A. 
A financial guarantee is financial security posted with the City to ensure timely and proper completion of improvements, to ensure compliance with this code, and/or to warranty the design, materials, and workmanship associated with improvements. Financial guarantees include assignments of funds, surety bonds, and other forms of financial security acceptable to the City. Other types of financial guarantees may be accepted if approved by the Director. For the purposes of this title, the terms “performance guarantee,” “street use guarantee,” “erosion and sediment control/street cleaning guarantee,” and “maintenance and defect guarantee” are considered subcategories of financial guarantees.
B. 
Financial guarantees shall be in a form acceptable to the City. Financial guarantees under $5,000 must be an assignment of funds.
C. 
All financial guarantees shall: (1) run continuously until released by the City; (2) not be subject to expiration or cancellation without written authorization from the City; (3) be project- and site-specific; and (4) be nontransferable.
D. 
The Director shall determine the amount of the financial guarantee. The Director shall consider an engineer’s estimate or an executed construction contract between the applicant and a licensed, bonded contractor in determining the amount of the financial guarantee. An engineer’s estimate prepared by the applicant’s engineer shall detail the quantity of work to be done and shall be presented in a format approved by the City. The estimate shall be based on current construction costs and shall be stamped and signed by the engineer. The Director may consider any other reliable evidence in the Director’s sole discretion in determining the amount of the financial guarantee.
E. 
If a property for which a financial guarantee has been posted with the City is sold or otherwise transferred, the applicant is responsible for transferring the financial guarantee liability by having the new owner(s) replace any existing financial guarantees that the City is holding. The City will not release a preexisting financial guarantee until such time as the City accepts a replacement guarantee.
F. 
The property owner may be required to complete and record a right of entry form prior to acceptance of any financial guarantee covering improvements on private property. The right of entry shall run with the land and shall be recorded with the Pierce County Auditor.
G. 
Notwithstanding any provision of this chapter, the Director may release a financial guarantee where the work associated with the guarantee has been completed, the work has been stabilized such that there is no further risk to existing facilities, all fees have been paid, and a sufficient time has elapsed that the Director has determined that it is likely that neither the applicant nor surety will make a request to release the guarantee.
H. 
All financial guarantees must be reviewed and approved as to form by the City Attorney.
(Ord. 395 § 3, 2003; Ord. 518 § 1, 2008; Ord. 716 § 1, 2019)
A. 
A performance guarantee ensures completion of the improvements according to the permit conditions, the University Place Municipal Code and other applicable laws and regulations. If a project requires more than one performance guarantee, the applicant may combine performance guarantees. The combined guarantee shall be for not less than the amount of separate financial guarantees. The combined guarantee shall clearly delineate on its face the separate financial guarantees that it replaces.
B. 
Prior to issuance of a site development permit, the applicant shall submit a performance guarantee that ensures the timely and proper construction of all public improvements, storm drainage facilities (both public and private), and any other required improvement that is deemed by the Director to be important to protect the public health, safety, or welfare. The guarantee will include the costs for the installation of landscaping and irrigation systems for both streets and storm drainage facilities.
C. 
Prior to final plat, short plat, or final development plan approval, the applicant shall submit a performance guarantee that ensures the timely and proper construction and acceptance by the City of all required improvements.
D. 
Performance guarantees shall be in the amount of 125 percent of the engineer’s estimate, the executed contract or the decision of the Director to allow for inflation and engineering administration expenses should the City have to complete the project.
E. 
The applicant shall complete the work, obtain an engineer’s certification of the work, submit any associated maintenance and defect guarantees, and secure the City’s acceptance of the work prior to permit expiration.
F. 
Release Procedures. Any release of the performance guarantee must be in writing to be effective. The City will release the performance guarantee only after each of the following have been met:
1. 
The applicant’s engineer has submitted a certification that the improvements for which a financial guarantee was submitted were completed in conformance with the approved plans and design. The certification shall comply with Article VIII of this chapter.
2. 
