Bonding Agreement Form - City of Mapleton

More documents

Recommendations

Info

$G:\USERS\April\April's Planning Information ... - City of Mapleton$

THIS AGREEMENT entered into this day of , , by and between Mapleton City, aMunicipal Corporation of Utah (hereinafter referred to as CITY), and ,(hereinafter referred to as APPLICANT), a) CORPORATION, PARTNERSHIP, INDIVIDUAL (line out thosewhich do not apply. APPLICANT is located currently at (mailing address)_______________________________________________________________ _____________________________________________________ ,and the telephone number is (____ ) .WITNESSETH:WHEREAS, APPLICANT desires from CITY ;(Describe what you are requesting. i.e building permit, subdivision, etc)WHEREAS, CITY will not grant said permit(s)/approval until adequate provision has been made to guaranteeinstallation of the improvements, if any, which are estimated to cost $ ,based on Engineering Bond formulation or a City approved estimate as outlined by Chapter 17.20 which is asfollows:This section contains provisions for subdivision bonds, which shall apply to all land development which is subjectto regulation by Mapleton City:Bonding shall be required for any street improvements that must be installed at the time of development approvalor with the issuance of a building permit.A. Bonding for street improvements shall be established by the City Engineer or his/her designee.B. All other bonding relating to site development such as landscaping, driveway installation, earlyoccupancy and similar matters shall be established by the Planning Department.C. A bond shall be posted with Mapleton City in a principal amount of one hundred twenty percent(120%) of the total estimated cost of any performance which is promised to the City.D. The estimated cost for street improvements shall be based on the average cost paid by the City forthe same type of performance.E. The estimated cost of other improvements shall be based on a review of actual bids for theimprovement, except as follows:1. There landscaping is required, the developer submits at least two bids from landscapingcompanies to be considered.2. For all new single family residential units, an improvement protection bond in the amount ofone thousand dollars ($1,000) shall be required to be paid at the issuance of said buildingpermit; except where a grading bond is required, an additional two thousand dollar ($2,000)bond shall be required.3. If when the bond is first posted, or at any time thereafter, it is foreseeable that the promisedperformance will take more than one year to perform, the principal amount of the bond shall beincreased by not less than ten percent (10%) for each additional year of performance. Theoriginal bond amount shall be adjusted to conform with the increased bond amount. A bondmay be extended only if special circumstances warrant an extension, as determined by the City.2
F. The bond shall be in the form of cash or an irrevocable letter of credit.G. A minimum of twenty percent (20%) of the bond or twenty thousand dollars ($20,000), whicheveris greater, shall be posted in the form of cash. If the bond is less than twenty thousand dollars($20,000), the entire bond shall be posted in the form of cash.H. When the bond is in the form of an irrevocable letter of credit, the letter shall include a provisionthat the bond shall expire within thirteen (13) months from the date issued and if the project has notbeen completed by that date, then the bond shall automatically be considered foreclosed upon. Allremaining funds shall be thereafter remitted to the City as set forth in the bonding agreement.I. A bond may be partially released if the performance to which it relates has been satisfactorilycompleted, provided that beyond work completed, twenty percent (20%) of the bond may beretained to insure completion of the entire performance.J. The cash portion of any bond shall be the last monies released.K. A service charge in an amount not exceeding one hundred dollars ($100) shall be charged to coverthe actual cost of processing partial bond releases after the third release.L. The Planning and Zoning Director or his/her designee may establish procedures consistent with thissection relating to the administration of performance bonds, including but not limited to fundmanagement, default and collection.and,WHEREAS, provision has been made by law whereby APPLICANT may, in lieu of final completion of theimprovements, file a bond acceptable to CITY in favor of CITY to secure to CITY the actual construction of theimprovements and repair of any damage done to public property in a manner satisfactory to CITY;NOW, THEREFORE, the parties agree as follows:1. All data which are used by CITY to compute the cost of, or otherwise govern the design and installation of theimprovements and any necessary repairs, is made a part of this Bond Agreement (hereinafter referred to as“Agreement”) and is incorporated herein by this reference.2. If this Agreement covers improvements required in development, this Agreement then incorporates byreference the development plan and all data required by Title 15 of the Mapleton City Code.3. APPLICANT shall complete the improvements and any repairs required by this Agreement within the timeperiod(s) as specified either in this agreement and/or in “Exhibit A” (actual bank letter) attached hereto andincorporated herein by this reference.4. APPLICANT hereby files this bond with CITY for the purpose of guaranteeing construction and installation ofthe improvements in the form Cash and/or an IRREVOCABLE LETTER OF CREDIT issuedby__________ , numbered ,and in the amount of $(which is 120% of the total estimated cost hereinafter referred to as“The proceeds”). Said Irrevocable Letter of Credit, attached hereto as “Exhibit A”, is issued in favor of CITYto the account of, APPLICANT herein, and is made a part ofthis Agreement. APPLICANT further agrees not to make demand for the proceeds until thirty (30) days afterthe time period(s) stated in paragraph “3" above.3
Page 1: MAPLETON CITYBONDING AGREEMENT FORM
Page 5 and 6: install any of the improvements or
Page 7 and 8: “Exhibit A”Sample Letter of Cre

Bonding Agreement Form - City of Mapleton

Create successful ePaper yourself

Delete template?

Save as template?