18 of 1977 - Amending section 42-6-5 providing for escrow agreements in lieu of corporate surety bonds on subdivi VOTING Aye Nay Salt Lake City,Utah, January 25 ,19 77 Mr.Chairman 8i, :J„! ; ✓ I move that the Ordinance be passed. Agraz al (<l Greener ✓Hogensen ` - htle Phillips Result AN ORDINANCE AN ORDINANCE AMENDING Section 42-6-5 of the Revised Ordinances of Salt Lake City, Utah, 1965, relating to bonds. Be it ordained by the Board of Commissioners of Salt Lake City, Utah: SECTION 1. That Section 42-6-5 of the Revised Ordinances of Salt Lake City, Utah, 1965, relating to bonds, be, and the same hereby is amended to read as follows: "Sec. 42-6-5. Bonds required. (1) The subdivider shall file with the agreement required by section 4?-6-4 a faithful perform- ance bond in an amount equal to the estimated cost of the public improvements, and a labor and materials bond in an amount required by law on bonds for public construction. Such bonds shall be executed by a surety company licensed to do business in the State of Utah and shall be approved as to form by the city attorney. (2) In the event the subdivider shall fail to complete all improvement work in accordance with the provisions of this chapter and the improvement agreement, city may require the subdivider's bondsman to do so within 30 days after notice in writing of said default, or the city may complete the work and call on the surety for reimbursement. If the amount of surety bonds shall exceed all costs and expenses incurred by the city, it shall release the remainder of such bond; and if the amount of the surety bond shall be less than the cost and expense incurred by the city, subdividers shall be liable to the city for such differences. (3) In lieu of the corporate surety bond required, the sub- divider may place in escrow the funds equivalent to the estimated cost of the public improvements or the sum required by law for bonds on public constructions to cover labor and materials, which- ever is greater. The escrow agreement shall contain provisions that should the subdivider fail to complete all improvements in accordance with the provisions of this title, the city may complete the work using the funds held in escrow for this purpose or may pay the materialman and laborers out of the proceeds of the amounts held in escrow. The agreement shall further provide that in the event the funds are not sufficient to complete the improvements that the subdivider shall personally be liable for the excess funds required and if the subdivider is a corporation, that the principal officers of the corporation shall be personally liable for the excess funds required and for attorney's fees for collec- tion of said sums. The agreement shall provide that the improve- ment shall be completed within one year from date of the agreement and that the funds shall be held for a period of two years from date of the agreement or one year from date of completion of the improvements whichever is longer. The agreement shall further specify that in case of a dispute, the decision of the city engineer shall be final. �L� _2_ SECTION 2. In the opinion of the Board of Commissioners? it is necessary to the peace, health and welfare of the inhabitants of Salt Lake City that this ordinance become effective immediately. SECTION 3. This ordinance shall take effect upon its first publication. Passed by the Board of Commissioners of Salt Lake City, Utah, this 25th day of January, 1977. _AYOR C TY RECORD (SEAL) BILL NO. 18, of 1977 Published February 2, 1977 18 APN•90a Affidavit of Publication STATE OF UTAH, 1 1r ss. County of Salt Lake •AN ORDINANCE AN ORDINANCE AME NOI NG Section a2l of the Revised Shana D. Palmer Ordinances of Salt lake City,Utah,1965,relating to bonds- - - Be if ordained by the Board of Commissioners of Salt lake City,Utah- SECTION 1.That Section e2b5 of the Revised Ordinances of Sall Lake Coy,Utah.Ivor,relating to bonds,be,and the same Being first duly sworn,deposes and says that he is legal adver- hereby is amended to read as WilOws- with me•agrement rinuirrec by seectionb<ibsraafailthful tisi.ttg clerk of the DESERET NEIES, a daily (except Sunday) i I i0 improvements,once band in an amount equal to the esno 56 1 cost of the Pdmlc bl and a Miser and mmerlais bond annewspaper printed in the English language with general ctr- ant required by law on hon.ss for Walk company construction.Such honas Shan...Wed State by a surely be licensed,o do ciliation in. Utah, and published in Salt Lake City, Salt Lake the city in theState of Udall and shall bP approved as to form by 115 0)mine event the subdivider shall fan to comblete all County,in the State of Utah. i provement work In accordance wth the provisions of thls chapter and me improvement agreement,cm may require the wubdi"der" ben small or "hill complete"er notice In That the legal notice of which a copy is attached hereto wilting of fault, the situ may lot Me work d - n on tall euree fa re,tsand eee end-If the a the surety amount bonds shall exchreall is 00 bond, incurred eih0tett f any ben the hallremainderlessh such and lithe emounrel the shall bond shin be less man me cost and expense Incurred s by Pub notice to amend an ofdinance relating to surely subdividers shall M liable to the city for such differences. l3i m lien place theecorporate surely bond required.the estimated may Platy lot escrow O,e fonds equivalent required 10 to bonds So law eto bon. of due Cahilpublicsi�const onintsons to the sumbur -- v law tor bonds 0n dame eri.constructions to cover labor and rn provisions whichever moreafem t he subdivider escrow Crocompl shall b mate contain provisions mot isance the the prvCr rail to cOmptle, e city mycom in leertte he wort wins the provisionsof this traw the for this purpose or may pay thekmateri using tlm n zis hold in ed laborers out of the proceeds of the amounts held In escrow.The agreement shall further provide that in the event the funds are net sufficient to complete the Improvements Mat 111ewhalvi2er Shallpemonaliv -------- ----'-'---'- - --'--'- ba liable for the recess funds required and If the subdivider I5 corporation,mat the Principal otlkers of the corporation shall. Personally liable to,the excess funds regalred and for attornee's • lees for collection of said wms.The agreement shall Preside that he improvement shall be completed within one year from Gate of Hie agreement and that me tunas shall be held for a period of two• Years from date of he agreement or one Year from date f Fells 2� 1977 completion f the the whichever longer The wa.e published in said newspaper on greement shall former specify that in case of a dispute,the -' — decision of the cif,engineenshall he final." SECTION 2.In`he opinion of the Board of Commissioners,It Sal necessary ry to the peace,health and welfare of the inhabitants of Sall lECT ION This ordnance shall o ehledopeve ItsfiY SECT ION 3.Tins ordinance shall take effect upon Its lust Publication. Utah 1h152Ste dish et Jae000V,loll IsslOnefS of Salt lake CItY. TED L.WIISON Ma,Pr C MILDRED V. HIGHAM Coy Recorder \\ ` �.5�_\._y \(.. �\ --` C-'•. \` \/_� - MCI_NO.18 of 191/ Published February 2,1411 ID-211 Legal Advertising Clerk Subscribed and sworn to before me this 8th _ day of Feb. A.D. 1977_-• %tom Notary Public My Commission Expires Feb. 13, 1978