O-79-624 - 6/28/1979TEXAS:
ORDINANCE NO. 6,24
AN ORDINANCE AMENDING CHAPTER 8, SECTION 6.A., OF
THE CODE OF ORDINANCES; PROVIDING FOR A TWO (2)
YEARS PERFORMANCE BOND AND A ONE (1) YEAR WARRANTY
BOND-OR A LETTER OF CREDIT.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
I.
That Chapter 8, Section 6.A., of the Code of Ordinances,
City of Round Rock, Texas, is hereby amended to read as. follows:
A. SUBDIVIDER TO RETAIN AN ENGINEER; OTHER REQUIREMENTS
(1) The subdivider shall retain the services of an engineer,
registered in the State of Texas, whose seal shall be placed
on each sheet of the drawings, and who shall be responsible
for the design and inspection of the drainage, roads and
streets, and sewer and water facilities within the subdivision.
The services performed by the engineer shall be as designated
in the 1967 issue of "Manual of Professional Practice -
General Engineering Service ", published by the Texas Society
of Professional Engineers, and shall include both design
and inspection as defined therein.
(2) Prior to approval of the final plat, the subdivider
shall file with the City Engineer either a irrevocable let-
ter of credit issued by a banking or other financial insti-
tution authorized to do business in Texas or a performance
bond executed by a corporate surety licensed to do business
in the State of Texas, in an amount equal to the cost of the
uncompleted and unaccepted improvements required by this Chapter,
as estimated by the City Engineer, conditioned that the sub-
divider will complete such improvements within two (2) years
from the date of final plat approval. Such letters of credit
and bonds shall conform to forms approved by the City Council.
(3) Prior to final acceptance for maintenance of the com-
pleted improvements bythe City Council, the subdivider shall
file with the City Engineer the following:
(a) either a one (1) year warranty bond executed by
a corporate surety licensed to do business in the
State of Texas, conditioned that the improvements
are free from defects in materials and workmanship,
or a letter of credit from a banking or other finan-
cial institution authorized to do business in Texas,
committing funds for the correction and repair of any
defects in materials or workmanship; said bonds or
letters of credit shall be in the amount of
ten percent (10 %) of the contract price, and they
shall conform to forms approved by the City Council,
and
(b) one (1) set of reproducible "AS BUILT" plans
for each project; and
(c) an affidavit from the subdivider stating that
to the best of his information and belief, the con -
tractor(s) has complied with the regulations contained
in this Chapter.
(Mark through the following alternative that is not applicable)
Alternative 1.
By motion duly made, seconded and passed with an affirmative
vote of all the Council members present, the requirement for
reading this ordinance on two separate days was dispensed with.
READ, PASSED, and ADOPTED on first reading this J,D day
of l 2U/fL) , 1979.
Alternative 2.
READ and APPROVED on first reading this the day of
, 1979.
day of
ATTEST;
READ, APPROVED and ADOPTED on second reading this the
w / //. / //L! .4% /_
.10
, City Secretary
, 1979.
-`MIL
' ". °Y L. . N, 1 or
City of Round Rock, Texas
- 2 -
STATE OF TEXAS
COUNTY OF WILLIAMSON
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS
That we, , the undersigned subdivider, and
,as surety, do hereby acknowledge to be held and firmly bound
unto the City of Round Rock a municipal corporation of the County of
Williamson and the State of Texas, in the full and just sum of $
for the payment of which will and truly be made, we hereby bind ourselves
and our respective heirs, administrators, executors and assigns, jointly
and serverally, firm by these presents.
WHEREAS, the principal has petitioned the Planning and Zoning Commission
of the City of Round Rock for permission to develop a subdivision within
the jurisdiction of the City of Round Rock, more particularly described
as follows to -wit :
Which is shown on a subdivision plat entitled
; and
(Date)
WHEREAS, under the provisions of the Round Rock planning area regulations
the Planning and Zoning Commission, as a condition precedent to the granting
of such petition requires that the principal furnish a guaratee that he
will construct or cause to be constructed according to the requirements
of the City of Round Rock Subdivision Regulations, the following site improve-
ments, within two years from the date of the performance bond::
NOW THEREFORE, the condition of this obligation is such that if the
principal shall, on or before the day of ,19 ,
construct or cause to be constructed the above mentioned improvements
in accordance with the requirements of the City of Round Rock Subdivision
Regulations, then this obligation shall be void, otherwise the obligations
under this bond will remain in full force and effect.
IN TESTIMONY whereof, witness our hands and seal this day of
, 19
Subdivider and Principal
BY:
Surety
Attorney -in -Fact
APPROVED AND ACCEPTED this day of , 19
CITY OF ROUND ROCK
BY:
TO: City of Round Rock
Round Rock, Texas
Gentlemen:
IRREVOCABLE LETTER OF CREDIT
We have established this date a commitment to lend sums to
our customer, (Customer)
to cover the entire cost of installing the subdivision improve-
ments in Subdivision.
Said funds as estimated by the City Engineer are to be in the
amount of
A. $ for approved rough grading
of off -site improvements
B. $ for approved domestic and
fire protection water
improvements
C. $ for approved sanitary
sewer improvements
D. $ for concrete work, curb,
gutters, and sidewalks
E. $ for paving improvements
and all other subdivision
improvements
$ TOTAL
provided however that the sums stated above shall be subject to
reductions as follows:
1. At such time as each construction contract in a form approved
by the City is entered into for the construction of the Facilities,
or any part thereof, the commitment evidenced hereby shall be re-
duced by the amount by which the City's estimated costs for the
work to be done under such contract exceeds 110% of the contract
price for the work to be done under such contract.
