Chapter 14.90
PERFORMANCE ASSURANCE
AND GUARANTEE
Sections:
14.90.020 Performance assurance.
14.90.010 Purpose.
The purpose of this chapter is to allow individuals developing property to post a performance assurance device in a sufficient amount to guarantee and warranty the construction of required improvements, maintenance of such improvements and protect public property. (Ord. 99-026 § 1).
14.90.020 Performance assurance.
All improvements shall be fully completed prior to the final approval of a development permit, land divisions, issuance of a certificate of occupancy or actual occupancy, pursuant to this code or other applicable regulations, unless a performance assurance device has been executed and approved in accordance with this chapter. (Ord. 99-026 § 1).
14.90.030 Criteria.
A. The performance assurance device shall be approved by the mayor or his/her designee and shall be in the form of a surety bond or cash account to be established with the city clerk/treasurer, or certified check deposited with the city clerk/treasurer sufficient to reimburse the city in the event it becomes necessary for the city or its agents to enter the property for completion and/or correction of the project and/or elimination of hazards relating to the project.
1. Any performance bond posted with the city pursuant to this chapter shall be executed by a security company authorized to transact business in the state of Washington. The bond shall run for the full period of the permit, and shall be in an amount as set out herein as determined by the mayor or his/her designee, and conditioned that such applicant shall faithfully comply with all terms of the permit, all provisions of this title and all other applicable regulations.
2. In lieu of a performance bond, the applicant may establish a cash account or deposit a certified check with the city clerk/treasurer. The instructions to the city shall provide that after prior written notice to the applicant and the applicant’s failure to complete the project, correct and/or eliminate existing or potentially hazardous conditions within a reasonable time, as determined by the city, the city shall be authorized without any further notice to the applicant and without any further consent of the applicant to disburse the necessary funds to the city for the purpose of completing, correcting and/or eliminating such conditions as specified in the city notice.
3. In the event the applicant fails to complete all improvements in accordance with this code and the city completes the same, the city shall call upon the performance bond for reimbursement or shall appropriate, from any cash deposit or certified check, funds for reimbursement. If the amount of security bond cash deposit or certified check shall exceed all costs and expenses incurred by the city, it shall release the remainder of such bond or deposit, and if the amount of the security bond or deposit is less than the cost of expense incurred by the city, the applicant shall be liable to the city for such difference.
4. After determination by the mayor or his/her designee that all improvements are constructed in compliance with approved plans at or prior to the completion dates identified in the performance assurance device, and that the maintenance bond, if any is required, provided for in RIMC 14.90.040, has been posted, the performance assurance device shall be released.
B. The performance assurance device shall be for a period of not more than one year for each phase of the development, unless a time schedule for the performance assurance device is approved by the city. The time period may be extended depending on the type of project and phasing schedule.
C. The value of any performance assurance device posted with the city shall equal at least 125 percent of the estimated cost of the required improvements as determined by the city and shall be utilized by the city to perform any necessary work, and to reimburse the city for administrative costs, including but not limited to, attorneys’ fees associated with action on the performance assurance device. If costs incurred by the city exceed the amount provided by the performance assurance device, the property owner shall reimburse the city in full, or the city may file a lien against the subject property for the amount of any deficit. Nothing herein shall limit the city’s remedies, and in addition to the above, it may pursue all other available remedies to recover any deficiency.
D. Along with the performance assurance device, the property owner shall provide the city with an irrevocable notarized agreement granting the city and its agents the right to enter the owner’s or successor-in-interest’s property and perform any required work remaining uncompleted at the expiration of the completion date(s) identified in the performance assurance device. Such agreement shall be in a form capable of being recorded with the Douglas County auditor. (Ord. 99-026 § 1).
14.90.040 Maintenance bond.
A. In the case of subdivision or short subdivision improvements and other development permits pertaining to pavement, sewer, water main, storm drain, grading, excavation, street lighting or improvements of a similar nature, prior to final city approval, the applicant and the contractor for the applicant shall post with the city a maintenance bond for the guarantee of improvements in an amount equal to 20 percent of the estimated cost of the improvements for a period of two years after the improvements are accepted by the city. Release of the bond will occur two years from the date of city acceptance if all improvements have been made during such period.
B. The maintenance bond shall guarantee all materials and construction costs and workmanship for a period of two years after the date of acceptance by the city. Such maintenance bond shall be executed by a security company authorized to transact business in the state of Washington and shall be approved as to form by the mayor or his/her designee. In lieu of a maintenance bond, the applicant may deposit with the city clerk/treasurer in the form of a cash deposit or other security acceptable to the mayor or his/her designee in an amount set forth herein.
C. In the event the applicant fails to maintain the improvement in accordance with the provisions of this section and the terms of the maintenance bond, the city shall have the right to maintain the same, and shall call upon the security for reimbursement or shall appropriate, from any cash deposit, funds for reimbursement. In the event the security bond or cash deposit shall exceed all costs and expenses incurred by the city, it shall release the remainder of such maintenance bond or cash deposit, and if the amount of the security bond or cash deposit is less than the cost of expense incurred by the city, the applicant shall be liable to the city for such difference. (Ord. 99-026 § 1).
14.90.050 Exemptions.
The mayor or his/her designee may waive the requirements of this chapter for those project permits for which the temporary estimated costs of completion, within the reasonable estimation of the city, are less than $5,000. (Ord. 99-026 § 1).