you drafts for
your review.
Thank you for your attention, please call me if you have any questions.
Since ,r
Join O'Brien
PEOPLES TRUST COMPANY
„., P.O. Box 320 • St. Albans • Vermont 05478-0320
www.peoplestrustcompany.com
(800) 479-2196
Date 09-29-10
City of South Burlington
RE: Irrevocable Stand-by Letter of Credit #2010-10
Buckthorn Group, LLC
To Whom It May Concern:
We hereby establish our Irrevocable Stand-by Letter of Credit in your favor for the account of
Buckthorn Group, LLC up to an aggregate amount of $49,902.50 available by your draft or drafts on
us at sight accompanied by a signed statement that these funds are due you under the terms of your
agreement with Buckthorn Group, LLC. All drafts must be marked under Letter of Credit # 2010-10
valid 09/29/2010 through 10/29/2011.
We engage with you that all drafts drawn under and in compliance with the terms and conditions of
the credit will be duly honored on delivery of documents as specified if presented at this office on or
before 10/29/2011.
The original of this Irrevocable Stand-by Letter of Credit must accompany drawings presented to us
hereunder.
Except so far as otherwise expressly stated, this credit is subject to the "Uniform Customs and
Practice for Documentary credits (1993 Revision), International Chamber of Commerce Publication
#500."
Very truly yours,
Thomas J. Galla g her /
Vice President
/jp
11 4
southburli.ngton
PLANNING & ZONING
September 21, 2010
Buckthorn Group, LLC
John R. & Catherine L. O'Brien
839 Oak Hill Road
Williston, VT 05495
Re: Irrevocable Stand-by Letter of Credit #2009-11 Reduction
Dear Mr. & Mrs. O'Brien:
Please be advised that the City of South Burlington hereby authorizes the
reduction of the above referenced Letter of Credit from $344,900 to $49,902.50.
Please submit a new Letter of Credit which reflects the reduced amount.
Should you require further information, please let me know.
Sincere
ymond J. Belair
ministrative Officer
575 Dorset Street South Burlington, VT 05403 tel 802.846.4106 fax 802.846.4101 www.sburi.com
KREBS & LANSING
Consulting Engineers, Inc.
164 Main Street, Suite 201
Telephone (802) 878-0375
Colchester, VT 05446
September 16, 2010
Paul Conner
City Planner
City of South Burlington
575 Dorset Street
South Burlington, VT 05403
RE: Summerfield — #SD-09-23 (Wildflower Drive)
Request for Reduction in Letter of Credit
Dear Paul,
Telephone (802) 878-0375
Fax(802)878-9618
We have observed the construction of road and infrastructure improvements Wildflower Drive at
Summerfield With the exception of minor punch list items, we feel the construction to date has
been in conformance with the City of South Burlington Development Specification and permit
conditions. On behalf of our clients we have prepared the following itemization of value for work
completed in the amount of $327,775.00. We are requesting that you allow a reduction in the
letter of credit for 90% of the value of the work completed to date. This will result in the letter of
credit being reduced from $344,900.00 to $49,902.50.
