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Bonnie Ridge Planned Community ! GUARANTEE AGREEMENT ~his Guarantee Agreement is entered into this 3oi1l day of ~ , 199](, by and between the CITY OF SALINA, KANSAS, (the "City") and STEVENS CONTRACTORS, INC. Recitals A. In conjunction with the development of Arrowhead Town- homes - P.D.D., Stevens Contractors, Inc. has constructed (1) public water system improvements, and (2) public sanitary sewer improvements (collectively referred to as the "Improvements") to serve Lots 15 and 16 in the Bonnie Ridge Planned Community in the City of Salina, Kansas. B. Upon approval of the Improvements by the City Engineer, the City intends to accept and assume responsibility for future maintenance of the Improvements, subject to the terms and conditions of this Guarantee Agreement. THE PARTIES therefore agree: 1. One Year Warranty. Stevens Contractors, Inc. agrees and covenants that for a period of one year following final acceptance of the Improvements by the City Engineer on behalf of the City (the "Warranty Period"), Stevens Contractors, Inc. shall warrant, at its expense and free of charge to the City, against all defects in materials or workmanship, or any improper, or defective preparation of the ground upon which the Improvements are constructed. 2. Response to Impairment in Service. In the case of any failure of the Improvements as a result of the defects described in paragraph 1 in such a manner that results in (a) any humanly discernible impairment of water or sanitary sewer service or (b) the release of water or sewage onto private property, Stevens Contractors, Inc. shall promptly cause the Improvements to be repaired in a manner acceptable to the City Engineer. If Stevens Contractors, Inc. fails to promptly respond in such circumstance, the City may, with or without notice to Stevens Contractors, Inc., cause the Improvements to be repaired and present Stevens Contractors, Inc. with a statement for any associated expense to the City. 3. Response to Other Defects. In the case of any defects as described in paragraph 1 (other than those addressed in paragraph 2) of which Stevens Contractors, Inc. is notified during the Warranty Period, Stevens Contractors, Inc. shall, within a reasonable period of time, cause the defect to be cured in a manner acceptable to the City Engineer. If Stevens Contractors, Inc. fails to cure the defect within 14 days from the date it is notified of the defect, the City may give written notice to Stevens Contractors, Inc. that if the defect is not cured within 30 days thereafter, the City will cause the defect to be cured and present Stevens Contractors, Inc. with a statement for any associated expense to the City. 4. Reimbursement of City. If the City incurs any expenses pursuant to paragraphs 2 and/or 3, Stevens Contractors, Inc. agrees to reimburse the City for those expenses within 10 days from the date of receipt of a written statement from the City. If Stevens Contractors, Inc. fails to make timely payment of the stated amount, the City may file suit in the Saline County District Court for the recovery of any such expenses and its legal fees. 5. Notices. All notices and demands shall be given in writing either by personal service or by registered or certified mail, postage prepaid, and return receipt requested. Notice shall be considered given when received on the date appearing on the return receipt, but if the receipt is not returned within five (5) days, then forty-eight (48) hours after deposit in the mail. Notices shall be addressed as appears below for each party: CITY: City Clerk P. O. Box 736 Salina, KS 67402-0736 CONTRACTOR: Stevens Contractors, Inc. P. O. Box 6197 Salina, KS 67401-0197 7. Bindinq Effect. This Agreement shall extend to and bind the heirs, beneficiaries, executors, administrators, trustees, and assigns of the parties hereto. EXECUTED by the duly authorized officials of the respective parties hereto the day and year written above. CITY OF SALINA, KANSAS /:) STEVENS CONTRACTORS, INC. ~~ ~-.2- Charles E. Stevens, Jr., President