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19760113 1976-2ORDINANCE NO. 1976-2 AN ORDINANCE AMENDING THE CODE OF THE CITY OF FAIRFAX, VIRGINIA, TO ADD TO CHAPTER TWO OF THE CODE OF THE CITY OF FAIRFAX, VIRGINIA, A NEW ARTICLE XIII, PROVIDING FOR THE GENERAL FORM AND CONTENT OF ALL BONDS, CASH PROPERTY AND SURETY REQUIRED UNDER THE SEVERAL PRO- VISIONS OF THE CODE OF THE CITY OF FAIRFAX, VIRGINIA. BE IT ORDAINED by the City Council of the City of Fairfax, Virginia, that Chapter 2 of the Code of the City of Fairfax, be and the same hereby is, amended by the addition of a new article numbered Article XIII thereto to provide for the general form and content of all bonds, cash, property and surety, required under the several provisions of the City Code, reading in its entirety as follows: Article XIII. Form and Content Required For Bonds Sec. 2-61. Scope. Each bond required or permitted to be filed with the City of Fairfax, Virginia, or any of its departments or agencies, pursuant to any provision of the Code of the City of Fairfax, Virginia, shall conform in form and content to the provisions of this Articl Any provision of the Code of the City of Fairfax, Virginia, in conflict with this Article is hereby repealed to the extent the same is in conflict herewith, except that the provisions of Sectio 5-32 of the said Code pertaining to the bond required of a home improvement contractor shall not be affected by this Article. Notwithstanding the same, different or alternative requirements may be imposed upon a type of bond if an express exception to this Article is provided in the ordinance requiring or permitting any such bond. 1976-2 -2 Sec. 2-62. General provisions. Each bond shall be conditioned that the applicant and his employees and agents shall well and truly observe and strictly comply with all of the provisions of the ordinance requiring of permitting the said bond and all other ordinances contained in the Code of the City of Fairfax, Virginia. Each bond shall contain an indemnity and save harmless clause wherein the City of Fairfax, Virginia, and any other person or entity so designated in the ordinance requiring of permitting the said bond, shall be benefi- ciaries of the said bond. Legal or equitable action to enforce an~ bond hereunder may be undertaken in the name of the City of Fairfa or the name of any other designated beneficiary or beneficiaries in any court of competent jurisdiction. The obligation of any bond hereunder shall include the costs of enforcement incurred by any beneficiaries thereof, including reasonable attorney's fees and court costs. Sec. 2-63. Security. Each bond shall provide to the City of Fairfax, Virginia, security having a value of at least one hundred per centum (100%) of the face amount of such bond in one of the manners more parti- cularly set forth hereinafter: a) Corporate surety. A bond may be secured by a performance bond duly executed under seal, payable to and in favor ~D the City of Fairfax, Virginia, with a financially reputable corporate suret authorized to do business in the State of Virginia. b) Cash. A bond may be secured by cash, certificates of deposit of letters or credit from a reputable bank, trust company or savings and loan institution authorized and licensed to do business in the State of Virginia. Any such certificate of deposi or letter of credit shall be payable to and in favor of the City of Fairfax, Virginia. Any such letter of credit shall recite therein that it is irrevocable for the duration of the bond and !any renewals or extensions thereof and for three (3) months after 1976-2 -3 the termination of the bond. No letter of credit shall require that the financial institution issuing the same receive notice of any such renewal or extension of the bond. c) Real property. A bond may be secured by real property located in the State of Virginia having an unencumbered value in excess of the face amount of the said bond; provided, that the applicant shall furnish a title insurance policy in favor of and designating the City of Fairfax, Virginia, as a beneficiary there- of, in at least the face amount of the said bond, insuring that the City of Fairfax, Virginia, has a first lien upon the said real property in the face amount of the said bond. The applicant shall pay the cost required to have the property bond recorded among the land records in the appropriate jurisdiction and the City Attorney shall cause the same to be so recorded. The bond committee estab- lished by the City of Fairfax, Virginia, shall determine whether the fair market value of the said real property is equal to the face amount of the said bond. The appraisal of the City Assessor shall be deemed prima facie evidence of the fair market value of the property. In the event the said real property is improved by a building or other structure, the applicant shall provide a fire and hazard insurance policy payable to the City of Fairfax, Vir- ginia, in at least the face amount of the said bond. Sec. 2-64. Release of bonds. a) No bond shall be released until such time as the applican~ and his employees and agents shall have complied with the terms and conditions of any and all agreements between the applicant and the City of Fairfax, the provisions of the ordinance~requiring or permitting the said bond and all other ordinances contained in the Code of the City of Fairfax, Virginia, including the filing of such additional bonds, warranty, maintenance or otherwise, and the security therefor, as may be required. b) No cash bond or real property bond shall be returned to 1976-2 -4 any applicant or otherwise released, if a claim against the bond is pending in any court of competent jurisdiction until final adjudication of the case has been rendered by the highest court of competent jurisdiction to decide the claim. c) A bond for the completion of certain public improvements to be transferred or dedicated to the City of Fairfax may be released with the consent of the Bond Committee upon request of the applicant and submission to the City of Fairfax of an acceptab bond and security therefor in the face amount sufficient to permit completion of the remaining improvements, as determined by the department head supervising the construction of the said improve- ments. In determining whether to accept or reject any such reques the Bond Committee shall consider 1) the recommendation of the department head supervisin the construction of the said improvements; 2) the portion of the said improvements completed and to be completed: 3) the time estimated to be necessary to complete all the said improvements; and 4) the performance of the applicant in constructing the said improvements and similar improvements in the City of Fairfax and its neighboring jurisdictions, including the existence of complaints or claims against the applicant. The Bond Committee shall reject any such request, which it determines, in its discretion, would impair the protection afforde~ the City of Fairfax by the original bond. Sec. 2-65. Additional Terms. Each cash bond and real property bond filed with the City of Fairfax, Virginia, as hereinabove described shall include as a term and condition of the bond the following: "IT IS AGREED that the force and effect of this bond will not be invalidated for a period of three (3) months following the termination date as set forth herein; AND FURTHER, it will not be released from record during this waiting period." , , ' 1976-2 -5 Sec. 2-66. Copies of Bond. A copy of each bond shall be provided by the applicant to each individual or entity designated in the ordinance requiring or permitting the said bond to receive a copy of the bond. This ordinance shall be in effect immediately upon its adop Adopted: January 13, 1976. Attest: