Chapter 19.25


19.25.010    Purpose.

19.25.020    Definitions.

19.25.030    Performance securities.

19.25.040    Maintenance securities.

19.25.050    Encroachment permit securities.

19.25.060    Land disturbance performance securities.

19.25.070    Site stabilization securities.

19.25.080    Combined securities.

19.25.090    Partial release of sureties.

19.25.010 Purpose.

This chapter is intended to describe the City’s policies related to bonds and other financial sureties necessary to ensure the completion of required improvements and/or the maintenance of such improvements. This chapter also describes the process and minimum requirements for the dedication of real property or easements. (Ord. 2007 § 1, 2017; Ord. 1999 § 2 (Exh. 2), 2017; Ord. 1978 § 1 (Exh. 5), 2016. DS § 501)

19.25.020 Definitions.

A.    “Assignment of savings” shall mean an account that is designated specifically for the project, in lieu of a performance and/or maintenance bond.

B.    “Bond” shall mean a financial security issued by a bank or other financial institution, guaranteeing the fulfillment of a contract or completion of work.

C.    “Director” shall mean the Public Works or Community Development Director.

D.    “Environmental improvements” shall mean the installation of mitigation or enhancement measures necessary to protect the natural environment, including but not limited to shorelines, critical areas, wetlands, archaeological protection, habitat, or ecological functions. These requirements will generally but not exclusively be identified pursuant to FMC Title 16, the shoreline master program or the SEPA environmental review.

E.    “Financial security” (including assignment of savings, bonds, performance and maintenance bonds defined herein) shall mean a financial guarantee provided by the applicant to the City to ensure the satisfactory completion of work permitted by the City.

F.    “Infrastructure improvements” shall mean the construction and/or installation of facilities that will be publicly owned and maintained, including but not limited to sanitary sewer systems, potable and nonpotable water systems, roadways, sidewalks, parks, and stormwater systems, plus those private infrastructure elements that are a required element of development approval, that include but are not limited to privately maintained roadways, parks, stormwater infrastructure, lighting, etc.

G.    “Landscaping improvements” shall mean the installation and/or maintenance of vegetation, fencing, or related items for aesthetic or screening purposes, pursuant to Chapter 18.74 FMC or conditions of development approvals.

H.    “Maintenance security” is a financial security provided by the applicant to the City for up to a stated amount, payable in the event that required repair and maintenance work is not completed by the applicant, and/or that additional maintenance is required within a specified time period due to defects in construction.

I.    “Performance security” is a financial security purchased by a contractor that ensures the completion of work described in permits authorizing construction, within a given time frame. If the proposed work is not completed within the time frame provided, the City may utilize all or a portion of the security to complete the work. (Ord. 2007 § 1, 2017; Ord. 1999 § 2 (Exh. 2), 2017; Ord. 1978 § 1 (Exh. 5), 2016. DS § 502)

19.25.030 Performance securities.

The City shall require a performance security in lieu of completing required infrastructure, environmental, or landscaping improvements prior to plat recording or development approval. The Director may authorize the developer to post a security with the Ferndale Community Development Department to guarantee completion of said improvements. The security posted shall conform to the following conditions:

A.    The security shall be equal to 150 percent of the construction estimates approved by the Director.

B.    The security shall be of a form approved by the City Attorney’s office. Types of securities include, but are not limited to, cash deposits, assignment of savings, and performance bonds.

C.    The security shall be for one year at which time it may be extended at the option of the Public Works Director. A new amount will be calculated at the time of any extensions.

D.    The security shall be used by the Director to make the required improvements if these improvements are not made in the allotted time.

E.    The City shall not require performance securities associated with the construction of private improvements that will not be physically connected to the City’s utilities, with the exception of securities necessary to ensure that impacts to the environment are mitigated.

1.    If work on private property ceases or is abandoned, the City is obligated to take those steps necessary to ensure that the site does not pose a threat to life safety or the natural environment, but has no obligation to ensure that other improvements are completed.

2.    The City reserves the right to require a construction easement and/or written right of entry to the site in order to mitigate environmental impacts should the applicant fail to perform.

F.    All required performance bond securities will remain in place in their original amount until final project approval and/or maintenance bond security acceptance. (Ord. 2048 § 1 (Att. A), 2018; Ord. 2007 § 1, 2017; Ord. 1999 § 2 (Exh. 2), 2017; Ord. 1978 § 1 (Exh. 5), 2016. DS § 503)

19.25.040 Maintenance securities.

A.    General. Prior to satisfactory completion of street and/or stormwater drainage facilities, utilities environmental, or landscaping improvements to be maintained by the City as a condition of acceptance of such facilities by the City, the developer shall post a maintenance security with the Ferndale Community Development Department which conforms to the following:

1.    The security shall be in effect for two years from the date of provisional acceptance of new street, drainage facilities, utilities, environmental, or landscaping improvements for maintenance.

