A. Single-Family And Two-Family Dwellings: All applications for construction of a single-family or two-family dwelling on an individual lot shall be accompanied by a bond agreement to ensure maintenance of public improvements and provide an incentive for completion of the construction for which a permit is issued. No building permit shall be issued for construction or development on any lot before the applicant completes, or agrees to complete, construction of improvements as required herein within two (2) years from the date of issuance of said permit and to ensure the satisfactory condition of the improvements installed on, and in close proximity to, said lot by posting a bond as set forth hereafter, nor shall said bond be released until the construction for which the building permit was issued is completed. The bond agreement shall be signed by the owner of the lot to be improved or by the contractor. The bond shall be in the sum of five hundred dollars ($500.00), or five dollars ($5.00) per front foot, whichever is the greater amount. In no case shall the bond amount exceed one thousand dollars ($1,000.00) per lot. The purpose of the bond agreement shall be to ensure the satisfactory condition of the curbs, gutter, sidewalk, drive approaches, landscaping, paving (including proper patching of asphalt cuts when required), and other public improvements installed on and in close proximity to the individual lot or lots for which the building permit was issued. In addition, the bond is required as an incentive only for the satisfactory completion of the construction for which the permit was issued. Where building permits are issued for houses on lots not abutting city streets, the bond amount may be reduced to a minimum of five hundred dollars ($500.00) to satisfy the construction completion requirement, if the owner or contractor produces evidence a bond is in place warranting public improvements to the affected entity who owns the street right of way. The bond shall not obligate the city to complete any construction authorized by the issuance of the permit. The bond agreement shall terminate and the bond, together with accumulated interest, will be released at the time the certificate of occupancy is issued; provided, that the building official has made his inspection and found the construction to be complete and the improvements to be in satisfactory condition. In the event no certificate of occupancy has been issued within two (2) years after the issuance of the building permit, the bond agreement shall terminate and the bond, together with accumulated interest, shall be forfeited to the city.
B. On Site Improvements: Any on site improvements required by this title for multiple-family residential uses, commercial uses, commercial recreation uses, industrial uses or any conditional use, including, but not limited to, landscaping, fencing, curbs, gutters, sidewalks, parking lot paving or flood control improvements shall be satisfactorily installed prior to issuance of a certificate of occupancy and/or a business license. In lieu of actual completion of required improvements, a developer may file with the city a cash, escrow or irrevocable letter of credit, on a form acceptable to the city, to ensure completion of such improvements. The bond amount shall be based on the city engineer's estimated cost of improvements, plus twenty percent (20%). Only the three (3) types of bond agreements specified herein shall be accepted. The maximum time period for a bond to guarantee completion of on site improvements shall be not more than one year. The bond may be extended by the city council upon a request by the developer. Upon completion of the improvements for which an on site bond agreement has been filed, the developer shall call the planning department for inspection.
C. Off Site Improvements And Other Public Improvements: Off site and/or other public improvements required by this title for multiple-family residential uses, commercial uses, commercial recreation uses, industrial uses or any conditional use, including, but not limited to, curb, gutter and sidewalk, paving, fire hydrants, water distribution lines or flood control improvements shall be installed before permits will be issued for development. In lieu of actual completion of required improvements, a developer may file with the city a cash, escrow, irrevocable letter of credit or property bond agreement, on a form acceptable to the city, to ensure completion of such improvements. The bond amount shall be based on the city engineer's estimated cost of improvements, plus twenty percent (20%). Only the four (4) types of bond agreements specified herein shall be accepted. The maximum time period for a bond to guarantee completion of on site improvements shall be not more than two (2) years. The bond may be extended by the city council upon a request by the developer. Upon completion of the improvements for which an off site bond agreement has been filed, the developer shall call the city for inspection.
D. Inspections: Inspection shall be made within a reasonable time after a request is received. If the inspection shows the city standards and specifications have been met in completion of the required improvements, the bond may be released within a reasonable time after the inspection. If the bond is not released, refusal to release and the reasons therefor shall be given to the developer within a reasonable time from the time of the inspection. The bond may be partially released based on the percentage of completion of the required improvements.
E. Existing Buildings: The building official may require a bond on any alteration or remodel of any existing building if, within his discretion, such alteration or remodel could potentially cause damage to existing public improvements. Any ruling of the building inspector regarding the amount of required bond or the release date of the bond on remodels or alterations may be appealed to the city manager, by filing a written notice of appeal with the city recorder within ten (10) calendar days of the ruling. Appeals shall proceed as provided in chapter 3-7 of this code. The purpose of a bond on any alteration or remodel, if required, shall be for the sole purpose of warranting the maintenance of public improvements, and not for the purpose of assuring construction completion for which the permit was taken out. Said bond shall be released immediately after the risk of damaging public improvements has passed.
F. Bond Refused: If the city determines that issuance of a certificate of occupancy prior to completion of any required improvement may be injurious to the health, safety or welfare of the city or its inhabitants, the city may refuse to accept a bond agreement in lieu of actual completion of required improvements or it may limit the time period of the bond to lesser periods than specified herein. (Ord. 1991-26, 7-17-1991; amd. Ord. 2016-07, 2-16-2016; Ord. 2023-65, 11-14-2023)