Chapter 19.25
BONDS1
Sections:
19.25.020 General performance bond.
19.25.050 Assistance in determining estimated costs.
19.25.060 Supplemental administrative costs.
19.25.080 Irrevocable license signed by the owner of the subject property.
19.25.090 Release of bond and cash deposit.
19.25.100 Use of proceeds – Notice to property owner.
19.25.110 Use of proceeds – Work by city.
19.25.120 Use of proceeds – Refund of excess – Charge for all costs.
19.25.130 Use of cash deposit.
19.25.005 Bonds.
The city may require a bond under this chapter to insure compliance with any aspect of a permit, review, or approval.
(Ord. No. 09-594, § 25, 1-6-09. Code 2001 § 22-145.5.)
19.25.010 Maintenance bond.
The director of community development may require an applicant to establish a maintenance bond only if another provision of FWRC Title 19 or other ordinance specifically authorizes it.
(Ord. No. 90-43, § 2(180.10(1)), 2-27-90. Code 2001 § 22-146.)
19.25.020 General performance bond.
The director of community development may allow an applicant to establish a performance bond and obtain a certificate of occupancy or other permit or approval in advance of completing all required work or improvements if the following criteria are met:
(1) The applicant is unable to complete the work or improvements to be covered by the bond because of unavoidable circumstances that in no way resulted from the actions or inaction of the applicant.
(2) It is reasonably certain that the applicant will be able to complete the work or improvements to be covered by the bond within a reasonable amount of time.
(3) Granting the certificate of occupancy or other permit or approval prior to completion of the work or improvements will not be materially detrimental to the city or the properties in the vicinity of the subject property.
(Ord. No. 90-43, § 2(180.10(2)), 2-27-90. Code 2001 § 22-147.)
19.25.030 Type of bond.
Bonds shall be in the form of cash deposits or binding a surety registered in and authorized to do business in the state or other suitable security as approved by the city attorney. The form and content of all bonds must be approved by the city attorney.
(Ord. No. 90-43, § 2(180.15), 2-27-90. Code 2001 § 22-148.)
19.25.040 Amount of bond.
The city shall determine the amount of the bond as follows:
(1) For a maintenance bond, the amount will be 30 percent of the cost of replacing the materials covered by the bond based on estimated costs on the last day covered by the bond.
(2) For a performance bond, the amount will be 120 percent of the cost of the work or improvements covered by the bond based on estimated costs immediately following the expiration of the bond.
(Ord. No. 90-43, § 2(180.20(1)), 2-27-90. Code 2001 § 22-149.)
19.25.050 Assistance in determining estimated costs.
The director of community development may consult with one or more persons with special knowledge or expertise in determining the amount of a bond under this chapter. The applicant shall pay the actual costs of this consultation prior to the director of community development accepting the bond and signing the bond agreement under FWRC 19.25.070.
(Ord. No. 90-43, § 2(180.20(2)), 2-27-90. Code 2001 § 22-150.)
19.25.060 Supplemental administrative costs.
(1) In addition to the bond and any consultation fees under FWRC 19.25.050, the applicant shall post a cash deposit with the city equal to the following percentages of the amount of the bond:
|
Amount of Bond |
Amount of Cash Deposit |
|
|
|
|
Up to $20,000 |
5% of the bond |
|
|
(Minimum $100.00) |
|
$20,001 to $50,000 |
4% of the bond |
|
$50,001 to $100,000 |
3% of the bond |
|
$100,001 and up |
2 1/2% of the bond |
(2) This cash deposit will be used to cover the city’s actual expenses of administering and, if necessary, obtaining and using the proceeds of the bond.
(Ord. No. 90-43, § 2(180.25), 2-27-90. Code 2001 § 22-151.)
19.25.070 Bond agreement.
In each case where the city requires or allows an applicant to post a bond, the applicant, the owner of the subject property and the director of community development shall sign an agreement prepared by the city stating the following:
(1) The work or improvements covered by the bond.
(2) Either the period of time covered by the maintenance bond, which will be two years or such longer period as is required by this title or determined by the city, or the date after which the city will use the proceeds of the performance bond to complete the required work or improvements.
(3) The amount and nature of the bond and the amount of the cash deposit.
(4) The rights and duties of the city and the applicant as established in this title.
(Ord. No. 90-43, § 2(180.30), 2-27-90. Code 2001 § 22-152.)
