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Item 4DCITY OF SOUTHLAKE MEMORANDUM (May 7, 2013) To: Shana Yelverton, City Manager From: Robert H. Price, P.E., Director of Public Works Subject: Approve an amendment to the residential developer's agreement with Terra Land Management for Winding Creek Action Requested: Approve an amendment to the residential developer's agreement with Terra Land Management for Winding Creek Background Information: The developer of Winding Creek has an executed Residential Developer's Agreement (RDA) that was approved by City Council on June 19, 2013. The developer is requesting to amend the executed RDA to allow for additional lots to be released for construction at the time of substantial completion. Our standard RDA allows for the developer to request ten percent of the lots be released for construction once certain conditions are met. Substantial completion is met once the water and sewer mains are installed and emergency access requirements are met. This particular development commenced construction on or about September 19, 2012 and is nearing substantial completion. The developer is requesting an amendment to the executed RDA to allow for the release of twenty percent of the lots at substantial completion. This would constitute a release of eight (8) lots total prior to final acceptance. The developer's justification for the release of the additional lots is that the hard and soft landscape features are being enhanced. These enhancements will need to be complete prior to final acceptance. The developer anticipates an additional 90 to 120 days of construction to complete these enhancements. Financial Considerations: There are no financial considerations with this amendment. Strategic Link: The Winding Creek development links to the city's strategy map relative to the focus areas of Quality Development. The specific corporate objectives that are met by the construction of the development are: Invest to provide and maintain high quality public assets. Citizen Input/ Board Review: N/A Legal Review: This is the City's standard residential developer agreement (RDA) originally drafted by the City Attorney. Alternatives: The City Council may approve the amendment to the residential developer's agreement or deny it. Supporting Documents: Location Map Developer's request letter Executed Developers Agreement Amended portion of the Residential Developer's Agreement Staff Recommendation: Approve amendment to the residential developer's agreements with Terra Land Management for Winding Creek Staff Contact: Robert H. Price, P.E., Public Works Director Cheryl Taylor, P.E., CFM, City Engineer Steven D. Anderson, P.E., CFM, Civil Engineer TERRA WINDING CREEK, LLC April 18, 2013 Mr. Robert Price Director Public Works Administration & Engineering City of Southlake 1400 Main Street, Suite 320 Southlake, Texas 76092 Re: Winding Creek release of lots Dear Bob, As you know Winding Creek is well underway with the main public improvements nearing completion. We will be requesting "substantial completion" since all of the water, sewer and most of the paving has been completed. Streets are being backfilled and water services are being installed which will allow for "fire coverage" and qualify for the 10% early release lots. Once we started cleaning up the old trash and the underbrush on the Prade tract, we discovered more beautiful areas. We have determined that the natural beauty of the Prade Lake and Carroll pond are due more attention and embellishment. There will be an elaborate recirculating waterfall from the Carroll pond into the headwaters of Prade Lake. Also we are planning a series of retaining walls and many planting areas to enhance the entry area of Winding Creek. It will take some 90 to 120 days to complete all that is planned. Unfortunately, all of the hardscape and softscape features must be installed in order to get final acceptance. We would request that our Developer Agreement be modified to allow an additional 10% early release lots so that houses can be started as all of the park areas can have that attention due them to create the best for our future residents and the City of Southlake. Bh/kh Terra Winding Creek, LLC ** 395 W. State Highway 114, Suite 300 * Southlake, Texas 76092 * Ph 817-410-9201 ** Winding Creek, Phase I RESIDENTIAL DEVELOPER AGREEMENT An Agreement between the City of Southlake, Texas, hereinafter referred to as the "City", and the undersigned Developer, Terra Land Management, hereinafter referred to as the "Developer", of Winding Creek, Phase I, hereinafter referred to as the "Addition" to the City of Southlake, Tarrant County, Texas, for the installation of certain community facilities located therein, and to provide city services thereto. It is understood by and between the parties that this Agreement is applicable to the 40 lots contained within the Addition and to the off -site Improvements necessary to support the Addition. GENERAL REQUIREMENTS A. It is agreed and understood by the parties hereto that the Developer shall employ a civil engineer licensed to practice in the State of Texas for the design and preparation of the plans and specifications for the construction of all facilities covered by this Agreement. B. Since the Developer is prepared to develop the Addition as rapidly as possible and is desirous of selling lots to builders and