The development contract provided by § 151.089 of this chapter must require the subdivider to provide sureties to the city by a cash deposit, certified check, irrevocable letter of credit, or a performance bond as follows:
(A) Required sureties.
(1) Off-site surety.
(a) A surety must be provided to the city in a sum equal to 150% the total cost of the improvements as estimated by the City Engineer. Of the total amount, 5% or $2,000, whichever is the greater, must be posted as a cash bond escrow to be held in a non-interest bearing account, and 95% of the total shall be posted as cash, an irrevocable letter of credit, a subdivision bond or a performance bond. This financial security must be automatically renewed and shall not expire until released by the city. These guarantees must be filed with the city prior to release of the final plat for recording.
(b) Items covered by these guarantees must include, but not be limited to, water mains, sanitary sewers, storm sewers, bituminous streets with concrete curb and gutter, street lights, and sidewalks. These financial guarantees are for all of the improvements to be furnished and installed by the subdivider, pursuant to the development contract, and which have not been completed prior to filing of the final plat.
(c) The city is entitled to reimburse itself out of the cash bond escrow for any costs and expense incurred by the city for completion of the work in case of default by the subdivider. Upon completion of the work and termination of any liabilities to the city by the subdivider under the contract, the balance remaining of the cash bond escrow must be refunded to the subdivider.
(2) On-site surety.
(a) A surety to the city must be provided by the subdivider in a sum equal to 100% of the amounts established for on-site bonding by the Department of Community Development. Five percent of the total estimates must be posted as a cash bond escrow to be held in a non- interest bearing account, and 95% of the total shall be posted as cash, an irrevocable letter of credit, a subdivision bond or a performance bond. This financial security must be automatically renewed and shall not expire until released by the city. This surety must be filed with the city prior to release of the final plat for recording.
(b) Items covered by this surety must include, but not be limited to, landscaping as required by resolution, mailboxes, utility repair, adjustment and lot grading, as well as costs for any entryway sign. These financial guarantees are for all of the improvements to be furnished and installed by the subdivider, pursuant to the development contract, and which have not been completed prior to filing of the final plat.
(c) The city is entitled to reimburse itself out of the cash bond escrow for any cost and expense incurred by the city for completion of the work in case of default by the subdivider. Upon completion of the work and termination of any liabilities to the city by the subdivider under the contract, the balance remaining of the cash bond escrow must be refunded to the subdivider.
(B) Engineering/administrative escrow.
(1) A special engineering/administrative escrow must be paid in cash to the city, held in a non-interest bearing special subdivider's cash escrow account, and credited to the subdivider. The engineering/administrative escrow must be equal to at least 6½% of the amount of the subdivider’s project improvements as estimated by the City Engineer, but not less than $1,000.
(2) Costs of city services, expenses and materials provided in reviewing and processing of the final plat including but not limited to staff time, legal expenses incurred in plat approval, office and field checking, setting grade and drainage requirements, general supervision, staking, inspection, purchase and installation of street identification and traffic control signs, drafting as-built drawings, and all other city staff services performed in the processing of the improvements and plats, and administrative and legal expenses in examining title to the property being developed must be charged to the engineering/administrative escrow account and must be credited to the City of Brooklyn Park.
(3) The Council must promulgate and adopt a set of rules, regulations and fees for services rendered by city personnel, and the rules, regulations and fee schedules must be on file with the City Clerk for inspection. A copy thereof must be furnished upon request to the subdivider. The city must itemize all time, services and materials billed to any subdivider's cash escrow account. The subdivider making the deposit(s) in the subdivider's cash escrow account must, upon request, be furnished a copy of the itemized charges.
(4) If, at any time, the balance in the engineering/administrative escrow account is depleted to less than 5% of the originally required cash escrow amount, the subdivider must deposit additional funds in the account in an amount as determined by the City Manager, sufficient to cover all costs to be incurred by the city in processing the final plat.
(5) If all, or a part, of a development has been completed, inspected and accepted, all cash escrow monies, for that portion accepted by the city, may be reduced by the City Council and full or partial payment be returned to the subdivider. Any balance remaining in the account upon completion of all platting conditions must be returned to the depositor by the Finance Department after all claims and charges thereto have been paid and after approval by City Council.
('72 Code, § 345:73) (Am. Ord. 1985-480(A), passed 3-18-85; Am. Ord. 1991-671(A), passed 2-11-91; Am. Ord. 1994-756, passed 5-9-94; Am. Ord. 2001-961, passed 11-26-01; Am. Ord. 2008-1092, passed 8-25-08)