§ 30.32.150. Bonds and Cash Deposits in Conjunction with the Off-Site Permit.

The construction or installation of improvements shall be assured by entering into an agreement with the County whereby the developer agrees to furnish labor, equipment, and material necessary to complete the work within the time specified. The developer shall deliver to the County either a one hundred percent (100%) performance bond or a cash deposit in such an aggregate amount as is estimated by the Director of Public Works to be the total cost of the construction and/or installation of improvements required.

1.

Posting of Bonds. Bonds posted pursuant to the above shall run to the County and provide that the developer, his heirs or successors and assigns, and their agents and servants, will comply with the applicable terms, conditions, and provisions of these regulations and will faithfully perform the work of constructing and installing such facilities and improvements in accordance with applicable laws and regulations, and that the developer will save and hold the County harmless from any expense incurred, or damages resulting from the failure of the developer, his heirs, successors or assigns, and their agents or servants, to complete the work of installation and construction of the improvements within the time and manner required by this Title.

2.

Acceptance of Bonds. Before acceptance, any required bond or cash deposit shall be approved by the Director of Public Works.

A.

If a bond is offered, it shall be executed by a surety or guaranty company, licensed in the State of Nevada, on a form approved by the County and the company shall:

i.

Hold a current Certificate of Authority as an acceptable surety on federal bonds per the current United States Department of Treasury listing of approved sureties, Department Circular 570.

ii.

Have a current rating of "A" or better by the A.M. Best Company and a Rating Outlook of Stable or Positive.

B.

If cash is offered in lieu of a bond it shall:

i.

Be of an amount that does not exceed the amount that is federally insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. In order to offer a cash in lieu of bond, the total cost of the construction and/or installation of the improvements shall not exceed the amount that is federally insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration.

ii.

Be deposited with the Director of Public Works who shall provide a receipt and signify the amount and purpose of said deposit, in compliance with these regulations. No interest shall be paid on funds deposited.

iii.

Be deposited in a local bank or credit union (bank), insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration, if a proper agreement is entered into by, and between, the developer, the County and such bank, to pay for the installation of said improvements as they are installed. This agreement shall provide, among other things, that there shall, at all times, be a ten percent (10%) retention of the funds so deposited until all improvements have been completed and accepted by the Director of Public Works. The named bank shall have an office or offices lawfully located and actually doing business within the County of Clark, State of Nevada.

3.

Duration and Release.

A.

Surety Bond. Unless the property that is the subject of the development has been reverted to acreage, bonds posted pursuant to these regulations shall not be released or returned until such time as the improvements guaranteed have been accepted and approved by the Director of Public Works. No improvements shall be accepted or approved unless they conform with the approved set of off-site plans on file. There may be a one time bond reduction of 80% of the surety bond for subdivision projects when only the following improvements are remaining to be built on the streets:

i.

sidewalks

ii.

utility pads and boxes

iii.

slurry seal on the asphalt; and

iv.

the water and sewer utilities have agreed to this reduction.

The reduction does not constitute acceptance of any of the projected improvements for maintenance, which will occur upon completion of the required work and release of the remaining 20% of the surety bond.

B.

Cash Deposits/Installment Release. Upon completion and inspection of separate phases of work, the Director of Public Works shall have the authority to release funds from a cash deposit made in accordance with Section 30.32.150 (2)(B), every thirty (30) days provided, however, that there shall be at all times a ten percent (10%) retention of all funds so deposited until all of such improvements have been completed and accepted by the Director of Public Works. In the event a cash deposit is made with a local bank or credit union (bank), the release of the funds so deposited shall be governed by the provisions of the deposit agreement.

C.

Replacement Bond. Any developer wishing to or required to replace an existing bond with a new bond in an amount equal to the amount previously established in this Section, prior to the completion and acceptance of the improvements required by the County Code, shall be required to pay a bond replacement fee, in accordance with Chapter 30.80, to cover the cost of processing the replacement bond.

4.

Default on Work Required Under Bond. If the construction or installation of any improvements or facilities for which a bond is posted is not completed within two (2) years of the date of approval of the final map, (or the time provided in an approved extension of time granted per Section 30.52.090), whichever is sooner, or if such construction or development is not in accordance or compliance with the Section 30.52.050, or the Off-Site Improvement Agreement or the off-site permit, the County may seek recovery against the bond and the surety shall be responsible and liable for the completion or procurement of completion of the obligations of its principal, whether or not construction of the development, or the off-site improvements, has commenced, and regardless of whether the principal is the owner of the property that is the subject of the development. In no way is the bond intended, or to be interpreted, to condition or delay surety's obligations until after completion of principal's obligations to fully construct the improvements. In the event cash is deposited with the Director of Public Works, the County may use as much of such cash as is necessary to construct or install the improvements or facilities. If any portion of a cash deposit is not required or used by the County, such excess cash shall be repaid to the person making the deposit upon acceptance or approval of the improvements or facilities herein required. Should the actual cost of the improvements exceeds the bond, the developer is in no way relieved from paying the entire amount of such excess.

(Ord. 3229 § 5 (part), 2005; Ord. 2961 § 4 (part), 2003; Ord. 2769 § 82, 2002: Ord. 2481 § 3 (part), 2000)

(Ord. No. 3820, § 2, 10-21-2009; Ord. No. 3848, § 5, 1-20-2010; Ord. No. 3859, § 6, 5-5-2010; Ord. No. 4077, § 6, 1-9-2013)