having residential building activity begin as quickly as possible and the City is desirous of having the Addition completed as rapidly as possible, the City agrees to release 10% of the lots �4) after installation of the water and sewer mains. Framing shall not commence until water quality is approved by the City and all appropriate Fire Code requirements are satisfied and street signs with street names are in place. Temporary all-weather metal signs securely fastened in the ground are acceptable until permanent street signs are installed. The Developer recognizes that the remaining building permits or Certificates of Occupancy for residential dwellings will not be issued until the supporting public works infrastructure including permanent street signs with block numbers and regulatory signs within the Addition have been accepted by the City. This will serve as an incentive to the Developer to see that all remaining items are completed. C. The Developer will present to the City either a cash escrow, Letters of Credit or performance bond and payment bond acceptable to the City guaranteeing and agreeing to pay an amount equal to 100% of the value of the construction cost of all of the facilities to be constructed by the Developer, and providing for payment to the City of such amounts, up to the total remaining amounts required for the completion of the Addition if the Developer fails to complete the work within two (2) years of the signing of this Agreement between the City and Developer. All bonds shall be issued by a Best -rated bonding company. All Letters of Credit must meet Page 1 of 19 the Requirements for Irrevocable Letter of Credit attached hereto and incorporated herein. The value of the performance bond, Letters of Credit or cash escrow will reduce at a rate consistent with the amount of work that has been completed by the Developer and accepted by the City. Each request for reduction or payment of escrow funds must be accompanied by lien release(s) executed by all subcontractors and/or suppliers prior to the release of escrow funds or reduction in value of the account. Performance and payment bond, Letters of Credit or cash escrow from the prime contractor(s) or other entity reasonably acceptable to the City, hereinafter referred to as Contractor, will be acceptable in lieu of Developer's obligations specified above. D. The Developer agrees to furnish to the City maintenance bonds, letters of credit or cash escrow amounting to 100% of the cost of construction of underground utilities and 100% of the construction cost for paving. These maintenance bonds, letters of credit or cash escrow will be for a period of two (2) years and will be issued prior to the final City acceptance of the Addition. The maintenance bonds, letters of credit or cash escrow will be supplied to the City by the contractors performing the work, and the City will be named as the beneficiary if the contractors fail to perform any required maintenance. E. Until the performance and payment bonds, Letters of Credit or cash escrow required in Paragraph C have been furnished as required, no approval of work on or in the Addition shall be given by City and no work shall be initiated on or in said Addition by Developer, save and except as provided above. F. It is further agreed and understood by the parties hereto that upon acceptance by the City, title to all facilities and improvements mentioned hereinabove shall be vested in the City and Developer hereby relinquishes any right, title or interest in and to said facilities or any part thereof. It is further understood and agreed that until the City accepts such improvements, the City shall have no liability or responsibility in connection with any such facilities. Acceptance of the facilities shall occur at such time that the City, through its City Manager or his duly authorized representative, provides Developer with a written acknowledgement that Page 2 of 19 all facilities are complete, have been inspected and approved and are being accepted by the City. G. On all public facilities included in this Agreement for which Developer awards his own construction contract, Developer agrees to the following procedure: 1. Developer agrees to pay the following: a. Inspection fees equal to three percent (3%) of the cost of the water, street, drainage and sanitary sewer facilities, on all facilities included in this Agreement for which Developer awards his or her own construction contract, to be paid prior to construction of each phase and based on actual bid construction cost; b. Administrative Processing fee equal to two percent (2%) of the cost of water, street, drainage and sanitary sewer facilities, on all facilities included in this Agreement for which Developer awards his or her own construction contract, to be paid prior to construction of each phase and based on actual bid construction cost; C. Trench testing (95% Standard); d. The additional charge for inspections during Saturday, Sunday, holidays, and after normal working hours; e. Any charges for re -testing as a result of failed tests; f. All gradation tests required to insure proper cement and/or lime stabilization. 