Table 2.4-1: Summary of Fiscal Security Types
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Scenario
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Acceptable Formats
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Amount
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Term
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Applicability
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Cash
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LOC
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P. Bond
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PUBLIC INFRASTRUCTURE
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Improvement Agreement
Required if Final Plat filed before construction
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Y
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Y
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Y
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Minimum 125% of Engineer's Opinion of Probable Cost (OPC)
City Engineer may require more than 125% for a phased project
or project longer than 2 years to account for inflation
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Irrevocable. Minimum of 2 years from date of Final Plat filing.
Automatically renews until Final Acceptance by City Engineer.
Unused portion returned upon Final Acceptance and receipt of
Maintenance Bond covering 25% of final construction cost covering
maintenance for 2 years from date of Final Acceptance
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• Public & Private Roads.
• Turn lanes and other safety measures that are not considered
transportation mitigation.
• Public and Private Water Quality Ponds when impervious
coverage is proposed as part of Construction Plan.
• Stormwater Infrastructure
• Sidewalks (all sidewalks in non-residential or mixed-use
and common lot sidewalks in residential)
• Water and Wastewater
Exemptions
• Development in ETJ if Subdivider demonstrates acceptable
Fiscal Security posted with Travis County
• Water and Wastewater if Subdivider demonstrates acceptable
Fiscal Security posted with PUA or WCID-17
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Maintenance Bond
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Y
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Y
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Y
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25% of updated final construction cost based on contractor's
contract and change fee tabulation prior to Final Acceptance.
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2 years from Final Acceptance. City may return unused portion.
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• Public and Private Roads.
• Water Quality Ponds when impervious coverage is proposed
as part of Construction Plans
• Stormwater Infrastructure
• Sidewalks (all sidewalks in non-residential or mixed-use
and common lot sidewalks in residential)
Exemptions
• Development in ETJ if Subdivider demonstrates acceptable
Fiscal Security posted with Travis County.
• Water and Wastewater construction if Subdivider demonstrates
acceptable Fiscal Security posted with PUA or WCID-17
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EROSION AND SEDIMENTATION CONTROLS
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Temporary Erosion & Sedimentation Control (ESC) Bond
Guarantees construction of required temporary ESC. Required
any time you move dirt
Cross reference in Site Plan
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Y
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Y
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N
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100% of cost of controls per Subdivider's engineer
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Unused portion returned at Final Acceptance
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• Silt Fencing
• Tree Protection
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Permanent Nonpoint Source (NPS) Erosion and Sediment Control
(ESC) Security
Ensure City has sufficient funds to establish permanent revegetation
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Y
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Y
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Y
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100% of the cost to revegetate per Subdivider's Engineer
After acceptance of Water Quality controls, Fiscal Security
converts to Maintenance Bonds at 10% of cost to revegetate for 2 years
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May be reduced as controls are completed
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• Subdivision Water Quality ponds covered under Improvement
Agreement
• Water Quality controls may be bonded, but not ESC controls
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Site and NPS Deferral of Landscaping Establishment Used to obtain
a Temporary Certificate of Occupancy between April 1st and September
30th when landscaping requirements cannot be met. Not to be used for
deferral of Site and NPS (SNPS) Plan-related revegetation (i.e., sod,
hydromulch, etc.)
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Y
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Y
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N
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125% of the cost to Landscape per licensed Landscape Architect's
estimate
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60 days from October 1st in the year that the TCO was issued
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• Allowed between April 1st and September 30th for projects
in which all other permit requirements have been satisfied but landscaping
and permanent erosion and sedimentation controls.
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NPS Deferral of Revegetation
Used to obtain a Certificate of Occupancy prior to soil-stabilization
revegetation meeting requirements. Not to be used for deferment of
Site Plan-related landscaping (i.e., trees and shrubs)
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Y
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N
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N
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City Engineer to determine annual cost per square foot
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1 year from issuance of Certificate of Occupancy
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Allowed during non-optimal growing seasons or during growing
season when grass is established but does not meet Technical Manual
density threshold
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NPS Revegetation Maintenance Bond
Used when vegetation is already established
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Y
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Y
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Y
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10%
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2 years from close of project
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TRANSPORTATION
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TIA Mitigation Contribution
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Y
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N
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N
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100% in the form of dedication or construction of facilities
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Permanent
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City may participate in costs of oversize improvements
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Escrow - Transportation
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Y
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N
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N
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Maximum comparable "turnkey" bid price of construction of the
facility including design, permits, reviews, approval, inspections,
and any needed land acquisition
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Returned in full or partially based on percentage of construction
costs borne by a party other than the City (Returnable after 10 years
if City has not authorized plans)
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Transportation improvement required by Transportation Plan,
including street section, sidewalks, bike, and other pedestrian infrastructure
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TXDOT Pass-Through Scenario
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Y
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N
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N
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100% of improvement cost based on required TXDOT improvements
100% pro-rata share for future improvements
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Developer responsible for any cost overages (payable to TXDOT)
Cost savings are returnable
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City collects and holds per TXDOT policy and as approved by
the City
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OTHER
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Buffer Planting Performance Guarantee
Ensure planting standards of 75' landscape buffer are met when
buffer is platted as Common Lot
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Y
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Y
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N
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100% of vegetation per Landscape Architect's estimate
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Same as Improvement Agreement
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All vegetation includes sod, grass, ground cover, trees, shrubs,
and other plants
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•
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Notice: Any requirement within the performance bond that the
City must provide notice of deficient performance must state that
the notice is deemed sufficient if the City provides such notice to
the principal (usually a contractor providing a service to the City)
in accordance with the terms of the contract between the City and
the principal for the services that are subject to the performance
bond.
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•
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Resolution attempts: Any requirement within the performance
bond that the City and the principal engage in a procedure to resolve
disputes must state that any such attempt is deemed sufficient if
it complies with the dispute resolution procedures set forth in the
contract for the services that are subject to the performance bond.
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•
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Meetings with Surety: Any requirement within the performance
bond that the City must meet with the principal (usually a contractor
providing services to the City) or the surety regarding deficiencies
in performance prior to calling on the bond must state that the requirement
is satisfied if the City and the contractor attempted to resolve the
alleged deficient performance through the notice and dispute resolution
requirements set forth in the contract between the City and the principal
for the services that are subject to the performance bond.
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•
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Selection of contractor: Any provision that the surety has sole
authority to select a replacement contractor is void and unenforceable.
Any provision in the performance bond that allows the surety to recommend
a replacement contractor shall state that the surety will recommend
no less than three potential replacement contractors acceptable to
the surety, and that final selection of the replacement contractor
from the list of recommendations shall be at the sole discretion of
the City.
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•
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Replacement contractors: Any provision in the performance bond
that establishes a contractual relationship between the City and a
replacement contractor must state that the replacement contractor
steps into the shoes of the principal (usually a contractor who failed
to provide services to the City) and that the City maintains the right
of approval of the performance of the replacement contractor in accordance
with the terms of the contract between the City and the principal
for the services that are the subject of the performance bond.
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