2.    The maintenance security shall be for an amount of 10 percent of the construction cost estimate or $5,000 (whichever is greater).

a.    Exemption – Installation Cost Less Than $5,000. The City may authorize a lesser amount if the total cost of the original installation was less than $5,000. However, in no case shall a maintenance security be less than $500.00.

b.    Exemption – Critical Area Mitigation. The City shall require a maintenance security equal to 150 percent of the cost of the estimated cost of installation of wetland mitigation measures.

This security is intended to ensure that ongoing maintenance and periodic reviews are performed consistent with the relevant mitigation plans approved by the City over the time frame provided for by the approved plan.

3.    The security shall cover the costs for defects in design, materials and workmanship of streets, sidewalks, curbs, and/or stormwater drainage facilities as determined by the Public Works Director throughout the maintenance period.

4.    The release of this security on the effective date shall be for the amount of security minus the cost of any maintenance work required to be done by the City.

5.    Bond forms shall be generally in conformance with bond forms listed in Appendix A. (Ord. 2007 § 1, 2017; Ord. 1999 § 2 (Exh. 2), 2017; Ord. 1978 § 1 (Exh. 5), 2016. DS § 504)

19.25.050 Encroachment permit securities.

A surety commensurate with the extent of work to be done may be required at the City’s sole discretion, and shall be posted with the Ferndale Community Development Department prior to the issuance of a permit to work within City street rights-of-way. (Ord. 2007 § 1, 2017; Ord. 1999 § 2 (Exh. 2), 2017; Ord. 1978 § 1 (Exh. 5), 2016. DS § 505)

19.25.060 Land disturbance performance securities.

Land disturbance permits meeting both of the following criteria shall require the posting of a performance surety:

A.    The land disturbance permit application is not submitted in conjunction with an application for subdivision, short subdivision, binding site plan, shoreline substantial development permit, zoning conditional use permit, site plan review application, planned unit development or building permit; and

B.    The land disturbance permit application consists of the movement of more than 500 cubic yards of material, or less if determined by the Public Works Director or their designee that the proposed work would impact critical areas or sensitive slopes.

In such cases, the applicant is required to post a performance bond or other monetary security as approved by the City Attorney. The amount of the bond shall be $5,000 or 150 percent of the land disturbance cost, whichever is greater. If there is a land disturbance violation, a portion of the bond may be used as needed to repair the damages. If the repairs result in costs greater than the amount of the bond, the applicant shall be liable for the difference. (Ord. 2007 § 1, 2017; Ord. 1999 § 2 (Exh. 2), 2017; Ord. 1978 § 1 (Exh. 5), 2016. DS § 506)

19.25.070 Site stabilization securities.

The City shall require that a performance security be established so as to ensure that work sites are adequately stabilized during and after the period of construction. (Ord. 2007 § 1, 2017; Ord. 1999 § 2 (Exh. 2), 2017; Ord. 1978 § 1 (Exh. 5), 2016. DS § 507)

19.25.080 Combined securities.

Nothing in this chapter shall prevent an applicant from addressing multiple performance or maintenance surety requirements through one financial security. In such situations, the following shall apply:

A.    The applicant shall provide the City with an itemized list of all elements to be addressed in the surety, split between the various sureties described in FMC 19.25.030 through 19.25.070.

B.    A combined surety shall not be utilized to reduce the total amount of the surety.

C.    Surety funds dedicated to one element cannot automatically be transferred to another without a modification to the combined surety documentation, and shall be transferred only with the City’s approval. (Ord. 2007 § 1, 2017; Ord. 1999 § 2 (Exh. 2), 2017; Ord. 1978 § 1 (Exh. 5), 2016. DS § 508)

19.25.090 Partial release of sureties.

A.    The Director may authorize the partial release of financial securities in the following circumstances:

1.    On new streets and stormwater drainage facilities, 90 percent of the security may be released upon completion and approval of the work by the Public Works Director. The remaining 10 percent or $5,000 (whichever is greater) shall be held until the facilities are provisionally accepted and maintenance security has been received.

2.    On existing established City streets, 90 percent of the security may be released upon completion of the work and approval of the Public Works Director. The remaining 10 percent or $5,000 (whichever is greater) may be released upon receipt of the maintenance security.

3.    On critical area mitigation areas, the City may release only the equivalent costs of required inspections on a per-inspection basis, prior to the conclusion of the maintenance period identified by the approved mitigation plan. (Ord. 2007 § 1, 2017; Ord. 1999 § 2 (Exh. 2), 2017; Ord. 1978 § 1 (Exh. 5), 2016. DS § 509)