2. The City agrees to bear the expense of: a. All nuclear density tests on the roadway subgrade (95% Standard); b. Technicians time for preparing concrete cylinders; and C. Concrete cylinder tests and concrete coring samples. The City can delay connection of buildings to service lines or water mains constructed under this Agreement until said water mains and service lines have been completed to the satisfaction of and acceptance by the City. Page 3 of 19 H. The Developer and any third party, independent entity engaged in the construction of houses, hereinafter referred to as "Builder" will be responsible for mowing all grass and weeds and otherwise reasonably maintaining the aesthetics of all land and lots in said Addition which have not been sold to third parties. After fifteen (15) days written notice, should the Developer or Builder fail in this responsibility, the City may contract for this service and bill the Developer or Builder for reasonable costs. Should such cost remain unpaid for 120 days after notice, the City can file a lien on such property so maintained. Any guarantee of payment instrument (Performance Bond, Letter of Credit, etc.) submitted by the Developer or Contractor on a form other than the one which has been previously approved by the City as "acceptable" shall be submitted to the City Attorney and this Agreement shall not be considered in effect until such City Attorney has approved the instrument. Approval by the City shall not be unreasonably withheld or delayed. J. Any surety company through which a bond is written shall be a surety company duly authorized to do business in the State of Texas, provided that the City, through the City Manager, shall retain the right to reject any surety company as a surety for any work under this or any other Developer's Agreement within the City regardless of such company's authorization to do business in Texas. Approval by the City shall not be unreasonably withheld or delayed. II. FACILITIES A. ON SITE WATER The Developer hereby agrees to install water facilities to service lots as shown on the final plat of the Addition. Water facilities will be installed in accordance with plans and specifications to be prepared by the Developer's engineer and released by the City. Further, the Developer agrees to complete this installation in accordance with Ordinance No. 170 and shall be responsible for all construction costs, materials and engineering. In the event that certain water lines are to be oversized because of City requirements, the City will reimburse the Developer for the oversize cost greater than the cost of an 8" line. Additionally, the City agrees to provide temporary water service at Developer's request and expense, for construction, testing and irrigation purposes only, to individual lots during the construction of homes, even though sanitary sewer service may not be available to the homes. Page 4 of 19 B. DRAINAGE Developer hereby agrees to construct the necessary drainage facilities within the Addition. These facilities shall be in accordance with the plans and specifications to be prepared by Developer's engineers, released by the Director of Public Works for the City, and made part of the final plat as approved by the Planning and Zoning Commission. The Developer hereby agrees to fully comply with all EPA and TCEQ requirements relating to the planning, permitting and management of storm water which may be in force at the time that development proposals are being presented for approval by the City. The Developer hereby agrees to comply with all provisions of the Texas Water Code. C. LAW COMPLIANCE Developer hereby agrees to comply with all federal, state, and local laws that are applicable to development of this Addition. D. STREETS The street construction in the Addition shall conform to the requirements in accordance with plans and specifications to be prepared by the Developer's engineer and released by the Director of Public Works. Streets will be installed in accordance with the plans and specifications to be prepared by the Developer's engineer and released by the Director of Public Works. 2. The Developer will be responsible for: a. Installation and two year operation cost of street lights, which is payable to the City prior to final acceptance of the Addition; or an agreement with utility provider stating that no charge will be made for street lights for the two-year duration. b. Installation of all street signs designating the names of the streets inside the Addition, said signs to be of a type, size, color and design standard generally employed by the Developer and approved by the City in accordance with City ordinances. C. Installation of all regulatory signs recommended based upon the Manual of Uniform Traffic Control Devices as prepared by the Developer's engineer by an engineering study or direction by the Director of Public Works. It is understood Page 5 of 19 that Developer may put in signage having unique architectural features, however, should the signs be moved or destroyed by any means the City is only responsible for replacement of standard signage. 