3.80.030 Basic provisions.
A. The City, in its sole discretion, may require a financial guarantee (guarantee) to ensure the subsequent completion and continued maintenance of all conditions to which such permit is subject. The guarantee shall be in a form acceptable to the City and shall represent a percentage of the estimated cost of design, materials, and labor related to the project in question, based on the estimated costs on the last day covered by the device, of installing, replacing, or repairing, as appropriate, the improvements covered by the guarantee, as agreed to by the City Engineer or Community and Economic Development Director. The cost estimate shall be reviewed and approved by the City Engineer or Community and Economic Development Director prior to acceptance by the City of the guarantee.
1. Completion. One hundred fifty percent (150%) of the costs specified above, for the duration specified by the City, or until all improvements are installed and accepted by the City, whichever is less.
2. Maintenance. Twenty percent (20%) of the costs specified above, for the duration specified by the City, or until the City is satisfied that maintenance shall continue, whichever is less. However, the guarantee shall be extendible by the City if repairs are made at the end of the guarantee period which, in the opinion of the Community and Economic Development Director or City Engineer, require additional warranty of workmanship.
B. The guarantee may be required by, and presented to, the City upon request for a final project inspection or issuance of certificate of occupancy when required site work, improvements, or landscaping have not been completed. The guarantee may also be presented to the City after preliminary approval of a project, but in all circumstances shall be presented prior to any site work, including clearing, grading, or construction.
The conditions of performance to which such guarantee is subject shall be listed on the permit attached thereto. No certificate of occupancy, or other permit for which a guarantee is required, shall be issued until all such conditions, except landscaping, are satisfied. A separate guarantee may be established for landscaping, if deemed necessary by the Community and Economic Development Director. All guarantees shall be held until released by the Community and Economic Development Director or City Engineer.
C. In each case where a guarantee is posted, the applicant and the Community and Economic Development Director or City Engineer shall sign an agreement, approved in form by the City Attorney. The agreement shall provide the following information:
1. Name, title, and address of applicant; name and address of financial institution; account number if applicable.
2. The amount and nature of the guarantee and the amount of any cash deposit.
3. A description of the work or improvements covered by the guarantee.
4. Either the period of time covered by the maintenance guarantee or the date after which the City will use the proceeds of the guarantee to complete the required work or improvements.
5. The rights and duties of the City and applicant.
6. An irrevocable license to run with the property to allow the employees, agents, or contractors of the City to enter the subject property for the purpose of inspecting and, if necessary, performing the work or making the improvements covered by the guarantee.
7. The mechanism by and circumstances under which the guarantee shall be released. At a minimum, after the work or improvements covered by a guarantee have been completed, or at the end of the time covered by a maintenance guarantee, the applicant may request that the City release the guarantee. If the applicant has complied with the guarantee agreement and any applicable permit conditions, the Community and Economic Development Director or the City Engineer shall release the remaining guarantee. If the work has not been completed or repairs not made, then the City shall not release the guarantee until such work is completed. Partial release of the guarantee may be allowed provided that the developer provides a new guarantee equal to 150 percent of the cost of the remaining work.
D. If, during the period of time covered by a maintenance guarantee, or after the date by which the required work or improvements are to be completed under a performance guarantee, the Community and Economic Development Director or the City Engineer determines that the guarantee agreement has not been complied with, the City shall notify the applicant. The notice shall describe the following:
1. The work that must be done or the improvements that must be made to comply with the guarantee agreement; and
2. The amount of time that the applicant has to commence and complete the required work or improvements; and
3. That, if the work or improvements are not commenced and completed within the time specified, the City will use the proceeds of the guarantee to have the required work or improvements completed.
E. If the work or improvements covered by the guarantee are not completed within the time specified in the notice, the City shall obtain the proceeds of the guarantee and shall cause such work to be completed. Applicant shall be responsible for all costs incurred by the City in administering, maintaining, or making the improvements covered by the guarantee. The City shall release or refund any proceeds of a performance or maintenance guarantee remaining after subtracting all costs for doing the work or making the improvements covered by the guarantee, including City staff time. The applicant shall reimburse the City for any amount expended by the City that exceeds the proceeds of the guarantee. The City may file a lien against the subject property for the amount of any excess. In each case where the City uses any of the funds of a guarantee, it shall give the applicant an itemized statement of all funds used.
F. All site improvements shall be completed and the letter of compliance submitted to the City or a financial guarantee shall be submitted to the City in the amount of 150 percent of the construction cost prior to plat approval.
The street(s) within a short plat, large lot, or formal plat shall be constructed prior to approval of occupancy of any structures constructed within the plat, except for model home permits as authorized by the City.
A note shall be placed on the face of the plat which states:
No building permits will be issued on any lots in this plat (except for model home permits as authorized by the City Subdivision Code) until the private street(s) have been constructed and a letter certifying their compliance to the City’s development standards and regulations is on file with the City.
G. The City, in lieu of actual construction of any improvement by the developer of any formal subdivision, short subdivision or binding site plan, may accept a guarantee in an amount providing for and securing to the City the actual construction and installation of such improvements within a two-year period. The City Engineer may refuse to accept a guarantee in lieu of actual construction where redemption of the guarantee is seen to be problematic, or where the improvements are required immediately to ensure public safety and proper functioning of the development. All improvements such as structures, streets, sewers, drainage facilities and water systems shall be designed and the construction certified by, or under the supervision of, a registered civil engineer prior to the acceptance of such improvements. Improvements must be completed prior to final building inspection approval and occupancy of any new structures within the subdivision.
The developer shall be responsible for correcting any defect in an improvement for a period of 12 months after acceptance by the City Engineer.
The City shall require a guarantee to ensure that the developer will correct any defect in a dedicated improvement caused by faulty design, construction or other reason as determined by the City Engineer. Said guarantee shall be in an amount equal to 150 percent of the estimated cost of the City completing the improvements, as determined by the City Engineer, and shall extend for a period of 12 months after City acceptance of said improvement.
H. All private streets and sidewalks subject to the terms of these regulations shall have a maintenance covenant approved by the City Engineer and recorded with the Pierce County Auditor’s Office prior to or concurrent with the recording of the subdivision or plat. An active association shall be established to carry out the terms of the covenant. Private streets or easements existing prior to the effective date of this chapter will be exempted from the street maintenance covenant. Any new private street shall conform to these standards.
Maintenance of the street shall include but not be limited to street surfacing, shoulders, gates, signs, storm water facilities, landscape maintenance, and vegetation control.
I. All required landscaping shall be installed prior to issuance of a Certificate of Occupancy (CO) or final inspection; excluding street trees within plats which may use a guarantee to ensure their installation.
J. In addition to any other remedy provided within LMC Title 18A for any landscape maintenance requirements imposed by the City, the City may also require a guarantee if maintenance is not adequately provided. [Ord. 726 § 2(Exh. A), 2019.]