§ 2.4.10. Financial guarantees.

This Section sets forth the parameters and procedure associated with providing a financial guarantee to insure the timely and proper installation of public improvements which are required to support the proposed development.

(A)

Items which require a financial guarantee. Any improvement for which the City will assume responsibility or which is necessary to adequately provide service to, or on, a site shall have provisions for guaranteeing its installation and that it properly functions. Such improvements include, but are not limited to:

•

Water mains and fire hydrants;

•

Sewer mains and lift stations;

•

Drainage systems whether publicly or privately maintained Street improvements whether on public or private street systems;

•

Street lighting;

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Traffic signal installation;

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Any improvement which is to be located in a public right-of-way;

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Street trees;

•

Landscaping pursuant to Subsection (G).

(B)

Required in-lieu of improvements. A financial guarantee may be provided in-lieu of installation of infrastructure improvements in situations where a developer desires to have a final plat recorded or a site plan certified prior to installation of such improvements. Such financial guarantee must be provided to the City Engineer, in a proper form (Subdivision Forms), prior to the City Engineer releasing an approved plat for recording or prior to the City Engineer releasing a certified site plan to the Building Department pursuant to the building permit approval process. [Amd. Ord. 46-95 9/5/95]

(C)

Required for warranty. A financial guarantee shall be required as a part of an agreement between the City and the developer to defray all expenses incurred by the City because of defects in materials or workmanship used in the required improvements. The guarantee shall be for a minimum period of one year after acceptance of the improvement.

(D)

Amount. The amount of a financial guarantee required in-lieu of improvements shall be equal to 110 percent of the cost of the improvements as estimated by the developer and concurred with by the City Engineer. A financial guarantee for a warranty not associated with an in-lieu situation shall be for ten percent of the cost of original installation.

(E)

Forms. A financial guarantee may take any of the following forms. However, each individual document must be approved by the City Attorney as to form.

(1)

Surety Bond, or other equivalent security instrument, conditioned to secure the construction of the required improvements in a satisfactory manner within a one-year time period. The bond shall be executed by a surety company authorized to do business in Palm Beach County. No such bond shall be acceptable unless it is enforceable by, or payable to, the City. The surety bond shall be in the form provided in the Subdivision Forms. [Amd. Ord. 46-95 9/5/95]

(2)

Deposit with the City in the form of cash, cash placed in escrow, a cashier's check, or a certified check.

(3)

Letter of Credit established with a financial institution wherein the City has access to funds in the event it becomes necessary for the City to complete installation and/or maintenance of the improvements. the letter of credit shall be in the form provided in the Subdivision Forms. [Amd. Ord. 46-95 9/5/95]

(F)

Release of funds. The City Engineer shall release all funds at the time of acceptance of improvements with the exception of an amount of ten percent which shall be retained for a period of one year after acceptance of all improvements. This amount may be used by the City if it becomes necessary to provide for the repair or maintenance of the improvement within that one-year period. Upon request and at the time of acceptance of a specific improvement, the City Engineer may release any funds which are provided by deposit or letter of credit to the extent that they were provided for the improvement being accepted.

(G)

Landscaping bond.

(1)

If the landscaping requirements of this Section have not been met at the time that a Certificate of Occupancy could be granted and is requested, the owner or his agent must post with the Building Department a bond of 110 percent covering the costs of materials, labor and other costs incidental to the installation of the required landscaping.

(2)

A landscape bond will only be accepted in extreme hardships where the landscape plant materials are not available due to drought or freeze, or similar conditions occur that would warrant acceptance of the bond as determined by the Chief Building Official.