17.96.140 Performance bond required.
A. Where authorized by this title, the permit issuing authority may require a bond to ensure compliance with any requirements. The bond may be a nonrevocable letter of credit, set-aside letter, assignment of funds, certificate of deposit, deposit account, or other accessible source of funds in a form acceptable to the city. Interest from any interest-bearing form of bond will accrue to the benefit of the depositor. The bond shall specify the date and time by which the work which it guarantees shall be completed and state the date and time by which the city can negotiate the bond to obtain the funds to do the work it guarantees. In all cases the date and time for bond negotiation shall be at least sixty (60) days after the deadline.
B. The amount of the bond shall be calculated on the following basis as follows:
1. The amount will be one hundred fifty (150) percent of the cost of the work or improvements and shall be based on estimated costs immediately following the expiration of the bond together with the city's cost of obtaining funds from the bond and administering the project.
2. A maintenance bond will not be less than twenty (20) percent of the cost of replacing the improvement covered by the bond based on estimated costs on the last day covered by the bond together with the city's cost of obtaining funds from the bond and administering the project.
C. In each case where the city requires or allows an applicant to establish a bond, the owner of subject property shall give the city a signed, notarized, irrevocable license to run with the property to allow the employees, agents or contractors of the city to go on the subject property for the purpose of inspecting and, if necessary, doing the work or making the improvements covered by the bond. The applicant shall file this license with the department.
D. After the work or improvements covered by a performance bond have been completed to the satisfaction of the city or at the end of the time covered by a maintenance bond, the applicant may request the city to release the bond. The city shall release such bond as expeditiously as possible after receipt of a request for release.
E. If during the period of time covered by a bond the department determines that the work or improvements have not been complied with, the applicant will be notified. The notice must include the following information:
1. The work that must be done or the improvement that must be made to comply with the requirements and the bond;
2. The amount of time that the applicant has to commence and complete the required work or improvements;
3. That, if the work or improvements are not commenced and completed within the time specified, the city will use the proceeds of the bond to have the required work or improvements completed.
F. If the work or improvements covered by the bond are not completed within the time specified in the notice provided under subsection (E) of this section, the city shall obtain the proceeds of the bond to perform the necessary work or improvements. The property owner is responsible for all costs incurred by the city. Upon completion, the city shall release or refund any proceeds of a performance bond after subtracting all costs involved. The owner of subject property shall reimburse the city for any amount expended by the city that exceeds the proceeds of the bond. The city shall retain a lien against the subject property for the amount of any excess.
G. In each case where the city uses any of the proceeds of the bond, it shall give the owner of the subject property an itemized statement of all proceeds and funds used.