08-29-03-Ordinance-Construction Contracts Maintenance Bond or Escrow Account-08/18/2003ORDINANCE 08-29-03
THAT CHAPTER 10, ARTICLE 10.100, SECTION 6.09 CONSTRUCTION CONTRACTS
AND SECTION 8: MAINTENANCE BOND OR ESCROW ACCOUNT OF THE CODE OF
ORDINANCES OF THE CITY OF SANGER, TEXAS, IS HEREBY AMENDED;
PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING
A SEVERABILTTY CLAUSE; PROVIDING FOR A PENALTY; AND PROVIDING FOR AN
EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS:
Section 1. That Chapter 10, Article 10.100, Section 6.09 of the Code of Ordinances, City
of Sanger, Texas, is hereby amended, which said article shall read as follows:
"6.09 - Construction Contracts
The subdivider shall contract for construction of the street, drainage, water and sewer improvements
in accordance with the plans and specifications approved by the city."
Section 2. That Chapter 10, Section 8 of the Code of Ordinances, City of Sanger, Texas, is
hereby amended, which said article shall read as follows:
"SECTION 8: MAINTENANCE BOND OR ESCROW ACCOUNT
The subdivider shall furnish a good and sufficient maintenance bond in the amount of ten
percent (10%) of the contract price, or in such amount as approved by the city, with a
reputable and solvent corporate surety, in favor of the city, to indemnify the city against any
repairs which may become necessary to any part of the construction work performed in
connection with the subdivision, arising from defective workmanship or materials used
therein, for a full period of two (2) years from the date of final acceptance of the entire
project. Final acceptance will be withheld until said maintenance bond is furnished to the
city.
The subdivider may, in lieu of providing a maintenance bond, deposit in an interest -bearing
escrow account with a reputable financing institution, an amount equal to ten percent (10%)
of the contract price or in such amount as approved by the city.
This escrowed amount shall be on deposit, in favor of the city, to indemnify the city against
any repairs which may become necessary to any part of the construction work performed in
connection with the subdivision, arising from defective workmanship or materials used
therein, for a full period of two (2) years from the date of final acceptance of the entire
project. Final acceptance will be withheld until said escrow account has been established to
the satisfaction of the city.
On such date when the maintenance period expires, the city shall release the escrow account,
plus all accrued interest, to the subdivider, less any maintenance or repair costs incurred by
the city due to defective workmanship or materials."
Section 3. All ordinances or parts of ordinances in conflict herewith are, to the extent of
such conflict, hereby repealed.
Section 4. It is hereby declared to be the intention of the City Council that the sections,
paragraphs, sentences, clauses, phrases and words of this Ordinance are severable and, if any
word, phrase, clause, sentence, paragraph, or section of this Ordinance shall be declared
unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such
unconstitutionality shall not affect any of the remaining portions of this Ordinance, since the
same would have been enacted by the City Council without the incorporation in this Ordinance
of any such unconstitutional word, phrase, clause, sentence, paragraph, or section.
Section 5. Any person, firm, or corporation who shall violate any of the provisions of
this article shall be guilty of a misdemeanor and upon conviction shall be fined in accordance
with the general penalty provision found in Section 1.109 of this Code.
Section 6. This ordinance will take effect immediately from and after its passage and the
publication of the caption, as the law and Charter in such cases provide.
DULY PASSED, APPROVED, AND ADOPTED, this the 18th day of August, 2003,
by the City Council of the City of Sanger, Denton County, Texas.
Tommy incaid Mayor
ATTES.
Rosalie Chavez, City Secreta
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