Work Completed to Date at Summerfield
Item
Quantity
Unit
Cost
Total Cost
Value of
Remaining Value of Work Work
Quantity Completed Remaining
Road/Parkin
30" 704.05 Crushed Gravel
GY
2000
24.00
48,000.00
0
48,000.00
0
4" Pavement tons
520
75.00
39,000.00
195
24,375.00
14625
6" 703.03 Sand CY
400
10.00
4,000.00
0
4,000.00
0
Ground Stabilization Fabric
SY
2400
1.00
2,400.00
0
2,400.00
0
Cut Excavation CY
1600
4.50
7,200.00
0
7,200.00
0
Remove Excess Cut CY
600
12.50
7,500.00
200
5,000.00
2500
Underdrain LF
2070
14.00
28,980.00
0
28,980.00
0
Porous Asphalt Sidewalk SF
3750
10.00
37,500.00
0
37,500.00
0
Storm
HDPE Pipe LF
735
24
17640
0
17,640.00
0
CBs/Mhs
6
2400
14400
0
14,400.00
0
Footing drain LF
240
12
2880
0
2,880.00
0
End Sections
13
200
2600
0
2,600.00
0
Pond Excavation CY
800
7.5
6000
0
6,000.00
0
Paul Conner
September 16, 2010
Page Two
Water
8" D.I. LF
700
35
24500
0
24,500.00
0
3/4" k copper LF
350
15
5250
0
5,250.00
0
Tap & Valve
1
4000
4000
0
4,000.00
0
Gate Valves
2
1000
2000
0
2,000.00
0
Hydrant assembly
2
2900
5800
0
5,800.00
0
Thrust blocks
4
75
300
0
300.00
0
Water shutoffs
9
150
1350
0
1,350.00
0
Sanitary
8" PVC SDR 35 LF
930
25
23250
0
23,250.00
0
4" PVC SDR 35 LF
400
16
6400
0
6,400.00
0
Mhs
6
2500
15000
0
15,000.00
0
0.00
0
Electric
0.00
0
Conduit LF
560
10
5600
0
5,600.00
0
Transformer
2
1000
2000
0
2,000.00
0
Gas
Line LF
920
5
4600
0
4,600.00
0
Other
Erosion Control LS
1
7500
7500
0
7,500.00
0
Clear & Grub acres
1.5
7500
11250
0
11,250.00
0
Rough Grading acre
1.5
2000
3000
0
3,000.00
0
Final Shaping LS
1
5000
5000
0
5,000.00
0
TOTALS: 344,900.00 327,775.00 17,125.00
Calculation of Amount Requested for Reduced Letter of Credit
90% of Value of Units Completed = (.90) (327,775.00) = $294,997.50
Value of Reduced Letter of Credit = Original Value minus 90% of Units Completed to date =
$344,900.00 - $294,997.50 = $49,902.50
Please contact us at your earliest convenience if you have questions or comments regarding this
matter.
Best Regards,
Scott Homsted, P.E.
swh
cc: Patrick O'Brien
Cathy & John O'Brien
Credit reduction 9-15-10.doc
PEOPLES TRUST COMPANY
P.O. Box 320 • St. Albans • Vermont 05478-0320
www.peoplestrustcompany.com
(800) 479-2196
October 29, 2009
City of South Burlington
RE: Irrevocable Stand-by Letter of Credit #2009-11
Buckthorn Group, LLC
John R & Catherine L O'Brien
To Whom It May Concern:
We hereby establish our Irrevocable Stand-by Letter of Credit in your favor for the account of
Buckthorn Group, LLC up to an aggregate amount of $344,900.00 available by your draft or drafts
on us at sight accompanied by a signed statement that these funds are due you under the terms of
your agreement with Buckthorn Group, LLC. All drafts must be marked under Letter of Credit
#2009-11 valid 10/29/2009 through 10/29/2011.
We engage with you that all drafts drawn under and in compliance with the terms and conditions of
the credit will be duly honored on delivery of documents as specified if presented at this office on or
before 10/29/2011.
The original of this Irrevocable Stand-by Letter of Credit must accompany drawings presented to us
hereunder.
Except so far as otherwise expressly stated, this credit is subject to the "Uniform Customs and
Practice for Documentary credits (1993 Revision), International Chamber of Commerce Publication
#500."
