Chapter 2.84
Public Contract Performance Bonds
Sections:
2.84.010 Bonds required for certain contracts.
2.84.030 Logging services--Bond required.
2.84.040 Logging services--Bond amount designated.
2.84.050 Logging services--Bond specifications.
2.84.010 Bonds required for certain contracts.
It is found to be in the public interest and conducive to the public welfare to establish the level of bond for contracts relating to the following subjects in the manner and at the level provided by Section 2.84.020:
(1) Tree planting;
(2) Precoinmercial thinning of trees;
(3) Slashing and slash clearing;
(4) Site preparation;
(5) Herbicide spraying;
(6) Fertilization;
(7) Plantation release;
(8) Slash burning;
(9) Road construction, including but not limited to the rocking or ballasting thereof. (Ord. 1047 §1, 1977).
2.84.020 Amount designated.
As to all contracts relating to the provision of either services or services and materials for the activities specified in Section 2.84.020 on all properties owned by the city, the performance bond required by the laws of the state of Washington and the ordinances of the city of Montesano, shall be an amount equal to twenty-five percent of the contract price; provided, that if due to peculiar circumstances or nature of a particular project, the city deems it necessary and appropriate to require such a bond, which is for a higher percentage, such higher percentage shall be established by action of the council upon motion made at a regularly called meeting of the council. The performance bond requirement shall be specified in the specifications provided for any such project whether the specifications are established pursuant to a call for bids or otherwise.
The bond required pursuant to this section shall be provided to the city at such time as may be established by law or ordinance and shall run to the benefit and protection of the city and such other parties as may be established by law, ordinance, specification, or contract. It shall be in such form and nature as to meet any and all requirements established by law, ordinance, specification, or contract and be acceptable to the city or the official designated to receive and monitor such bonds. (Ord. 1047 §2, 1977).
2.84.030 Logging services--Bond required.
The establishment of a level of bond for the purposes specified by state law on contracts relating to the performance of logging services for the city; said bond to be established in the manner and at the level provided by Section 2.84.040 is found to be in the public interest and conducive to the general public welfare. (Ord. 1048 Sl, 1977).
2.84.040 Logging services--Bond amount designated.
(a) As to all contracts relating to the provision of service of logging of the city forests, the performance bond required by the laws of the state of Washington shall be in an amount established as follows:
(1) A cash bond in the amount of ten thousand dollars or performance bond in the amount of twenty thousand dollars. The choice as to posting of the cash bond or the surety bond shall be in the discretion of the winning bidder. The performance bond shall be held to insure faithful and proper completion of the contract.
(2) As additional security insuring the performance of the contract, there shall be withheld a sum equal to ten percent of the proceeds that would otherwise be paid to the operator. The moneys so withheld shall be on the same terms and conditions as the basic performance bond established by subdivision (1) of this subsection. Moneys held pursuant to this entire section shall be deposited in an interest-bearing account in the name of the city and shall be released to the contractor only upon acceptance of the performance of the contract and the passage of all necessary time and the receipt of all necessary releases confirming that no claims arise out of the performance of the contract, whether for failure to pay or for breach of the contract.
(b) If, due to the peculiar circumstances or nature of a particular project, the city deems it necessary and appropriate to require a bond of a higher amount or the withholding of a higher percentage, such higher percentage or amount shall be established by action of the council upon motion made at a regularly called meeting of the council. The performance bond requirements so established shall be stated in the specifications provided for any such project. (Ord. 1255 §1, 1988: Ord. 1080 §§1, 3, 1978: Ord. 1048 §2, 1977).
2.84.050 Logging services--Bond specifications.
The bond established pursuant to Section 2.84.040, shall be provided to the city prior to the commencement of the performance of service under any contract; shall run to the benefit and protection of the city and such other employees as may be established by law, ordinance, specification or contract; shall be in such form and of such nature as to meet any and all requirements established by law, ordinance, specification or contract and be acceptable to the city clerk-controller; and shall be held for such a period and under such terms and conditions as may be established by law, ordinance, specification or contract. (Ord. 1048 §3, 1977).