The applicant has obtained a final inspection of all guaranteed improvements.
3. 
Any deficiencies identified by the City in the final inspection have been corrected.
4. 
The City has accepted a maintenance and defect financial guarantee from the applicant as provided in this article.
5. 
The City has issued a written, final approval of the guaranteed improvements to the applicant.
6. 
The applicant or surety has requested in writing the release of the guarantee.
7. 
The applicant has paid all outstanding fees.
(Ord. 395 § 3, 2003; Ord. 518 § 1, 2008)
A. 
A street use guarantee ensures compliance with right-of-way permit conditions and warranties the design, materials, and workmanship associated with the work performed in a right-of-way. All applicants performing work that will, or has the potential to, disturb, modify, or damage anything within the City right-of-way will be required to post a street use guarantee with the City.
B. 
Prior to issuance of a right-of-way permit the applicant shall submit a street use guarantee.
C. 
Street use guarantees shall be in the amount of $5,000 unless the Director determines after a review of a permit that a lower or higher amount is appropriate.
D. 
When an applicant has multiple right-of-way permits, a single street use guarantee in the amount of $20,000 may be submitted in lieu of individual $5,000 street use guarantees.
E. 
The applicant shall be responsible to repair all defects resulting from the applicant’s activity in the right-of-way. The applicant will not be relieved of this obligation until the right-of-way impacted by the applicant has remained free from defects for a consecutive period of two years. The applicant will be liable for any third party damages that result from a breach of these duties for the duration of the street use guarantee.
F. 
During the period of the street use guarantee, City staff will periodically inspect the right-of-way impacted by the applicant. The City shall provide notice to the applicant when maintenance and/or repairs are necessary, specifying a reasonable time frame within which such work is to be completed. In the event that the applicant does not complete such maintenance and/or repairs, the applicant will be in default subject to the provisions of this article, and the City may perform such work.
G. 
If, on the basis of its inspections, the City determines that repairs must be performed immediately to prevent risk to person(s) or property, the City may make necessary repairs and the cost of those repairs shall be paid by the applicant upon demand. If the applicant fails to pay for the repairs by the time specified by the City, the applicant will be in default subject to the provisions of this article.
H. 
The applicant shall pay for the inspections performed by the City during the duration of the street use guarantee. Inspection fees will be as specified in the Department of Community and Economic Development Fee Resolution.
I. 
Release Procedures. Any release of the street use guarantee must be in writing to be effective. The City of University Place will release a street use guarantee only after each of the following have been met:
1. 
The right-of-way construction work completed by the applicant has remained free of defects for two consecutive years. This period can be reduced if the Director determines that the work associated with the right-of-way permit has been sufficiently completed and stabilized such that there is no further risk of damage to existing facilities.
2. 
The applicant or surety has requested in writing the release of the guarantee.
3. 
The applicant has paid all outstanding fees.
(Ord. 395 § 3, 2003; Ord. 518 § 1, 2008; Ord. 531 § 1 (Exh. A), 2008; Ord. 679 § 1 (Exh. A), 2016; Ord. 749 § 20, 2021)
A. 
An erosion and sediment control/street cleaning guarantee ensures that required erosion and sedimentation control/street cleaning measures are constructed and maintained in accordance with the UPMC. Prior to permit issuance, the applicant must submit to the City a financial guarantee that guarantees the performance and maintenance of the erosion and sedimentation control facilities and street cleaning. Because of the harm to the public health and safety and the environment arising out of poor erosion and sediment control or failure to clean streets properly, all erosion and sediment control/street cleaning guarantees shall require that the guarantor must pay the face amount of the financial guarantee to the City within 14 days of the City's written demand for funds.
B. 