Very truly yours,
atherine Reighley for Thomas Gallagher
Commercial Lender
/pb
SUBDIVISION
LETTER OF CREDIT AGREEMENT
THIS AGREEMENT, executed in triplicate between
%/�e d t k4Av,^v of
hereinafter referred to as "DEVELOPER", ' o
OF.5/ /Vbo/s- hereinafter referred to as aB NK", and
jAe C� �� S�n1,15 �.✓ "MUN CIALITY". hereinafter referred to as
WITNESSETH:
WHEREAS, Developer has received final subdivision approval from the
MUNICIPALITY'S Development Review Board for the development of a
subdivision consisting of lots with related improvements, in a
development to by known as
", as depicted on and in accordance with the specifications as set forth on
sheets L' - 1 Fl.fo�til� C-11 i ; 4 �e�,
., ►P� 1 S_; �'PLAI , 1�1\o : kAA - U . ", dated
1-7-oq prepared by
cc 6s ' `„>> I."% , as recorded in Book
pages of the Land Recor s of t e City of South Burlington;
WHEREAS, DEVELOPER is required by said approval, at its own
expense, to complete the construction of the development site in accordance
with the plan approved by the Development Review Board;
WHEREAS, the parties to the Agreement wish to establish a mechanism
to secure the obligations of the DEVELOPER for the work as set forth above; and
WHEREAS, the BANK executes this Agreement solely in the capacity of
issuer of a Letter of Credit hereinafter specified;
NOW, THEREFORE, the parties hereby covenant and agree as follows:
1. DEVELOPER will, at its own expense, complete the following
construction as depicted and in accordance with the specifications set forth in
said final plat and related documents: t
"OA 51orm�a�, , S ivtyi \�s
-1-
2. The Developer hall complete the improvements set forth in Paragraph
1 no later than p
3. DEVELOPER shall replace or repair any defective or improper work or
materials which may be recognized within one year after completion of the
improvements set forth in Paragraph 1. For the purpose of this Agreement
"completion" shall be deemed to have occurred when the MUNICIPALITY has
inspected and approved the construction of all the improvements required by this
Agreement and issued written notice to the DEVELOPER that the construction is
complete.
4. For the guarantee of DEVELOPER's performance of all requirements
hereunder set forth, DEVELOPER has caused the BANK to issue its Irrevocable
Letter of Credit in favor of the MUNICIPALITY, the original of which is attached to
the MUNICIPALITY's copy of this Agreement, and a copy of which is attached to
the DEVELOPER's copy of this Agreement. During the term of this Agreement,
DEVELOPER shall cause the attached Letter of Credit to be renewed at least
thirty (30) days before the maturity date thereof. Failure of the DEVELOPER to
deliver evidence of such renewal to MUNICIPALITY thirty (30) days prior to the
date of expiration of said Letter of Credit shall constitute a default of the terms of
this Agreement.
5. Said Irrevocable Letter of Credit provides that the drafts drawn under
said credit, must be accompanied by a written statement signed by a duly
authorized agent of the MUNICIPALITY, that in the judgement of the
MUNICIPALITY, the DEVELOPER is in default under the terms of this
Agreement, and that the funds to be drawn by the draft are in payment for, or in
anticipation of payment for materials, labor and services required for completion
of the improvements identified in Paragraph 1. Payment of each draft will be
made at sight when presented to the BANK by the MUNICIPALITY, the payment
limited only by the aggregate amounts presented in relationship to the maximum
amount of the Letter of Credit. If DEVELOPER shall be in default of the
Agreement for seven (7) days because of its failure to provide evidence of
renewal of the Letter of Credit, required in paragraph 4 above, the
MUNICIPALITY shall notify DEVELOPER by certified mail of said default.
DEVELOPER shall then within three (3) business days provide MUNICIPALITY
with evidence of said renewal of Letter of Credit or MUNICIPALITY may notify
BANK of such default and request payment under said Letter of Credit.
�/ Wet ) / /6.. The DEVELOPER/ and MUNICIPALITY hereby agree that the sum of
( )shall be sufficient to
secure DEVELOPER's obligations under this Agreement but shall not relieve
DEVELOPER from the obligation to pay any additional costs, if actual costs
exceed the above -stated cost.
-2-
7. The MUNICIPALITY will promptly submit to the DEVELOPER a copy of
any draft it submits to the BANK. The consent of the DEVELOPER to payment
of said draft by BANK to the MUNICIPALITY under said Letter of Credit shall not
be required.