3. All street improvements will be subject to inspection and approval by the City. No work will begin on any street included herein prior to complying with the requirements contained elsewhere in this Agreement. All water, sanitary sewer, and storm drainage utilities which are anticipated to be installed within the street or within the street right-of-way will be completed prior to the commencement of street construction on the specific section of street in which the utility improvements have been placed or for which they are programmed. It is understood by and between the Developer and the City that this requirement is aimed at substantial compliance with the majority of the pre -planned facilities. It is understood that in every construction project a decision later may be made to realign a line or service which may occur after construction has commenced. The Developer hereby agrees to advise the City Director of Public Works as quickly as possible when such a need has been identified and to work cooperatively with the City to make such utility change in a manner that will be least disruptive to street construction or stability. E. ON SITE SANITARY SEWER FACILITIES The Developer hereby agrees to install sanitary sewerage collection facilities to service lots as shown on the final plat of the Addition. Sanitary sewer facilities will be installed in accordance with the plans and specifications to be prepared by the Developer's engineer and released by the City. Further, the Developer agrees to complete this installation in compliance with all applicable city ordinances, regulations and codes and shall be responsible for all construction costs, materials and engineering. In the event that certain sewer lines are to be oversized because of City requirements, the City will reimburse the Developer for the oversize cost greater than the cost of an S" line. F. EROSION CONTROL During construction of the Addition and after the streets have been installed, the Developer agrees to keep the streets free from soil build-up. The Developer agrees to use soil control measures, such as those included in the NCTCOG STANDARD SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION, Division 1000 EROSION AND SEDIMENT CONTROL to prevent soil erosion. It will be the Developer's responsibility Page 6 of 19 to present to the Director of Public Works a soil control development plan that will be implemented for this Addition. When in the opinion of the Director of Public Works there is sufficient soil build-up on the streets or other drainage areas and notification has been given to the Developer, the Developer will have seventy-two (72) hours to clear the soil from the streets or affected areas. If the Developer does not remove the soil from the street within 72 hours, the City may cause the soil to be removed either by contract or City forces and place the soil within the Addition at the Developer's expense. All expenses must be paid to the City prior to acceptance of the Addition. After construction of the Addition and prior to acceptance by the City, the Developer agrees to have a permanent erosion control plan prepared and approved by the Director of Public Works and have the plan installed and working, effectively, in the opinion of the Director of Public Works. This erosion control will prevent soil erosion from the newly created lots from washing into street rights of way, drainage ways or other private property. G. AMENITIES It is understood by and between the City and Developer that the Addition may incorporate a number of unique amenities and aesthetic improvements such as ponds, aesthetic lakes, unique landscaping, walls and may incorporate specialty signage and accessory facilities. The Developer agrees to accept responsibility for the construction and maintenance of all such aesthetic or specialty item such as walls, vegetation, signage, landscaping, street furniture, pond and lake improvements until such responsibility is turned over to a homeowners association. H. USE OF PUBLIC RIGHT-OF-WAY It is understood by and between the City and Developer that the Developer may provide unique amenities within public right-of-way, such as landscaping, irrigation, lighting, etc., for the enhancement of the Addition. The Developer agrees to maintain these amenities until such responsibility is turned over to a homeowners association. The Developer and his successors and assigns understand that the City shall not be responsible for the replacement of these amenities under any circumstances and further agrees to indemnify and hold harmless the City from any and all damages, loss or liability of any kind whatsoever by reason of injury to property or third person occasioned by its use of the public right-of-way with regard to these improvements and the Developer shall, at his own cost and expense, defend and protect the City against all such claims and demands. Page 7 of 19 START OF CONSTRUCTION Before the construction of the streets, and the water, sewer, or drainage facilities can begin, the following must take place: 1. Approved payment and performance bonds must be submitted to the City in the name of the City prior to the commencement of any work. 2. At least ten (10) sets of construction plans to be stamped "Released for Construction" by the Director of Public Works must be submitted. 3. All fees required to be paid to the City. 4. Developer Agreement must be executed. 5. The Developer, or Contractor, shall furnish to the City a policy of general liability insurance, naming the City as co-insured, prior to commencement of any work. All insurance must meet the Requirements of Contractor's Insurance attached hereto and incorporated herein. 