§ 13.20.050. ASSURANCE OF COMPLETION OF IMPROVEMENTS.
Latest version.
A. Upon submittal of the preliminary plat, the subdivider shall make an election to provide one of the types of assurances more particularly set forth in §§ 13.20.050(D)(1), (D)(2), (D)(3), or (D)(4) or § 13.20.060 of this code will be furnished by the subdivider to guarantee completion of required improvements on a subdivision.
B. The subdivider shall furnish, with the final plat, an estimate of the cost of construction for the required improvements, prepared by a professional engineer who is registered to practice in the state. Such estimate shall be approved by the City Engineer prior to submission of the final plat and improvement plans to the City Council for action.
C. The amount of assurance shall be determined from the cost estimate for the cost of constructing the improvements required by these regulations. The total estimated cost of the improvements shall also provide for a retention, which shall initially be equal to 10% of the total estimated cost of the improvements.
D. No final subdivision plat will be approved by the City Council unless 1 or more of the methods of assurance described below are submitted with the final plat:
1. Construction of improvements prior to final plat recordation. If the subdivider chooses to construct the required improvements prior to the recording of the final plat, construction plans shall be submitted to the City Engineer for approval. Upon approval of the construction plans by the City Engineer, the subdivider shall obtain permits to allow the construction and inspection of the required improvements. Record drawings shall be prepared by the engineer confirming that the improvements were constructed in substantial conformance with the approved plans and any changes approved thereto. The "as built" plans shall be sealed by the engineer of record. Upon acceptance of the "as built" plans and the required improvements, the City Engineer shall accept the required improvements into the city system for maintenance.
2. Cash. The subdivider shall provide cash through the following method hereinafter described. The subdivider shall provide a cashiers check, certified funds or a wire transfer of funds to an account held by a financial institution established by the Finance Director.
3. Escrow account. The subdivider shall deposit cash, or another instrument readily convertible into cash at face value, either with the city, or in escrow, with a financial institution or licensed title insurance and escrow company. The use of any instrument other than cash, and the financial institution or title insurance and escrow company with which the funds are to be deposited shall be subject to city approval. In the case of an escrow account, the subdivider shall file with the City, an agreement between the financial institution or title insurance and escrow company and himself or herself, guaranteeing that the funds of such escrow account shall be held in trust until released by the city and may not be used or pledged by the subdivider as security in any other matter during that period. Any interest earned by such security instrument held by a financial institution shall be retained by the subdivider.
4. Performance bond. The subdivider shall file with the city a bond executed by a surety company holding a license to do business in the state, and acceptable to the city, in an amount equal to the cost of the improvements required by these regulations. The performance bond shall be approved by the City Attorney as to form and legality prior to forwarding the final plat to the city for approval.
5. Unconditional guarantee from a local bank or federally insured savings and loan association or from other financial institutions as approved by the city. The subdivider shall file with the city a letter, signed and notarized by the principal officer of a savings and loan association or other financial institution acceptable to the city, agreeing to pay the city on demand, a stipulated sum of money to apply to the estimated cost of construction of all improvements for which the subdivider or developer is responsible under these regulations. The guaranteed payment sum shall be determined from the estimated costs and scheduling as approved by the City Engineer. The letter shall state the name of the subdivision and shall list the improvements for which the subdivider or developer is required to provide.
