10-6-3: IMPROVEMENT AGREEMENT:
   A.   Improvement Agreement Required: An improvement agreement shall be required prior to the commencement of construction of any public improvements. In addition thereto, no final subdivision plat shall be filed until the subdivider/developer has submitted, and the city has approved, a "subdivision improvement agreement", as defined herein, guaranteeing construction of the required public improvements shown on the construction plans for the subdivision plat, together with collateral which is sufficient, in the judgment of the city, to make reasonable provisions for the completion of the improvements in accordance with the design and time specifications. The selling of lots created by the subdivision plat, prior to the installation of improvements, is prohibited. A form of financial guarantee shall be accepted and received by the city. The types of collateral which may be used as security under this section are as follows:
      1.   Performance or property bond.
      2.   An assurance agreement between the city and the subdivider/developer whereby the subdivider/developer shall, within two (2) years following final approval of the plat, complete the improvements provided for in the subdivider's/developer's application for subdivision approval, except that the assurance agreement set forth herein may provide that the subdivider/developer shall be permitted by the city's infrastructure director to sell or otherwise dispose of, or improve any lot within the subdivision, to which improvements have been provided by the subdivider/developer at any time within the two (2) year period. Any such assurance agreement shall be recorded with the Eddy County clerk at the time of recording the plat.
      3.   Private or public escrow agreement.
      4.   Deposits of certified funds or other similar surety agreements acceptable to the city, to be escrowed at a local financial institution. All interest earned on the deposits shall accrue to the subdivider/developer.
      5.   A letter from a financial institution representing that specific unencumbered funds have been designated for the construction of public improvements, and that the financial institution will allow the designated funds to be used for no other purpose. The form and content of the letter shall be approved by the city of Artesia.
      6.   Liens on the subdivision property in favor of the city.
   B.   Amount Of Collateral Required: The city shall require security collateral in an amount no less than one hundred twenty five percent (125%) of the city's infrastructure director's estimated cost for public improvements. Written bids executed by licensed New Mexico contractors or engineers shall be accepted as evidence of cost when available.
   C.   Release Or Use Of Collateral, Security: As public improvements are completed, the subdivider/developer may apply to the city's infrastructure director for a release of part or all of the collateral or security deposited with the city. Upon final inspection, approval and acceptance of the public improvements by the city's infrastructure director, the city may release the collateral or security. If the city determines that any of the improvements are not constructed in substantial compliance with applicable city specifications, the city may, pursuant to the improvement agreement, withdraw and employ from the deposited collateral of security such funds as may be necessary to construct or repair the improvements in accordance with such specifications. (Ord. 982, 11-10-2015)