8. The MUNICIPALITY shall not file with the BANK a Statement of Default
until ten (10) days after notice has been sent to the DEVELOPER, by certified
mail, setting forth its intention to do so.
9. All funds drawn on the BANK by the MUNICIPALITY pursuant to the
Letter of Credit shall be used solely by the MUNICIPALITY for the purpose of
completing construction of the improvements identified in Paragraph 1. Any work
contracted for by the MUNICIPALITY pursuant hereto shall be let on a
contractual basis, or on a time and material basis, or shall be performed by the
MUNICIPALITY's own work force and equipment, or shall be accomplished in
such other manner as in the judgement of the MUNICIPALITY shall accomplish
the work more expeditiously and economically.
10. If payments are drawn on the BANK by the MUNICIPALITY pursuant
to said Letter of Credit, and it shall later develop that a portion of the monies
drawn are in excess of the MUNICIPALITY's needs, any such excess amount
shall be refunded by the MUNICIPALITY to the BANK, to be credited by said
BANK to the DEVELOPER.
11. This Agreement and said Letter of Credit shall terminate and shall be
of no force and effect upon completion of one year warranty period as described
in the above Paragraph 3. If the MUNICIPALITY has not delivered any written
notice to the DEVELOPER of any defective or improper work or materials in the
construction of the improvements within the twelve (12) month period, or if notice
has been given and the defective work or materials have been corrected by the
DEVELOPER, the MUNICIPALITY shall forthwith notify the BANK in writing that
the Letter of Credit may be cancelled, and shall return the original Letter of Credit
to the BANK, and both the DEVELOPER and the BANK shall be released from
all obligations hereunder and under said Letter of Credit.
12. Upon request of DEVELOPER, but only at the sole discretion of the
MUNICIPALITY, the MUNICIPALITY may agree to reduce the amount of said
Letter of Credit required hereunder if the MUNICIPALITY believes that the full
amount of said Letter of Credit is no longer necessary to protect its interest, and
shall notify the BANK in writing of such reduction in the amount of the Letter of
Credit.
13. The BANK may not modify the Letter of Credit without first receiving
written consent of the MUNICIPALITY.
-3-
14. DEVELOPER hereby agrees to indemnify and hold BANK harmless
from all claims, causes of action or liability of any kind arising out of this
Agreement or the issuance by BANK of this Letter of Credit, including attorney's
fees, as long as BANK follows the terms and conditions outlined in said Letter of
Credit.
15. This agreement shall be binding on all parties hereto and their
respective heirs, executers, administrators, successors, and assigns.
Dated at I i Vermont, giis day of
20
IN THE PRESENCE OF:
Dated at 54 - A16—s
oc-ra6 e"L 2 8 -(G, , 20�.
IN THE PRESENCE OF:
Y "Z
Duly thorized Agent
(DEV LOPER)
Vermont, this day of
Duly Auth ize Agent
(BANK)
Dated at -�>l &&) �G U , Vermont, this day of
l�CT ► , 20
IN THE PRESENCE OF:
By: 1ho
Duly d Agent
(CITY OF SOUTH BURLINGTON)
-4-
No Text
Jrr PEOPLES TRUST COMPANY
_r R CO N
P.O. Box 320 • St. Albans • Vermont 05478-0320
www.peoplestrustcompany.com
(800) 479-2196
CAO�TPJ6
October 29, 2009
City of South Burlington
RE: Irrevocable Stand-by Letter of Credit #2009-12
Buckthorn Group, LLC
John R & Catherine L O'Brien
To Whom It May Concern:
We hereby establish our Irrevocable Stand-by Letter of Credit in your favor for the account of
Buckthorn Group, LLC up to an aggregate amount of $13,128.00 available by your draft or drafts on
us at sight accompanied by a signed statement that these funds are due you under the terms of your
agreement with Buckthorn Group, LLC. All drafts must be marked under Letter of Credit #2009-12
valid 10/29/2009 through 10/29/2012.