2. During construction, the commitment evidenced hereby shall
be reduced periodically, upon receipt by the City, no more often
than monthly, of certified statements from us as to the amounts
paid out for work done, by the amount of such payments; provided,
however, that if the contract price under any construction contract
for the construction of any part of the Facilities exceeds the
City's estimated costs for the work to be done under such contract,
then no reduction shall be permitted until such time as 110% of
the remaining contract price for the work remaining to be done
under such contract is less than the City's estimated costs for
the work remaining to be done under such contract.
Irrevocable Letter of Credit - 2
3. Regardless of anything contained herein to the contrary,
the sum allocated for water and wastewater facilities shall not
be reduced to less than twenty -five percent (25 %) of the contract
price until such time that:
(a) said facilities have been completed and approved
by the City as being installed in accordance with
plans and specifications, and
(b) said facilities have been accepted by the City
for maintenance, and
(c) a one (1) year warranty bond or substitute letter
of credit has been filed with, and accented by,
the City in the amount of twenty -five percent
(25 %) of actual contract price of the facilities.
4. Regardless of anything contained herein to the contrary,
the sum allocated for streets and drainage facilities shall not
be reduced to less than twenty -five percent (25 %) of the contract
price until such time that:
(a) said facilities have been completed and approved
by the City as being installed in accordance with
the plans and specifications, and
(b) said facilities have been accepted by the City
for maintenance, and
(c) a one (1) year warranty bond or substitute letter
of credit has been filed with and accepted by the
City in the amount of twenty -five percent (25 %) of
the actual contract price of the facilities.
5. At such time as all of the subdivision improvements in
said Subdivision have been completed and accepted by the City for
maintenance and either a warranty bond or substitute letter of
credit has been filed as required above, the commitment evidenced
hereby shall automatically terminate, and this letter of credit
shall forthwith be returned to the issuer.
This commitment is made with the understanding that the City
can draw any part of the total amount stated hereinabove, subject
to the terms and conditions hereof, if necessary to provide for
any or all of the Facilities or maintenance thereof, and that any
part or all of the total amount of this credit may be applied by
the City to any one or more, separately or jointly, of the Facilities,
or maintenance thereof.
Irrevocable Letter of Credit -- 3
We also understand and agree that the only requirement
necessary for drawing any part of all of the total amount of
this credit is receipt by us, at least ten days in advance of
the date on which funds are requested, of a letter request
from the City of Round Rock, signed by the City Manager, stating
that one or more of the following conditions exist:
(1) All of the following have occurred: (a) Ninety
days have expired since the issuance of the first
building permit within the Subdivision, (b) the
Facilities have not been completed, the failure
to complete such Facilities is not due to weather,
acts of God, strikes, or other reasons beyond the
Customer's control, and due diligence is not then
being used in efforts to complete, and (c) we have
not, after receipt of written notice to us of our
Customer's default, assumed in writing the obligation
to complete such Facilities to the extent of the re-
maining balance of the letter of credit, or, having
assumed such obligation, have not, within sixty days
thereafter, commenced efforts to complete such Faci-
lities as provided hereinafter; or
(2) The contract has been executed for the utilities on
an adjoining subdivision, and it is necessary to
complete certain of the Facilities within the Subdi-
vision to provide continuity of services to the ad-
joining subdivision (but only for the amounts of
those Facilities within the Subdivision which are
required for continuity of services to such adjoining
subdivision);
All of the following have occurred; (a) the City has
given written notice, at least 30 days prior to the
expiration of this credit, to us and to our Customer,
at our respective last -known mailing addresses, sent
by certified mail, return receipt requested, that this
credit is about to expire and that the Facilities
have not been completed, and that the City intends
to draw upon this credit. At the option of City,
a substitute Letter of Credit, in this same form in
an amount equal to the total sum stated hereinabove,
subject to any reductions, if any, which have been
made hereunder, may be substituted at least 15 days
prior to the expiration date of this credit;
and that the City considers such a drawing on this credit amount
necessary in order to complete any part or all of the Facilities.
No further substantiation of the necessity of the draw is required
by this credit.
(3)
Irrevocable Letter of Credit
In addition, if subparagraph (c) of paragraphs 3. and 4.
have not been complied with, the only requirement necessary
for drawing any part or all of the total amount of the twenty -
five percent (25 %) retainage is receipt by us, at least ten
days in advance of the date on which funds are requested, of
a letter request from the City of Round Rock, signed by the
City Manager, stating that the following conditions exist:
(1) the Facilities or portions thereof have failed
within one year of acceptance by the City for
maintenance, due to a defect in materials or work-
manship.
Notwithstanding anything herein to the contrary, before re-
questing a draw of any part or all of this credit because of a
default by the Customer, the City shall be required to give written
notice to us of such default and sixty days to assume the obli-
gations of our Customer for completion or maintenance of the
Facilities, to the extent of the remaining balance of this credit,
and if we assume such obligations, to the extent of the remaining
balance of this credit, in writing within sixty days after receipt
of such notice, then the City shall not be allowed to request a
draw on this credit, unless we fail to commence within sixty days
thereafter efforts to complete or maintain the Facilities.
Request for the draw of funds under this credit must be received
prior to the expiration of two years following the date of this
credit, except that in the event subparagraph (c) of paragraphs
3. and 4. have not been complied with, then this commitment shall
remain open as to the twenty -five percent (25 %) retainage of each
facility until one year has elapsed from the final acceptance of
the facilities by the City for maintenance.
This letter of credit shall be subject to and construed in
accordance with the laws of the State of Texas and, particularly
the Texas Business and Commerce Act.
We further state that this credit is irrevocable prior to the
expiration date unless all parties, including for all purposes the
City of Round Rock, consent to such revocation in writing.
(Corporate Seal, if any)
Attested by
Lender's Name
Authorized Officer's Signature