§ 17.64.030. Performance Guarantees

A permit applicant may be required by conditions of approval or by action of the Director to provide adequate security to guarantee the faithful performance and proper completion of any approved work, and compliance with conditions of approval imposed by the review authority. The provisions of this Section apply to performance guarantees for projects authorized by any of the land use permits required by this Zoning Code.

A.

Form and amount of security. The required security shall be in a form (e.g., cash bond, certificate of deposit, surety bond, etc.) approved by the Director, upon recommendation of the City Attorney. The amount of security shall be as determined by the Director to be necessary to ensure proper completion of the work and compliance with conditions of approval.

B.

When security is acceptable.  

1.

No bond or undertaking executed by a corporation as security or surety delivered to the City in compliance with the provisions of the City Charter, any ordinance or resolution of the City, any law of the State, or in compliance with the provisions of any contract or agreement to which the City may be a party, shall be accepted by any officer of the City for and on behalf of the City unless both of the following are true:

a.

The surety on any bond or undertaking is a corporation authorized by the State Insurance Commissioner to transact surety business in the State; and

b.

There is on file, either with the County Clerk or the City Clerk, a copy, duly certified by the proper authority and attested by the seal of the corporation, of the transcript or record of appointment entitling or authorizing the person(s) purporting to execute the undertaking or bond for and on behalf of the corporation to act in the premises.

2.

It shall be the duty of the City Clerk to note, by appropriate endorsement on all bonds and undertakings presented to the City for acceptance, the compliance or noncompliance with this Subparagraph after verifying the fact of filing.

C.

Security for maintenance. In addition to any improvement security required to guarantee proper completion of work, the Director may require security for maintenance of the work in an amount determined by the Director to be sufficient to ensure the proper maintenance and functioning of improvements.

D.

Duration of security. Required improvement security shall remain in effect until final inspections have been made and all work has been accepted by the Director, or until any warranty period required by the Director has elapsed. Maintenance security shall remain in effect for 12 months after the date of final inspection.

E.

Release or forfeit of security.  

1.

Upon satisfactory completion of work and the approval of a final inspection (or after the end of the required time for maintenance security), the improvement and/or maintenance deposits or bonds shall be released.

2.

Upon failure to complete the work, failure to comply with all of the terms of any applicable permit, or failure of the completed improvements to function properly, the City may do the required work or cause it to be done, and collect from the permittee or surety all the costs incurred by the City, including the costs of the work, and all related administrative and inspection costs.

3.

Any unused portion of the security shall be refunded to the funding source after deduction of the cost of the work by the City.