(1) Financial guarantees shall be in the form of:
A. Cash deposited with and held by the city pending final completion of the improvements; or
B. Cash backed irrevocable letter of credit, drawn from a financial institution located within fifty (50) miles of the city, that has been submitted to and accepted by the city engineer and is irrevocable until final completion of all improvements.
C. Alternate forms of financial guarantee may be accepted by the city upon a finding by both the city attorney and the city engineer that such alternate form of financial guarantee is in the best interest of the city.
(2) Financial guarantees shall be submitted to and accepted by the city engineer prior to any city signatures on the final plat.
(3) The initial financial guarantee shall be an amount equal to one hundred ten percent (110%) of the city engineer's estimate of cost on all the remaining work and shall include inflation, city bidding disadvantage and city project management.
A. Estimated cost on remaining work shall be determined in part by detailed bids from the subdivider's contractors as issued on said contractors' letterhead and submitted to the city engineer and totaled. To that total, an allotment of five percent (5%) for inflation, ten percent (10%) for city bidding disadvantage and twelve percent (12%) for city project management is figured and then added to the total bid amounts. Then one hundred fifty percent (150%) is calculated and that is the financial guarantee amount.
B. Remaining work shall be determined by the engineering department, in conjunction with the planning and zoning department, in the form of a punch list which shall be compiled by the engineering department following a walk-through inspection by the engineering department. The punch list shall be reviewed and accepted by both the engineering department and the planning and zoning department prior to issuance.
(4) If construction of any improvements has been deferred or postponed by submittal of a financial guarantee, no more than eighty percent (80%) of the total building permits ultimately available for the subdivision or phase for which the financial guarantee was submitted shall be applied for by the applicant or issued by the city.
(5) Regardless of the aforementioned eighty percent (80%) available building permits, if construction of all improvements is not completed within one hundred and twenty (120) days following the date of recordation of the final plat, no building permits shall be applied for by the subdivider or issued by the city until final completion of all improvements by the subdivider has taken place and the city has inspected and approved all improvements.
A. Provided, however, that if the failure to complete all improvements within the one hundred and twenty (120) day period occurs through no fault of the subdivider (no fault of the subdivider does not include economic or market conditions), the city engineer at his or her sole discretion, may grant time extensions to the one hundred and twenty (120) day period of a minimum one hundred and twenty (120) days each.
(6) Under no circumstances shall the city ever issue more than eighty percent (80%) of the total building permits ultimately available for the subdivision or phase until final completion of all improvements for said subdivision or phase by the subdivider has taken place and said improvements have been inspected and approved by the city engineer.
(7) The financial guarantee is good for one year only. If construction of improvements has not been completed within one year of submittal of the financial guarantee, the city engineer at his or her sole discretion, may grant a onetime only extension to the one year period, said onetime only extension not to exceed one additional year.
A. The renewal amount shall be set at one hundred seventy-five percent (175%) of the city engineer's estimate of cost on the remaining work.
B. Estimated cost on remaining work shall be determined in part by detailed bids from the subdivider's contractors as issued on said contractors' letterhead and submitted to the city engineer.
(8) If construction of the improvements has not been completed within the original one year time period or the additional one year time period granted by the city engineer through an extension, the city engineer shall inform the council, through the public hearing process, at a regularly scheduled meeting.
A. The council may determine that the remaining work not completed by the subdivider will be completed by the city and the construction costs recovered from the financial guarantee; or
B. The council may approve a second one year time extension for completion of the work by the subdivider.
1. The renewal amount shall be set at two hundred percent (200%) of the city engineer's estimate of cost on the remaining work.
2. Estimated cost on remaining work shall partially be determined by detailed bids from the subdivider's contractors as issued on said contractors' letterhead and submitted to the city engineer.
C. Further time extensions of financial guarantees beyond the second one year time extension are prohibited.
(9) Financial guarantees shall not be released by the city unless and until all of the improvements (including required dedications) have been completed by the subdivider and accepted by the city engineer and by any other applicable agencies or city departments responsible for acceptance and maintenance.
(10) Financial guarantees shall be written to allow the city to draw upon the financial guarantee at any time at the discretion of the city engineer as well as allowing multiple draws by the city. (Ord. 2811, 11-2-2009; Ord. 3456, 9-1-2022)