14.10.070 Financial protections.
During the review of any application for a land use, zoning, or building permit, or other development activity, a project sponsor may propose, subject to city review and approval, and/or the city may require that a bond(s) or similar forms of financial guarantee or protection be posted to ensure continued compliance with any conditions imposed, including the construction of required improvements, the adherence to city standards, and/or maintenance, repair or replacement of such improvements.
A. The bond(s) or financial guarantee(s) shall be in a form and amount determined by city staff in consultation with the city attorney to ensure performance and to protect the financial interests of the city. The draft agreement and documents shall be presented to the city council for review and authorization to execute the financial guarantees and supporting documents.
1. The acceptance of financial protection in lieu of completion of required improvements on developments and projects shall be at the sole discretion of the city.
2. The bonds or financial guarantees may be structured to make a distinction between guarantees to construct improvements at a future date and the performance of regular inspections and maintenance.
3. Project sponsors shall submit an itemized cost estimate of all improvements to be financially guaranteed prepared and stamped by a professional engineer licensed to practice in the state of Washington; provided, that:
a. The city may accept an alternative means of establishing a satisfactory cost estimate; and
b. The city shall review and may modify the submitted estimate to ensure adequate city protection in event of default and shall set the amount of the financial guarantee at least one hundred twenty-five percent of the final estimate, plus reasonable costs of administration.
4. In the event a condition occurs warranting the call of a bond or financial guarantee, the city shall notify the project sponsor and the guarantor of the action(s) that are required to remain in compliance, and if necessary, the intent to call the bonds or financial guarantees. In doing so the city may:
a. Perform the required maintenance or construct the improvements and fully recover the costs of such action from the guarantor; and
b. Include the recovery of reasonable administrative costs, including but not limited to legal expenses.
B. In the event that the cost of the work performed by the city exceeds the amount of the bond or financial guarantee, the city may impose a lien or judgement against the property, and may withhold final inspection and approval, the release of other financial guarantees, and/or the final certificate of occupancy until the city has been fully reimbursed for all expenses incurred and all required performance completed to the satisfaction of the city.