If the applicant fails to maintain the erosion and sedimentation control facilities in conformance with this code, the City may issue a written notice specifying required remedial actions. If the remedial actions are not performed in a timely manner, the City may take action including, but not limited to, issuing a stop work order, entering the property to perform the actions needed; and using the financial guarantee to pay for remedial actions. In the event a hazard exists, the City is not required to provide written notice to the applicant. If the City is forced to utilize the guarantee, any stop work order issued shall remain in effect until the applicant has restored the guarantee up to either the original amount or such other amount as the Director may reasonably decide is necessary to ensure future compliance with the permit.
C. 
The amount of the guarantee will be as follows:
1. 
For any development larger than one single-family or duplex building: 125 percent of the cost of the approved erosion and sedimentation control measures, plus $5,000 per acre of the disturbed area.
2. 
For sites impacting a sensitive area, the City may require an additional guarantee amount to compensate for difficulties associated with work in sensitive areas. Any additional amount will be determined by the Director based upon the nature of the sensitive area.
D. 
Release Procedures. Any release of the erosion and sediment control/street cleaning guarantee must be in writing to be effective. The Director will release the erosion and sediment control/street cleaning guarantee only after each of the following have been met:
1. 
The applicant's engineer has submitted a certification that all disturbed areas within the site have been stabilized in conformance with the permit conditions and the UPMC. The certification shall be as prescribed in Article VIII of this chapter. For sites with less than five acres of disturbed area, the City may waive the requirement for certification unless the site is located within a landslide and erosion hazard area.
2. 
The applicant has requested a final inspection of the site.
3. 
Any deficiencies identified by the City in the final inspection have been corrected.
4. 
The applicant or surety has requested in writing the release of the guarantee.
5. 
The applicant has paid all outstanding fees.
(Ord. 395 § 3, 2003; Ord. 518 § 1, 2008; Ord. 679 § 1 (Exh. A), 2016)
A. 
A maintenance and defect guarantee ensures the design, workmanship, maintenance, and operation of improvements to streets, landscaping, and drainage facilities. The City requires three types of maintenance and defect guarantees: storm drainage, street improvement, and landscaping.
B. 
An applicant shall submit maintenance and defect guarantees for improvements prior to: (1) release of the performance guarantees associated with a project's storm drainage facilities, street improvements, and public landscaping; and (2) City approval of the constructed improvements.
C. 
The applicant shall be responsible for the operation and maintenance of the improvements for the duration of the defect and maintenance guarantee.
D. 
During the term of the maintenance and defect guarantee, City staff may periodically inspect the guaranteed improvements. If the Director determines that the improvements are not adequately maintained, do not operate satisfactorily or contain defects in design, materials or workmanship, the City shall notify the applicant, specifying remedial action. If the applicant does not complete the remedial action in a timely manner and to the City's satisfaction, the applicant will be in default.
E. 
If, on the basis of its inspections, the City determines that repairs must be performed immediately to prevent risk to person(s) or property, the City may make necessary repairs. The cost of necessary repairs shall be paid by the applicant upon the City's written demand. If the applicant fails to pay for the necessary repairs by the time specified by the City, the applicant will be in default.
F. 
The applicant shall pay for inspections performed by the City during the duration of the maintenance and defect guarantee. Inspection fees will be as specified in the Department of Community and Economic Development Fee Resolution.
G. 
Storm Drainage Maintenance and Defect Guarantee (Public and Private). The storm drainage maintenance and defect guarantee shall be set by the Director in the amount of 10 percent of the construction cost of the storm drainage facility.
H. 
Street Improvement Maintenance and Defect Guarantee (Public and Private). The street improvement maintenance and defect guarantee shall be set by the Director in the amount of 25 percent of the construction cost of the street improvements.
I. 
Landscaping Maintenance and Defect Guarantee. The landscaping maintenance and defect guarantee shall be set by the Director in the amount equal to the cost of the landscaping as indicated in the approved engineer's estimate. Any plant material needing replacement shall be replaced in accordance with Chapter 13.20 UPMC, Article VIII, and inspected prior to the release of the maintenance guarantee.
J. 
Release Procedures. Any release of the maintenance and defect guarantee must be in writing to be effective. The City of University Place will release the maintenance and defect guarantee only after each of the following have been met:
1. 