6. A pre -construction meeting between Developer and City is required. Developer or contractor shall furnish to the City a list of all subcontractors and suppliers, which will be providing greater than a $1,000 value to the Addition. GENERAL PROVISIONS A. INDEMNIFICATION DEVELOPER COVENANTS AND AGREES TO INDEMNIFY AND DOES HEREBY INDEMNIFY, HOLD HARMLESS AND DEFEND CITY, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR PROPERTY DAMAGE OR LOSS AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS OF WHATSOEVER KIND OR CHARACTER, WHETHER REAL OR ASSERTED, (INCLUDING, WITHOUT LIMITATION, REASONABLE FEES AND EXPENSES OF ATTORNEYS, EXPERT WITNESSES AND OTHER CONSULTANTS), ARISING OUT OF OR IN CONNECTION WITH, DIRECTLY OR INDIRECTLY, THE CONSTRUCTION, MAINTENANCE, OCCUPANCY, USE, EXISTENCE OR LOCATION OF SAID IMPROVEMENT OR IMPROVEMENTS, AND SHALL FURTHER BE LIABLE FOR INJURY OR DAMAGE TO CITY PROPERTY, ARISING OUT OF OR IN Page 8 of 19 CONNECTION WITH ANY AND ALL ACTS OR OMISSIONS OF DEVELOPER, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES, OR INVITEES, SAID INDEMNIFICATION TO REMAIN IN EFFECT UNTIL THE CITY ACCEPTS THE ADDITION. DEVELOPER AGREES TO INDEMNIFY THE CITY, ITS OFFICERS AND EMPLOYEES FOR ANY DAMAGES, CLAIMS OR LIABILITIES ARISING FROM THE NEGLIGENT ACT OR OMISSION, OR OF THE CONCURRENT NEGLIGENT ACT OR OMISSION, OF THE CITY, ITS OFFICERS AND EMPLOYEES. B. Venue of any action brought hereunder shall be in Fort Worth, Tarrant County, Texas. C. Approval by the Director of Public Works or other City employee of any plans, designs or specifications submitted by the Developer pursuant to this Agreement shall not constitute or be deemed to be a release of the responsibility and liability of the Developer, his engineer, employees, officers or agents for the accuracy and competency of their design and specifications. Such approval shall not be deemed to be an assumption of such responsibility and liability by the City for any defect in the design and specifications prepared by the consulting engineer, his officers, agents, servants or employees, it being the intent of the parties that approval by the Director of Public Works signifies the City's approval on only the general design concept of the improvements to be constructed. In this connection, the Developer shall for a period of two (2) years after the acceptance by the City of the completed construction project, indemnify and hold harmless the City, its officers, agents, servants and employees, from any loss, damage, liability or expense on account of damage to property and injuries, including death, to any and all persons which may arise out of any defect, deficiency or negligence of the engineer's designs and specifications incorporated into any improvements constructed in accordance therewith, and the Developer shall defend at his own expense any suits or other proceedings brought against the City, its officers, agents, servants or employees, or any of them, on account thereof, to pay all expenses and satisfy all judgement which may be incurred by or rendered against them or any of them in connection herewith. D. This Agreement or any part herein, or any interest herein, shall not be assigned by the Developer without the express written consent of the City Manager, which shall not be unreasonably withheld or delayed. E. On all facilities included in this Agreement for which the Developer awards his own construction contract, the Developer agrees to employ a construction contractor who is approved by the City, and whose approval Page 9of19 shall not be unreasonably withheld or delayed, said contractor to meet City and statutory requirements for being insured, licensed and bonded to do work in public streets and to be qualified in all respects to bid on public streets and to be qualified in all respects to bid on public projects of a similar nature. F. Work performed under the Agreement shall be completed within two (2) years from the date thereof. In the event the work is not completed within the two (2) year period, the City may, at its election, draw on the performance bond, Letter of Credit, or other security provided by Developer and complete such work at Developer's expense, provided however, that if the construction under this Agreement shall have started within the two (2) year period, the City may agree to renew the Agreement with such renewed Agreement to be in compliance with the City policies in effect at that time. G. The City is an exempt organization under Section 151.309, Tax Code, and the facilities constructed under this Agreement will be dedicated to public use and accepted by the City upon acknowledgement by the City of completion under Paragraph 1.F. The purchase of tangible personal property, other than machinery or equipment and its accessories, repair, and replacement parts, for use in the performance of this Agreement is, therefore, exempt from taxation under Chapter 151, Tax Code, if the tangible property is: a. necessary and essential for the performance of the Agreement; and b. completely consumed at the job site. 2. The purchase of a taxable service for use in the performance of this Agreement is exempt if the service is performed at the job site and if: a. this Agreement expressly requires the specific service to be provided or purchased by the person performing the Agreement; or b. the service is integral to the performance of the Agreement. H. Prior to final acceptance of the Addition, the Developer shall provide to the City four (4) copies of Record Drawings of the