19.25.080 Irrevocable license signed by the owner of the subject property.
In each case where the city requires or allows an applicant to post a bond, the owner of the subject property shall give the city a signed, notarized, irrevocable license, executed and acknowledged in the form of a deed, to allow the employees, agents and contractors of the city to go on the subject property for the purpose of inspecting and, if necessary, doing the work or making the improvements covered by the bond. The applicant shall file this license with the county to run with the property. This property owner must, in this irrevocable license, agree to indemnify and save harmless the city and its employees, agents and contractors from any liability occasioned by the good faith performance of their responsibilities under this title, including, but not limited to, doing the work or making the improvements for which the bond has been posted.
(Ord. No. 90-43, § 2(180.35), 2-27-90. Code 2001 § 22-153.)
19.25.090 Release of bond and cash deposit.
After the work or improvements covered by a performance bond have been completed or, at the end of the time covered by a maintenance bond, the applicant may request the city to release the bond and refund the cash deposit. If the applicant has complied with the bond agreement and this title, the director of community development shall release the bond and the cash deposit remaining after any subtractions under FWRC 19.25.120 and 19.25.130.
(Ord. No. 90-43, § 2(180.40), 2-27-90. Code 2001 § 22-154.)
19.25.100 Use of proceeds – Notice to property owner.
If during the period of time covered by a maintenance bond or after the date by which the required work or improvements are to be completed under a performance bond, the director of community development determines that the bond agreement has not been complied with, he or she shall so notify the applicant. The notice must state:
(1) The work that must be done or the improvement that must be made to comply with the bond agreement;
(2) The amount of time, not to exceed 30 days, that the applicant has to commence and complete the required work or improvements; and
(3) That, if the work or improvements are not commenced and completed within the time specified, the city will use the proceeds of the bond to have the required work or improvements completed.
(Ord. No. 90-43, § 2(180.45), 2-27-90. Code 2001 § 22-155.)
19.25.110 Use of proceeds – Work by city.
If the work or improvements covered by the bond are not completed within the time specified in the notice given under FWRC 19.25.100, the city shall obtain the proceeds of the bond and do the work or make the improvements covered by the bond. The city may either have employees of the city do the work or make the improvements or, by using procurement procedures established by law, have a contractor do the work or make the improvements.
(Ord. No. 90-43, § 2(180.50), 2-27-90. Code 2001 § 22-156.)
19.25.120 Use of proceeds – Refund of excess – Charge for all costs.
The property owner is responsible for all costs incurred by the city in doing the work and making the improvements covered by the bond. The city shall release or refund any proceeds of a performance bond remaining after subtracting all costs for doing the work or making the improvements covered by the bond. The city shall release or refund any proceeds of a maintenance bond remaining at the end of the time covered by the bond, after subtracting all costs for doing the work covered by the bond. The owner of the subject property shall reimburse the city for any amount expended by the city that exceeds the proceeds of the bond. The city may file a lien against the subject property for the amount of any excess.
(Ord. No. 90-43, § 2(180.55), 2-27-90. Code 2001 § 22-157.)
19.25.130 Use of cash deposit.
The city shall subtract all of its expenses incurred in administering and, if necessary, using the proceeds of the bond from the cash deposit. After the work or improvements covered by a performance bond have been completed or at the end of the time covered by a maintenance bond, the city shall refund any remaining funds. If the amount of the cash deposit is insufficient to cover the city’s costs in administering and, if necessary, using the proceeds of the bond, the property owner shall pay this amount to the city prior to the release of the bond. The city may file a lien against the subject property for this amount.
(Ord. No. 90-43, § 2(180.60), 2-27-90. Code 2001 § 22-158.)
19.25.140 Itemized statement.
In each case where the city uses any of the proceeds of the bond or any of the cash deposit, it shall give the owner of the subject property an itemized statement of all proceeds and funds used.
(Ord. No. 90-43, § 2(180.65), 2-27-90. Code 2001 § 22-159.)
Cross references: Bond requirements for limited permits for use of right-of-way, FWRC 4.25.090(3); bonds may be required for noise level compliance, FWRC 7.10.060; director of public works shall review short plat to determine requirements for bonding in compliance with this section, FWRC 18.30.060; bonds may be required for any land surface modifications, FWRC 19.120.020; the city may require a bond to insure compliance with the off-street parking requirements, FWRC 19.130.050; the city may require a bond to insure compliance with the required improvements under the zoning regulations, FWRC 19.135.080; the city may require a bond to insure compliance with the sign regulations, FWRC 19.140.110; a bond may be required for improvements within environmentally critical areas, FWRC 19.145.100; temporary use permits, Chapter 19.275 FWRC.