1. Applicability. The applicant must provide Fiscal Security for the construction of temporary and permanent erosion and sedimentation controls:
(i) To construct or modify the controls under a subdivision construction plan, NPSP plan, site development permit or a building permit is submitted to the City.
(ii) The applicant must provide Fiscal Security for the construction of water quality controls when an application for final plat is submitted prior to the closeout of the permit for the construction of the required water quality controls.
2. Amount and form of fiscal security.
(i) The amount of the fiscal security shall be determined and certified by the developer’s engineer and approved by the City Engineer, and shall be equal to the full construction cost of the controls.
(ii) Fiscal security for the controls shall be in the form of cash escrow or a cashier’s check or money order in the specified amount determined under 2. above.
(iii) If authorized by the City Manager, a bond or a letter of credit may be considered by the City as security for the construction of the controls.
(iv) The issuer of any bond and letter of credit shall be subject to the approval as to form by the City Attorney.
3. Performance bond.
(i) The property owner shall submit the performance bond utilizing the standard City of Bee Cave performance bond form or in a form acceptable to the City Manager and City Attorney. The City Manager shall review and authorize bond documents within 30 days of the documents submitted being determined complete.
(ii) If the City Manager authorizes the developer to post a performance bond as security for its promises contained in the improvement agreement, the performance bond must comply with the following requirements:
(1) All Performance Bonds must be meet the definition and requirements found in the UDC (see Fiscal Security).
(2) If the surety on any performance bond furnished by the owner is declared to be bankrupt or becomes insolvent or its right to do business is terminated in the state or the surety ceases to meet the requirements specified in this UDC, the owner must substitute another performance bond and surety within twenty (20) calendar days.
If the City Manager authorizes the developer to post a letter of credit as security, the letter of credit must comply with the following requirements:
(i) Be irrevocable;
(ii) Be for a term sufficient to cover the completion, maintenance, and warranty periods, but in no event less than two (2) years; and
(iii) Require only that the City present the issuer with a sight draft and a certificate signed by an authorized representative of the City certifying to the City’s right to draw funds under the letter of credit.
5. Reduction in fiscal security.
(i) As portions of the controls are completed in accordance with the Design Manual and the approved engineering plans and the applicable permits, the owner may make application to the City Manager to reduce the amount of the original security.
(ii) If the City Manager is satisfied that such portion of the improvements has been completed in accordance with City standards, the City Manager may (but is not required to) cause the amount of the letter of credit to be reduced by such amount that the City Manager deems appropriate, so that the remaining amount of the security adequately insures the completion of the remaining improvements.
(iii) Upon acceptance by the City of all required construction of the controls, the City will authorize a reduction in the security to ten percent (10%) of the original amount of the security if the property owner is not in violation of the permit requirements.
(iv) The remaining security shall be security for the owner’s covenant to maintain the required controls and to warrant that the improvements are free from defects for two (2) years thereafter.
6. Maintenance bond.
(i) The property owner shall submit the maintenance bond utilizing the standard City of Bee Cave maintenance bond form or in a form acceptable to the City Manager and City Attorney.
(ii) An updated letter of credit or bond shall be submitted to replace the performance bond and the original performance bond will be returned to the property owner.
(iii) In the case of cash security postings, the City will reimburse the property owner 90% of the original performance bond amount upon receipt of the maintenance bond documentation. The remaining ten percent (10%) is held as maintenance surety for two (2) years.