Addition, showing the facilities as actually constructed. Page 10 of 19 Such drawings will be stamped and signed by a registered professional civil engineer. In addition, the Developer shall provide electronic files showing the grading plan and drainage area map; the plan and profile of the sanitary sewer, storm drain, roadway and waterline; all lot lines, and tie in to the state Plane Coordinate System. IV, OTHER ISSUES A. ROADWAY IMPACT FEES City Council motion requires immediate funding of the roadway impact fees for the entire development of 74 lots prior to the commencement of construction. Roadway impact fees are ($1720.021dwelling unit*74) $127,281.48. B. DOWN STREAM CRITICAL STRUCTURE FEE Winding Creek Phase I drains into Critical Drainage Structure #23 ($309.83Iacre*30.676 acres) and will require a fee of $9,504.35 to be paid prior to beginning construction. C. PARK FEES The park dedication requirement for the overall development is 1.86 acres based on one acre per 40 dwelling units or a fee payment of $222,000 based on 74 dwelling units at $3000 per dwelling unit. The developer will dedicate 2.15 acres of public park land to be maintained by the developer and eventually, an established home owners association, in perpetuity. The developer also agrees that all trails on both the public park land and amenities (trails and park benches, both public and private) are valued at approximately $325,500. This agreement authorizes the public use of the open space immediately west of the accepted park land and up to the property lines, and the inclusion of the parking spaces on the south side of the main entrance road. The developer in turn gets a credit balance of $103,500 to be applied to a future park development by the same owner/applicant/developer. The developer will provide public parking for the public park. D. TREE PRESERVATION ORDINANCE All construction activities shall comply with the current Tree Preservation Ordinance requirements and as may be amended by the City Council. Such conditions include, but are not limited to, proper posting of tree protection warning signs and tree protective fencing to be maintained throughout the duration of the project. Page 11 of 19 Page 12 of 19 SIGNED AND EFFECTIVE on the date last set forth below. DEVELOPER By: Title:1�1 d� Address: III - C Alvq �A lt( 30U STATE OF TEXAS COUNTY OF TARRANT j On �— l `�� Z befo me, .+�r„ b lEe. t> i� Notary Public, personally appeared ow�--- personally Y known to me (or proved to me on the basis of satisf dory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. ESS my hand andIdfficiai seal. Notary Public My commission expires: Page 13 of 19 KIM NENNIGAN MY COMMISSION MIRES AprH 13, 2o1s CITY OF SOUTHLAKE, TEXAS 0 Brandon Bledsoe Mayor Pro Tem ATTEST: CL-� V-- t &'.4 Alicia Richardson, TRMC City Secretary°°•_..,,° i��Irffllt l4f� Date: J u-�t z 0, a O 4 Q' FORM CITY Page 14 of 19 REQUIREMENTS FOR IRREVOCABLE LETTER OF CREDIT The Letter of Credit must have a duration of at least one year. 2. The Letter of Credit may be substituted for utility security deposits exceeding $10,000.00. The City reserves the right to specify the face amount of the Letter of Credit. 3. The Letter of Credit must be issued by a FDIC insured bank in a form acceptable to the City of Southlake. The City reserves the right to a pproveldisapprove the bank issuing the Letter of Credit. 4. The Letter of Credit must be issued by a bank that has a minimum capital ratio of six percent (6%), and has been profitable for each of the last two consecutive years. 5. The customer must provide the City with supporting financial information on the bank to allow the City to ascertain requirements are met. Suitable financial information would be the previous two (2) years December 31 Call Reports submitted to the FDIC and audited financial statements. 6. Partial drawings against Letter of Credit must be permitted. 7. The City must be able to draft on sight with proof of amount owed. 8. The customer pays any and all fees associated with obtaining Letter of Credit. 9. Expiring Letter of Credit must be replaced by substitute Letters of Credit at least 30 days prior to the expiration date on the Letter of Credit held by the City. Page 15 of 19 REQUIREMENTS FOR CONTRACTOR'S INSURANCE Contractor's Insurance Without limiting any of the other obligations or liabilities of the CONTRACTOR, during the term of the Contract, the CONTRACTOR shall purchase and maintain the following minimum insurance coverages with companies duly approved to do business in the State of Texas and satisfactory to the CITY. In this section "Project" shall mean the public facilities to be constructed by Developer or under Developer's contract with a CONTRACTOR. Coverages shall be of the following types and not less than the specified amounts: Workers' compensation as required by Texas law, with the policy endorsed to provide a waiver of subrogation as to the CITY; employer's liability insurance of not less than the minimum statutory amounts. Commercial general liability insurance, including premises- operations; independent CONTRACTOR's liability, completed operations and contractual liability covering, but not limited to, the liability assumed under the indemnification provisions of this Contract, fully insuring CONTRACTOR's (or Subcontractor's) liability for injury to or death of CITY's employees and third parties, extended to include personal injury liability coverage with damage to property of third parties, broad form property damage, with minimum limits as set forth below: General Aggregate......................