A. Final Plat Public Improvement Payment, Performance And Workmanship Bond:
1. Nature Of The Obligation: Any owner, developer or subdivider shall submit a final plat public improvement payment, performance and workmanship bond obligating the signer(s) to do each of the following:
a. Install all public improvements depicted on an approved preliminary plan, engineering plans and specifications or final plat.
b. Pay all plan review, coordination meeting, and inspection fees.
c. Prepare and submit to the city one complete set of plans showing such required land improvements as actually installed in the manner described in section 11-3-6 of this chapter.
All public improvements shall be completed within two (2) years following the approval of the final plat by the mayor and city council and prior to acceptance of the improvements for maintenance. In addition, the execution of the subdivider's final plat public improvement payment, performance and workmanship bond shall obligate the signer(s) to guarantee the improvements against faulty materials and workmanship for a period of one year following acceptance of the improvements for maintenance by the mayor and city council.
2. Penal Amount Of Bond And Security:
a. Penal Amount: The penal amount of the final plat public improvement payment and performance and workmanship bond shall be the higher of the following:
(1) If some or all of the improvements have been installed, inspected, and approved, then one hundred percent (100%) of the estimated cost of those improvements not installed and inspected, plus ten percent (10%) of the city engineer's estimate for all improvements shall be held as security until all improvements have been accepted for maintenance by the city council. At this time the security shall be reduced to ten percent (10%) of the city engineer's estimate and held for the one year guarantee period for materials and workmanship. Also the owner or developer must pay all plan review, coordination meeting, and inspection fees not paid and prepare all record drawings not then submitted.
(2) If none of the improvements have been installed, then one hundred ten percent (110%) of the city engineer's estimate of the cost of installing all public improvements shall be required to guarantee the materials and workmanship. This amount may be reduced to ten percent (10%) of the city engineer's estimate upon acceptance of the improvements for maintenance.
b. Security: The final plat public improvement payment, performance, and workmanship bond shall be secured in one of the following ways:
(1) By posting a cash escrow amount in a local bank or savings and loan association in the amount specified in this subsection A as adjusted by any releases authorized pursuant to this subsection A.
(2) By posting a renewable irrevocable letter of credit in the amount specified for a minimum of two (2) years in this subsection A from a local bank or savings and loan association naming the city as a beneficiary thereof. The minimum of two (2) year term renewal with two (2) months notice to city prior to expiration.
3. Form Of Bond And Security Documents:
a. The form of the final plat public improvement payment, performance and workmanship bond secured by cash escrow is provided in exhibit G on file with the city clerk.
b. The form of the final plat public improvement payment, performance and workmanship bond secured by an irrevocable letter of credit is as provided in exhibit H on file with the city clerk.
4. Releases From Escrow Accounts Posted As Security: As installation of public improvements progresses, and is inspected and approved by the city engineer, releases from such escrow accounts, including interest accumulated thereon, may be authorized by the city engineer in writing, based upon his estimate of the cost for work completed, inspected and approved, provided however, no release shall be made which would reduce the escrow account to an amount less than ten percent (10%) of the city engineer's original estimate of the cost of installing all public improvements, paying all plan review, coordination meeting, and inspection fees and preparing as built plans until all public improvements in the subdivision have been accepted for maintenance by the mayor and city council of the city, at which time the escrow account shall be released to an amount of not less than five percent (5%) of the city engineer's original estimate of cost. Funds then remaining in the escrow account may be released one year after official action by the mayor and city council of the city of Chenoa accepted the subdivision for maintenance or on such later date as any written claim against the escrow account by the city is finally resolved.
B. Adjacent Substandard Roadway Improvement Guarantee And Security:
1. Nature Of The Obligation: Any owner, developer, or subdivider developing a subdivision bordering on one or more roadways is obligated to contribute one-half (1/2) the cost of improving such roadway or roadways on all streets, the obligation shall endure for ten (10) years from the date of the final plat is recorded unless:
a. The developer or subdivider builds the half of the street adjacent to his development in which case the developer shall have no obligation, or
b. The city obtains the right of way and adjacent substandard roadway improvement guarantee and security for the roadway opposite the development in which case the developer's or subdivider's obligation shall be limited to ten (10) years from the date the final plat is recorded.
2. Guarantee And Security:
a. Security: The adjacent substandard roadway improvement guarantee shall be secured in one of the following ways:
(1) By posting a cash reserve account with the city of Chenoa in the amount determined by subsection A of this section as adjusted by releases authorized pursuant to subsection A of this section.
(2) By posting an irrevocable letter of credit in the amount determined by subsection A of this section from a local bank or savings and loan association naming the city as beneficiary thereof.
b. Form Of Guarantee:
(1) The form of the adjacent substandard roadway improvement guarantee secured by cash escrow is as provided in exhibit I on file with the city clerk.
(2) The form of the adjacent substandard roadway improvement guarantee and security secured by an irrevocable letter of credit is as provided in exhibit J on file with the city clerk. (Ord. 542, 11-26-2007)