Chapter 14.08
BONDS
Sections:
14.08.030 Certificate of satisfactory completion.
14.08.040 Reduction of financial security.
14.08.050 Bond administration.
Prior legislation: Ord. 731.
14.08.010 Financial security.
As an alternative to complete installation of required improvements before final plat approval, the subdivider may elect to post a performance bond guaranteeing completion of the work within a stated period set by the council. The bond may be for part or all of the improvements except for the improvements specifically excluded from bonding by this section.
The financial security shall be in one of the following forms:
(1) A surety bond executed by a surety company authorized to transact business in the state of Washington in a form approved by the city attorney.
(2) A personal bond approved by the city attorney cosigned by at least one additional person together with evidence of financial responsibility and resources of those signing the bond sufficient to provide reasonable assurance of ability to proceed in accordance with the agreement.
(3) Cash.
(4) Letter of credit approved by the city attorney from a financial institution stating that the money is held for the purpose of development of the stated project.
Any such bond shall be in an amount acceptable to the administrator and public works department, and in a form acceptable to the city attorney, and in an amount no less than 150 percent of the estimates of the city engineer and other appropriate agencies of the costs of completing the required improvements, required inspections, and repairs to be bonded, including related engineering and incidental expenses, inspections, the costs of administering the construction of improvements, the costs of calling on the surety, final survey monumentation, and certified original reproducible “as built” improvement plans. Separate bonds may be required by the city engineer for each required improvement to be bonded. No bonds shall be accepted for road construction other than for ballasting and paving and road drainage.
Performance bonds are to protect the public and purchasers of the property being developed by providing guarantees that the required improvements will be installed. It shall not be used for or in any way tied to payments to contractors or subcontractors. (Ord. 1224 § 7, 2000)
14.08.020 Maintenance bonds.
A maintenance bond securing to the city the successful operation for one year of any improvements required by Chapter 14.06 WMC shall be required by the city council as a condition of accepting the final plat. Any such maintenance bond shall be in an amount acceptable to the administrator or city engineer in a form acceptable to the city attorney.
The bonds shall be used to make any repairs or changes necessary to correct any defects, poor workmanship, or operational problems discovered one year from the date the dedication of the improvements was accepted, if the corrections are not made by the developer. The developer shall be liable for the costs of correcting any defects which exceed the value of the bond during the first year after the improvements are dedicated. (Ord. 1224 § 7, 2000)
14.08.030 Certificate of satisfactory completion.
The city will not accept dedication of required improvements, nor release nor reduce financial security until the city engineer has found that all required improvements for which the bond or portion of bond is pledged to assure completion have been satisfactorily completed and until the applicant has submitted to the public works department original reproducible road, utility, and drainage plans certified by the designing engineer as being “as built” and indicating location, dimensions, materials, and other information required by the city council or public works department, that the layout of the line and grade of all public improvements is in accordance with construction plans for the subdivision, and that a title insurance policy has been furnished to and approved by the city attorney indicating that the improvements are free and clear of any and all liens and encumbrances. Upon such approval and recommendations, the council shall thereafter accept the improvements for dedication in accordance with established procedure. (Ord. 1224 § 7, 2000)
14.08.040 Reduction of financial security.
Financial security shall be reduced upon actual dedication of public improvements, and then only to the ratio that the public improvements dedicated, bears to the total bonded public improvements for the plat. (Ord. 1224 § 7, 2000)
14.08.050 Bond administration.
The public works department shall monitor the construction of bonded improvements and the performance of improvements secured by maintenance bonds. If the developer fails to carry out or violates the bond agreement, the public works department, after consultation with the city attorney, shall request the city council to declare the developer in default and to instruct the city staff to obtain the funds available from the surety to construct the bonded improvements and to reimburse the city for any expenses it has incurred. A developer shall be in default if he/she has violated the bonding agreement and/or failed to complete the required improvements (including any monumenting and submitting “as built” plans) in compliance with this chapter, any adopted city standards, and the approved specifications and plans during the time periods set out in the bonding agreement and this chapter or if the developer has failed to correct defects in improvements during the year after they were accepted.
If the amount of the bond exceeds the cost and expense incurred by construction of the improvements and by the city of Westport, the remainder shall be released. If the amount of the bond is less than the cost and expense incurred, the developer shall be liable to the city for the difference. (Ord. 1224 § 7, 2000)