HomeMy WebLinkAboutCarmel/Davis Homes/Emerald Crest/Avian Glen As 7 APPROVED AS TO
FORM BY 7i9P
SETTLEMENT AGREEMENT
THIS SETTLEMENT AGREEMENT (the Agreement') is made and entered Into and
between the Cit of Carmel Cannel') and Fidelity and Deposit Company of Maryland
F&D") this IW'Zay of 2009
WHEREAS, Davis Homes, LLC ('Davis') applied for approval of certain subdivisions
and received City of Carmel Plan Commission approvals on the following subdivisions
Trails at Avian Glen Pnmary Plat, Avian Glen, Sections 8 -10, Emerald Crest at Hazel Dell
Summit Subdn islons and
WHEREAS at the request of Carmel and others F &D issued the following Maintenance
Bonds "Bonds in the respective penal sums, on behalf of Davis as pnncipal and Carmel
as obligee for the Subdivisions as follows
Bond No Subdn ision Proiect Penal Sum
8755666 Emerald Crest Sect 1 interior Sides a1ks $5 996 00
8755661 Trails at Avian Glen Sect 9 Intenor Sidew elks $9 )92 00
8755660 I rails at Avian Glen Sect 10 Sidewalks S4 963 00
8755667 Emerald Crest Sect 2 Streets $8 838 00
87)5669 Emerald Crest Sect 2 Intenor Sidewalks $2 921 00
8755670 Emerald Crest Sect 2 Extenor Sidewalks $283 00
and
WHEREAS Davis has ceased operating its business and is unable to complete its
obligations to Carmel as required in the approval process for the Subdivisions, and
WHEREAS Carmel has made demand upon F&D to complete Davis' obligations, and
WHEREAS F&D is willing to undertake certain work in exchange for a release of F&D's
obligations under the above referenced Bonds and a return of the Bonds marked as 'Void,"
upon acceptance of the Completion Woik as defined herein, and
WHEREAS Cannel represents to F&D that it has lawful authonty to enter into this
Agreement and F &D represents that it has the authonty to enter into and perform all
obligations ansing under this Agreement
NOW THEREFORE, in consideration of the mutual promises and agreements contained
herein and other good and valuable consideration, the Parties agree as follow s
1 The above recitals are not merely recitals but are incorporated into this Agreement
2 F &D agrees to undertake the completion of Davis' obligations as required under the
Bonds for the intenor sidewalks on Avian Glen Section 9, sidewalks on Avian Glen
Section 10 the intenor sidewalks on Emerald Crest Section 1 the intenor sidewalks
on Emerald Crest Section 2, and the extenor sidewalks on Emerald Crest Section 2
LR00027\941670 1 1
The Parties agree that the total work required by F&D in this Agreement is listed on
attached Exhibit A "Completion Work Carmel acknowledges that F &D, as
completing surety is acting in its capacity as the completing surety for Davis in
making arrangements to perform the Completion Work and is not a completing
contractor, and that F &D is not assuming any obligations beyond those sct forth in
the Bonds
3 F &D will a) enter into an agreement with a certain Completion Contractor to provide
the labor and matenals required to perform the Completion Work and b) monitor,
supervise and administer the Completion Work utilizing Nicholson Piofessional
Consulting, inc (`NPCI as its construction consultant No contractual relationship
shall exist between Carmel and NPCI and the Completion Contractor
F &D shall extend its best efforts to complete the Completion Work within a
reasonable and timely manner and as soon as practicable Carmel agrees to provide
F&D, NPCI and all Completion Contractors with access to the required work as
allowed or required by the Contract Documents
4 Insofar as Carmel has any right title or interest therein Carmel agrees that F&D
NPCI and any Completion Contractors shall have the nght to use, at their own nsk,
without charge, any of the equipment, matenals and appurtenances furnished or
supplied by Davis or its pnor subcontractors which may be stored on or about the
premises of the Subdivision site or matenals which may have been fabncated for use
in connection with the Subdivision, whethcr or not presently upon the Subdivision
site
5 It is understood and agreed that F &D does not by virtue of this Agreement
undertake or assume any obligation or liability other than the obligations ansing
under this Agreement F &D agrees to expend such of its own funds as may, from
time to time, be necessary to pay for completion of the Completion Work, provided,
however, that F&D's obligation shall, in no event, exceed and it is hereby expressly
limited to, the expenditure of the penal amount of the Bond for the respective Project
as reduced by all amounts previously expended or to be expended by F &D for all
work that was completed in accordance with that Project lf, out of its own funds,
F &D either expends or is committed to expend, the full penal amount of the Bond
for work completed for that Project then F &D shall have no further obligation of any
description to Carmel ansing out of, or in connection with, that Bond, and F &D's
completion of the work for that Project, at F &D s option, will cease
6 The total liability of F&D under each Bond is limited to and shall not exceed the
penal amount of the Bond for the respective Project in the event F&D expends, out
of its own funds, the full penal amount of the Bond as relates to the respective
