Loomis Municipal Code Art. VIII Performance Security

A. As a condition to the issuance of a permit, and upon finding that the town's health, safety and welfare warrant such, the director of public works may require the execution of a covenant to deposit security and the deposit of improvement security in a reasonable amount to assure faithful performance of the secured work in the event of default. Such security shall, as required by law or otherwise at the town's option, be in the form of cash, a certified or cashier's check, or a faithful performance bond executed by the applicant and a corporate surety authorized to do business in the state. The improvement security shall remain in effect until final inspections have been made and all grading, and in the case of subdivisions also all subdivision improvements, have been approved by the director of public works.

B. In addition to the improvement security, the director of public works may also require, upon finding that the town's health, safety and welfare warrant such, the execution of a covenant to deposit security and the deposit of maintenance security a reasonable amount to guarantee and maintain the secured obligations (e.g., to assure the integrity of the grading systems and the provision of adequate erosion and sedimentation control). Such maintenance security shall, as required by law or otherwise at the option of the town, be in the form of cash, a certified or cashier's check, a letter of credit, or a faithful performance bond executed by the applicant and a corporate surety authorized to do business in this state, and the maintenance security shall remain in effect for a period of one year after the date of expiration of the related improvement security as designated in the covenant to deposit security and subsection A of this section.

C. Any bond or deposit required by the director of public works pursuant to this chapter shall be payable to the town.

D. Upon satisfaction of all applicable provisions of this chapter, the improvement and maintenance security deposits or bonds required of the permittee will be released. However, upon failure to perform any condition or obligation secured thereby (e.g., failure to complete the secured work or to comply with all the terms of the permit, or failure to assure the completed site to functions properly, to provide proper drainage or erosion or sedimentation control), the town may do the required work, or cause it to be done and collect from the permittee or surety all costs incurred thereto, including engineering, legal, administrative and inspection costs. Any unused portion of a deposit or bond shall be refunded to the permittee after deduction of the cost of the work, except that, to the extent the public works director can demonstrate to the satisfaction of the town manager that the permittee willfully breached an obligation in a manner that he knew or should have known would create irreparable harm to the town, the entire amount of the bond or deposit may be withheld. The town manager's determination may be appealed to the town council by the permittee by filing an appeal with the town clerk within ten days after the decision.

E. In the event it is necessary for the town to enforce the provisions of the covenant to deposit security or the security, the permittee, and surety in the case of a bond, shall pay to the town such reasonable attorney's fees as are incurred by the town.

(Ord. 55 § 1.62, 1987; Ord. 190, 1999)