Item 8A Maintenance Bond CodeAGENDA JTEM:
SUBM ITTED BY:
DATE:
BACKGROUND:
C ITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
Maintenance Bond Code
J eremy Hubsch /J/l.J
Bui lding and Zon in g Di rector if'""'""~
May 12,20 15
AGENDA ITEM JI8A
JUNE 8, 211 15
Whenever the City accepts public improvement s in a subdivision, Section 24-233 require s a
maintenance bond for 100% of the cost of improvements. The mainte nance bond is to cover the
cost of accepted improvements for a year. It essentially acts as an insurance policy fo r the City
shall any construction d efa ult s occur.
It has come to the City's attention during rece nt deve lopments that requiring a l 00%
maintenance bond is not in line with many other municipalities. Current ly, Atlantic Beac h and
Jackso nville Beach are the on ly municipalities that require the full 100 %. Neptune Beach, St.
Jo hn s County, Nassau County, and Fl agler County on ly require 15% of the cost of
improvements. Clay Cou nty a nd Flagler Cou nty require I 0%. The City of Jacksonvi ll e is
negotiable.
Public Work s Director Do ug Layton believes that 15 % is suffici ent to cover th e improvements
that the c ity accepts. The city rev iew s plans and conducts inspection s on wo rk th at is accepted.
Mr. Layton believes it is unlikely that ifthel'e are constructions defects or iss ue s, they will cost
the full J 00% of the entire project to repair. Staff wou ld like the Co mmi ss ion to consider
whether or not to keep the maintenance bond requi rement s at l 00% or reduce it to 15%.
BUDGET:
RECOMMENDATION:
l5 %
ATTACHMENTS:
None.
Redu ce maintenance bond requi remen ts in Section 24 -233 from I 00% to
None
REVIEWED BY CITY MANAGER:
--n t/Sha o/~