We engage with you that all drafts drawn under and in compliance with the terms and conditions of
the credit will be duly honored on delivery of documents as specified if presented at this office on or
before 10/29/2012.
The original of this Irrevocable Stand-by Letter of Credit must accompany drawings presented to us
hereunder.
Except so far as otherwise expressly stated, this credit is subject to the "Uniform Customs and
Practice for Documentary credits (1993 Revision), International Chamber of Commerce Publication
#500."
Very
truly yours,
Thomas J. Gallagher
Vice President
/pb
SUBDIVISION
LETTER OF CREDIT AGREEMENT
THIS AGREEMENT, executed in triplicate between
hereinafter referred to as "DEVELOPER
OF <j.,4&s, hereinafter referred to as "BANK", and
�r ue%'/, �ti /�.��r r/ 1' , hereinafter referred to as
"MUNICI ITY,,.
WITNESSETH:
WHEREAS, Developer has received final subdivision approval from the
MUNICIPALITY'S Development Review Board for the development of a
subdivision consisting of =' lots with related improvements, in a
developmentf
to be known as
", as depicted on and in accordance with the specifications as set forth on
sheets , C' 7 41 4 t<-
I r- 1->�_j> �n �5 dated
7-7 i v , prepared by
s v.. Lle.41 , as recorded in Book
pages of the Land Records of t f e City of South Burlington;
WHEREAS, DEVELOPER is required by said approval, at its own
expense, to complete the construction of the development site in accordance
with the plan approved by the Development Review Board;
J
WHEREAS, the parties to the Agreement wish to establish a mechanism
to secure the obligations of the DEVELOPER for the work as set forth above; and
WHEREAS, the BANK executes this Agreement solely in the capacity of
issuer of a Letter of Credit hereinafter specified;
NOW, THEREFORE, the parties hereby covenant and agree as follows:
1. DEVELOPER will, at its own expense, complete the following
construction as depicted and in accordance with the specifications set forth in
said final plat and related do ments:
2voerr( a--) /V - /,;i -aqr
-1-
m
2. The Developer shall complete the improvements set forth in Paragraph
no later than
3. DEVELOPER shall replace or repair any defective or improper work or
materials which may be recognized within one year after completion of the
improvements set forth in Paragraph 1. For the purpose of this Agreement
"completion" shall be deemed to have occurred when the MUNICIPALITY has
inspected and approved the construction of all the improvements required by this
Agreement and issued written notice to the DEVELOPER that the construction is
complete.
4. For the guarantee of DEVELOPER's performance of all requirements
hereunder set forth, DEVELOPER has caused the BANK to issue its Irrevocable
Letter of Credit in favor of the MUNICIPALITY, the original of which is attached to
the MUNICIPALITY's copy of this Agreement, and a copy of which is attached to
the DEVELOPER's copy of this Agreement. During the term of this Agreement,
DEVELOPER shall cause the attached Letter of Credit to be renewed at least
thirty (30) days before the maturity date thereof. Failure of the DEVELOPER to
deliver evidence of such renewal to MUNICIPALITY thirty (30) days prior to the
date of expiration of said Letter of Credit shall constitute a default of the terms of
this Agreement.
5. Said Irrevocable Letter of Credit provides that the drafts drawn under
said credit, must be accompanied by a written statement signed by a duly
authorized agent of the MUNICIPALITY, that in the judgement of the
MUNICIPALITY, the DEVELOPER is in default under the terms of this
Agreement, and that the funds to be drawn by the draft are in payment for, or in
anticipation of payment for materials, labor and services required for completion
of the improvements identified in Paragraph 1. Payment of each draft will be
made at sight when presented to the BANK by the MUNICIPALITY, the payment
limited only by the aggregate amounts presented in relationship to the maximum
amount of the Letter of Credit. If DEVELOPER shall be in default of the
Agreement for seven (7) days because of its failure to provide evidence of
renewal of the Letter of Credit, required in paragraph 4 above, the
MUNICIPALITY shall notify DEVELOPER by certified mail of said default.