$2,000,000 Bodily Injury $1,000,000 Each Occurrence Property Damage $1,000,000 Each Occurrence Products—Components/Operations Aggregate-$ 1,000,000 Personal and Advertising Injury ............ $ 1,000,000 (With Employment Exclusion deleted) Each Occurrence ...................... $1,000,000 Contractual Liability: Bodily Injury $1,000,000 Each occurrence Property Damage $1.000,000 Each occurrence The policy shall include coverage extended to apply to completed operations, asbestos hazards (if this project involves work with asbestos) and ECU (explosion, collapse and underground) hazards. The completed operations coverage must be maintained for a minimum of one year after final completion and acceptance of the work, with evidence of same filed with CITY. C. Comprehensive automobile and truck liability insurance, covering owned, hired and non - owned vehicles, with a combined bodily injury and property damage minimum limit of $1,000,000 per occurrence; or separate limits of $500,000 for bodily injury (per person), and $500,000 for property damage. Such insurance shall include coverage for loading and unloading hazards. d. Property Insurance (Builder's All Risk) 0) CONTRACTOR shall purchase and maintain, at all times during the term of its Contract with the Developer property insurance written on a builder's risk "all- risk" or equivalent policy form in the amount of the initial contract price, plus value of subsequent contract modifications and cost of materials supplied or installed by others, comprising total value for the entire Project at the site on a Page 16 of 19 replacement cost basis without optional deductibles. Such property insurance shall be maintained, unless otherwise in writing by all persons and entities who are beneficiaries of such insurance, until final payment has been made, or until no person or entity other than the CITY has an insurable interest in the property required by this paragraph to be covered, whichever is later. This insurance shall include interests of the CITY, the CONTRACTOR, Subcontractors and Sub - Subcontractors in the Project. (ii) Property insurance shall be on an "all-risk" or equivalent policy form and shall include, without limitation, insurance against the perils of fire (with extended coverage) and physical loss or damage including, without duplication of coverage, theft, vandalism, malicious mischief, collapse, earthquake, flood, windstorm, falsework, testing and startup, temporary buildings and debris removal including demolition occasioned by enforcement of any applicable legal requirements, and shall cover reasonable compensation for CONTRACTOR's services and expenses required as a result of such insured loss. (iii) If the insurance required by this paragraph requires deductibles, the CONTRACTOR shall pay costs not covered because of such deductibles. (iv) This property insurance shall cover portions of the Work stored off the site, and also portions of the Work in transit. d. OWNER's Protective Liability Insurance: (i) CONTRACTOR shall obtain, pay for and maintain at all times during the prosecution of the work under the contract between the CONTRACTOR and the Developer, a CITY's protective liability insurance policy naming the CITY as insured for property damage and bodily injury, which may arise in the prosecution of the work or CONTRACTOR's operations under the contract. (ii) Coverage shall be on an "occurrence" basis, and the policy shall be issued by the same insurance company that carries the CONTRACTOR's liability insurance with a combined bodily injury and property damage minimum limit of $1,000,000 per occurrence. e. "Umbrella" Liability Insurance: The CONTRACTOR shall obtain, pay for and maintain umbrella liability insurance during the term of the Contract between the CONTRACTOR and the Developer, insuring CONTRACTOR for an amount of not less than $5,000,000 per occurrence combined limit for bodily injury and property damage that follows form and applies in excess of the primary liability coverages required herein above. The policy shall provide "drop down" coverage where underlying primary insurance coverage limits are insufficient or exhausted. Page 17 of 19 Policy Endorsements Each insurance policy to be furnished by CONTRACTOR shall include the following conditions by endorsement to the policy: a. name the CITY as an additional insured as to all applicable policies; each policy shall require that 30 days prior to cancellation, non -renewal or any material change in coverage, a notice thereof shall be given to CITY by certified mail. If the policy is canceled for nonpayment of premium, only 10 days written notice to CITY is required; C. the term "CITY" shall include all authorities, boards, bureaus, commissions, divisions, departments and offices of the CITY and individual members, employees and agents thereof in their official capacities, and/or while acting on behalf of the CITY; d. the policy phrase "other insurance" shall not apply to the CITY where the CITY is an additional insured on the policy. 