KETCHIKAN GATEWAY BOROUGH PLANNING COMMISSION ...

KETCHIKAN GATEWAY BOROUGH CODE 17.55.110(b)Term – Security. To secure the warranty, the guarantee of performance provided in KGBC 17.55.060 shallremain in effect until:(1) The end of the warranty period; or(2) The subdivider furnishes the borough with a corporate surety bond, cash deposit or irrevocable letter ofcredit in an amount equal to the percentage of the total construction costs as set forth below. This securityshall guarantee the payment of any reconstruction or repair costs which may be undertaken due to failuresoccurring during the warranty period. Responsibility for identifying the necessity of repairs or reconstructionof the improvements shall rest with the borough or, if the property is within the city of Ketchikan,the city engineer.Total Construction CostPercent to Secure Warranty$0 – $500,000 10%$500,000 – $1,000,000 7.5%$1,000,000 and higher 5%(c)(d)Correction of Deficiencies. Within thirty (30) days (or a reasonable extension at the sole discretion of the boroughor city engineer) of notification by the borough of the need for repair or reconstruction, the subdividershall correct the deficiencies, satisfactory to the borough. Such notification shall be made by certified mail. Ifthe subdivider fails to repair or reconstruct the deficiency within the time specified above, the borough willmake the repairs at the subdivider’s and surety’s sole expense. The borough may declare the bond, deposit orother security forfeited and use such security to make repairs or may proceed to make the repairs and then billthe subdivider and surety for the cost thereof and bring suit and recover the same from the subdivider and thesurety, jointly and severally, and the security; provided, however, the borough shall not be required to proceedfirst against the subdivider and may proceed directly against any surety or guarantor of the subdivider or bankor other person issuing any letter of credit, or holder of any security.Release of Warranty. Inspection will be made by the borough at the end of the warranty period and prior to therelease of guarantees. All known deficiencies shall be corrected by the subdivider prior to release of the warrantysecurity. Upon satisfactory correction of all deficiencies, the borough will release the remaining security.[Ord. No. 350, §1, 4-7-80. Code 1974 §55.52.085.]17.55.100 Exemption from claims.Any money, instrument or letter of credit or other improvement security deposited or held as provided in this titleshall not be subject to levy or attachment by any creditors of the depositor until the obligation secured thereby isperformed to the satisfaction of the borough. [Ord. No. 350, §1, 4-7-80. Code 1974 §55.52.090.]17.55.110 Default.In the event that the subdivider defaults on any obligation to construct and pay for all required public improvementsor the obligation to warrant and repair such improvements, the borough shall demand immediate payment on theperformance or warranty guarantee. In the case of a performance bond, deposits in escrow, or letter of credit, theborough shall demand immediate payment of all or any portion of all sums obligated for the performance or warrantyof any improvement. All funds received by the borough shall be used for any construction, repair or reconstructionnecessary to ensure:(a)That all required improvements are built to specifications as necessary to receive final approval; and(b) The improvements remain in good condition for the completion of the warranty period. [Ord. No. 350, §1, 4-7-80. Code 1974 §55.52.100.]17-45