Ordinance No. 99-1753

AN ORDINANCE TO CREATE A FINANCIAL GUARANTEE FUND

WHEREAS, developers constructing projects within the City of Plymouth must frequently post financial guarantees for such things as ensuring the completion of a drainage plan, sidewalks, curbs, lighting, waterlines, sanitary sewer lines, and sometimes streets; and,

WHEREAS, depending upon which aspect of the project (e.g. waterlines, sewer lines, drainage, streets, sidewalks or curbs) the Waterworks Board may have jurisdiction, the Wastewater Board may have jurisdiction, or the Board of Public Works & Safety may have jurisdiction; and,

WHEREAS, the preferable method of submitting a financial guarantee is in the form of a performance bond made payable to the City of Plymouth, but smaller contractors and smaller projects find it easier to post a cashiers check or certificate of deposit or cash or an irrevocable line of credit payable to the City; and,

WHEREAS, in the past those financial guarantees that are posted in lieu of performance bonds are merely retained by the City and not cashed; and,

WHEREAS, this is contrary to proper accounting procedures and has caused problems because of the stale date of cashiers checks, et cetera; and,

WHEREAS, it appears to be more prudent to establish a Financial Guarantee Fund in which all financial guarantees (with the exception of an irrevocable line of credit) shall be cashed and deposited in said Fund and retained until released by the respective Board which has jurisdiction over that aspect of the project; and,

WHEREAS, the amount to be returned to the landowner shall be the amount paid with no interest accruing unless it is necessary to use said funds to complete the project as required by the previously given approval.

NOW, THEREFORE, BE IT ORDAINED by the common Council of the City of Plymouth, Indiana, as follows:

Section 1. There is hereby created a Financial Guarantee Fund,

Section 2. Into this fund shall be deposited all financial guarantees that are posted by landowners for construction projects to insure completion of certain aspects of the project including but not limited to waterlines, sewer lines, streets, curbs, sidewalks, lighting and drainage.

Section 3. The funds deposited in the Financial Guarantee Fund by any particular landowner shall not accrue interest. The amount of money deposited in the Fund by any particularly landowner for any particular project shall be returned to the landowner, without interest, only upon the approval of the City Board (Waterworks Board, Wastewater Treatment Board, or Board of Public Works & Safety) which has the jurisdiction over that part of the project which established the financial guarantee in the first place.

Section 4. The funds so deposited if not returned to the landowner, shall be used to complete that portion of the project for which the funds were deposited as a guarantee. The use of said funds shall likewise be only as directed by the respective City Board.

PASSED AND ADOPTED by the Common Council of the City of Plymouth, Indiana, on the 25th day of October, 1999.

    Jack B. Greenlee, Presiding Officer

ATTEST:

    Toni L. Hutchings, Clerk-Treasurer

Presented by me to the Mayor of the City of Plymouth, Indiana, this 25th day of October, 1999.

    Toni L. Hutchings, Clerk-Treasurer

APPROVED and signed by me this 25th day of October, 1999.

   Jack B. Greenlee, Mayor
   City of Plymouth, Indiana