2. Special Conditions a. Insurance furnished by the CONTRACTOR shall be in accordance with the following requirements: any policy submitted shall not be subject to limitations, conditions or restrictions deemed inconsistent with the intent of the insurance requirements to be fulfilled by CONTRACTOR. The CITY's decision thereon shall be final; ii. ail policies are to be written through companies duly licensed to transact that class of insurance in the State of Texas; and iii. all liability policies required herein shall be written with an "occurrence" basis coverage trigger. CONTRACTOR agrees to the following: i. CONTRACTOR hereby waives subrogation rights for loss or damage to the extent same are covered by insurance. Insurers shall have no right of recovery or subrogation against the CITY, it being the intention that the insurance policies shall protect all parties to the contract and be primary coverage for all losses covered by the policies; companies issuing the insurance polices and CONTRACTOR shall have no recourse against the CITY for payment of any premiums or assessments for any deductibles, as all such premiums and deductibles are the sole responsibility and risk of the CONTRACTOR; iii. approval, disapproval or failure to act by the CITY regarding any insurance supplied by the CONTRACTOR (or any Subcontractors) shall not relieve the CONTRACTOR of full responsibility or liability for damages and accidents as set forth in the Contract Documents or this Agreement. Neither shall be bankruptcy, insolvency or denial of liability by the insurance company exonerate the CONTRACTOR from liability; Page 18 of 19 deductible limits on insurance policies exceeding $10,000 require approval of the CITY; vi. any of such insurance policies required under this paragraph may be written in combination with any of the others, where legally permitted, but none of the specified limits may be lowered thereby; vii. prior to commencement of operations pursuant to this Contract, the Developer or the Developer's CONTRACTOR shall furnish the CITY with satisfactory proof that he has provided adequate insurance coverage in amounts and by approved carriers as required by this Agreement; viii. CONTRACTOR shall provide notice of any actual or potential claim or litigation that would affect required insurance coverages to the CITY in a timely manner; ix. CONTRACTOR agrees to either require its Subcontractors to maintain the same insurance coverage and limits as specified for the CONTRACTOR or coverage of Subcontractors shall be provided by the Contract; and X. Prior to the effective date of cancellation, CONTRACTOR shall deliver to the CITY a replacement certificate of insurance or proof of reinstatement. Page 19 of 19 Winding Creek, Phase I RESIDENTIAL DEVELOPER AGREEMENT AMENDMENT An Agreement between the City of Southlake, Texas, hereinafter referred to as the "City", and the undersigned Developer, Terra Land Management, hereinafter referred to as the "Developer", of Winding Creek, Phase I, hereinafter referred to as the "Addition" to the City of Southlake, Tarrant County, Texas, for the installation of certain community facilities located therein, and to provide city services thereto. It is understood by and between the parties that this Agreement is applicable to the 40 lots contained within the Addition and to the off -site improvements necessary to support the Addition. GENERAL REQUIREMENTS A. It is agreed and understood by the parties hereto that the Developer shall employ a civil engineer licensed to practice in the State of Texas for the design and preparation of the plans and specifications for the construction of all facilities covered by this Agreement. B. Since the Developer is prepared to develop the Addition as rapidly as possible and is desirous of selling lots to builders and having residential building activity begin as quickly as possible and the City is desirous of having the Addition completed as rapidly as possible, the City agrees to release 20% of the lots (8) after installation of the water and sewer mains. Framing shall not commence until water quality is approved by the City and all appropriate Fire Code requirements are satisfied and street signs with street names are in place. Temporary all-weather metal signs securely fastened in the ground are acceptable until permanent street signs are installed. The Developer recognizes that the remaining building permits or Certificates of Occupancy for residential dwellings will not be issued until the supporting public works infrastructure including permanent street signs with block numbers and regulatory signs within the Addition have been accepted by the City. This will serve as an incentive to the Developer to see that all remaining items are completed. C. The Developer will present to the City either a cash escrow, Letters of Credit or performance bond and payment bond acceptable to the City guaranteeing and agreeing to pay an amount equal to 100% of the value of the construction cost of all of the facilities to be constructed by the Developer, and providing for payment to the City of such amounts, up to the total remaining amounts required for the completion of the Addition if the Developer fails to complete the work within two (2) years of the signing of this Agreement between the City and Developer. All bonds shall be issued by a Best -rated bonding company. All Letters of Credit must meet Page 1 of 2 John Terrell Mayor ATTEST: Alicia Richardson, TRMC City Secretary Date: Page 2 of 2