DEVELOPER shall then within three (3) business days provide MUNICIPALITY
with evidence of said renewal of Letter of Credit or MUNICIPALITY may notify
BANK of such default and request payment under said Letter of Credit.
6. The DEVELOPER an UNICIPALITY hereby agree that the sum of
'( --1/, `> �j C ) shall be sufficient to
secure DEVELOPER's obl gations under this Agreement but shall not relieve
DEVELOPER from the obligation to pay any additional costs, if actual costs
exceed the above -stated cost.
-2-
7. The MUNICIPALITY will promptly submit to the DEVELOPER a copy of
any draft it submits to the BANK. The consent of the DEVELOPER to payment
of said draft by BANK to the MUNICIPALITY under said Letter of Credit shall not
be required.
8. The MUNICIPALITY shall not file with the BANK a Statement of Default
until ten (10) days after notice has been sent to the DEVELOPER, by certified
mail, setting forth its intention to do so.
9. All funds drawn on the BANK by the MUNICIPALITY pursuant to the
Letter of Credit shall be used solely by the MUNICIPALITY for the purpose of
completing construction of the improvements identified in Paragraph 1. Any work
contracted for by the MUNICIPALITY pursuant hereto shall be let on a
contractual basis, or on a time and material basis, or shall be performed by the
MUNICIPALITY's own work force and equipment, or shall be accomplished in
such other manner as in the judgement of the MUNICIPALITY shall accomplish
the work more expeditiously and economically.
10. If payments are drawn on the BANK by the MUNICIPALITY pursuant
to said Letter of Credit, and it shall later develop that a portion of the monies
drawn are in excess of the MUNICIPALITY's needs, any such excess amount
shall be refunded by the MUNICIPALITY to the BANK, to be credited by said
BANK to the DEVELOPER.
11. This Agreement and said Letter of Credit shall terminate and shall be
of no force and effect upon completion of one year warranty period as described
in the above Paragraph 3. If the MUNICIPALITY has not delivered any written
notice to the DEVELOPER of any defective or improper work or materials in the
construction of the improvements within the twelve (12) month period, or if notice
has been given and the defective work or materials have been corrected by the
DEVELOPER, the MUNICIPALITY shall forthwith notify the BANK in writing that
the Letter of Credit may be cancelled, and shall return the original Letter of Credit
to the BANK, and both the DEVELOPER and the BANK shall be released from
all obligations hereunder and under said Letter of Credit.
12. Upon request of DEVELOPER, but only at the sole discretion of the
MUNICIPALITY, the MUNICIPALITY may agree to reduce the amount of said
Letter of Credit required hereunder if the MUNICIPALITY believes that the full
amount of said Letter of Credit is no longer necessary to protect its interest, and
shall notify the BANK in writing of such reduction in the amount of the Letter of
C red it.
13. The BANK may not modify the Letter of Credit without first receiving
written consent of the MUNICIPALITY.
- 3 -
14. DEVELOPER hereby agrees to indemnify and hold BANK harmless
from all claims, causes of action or liability of any kind arising out of this
Agreement or the issuance by BANK of this Letter of Credit, including attorney's
fees, as long as BANK follows the terms and conditions outlined in said Letter of
Credit.
15. This agreement shall be binding on all parties hereto and their
respective heirs, executers, administrators, successors, and assigns.
Dated at , Vermont, this day of
IN THE PRESENCE OF:
Dated at 54. A 6, ,. s Vermont, this day of
Ucfa b 2 s fC , 20
IN THE PRESENCE OF:
Duly Authorized Agent
(BANK)
Dated at ,1 � �1d &1r( , Vermont, this day of
20 0q.
IN THE PRESENCE •
By:
Duly Authorize gent
(CITY OF SOUTH BURLINGTON)
-4-