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Ordinance 2008-16

WHEREAS, the City Council of the City of Johnson hereby finds it in the public interest,
and in the furtherance of the public health, safety, and welfare, that minimum bond requirements be
established for all new construction within the corporate limits of the City of Johnson, Arkansas, be
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Johnson,
Section 1 : General Provisions
A. JURISDICTION: The provisions of this Ordinance shall apply to all lands within the
City of Johnson, Arkansas and its planning area as defined on the official maps of the
City of Johnson.
Section 2: Applicability
This ordinance establishes minimum bonding requirements for all new construction; including, but
not limited to:
A. Large Scale Developments (LSD)
B. Residential and Commercial Subdivisions
C. Planned Unit Developments (PUD).
Section 3 : Bond Requirements
A. Guarantees in Lieu of Installed Improvements. If the developer chooses to begin
building construction or to sell lots within the land development prior to installing the
required improvements, the planning commission may give conditional approval of the
Large Scale Development or Final Plat under the procedures listed below:
1 . The terms of any such conditional Final Plat approval shall be noted on the Final
Plat by the planning commission before the Final Plat is filed for record.
2. An acceptable surety performance bond or irrevocable letter of credit with a
minimum time frame of one (1) year shall be filed with the city clerk's office in
an amount equal to 150 percent of the Project Engineer's estimate of the total
cost of the improvements for unfinished improvements. The Project Engineer's
estimate of the total cost shall be approved by the City Engineer. If the City
Engineer does not agree with the Project Engineer's estimate, the developer may
hire an independent consultant to review the cost estimate. The cost of the
consultant shall be paid by the developer of the project. Upon satisfactory
Municipal/a oj Minimum Bond Requirements Ord 1 .....
completion of the improvements, the city shall release the performance bond or
letter of credit
3. If the developer fails to complete improvements within the time period of the
bond, the city has the option to utilize the performance bond or letter of credit to
complete the improvements. In the event a cash bond is accepted and then
forfeited, all accrued interest shall revert to the City.
4. When the conditions have been met, a certificate of acceptance by the
appropriate agencies shall be filed \vith the circuit clerk and noted on the
original recorded plat.
B. Maintenance Bonds. An acceptable maintenance bond shall be provided in the amount
of fifty (50) percent of the actual construction cost against defects in workmanship and
materials for a period of two years from the date of the final inspection for street,
sidewalks and storm drainage improvements. The bond shall be filed with the city
clerk's office after the final inspection and prior to acceptance by the city. Any suit
under this bond must be instituted before the two-year term on the bond.
Section 4: Conflicts:
Where the provisions stipulated herein conflict, the most stringent provision shall govern,
except as may otherwise be provided herein. In the event the provisions of this Ordinance
are determined to conflict with the provision of other Ordinances of the City of Johnson, the
more stringent provision shall govern.