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ORDINANCE NO.
AN ORDINANCE OF THE CITY OF BOYNTON BEACH,
FLORIDA AMENDING LAND DEVELOPMENT
REGULATIONS, CHAPTER 7. SURETY; ARTICLE I. IN
GENERAL. PROVIDING FOR CLARIFICATION OF
PROCEDURE FOR HANDLING OF SURETY; PROVIDING
FOR CONFLICTS, SEVERABILITY, CODIFICATION AND
AN EFFECTIVE DATE.
WHEREAS, in an effort to streamline the procedure for acceptance and releasing of
;urety, and to better accommodate the public, staff has reviewed and made recommendations
o amend Chapter 7. Surety to reflect several changes; and
WHEREAS, the City Commission has deemed it appropriate and in the best interests
)f the residents and the community to amend the Land Development Regulations, Article I.
2hapter 7. Surety, as follows:
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
FHE CITY OF BOYNTON BEACH, FLORIDA, THAT:
Section 1. The foregoing whereas clause is true and correct and is now ratified and
:onfirmed by the City Commission.
Section 2. That Chapter 7. Surety. Article 1. In General. Is hereby amended by
tdding the words and figures in underlined type and by deleting words and figures in struck-
brough type, as follows:
kRTICLE I. IN GENERAL
Section 1. Purpose.
This policy delineates specific criteria and prerequisites for accepting surety by the
city in conjunction with developer agreements, contracts, development related
improvements and any other contractual obligations.
Section 2. Applicability.
A. When Required.
Wherever surety is required within the Boynton Beach Code of Ordinances and/or
Land Development Regulations it shall be provided in the form and manner
prescribed in Section 3 hereinafter. The type of surety shall be determined by the
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administrator of the code section involved, and shall be acceptable to the Boynton
City Att ~..a r,;., r- ....
Beach omey ......... :
B. Amount.
The amount of surety shall be equal to or greater than 110% of the total obligation
whether it be for restoration, abatement, maintenance, guarantee, fees in lieu of land
dedication, required improvements or any other purpose.
C. Periodic reduction of surety.
From time to time during progress of the work the developer may request
~ a reduction in the dollar amount of the surety on the basis of work
completed, but in every case the remaining funds shall be sufficient to cover 110% of
the cost to complete the obligation. In the case of surety for required improvements
associated with subdivision development, five (5) per cent of the engineer's certified
cost of required improvements shall be retained for one (1) year after acceptance of
such improvements by the City Commission as a guarantee against defects in
workmanship and material. The final release in surety of the remaining balance of the
surety, by letter of credit or other instrument,
r~-~htmiou--of the City Commission, with the
appropriate department and/or the city engineer.
shall be approved by motion o~
written recommendation by the
D. In the event of default by the developer or failure of the developer to complete the
obligations within prescribed time limits, the city, after thirty (30) days written notice
to the developer, shall cash the surety to insure satisfactory completion of the
obligations.
Section 3. Types of Surety.
A. Letters of Credit.
1. The face of the letter of credit must indicate the following:
a. The letter of credit is "clean".
b. The letter of credit is irrevocable and shall remain enforceable until
released by a resolution adopted by the City Commission, ~ ..... ;~ '~ 'eve- ~,c ~.~;~
5CAXOrdinances~DR Changes~mdending LDR Chapter 7 - Sure~.doc
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.......... +~'~ by ,h~ ,,~.~.- or' .... ~:' ~'"' be '~ ..... ~ ~ default and shall ~ '~
~nt~,~ City to
c. The p~ose of project for which the letter of credit is issued.
d. The specific amount of the letter of credit, in U.S. Dollars.
e. The method of distribution of draws against the letter of credit.
f. The street address where draws against the letter of credit shall be made.
g. The letter of credit is enforceable in a court of competent jurisdiction in
Palm Beach County, Florida, and is to be interpreted by Florida Law.
h. The name and street address of a designated agent within the State of
Florida for acceptance of process.
5. No letter of credit shall be deemed accepted by the city until r,,,j
.... h,+;,.~, ~r ,r,~ o;,., r~ .... ;~;~ r~u .... ;~"- review and approval by the city
attorney's office for legal sufficiency, and by the finance department for the bank's
rating.
***
B. CASH, CERTIFIED CHECK, CASHIER'S CHECK. Completion of the required
improvements may be secured by cash deposited by the developer with the city or in
an account subject to the control of the city in accordance with an agreement on such
deposit or account. N'o interest shall be earned on such deposit or account.
C. PERFORMANCE OR SURETY BOND. Completion of the required
improvements may be secured bv a perforn~ance or surety bond obtained from a
company acceptable to the city in accordance with the city policy on performance
bonds. It shall guarantee that all work will be completed in full accordance with the
app d 1 dd 1 p p it D~.C
rove an eveo ment erm
E. Thc Finance Department shall maintain an index of' all surety, indicating at a
minimum, thc project name. the amount of sm'ety, then names m~d contact
information for all obliges of'the surety, the date posted, the date reduced and the date
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released.
Section 3. Each and every other provision of the Land Development Regulations
~ot herein specifically amended, shall remain in full force and effect as originally adopted.
Section 4. All laws and ordinances applying to the City of Boynton Beach in
i:onflict with any provisions of this ordinance are hereby repealed.
Section 5. Should any section or provision of this Ordinance or any portion
hereof be declared by a court of competent jurisdiction to be invalid, such decision shall not
~ffect the remainder of this Ordinance.
Section 6.
Section 7.
FIRST READING this I day of June, 2004.
SECOND, FINAL READING AND PASSAGE this
June,2004.
kTTEST:
Authority is hereby given to codify this Ordinance.
This Ordinance shall become effective immediately.
day of
CITY OF BOYNTON BEACH, FLORIDA
Commissi~7" ~' ( ~_. ?
g LDR Chapter 7 - Surety.doc