(a) General. In order that the City has the assurance that the construction and installation of such improvements as street surfacing, curbs, gutters, sidewalks, public sanitary sewers, public water supply and street signs will be constructed, and lot grading completed the subdivider shall furnish bond executed by a surety company, certified check or letter of credit.
(b) Conditions. The City has developed two methods from which a developer may choose to assure the construction and installation of such improvements.
Option 1: One performance bond for all improvements. Before construction of a plat may begin the developer shall have executed a subdivider's contract and deliver one performance bond, certified check or letter of credit to the City covering one hundred percent (100%) of the estimated cost of all required improvements as shown on the plans and approved by the City Engineer.
Option 2: Multiple bonds for each area of improvement. Before construction of a plat may begin the developer shall have executed a subdivider's contract and delivered performance bonds, certified checks or letters of credit for each construction improvement type (Roadway - includes signage and lighting; Sidewalks; Storm Water Management - includes storm sewers, drainage, erosion control, detention/retention; Water System; Sanitary Sewer System) to the City covering one hundred twenty percent (120%) of the estimated cost of all required improvements as shown on the plans and approved by the City Engineer.
Each performance bond, certified check or letter of credit shall be to the City of Fairborn and shall provide that the subdivider, his heirs, successors and assigns, their agents or servants, will comply with all applicable terms, conditions, provisions and requirements of these regulations, and will faithfully perform and complete the work of constructing and installing such facilities or improvements in accordance with such laws and regulations.
Before such bond or letter of credit is accepted it shall be approved by the proper administrative officials.
Whenever deposit of a certified check is made, the same shall be made to the City of Fairborn.
(c) Time Limit. The construction or installation of any improvement or facility, for which guarantee has been made by the developer in the form of bond, certified check or letter of credit shall be completed within two years from the date of final approval of the final plat. The developer may request the City Manager to grant an extension of one year, provided he can show reasonable cause for inability to complete such improvements within the required two years. The extension shall not exceed one year and shall not be granted unless the guarantee of the developer covers such extended period. At the expiration of the two years or the one year extension, if an extension has been granted, the City will use as much of the bond, certified check deposit or letter of credit as necessary to complete the construction of the improvements. The same shall apply whenever construction of improvements is not performed in accordance with applicable standards and specifications.
(d) Partial Release. As required improvements are completed the City Engineer may partially release the bond on the required improvements; provided that there shall remain as bonded the total cost of improvements not completed, plus not less than twenty percent (20%) of the completed work; that such release shall apply only to work and materials totally installed; and that a partial release of any portion of the required improvements shall not operate to release the subdivider of total liability on work and/or materials, until after final acceptance of the plat by the City. If a developer has chosen bond option #1 (one performance bond for all improvements), the bond will be reduced as improvements are completed but will not be totally eliminated until all improvements are complete at which time the maintenance bond would go into effect. If a developer has chosen option #2 (multiple bonds for all improvements), each bond will be reduced as work is completed for the improvement and released once totally complete at which time a maintenance bond for the improvement will immediately be applicable.
(e) Inspections. Periodic inspection during the installation of improvements shall be made by the City to insure conformity with the approved plans and specifications as required by these regulations. The subdivider shall notify proper City administrative officials at least twenty-four hours before each phase of the improvements is ready for inspection.
The absence of an inspector from a plat during construction shall not relieve the subdivider from full responsibility under this agreement. Upon acceptable completion of installation of the required improvements, the City Engineer shall issue a letter to the subdivider or his agent and such letter shall be sufficient evidence for the release of bond or letter of credit by the City.
(f) Failure to Comply. Whenever public improvements have not been constructed in accordance with the agreement and with specifications as established, the City may exercise its rights of foreclosure under the bond, cash the certified check or draw upon the letter of credit to complete the required improvements.
(Ord. 39-12. Passed 7-16-12.)
(Ord. 39-12. Passed 7-16-12.)