Chapter 7.02
Bonds in Favor of City

Sections:

7.02.010 Bonds Required – In General.

7.02.030 Bidding.

7.02.040 Public Contracts.

7.02.050 Contractors.

7.02.055 Building Relocation.

7.02.060 Blasting.

7.02.070 Street Obstruction.

7.02.080 Licenses.

7.02.100 Land Development.

7.02.110 Approval – Form.

7.02.120 Term.

7.02.130 Filing.

7.02.010 Bonds Required – In General.

Subject to the specific provisions of statute, Charter, or this code, the mayor is authorized to determine whether a bond is to be required to protect the City and the public funds it holds in trust from loss, damage, injury, expense, claim and liability in the City’s dealings with officers and employees, contractors, licensees and agencies, and to determine the form, amount and conditions of such bond.

[Ord. C32755; Passed: 12/4/2000]

7.02.030 Bidding.

Bidders for contracts for public works are required to furnish, as part of the bid, a bid bond in an amount fixed by the invitation documents of at least five percent of the bid amount. Bidders for public contracts for goods, materials and/or services may be required to furnish, as part of the bid, a bid bond in an amount fixed in the invitation or request for proposals documents.

[Ord. C27 § 1]

7.02.040 Public Contracts.

Contractors for public works are required to furnish, as a matter of execution of the contract, either separate or combination performance and payment bonds in an amount at least equal to the contract price. Contractors for furnishing goods, materials and/or services may be required to furnish a performance and payment bond in an amount fixed in the invitation or request for proposals documents.

[Ord. C30365; Passed: 3/16/1992]

Cross Reference: RCW 39.08.010.

7.02.050 Contractors.

Applicants for permits for contracting and construction activities which must be undertaken only by state registered contractors who, because doing work on their own property or for other reason, are exempt from the requirements of RCW chapter 18.27, may be required to furnish bonds or other documents of financial responsibility as a condition of the permit.

[Ord. C14158 § 7]

7.02.055 Building Relocation.

A.  In addition to the requirements for a street obstruction permit, an applicant for a building relocation permit may be required to post a bond to secure completion of all work required to make the relocated building comply with the codes, as provided in SMC chapter 10.26.

B.  The building official estimates the cost of the work required to achieve code compliance. The amount of the bond is that estimated cost plus twenty-five percent.

[Ord. C25831 § 6.106.070]

7.02.060 Blasting.

An applicant for a blaster’s license must have a bond in the minimum amount of five thousand dollars conditioned upon the indemnification and payment by the licensee of all claims for injury and damages to persons or property, public or private, resulting from any blasting activity of the licensee.

[Ord. C26339 § 2]

7.02.070 Street Obstruction.

An applicant for a street obstruction permit, as provided in SMC 11.02.0345(H), must furnish a bond, which may be combined with another bond and cover all activities on an annual basis, approved by the director of engineering services, in the minimum amount of ten thousand dollars, conditioned that the permittee shall:

A.  indemnify and hold harmless the City against all claims, costs and losses arising from the obstruction of the public way;

B.  conduct all activities in strict compliance with the requirements of law and the permit; and

C.  restore all public property and facilities to their original condition and guarantee the restoration for a period of two years.

[Ord. C32762; Passed: 12/11/2000]

Cross Reference: SMC 12.02.0720.

7.02.080 Licenses.

Applicants for or holders of certain regulatory licenses must furnish bonds as follows:

Detective or security guard agencies, for observance of the provisions of this code, in the amount of one thousand five hundred dollars.

[Ord. C26339 § 4]

7.02.100 Land Development.

Whenever in the course of subdivision, special permit, or other land use approval the proponent is required to make street improvements, install water or sewer facilities, or develop other improvements, the approving authority may require the proponent to post a bond to guarantee such improvements, the form and amount to be recommended by the responsible department.

[Ord. C17946 § 345]

7.02.110 Approval – Form.

A.  Public official’s bonds are approved by the city council. Bid bonds are approved by the committee to receive bids. Contractor’s bonds are approved by the director of engineering services or purchasing director. Bonds required in connection with a permit or license are approved by the officer who issues the permit or license.

1.   Subject to approval by the appropriate authority, bonds may be furnished individually or on a blanket basis and may be in cash or by surety bond issued by a surety company authorized to do business in Washington.

2.   In accordance with rules adopted by the finance director a license officer or other responsible official may accept, in lieu of a bond, the assignment to the City of a insurance policy on the life or lives of the obligor(s).

B.  All bonds running to the City are approved as to form by the city attorney.

[Ord. C32762; Passed: 12/11/2000]

Cross Reference: Charter § 35.

7.02.120 Term.

A.  Public official’s bonds must be written for a term co-extensive with the officer’s term in office and so as to render the surety bound for at least three years after the principal leaves office.

B.  Bid bonds must secure the bid for as long as specified in the invitation or request for proposals document, or for thirty days if not so specified, and, in the case of the successful bidder, until the contract is made. Bid bonds are released or exonerated when the contract is executed.

C.  Contractor’s bonds must remain in force until acceptance and final payment by the City and, when the contractor warrants or guarantees the work, during the warranty or guaranty period.

D.  Unless otherwise specified, license bonds and contractor’s bonds providing blanket coverage of all the principal’s activities over a period of time expire after December 31st, and must be renewed or extended annually.

Cross Reference: RCW 4.16.080, 60.28.010.

7.02.130 Filing.

Bonds given in connection with permits and licenses are filed with and kept by the officer issuing the permit or license. All other bonds are filed with and kept by the city clerk, unless otherwise provided.

[Ord. C14787, § 2]