(A) A method of financial assurance for required improvements will be provided by the subdivider. The assurance shall be entered into in the form of a written agreement between the subdivider, the town and the financial institution, title insurance, escrow company, bonding agent or other third party.
(B) The assurance shall cover water distribution system (including fire hydrants); sanitary sewer collection system; other utility systems; street grading, base course and asphaltic concrete paving; concrete curbs, gutters and sidewalks; drainage facilities and structures where required; street signs; survey monuments in streets including swing ties; lot corner monuments and other improvements required as a condition of approval. The assurance is subject to review and approval by the Town Attorney and the Town Council.
(C) Any 1 or more of the following are examples of acceptable financial assurances.
(1) Performance bond. The subdivider may file with the Town of Colorado City an irrevocable security bond executed by a surety company holding a license to do business as a surety in the State of Arizona. The bond shall be payable to the Town of Colorado City, in an amount equal to the cost of improvements required by these regulations, including the 10% construction contingency fund and the cost of construction administration and inspection as approved by the Town Engineer. The bond shall also ensure the timely completion of improvements as determined by the engineer of record and approved by the Town Engineer.
(2) Trust agreement. The subdivider may place on deposit in a bank or trust company in the name of the town, and approved by the Town Attorney, in a trust account a sum of money equal to the estimated cost of all site improvements required by this chapter, including the 10% construction contingency fund and the cost of construction administration and inspection as determined by the Town Engineer. The cost and time of completion shall be approved by the Town Engineer. Periodic withdrawals may be made from the trust account for a progressive payment of installation costs. The amounts of the withdrawals shall be based upon progress work estimates and approved by the Town Engineer. All such withdrawals shall be approved by the trustee.
(3) Unconditional guarantee. The subdivider may file with the town a letter of credit, signed and notarized by the principal officer of the financial institution acceptable to the Town of Colorado City and approved by the Town Attorney, agreeing to pay the Town of Colorado City on demand, a stipulated sum of money to apply to the estimated cost of installation of all improvements for which the subdivider is responsible under these regulations. The guaranteed payment sum shall be determined from the estimated costs and scheduling as approved by the Town Engineer, and shall include the 10% construction contingency fund and the cost of construction administration and inspection as approved by the Town Engineer. The letter shall state the name of the subdivision and shall list the improvements which the subdivider is required to provide together with a schedule for completion.
(4) Third party trust agreements. Third party trust agreements are subject to review by town staff and approval by the Town Attorney and the Town Council.
(5) Other methods. Other methods of assurance may be presented for review, consideration and approval by the town staff, Town Attorney and Town Council, at their sole discretion, including a letter of credit, certificate of deposit and certified check. The approval of any "other methods" shall be made by the Town Council, in written form to the subdivider.
(6) Property escrow.
(a) If the subdivider wishes to record a final plat prior to the completion of improvements, he or she may set up a property escrow account with a title insurance company, whereby no lots may be offered for sale until the improvements have been completed and accepted by the Town Council, and the Town Council has released the property for sale.
(b) The Town Engineer shall review the improvements and forward a report to the Town Council, recommending whether or not the improvements should be accepted and the lots should be released for sale. Approval of the subdivision is subject to the revocation provisions of § 153.067.
(Ord. 2007-2, passed 5-29-2007; Am. Ord. 2014-02, passed 12-15-2014)