The guaranteed improvements have remained free of defects for two consecutive years.
2. 
The applicant has submitted to the City a letter that requests final inspection of the guaranteed improvements and certifies the guaranteed improvements have been cleaned of all debris, dirt, and sediment.
3. 
Any deficiencies identified by the City in the final inspection have been corrected.
4. 
The applicant or surety has requested in writing the release of the guarantee.
5. 
The applicant has paid all outstanding fees.
(Ord. 395 § 3, 2003; Ord. 518 § 1, 2008; Ord. 749 § 21, 2021)
A. 
The City may make a determination of default after an inspection has indicated that improvements need to be completed, maintained, or corrected. A default means the failure of the applicant to do any of the following:
1. 
Comply with financial guarantee conditions; or
2. 
Complete the improvements in accordance with this code and the approved plans and conditions within the specified time; or
3. 
Maintain the improvements in accordance with this code and the approved plans and conditions for the specified period of time; or
4. 
Correct any deficiencies identified by the City.
B. 
In the event of a default, the City shall notify the applicant and the guarantor in writing of the default, the necessary work to remedy the default, and the specified time to complete the remedial work. If the applicant does not perform the remedial work within the specified time, the City may demand payment by the guarantor and perform the remedial work. The guarantor shall be responsible, up to the limits of the financial guarantee, for the payment of any and all costs and expenses that have been or will be incurred by the City in causing the remedial work to be done. Any funds demanded in excess of the costs incurred the by City shall be returned to the guarantor upon completion of the remedial work. The applicant shall be responsible for any and all costs incurred by the City in conjunction with the remedial work. This includes any costs that exceed the amount of the financial guarantee. Nothing in this section shall limit the ability of the City to enforce or otherwise compel compliance with conditions of any City permit or approval in accordance with the enforcement provision set forth in Article IV of this chapter.
C. 
Bonds are subject to default upon permit expiration or revocation.
(Ord. 395 § 3, 2003; Ord. 518 § 1, 2008)
A. 
The applicant shall procure and maintain for the duration of the permit insurance against claims for injuries to persons or damage to property which may arise from or in connection with operations or activities performed by or on the applicant’s behalf with the issuance of this permit.
B. 
No Limitation. Applicant’s maintenance of insurance as required by the permit shall not be construed to limit the liability of the applicant to the coverage provided by such insurance, or otherwise limit the City’s recourse to any remedy available at law or in equity.
C. 
Minimum Scope of Insurance. The applicant shall obtain insurance of the type described below:
1. 
Commercial general liability insurance shall be written on Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover products liability. The City shall be named as an insured under the applicant’s commercial general liability insurance policy using ISO Additional Insured-State or Political Subdivisions – Permits CG 20 12 or a substitute endorsement providing equivalent coverage.
2. 
Automobile liability insurance covering all owned, nonowned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage.
D. 
Minimum Amounts of Insurance. Applicant shall maintain the following insurance limits:
1. 
Commercial general liability insurance shall be written with limits no less than $2,000,000 each occurrence, $2,000,000 general aggregate and a $2,000,000 products-completed operations aggregate limit.
2. 
Automobile liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident.
E. 
Other Insurance Provisions. The insurance policies are to contain, or be endorsed to contain, the following provisions for commercial general liability insurance:
1. 
The applicant’s insurance coverage shall be primary insurance as respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the applicant’s insurance and shall not contribute to it.
2. 
The applicant shall provide the City with written notice of any policy cancellation, within two business days of their receipt of such notice.
F. 
Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII.
G. 
Verification of Coverage. Applicant shall furnish the City with original certificates and a copy of the amendatory endorsements, including the additional insured endorsement, evidencing the insurance requirements of the applicant before issuance of the permit.
(Ord. 395 § 3, 2003; Ord. 518 § 1, 2008; Ord. 679 § 1 (Exh. A), 2016; Ord. 733 § 2, 2020)