Project, F &D shall ha%e no further obligation of any descnption ansmg out of, or in
connection with that Bond All payments made by F &D previously for the Project
and those made in the future, have been and will be credited against the penal amount
of the respective Bond Carmel agrees that in no event shall F &D be liable for any
'R000271941670_1 2
7
and all sums, amounts, claims, liquidated or unliquidated damages punitive damages
penalties assessments, fees, fines, w hether claimed or imposed, for any reason by any
person, entity, or federal, state, county or municipal government agency, or political
subdivision thereof for any sum In excess of the penal sums of the Bonds
7 The acceptance of the Completion Work by Carmel or the expenditure by F&D of the
Bond penal amount, whichever comes first, shall satisfy F &D s obligations under that
Bond and this Agreement for the respective Project
8 Upon acceptance by Carmel of the Completion Work Carmel fully and finally
releases, discharges and acquits F &D of and from any and all claims, demands,
actions and causes of action, whether known or unknown, suspected or unsuspected,
ansing out of or in any way related to or connected with the Subdivisions and the
Bonds, including but not limited to a release of any obligations under Bond No
8755667 for Emerald Crest Section 2 Streets Carmel agrees to fully indemnify,
defend and hold harmless (including attorney's fees), to the fullest extent permitted by
law F &D from any and all claims demands, actions and causes of action made
against F &D ansing out of or relating to Bond No 8755667 for the Emerald Crest
Section 2— Streets except as to claims demands actions and causes of action ansing
as a result of the negligence on the part of F &D
9 Upon acceptance by Carmel of the Completion Work Carmel shall return the Bonds
marked as "Void to F &D
10 This Agreement shall constitute the whole of the understandings discussions and
agreements by and between Carmel and F &D and shall not be amended, modified or
revoked without the pnor wntten consent of Carmel and F &D
11 All notices and correspondence shall be mailed by first class mail with a copy by
facsimile, to
To Owner City of Carmel
Thomas D Perkins
Assistant City Attorney
One Civic Square
Carmel, iN 46032
Phone PHONE NUMBER
Fax FAX NUMBER
To Surety Steven A Hauck
Claims Counsel
Fidelity and Deposit Company of Maryland
Zunch Surety and Financial Claims
Post Office Box 968037
Schaumburg, IL 60196
Voice 317 251 0516
LR00027W41670_1 3
Fax 800 329 -6112
With a copy to
Lin B Heath PE
Nicholson Professional Consulting, Inc
500 Sun Valley Dnve, Suite H 4
Roswell GA 30076
Cell 404 -313 0666
Fax 770 -645 6963
12 Cannel and F &D agree that any and all agreements judgmental decisions, or any
other matters pertaining to the day -to -day cooidinatton of the work to be performed
undcr this Agreement will be made between F &D's designated representative, NPCI
and Carmel s designated representative
13 Nothing in this Agreement shall be deemed to create any nghts in favor of, or inure to
the benefit of any third party or to w aive of release any defense or limitation against
third -party claims
14 It is understood and agreed that this Agreement shall be governed by construed and
enforced in accordance with, and subject to, the laws of the State of Indiana
15 The Parties and the signatones hereto warrant that each has the power and authonty
to execute this Agreement Carmel and F &D have been represented by counsel who
have matenally participated in the authorship of this Agreement, it being understood
that the rule of construction that a written agreement is construed against the party
drafting or preparing such agreement shall specifically not be applicable to the
interpretation of this Agreement The provisions of this Agreement shall be applied
and interpreted in a manner consistent w ith each other so as to carry out the purposes
and intent of the Parties, but if for any reason any provision is unenforceable or
invalid, each provision shall be earned out with the same force and effect as if the
severed portion had not been a part of this Agreement
16 This Agreement shall be effective from the date that the Parties have executed an
onginal or counterpart of this Agreement All such fully executed counterparts will
collectively constitute a single agreement Delivery of this Agreement may be
accomplished by electronic means with the onginal document to be promptly
executed and delivered, if requested
WHEREFORE, the Parties have cxecuted this Settlement Agreement by their authonzed
Representatives
LR00027W41670 1 4
r
DATED
City of Carmel
By
Its
and lawfully authorized representative
DATED y Ser t en
Fidelity and Depo om land
By
Steven A Hauck
Its Claims Counsel
and lawfully authorized representative
um00:71941670_ i 5
IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement as follows
CITY OF CARMEL INDIANA
by and through its Board of Public
Works and Safety
7 BY
il tAANA4-6 /e r
es Brainard, Presiding Officer Authonzed Signature
Date
Pnnted Name
M ry n urke em. r Title
Date 411
FID/TIN
tIi
Lon S Wat M ber SSN if Sole Propnetor
Date 9ith /Oq Date
ATTES
na Cordray,I T reasurer
Date Izer 0 f/
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