§ 151.067 GUARANTEES FOR SUBDIVISION IMPROVEMENTS.
   (A)   Completion of improvements.
      (1)   Prior to final plat approval, the subdivider shall complete in a manner satisfactory to the Planning Commission and the Zoning Administrator, all improvements required in these regulations specified in the final subdivision plat, and as approved by the Planning Commission, and shall dedicate same to the city in accordance with division (H) of this section. Final plat approval shall not be granted until the dedication of the improvements has been accepted by the city.
      (2)   In lieu of requiring the completion of all improvements prior to final plat approval, the city may, at its discretion, enter into a contract with the subdivider whereby the subdivider shall guarantee to complete all improvements required by this chapter or otherwise specified by the Planning Commission in a manner satisfactory to the Planning Commission. To secure this contract, the subdivider shall provide, subject to the approval of the Planning Commission, one of the guarantees provided in divisions (B) through (E) of this section.
(Ord. 628, passed 7-11-1995; Ord. 816, passed 6-19-2007, § 641; Ord. 851, passed 8-4-2009, § 641)
   (B)   Surety performance bond. The subdivider shall obtain a security bond from a surety bonding company authorized to do business in the state. The bond shall be payable to the city and shall be in an amount to cover the entire cost, as estimated by the subdivider and approved by the Zoning Administrator, of installing all contract improvements. The duration of the bond shall be until the time the improvements are accepted by the city in accordance with this section.
(Ord. 628, passed 7-11-1995; Ord. 816, passed 6-19-2007, § 642; Ord. 851, passed 8-4-2009, § 642)
   (C)   Escrow account.
      (1)   The subdivider shall deposit cash, or other instrument readily convertible into cash at face value, either with the city, or in escrow with a bank. The use of any instrument other than cash, and, in the case of an escrow account, the bank with which the funds are to be deposited, shall be subject to the approval of the Planning Commission. The amount of the deposit shall be at least equal to the cost, as estimated by the subdivider and approved by the Zoning Administrator, of installing all required improvements.
      (2)   In the case of an escrow account, the subdivider shall file with the Planning Commission an agreement between the financial bank and himself or herself guaranteeing the following:
         (a)   The funds of the escrow account shall be held in trust until released by the Planning Commission, and may not be used or pledged by the subdivider as security in any other matter during that period; and
         (c)   In the case of a failure on the part of the subdivider to complete the improvements, then the bank shall immediately make the funds in the account available to the city for use in the completion of those improvements.
(Ord. 628, passed 7-11-1995; Ord. 816, passed 6-19-2007, § 643; Ord. 851, passed 8-4-2009, § 643)
   (D)   Sequential approval of subdivision segments without guarantee. Where a subdivision is to be developed in several sections, the Planning Commission may, at its discretion, waive the use of a guarantee on the initial sections, provided that the sections may not be larger than 25 lots, or 50% of the total number of lots in the subdivision, whichever is less. The Planning Commission shall grant final plat approval for each succeeding section being contingent upon completion of all contracted improvements in each preceding section, and acceptance of those improvements in accordance with this subchapter. Completion of improvements in the final section of the subdivision, which shall include at least 25 lots, or 50% of the total number of lots in the subdivision, whichever is less, must be guaranteed through the use of one of the other methods detailed under this section.
(Ord. 628, passed 7-11-1995; Ord. 816, passed 6-19-2007, § 644; Ord. 851, passed 8-4-2009, § 644)
   (E)   Special assessment. The city may, at its discretion, enter into an agreement with the subdivider to pay the cost of the required improvements through the use of a special assessment. The city shall make the arrangements for actual construction and interim financing at it deems appropriate, providing that construction of improvements in any section of the subdivision shall be completed in a time period of not longer than would be allowed if another form of improvement guarantee were used.
(Ord. 628, passed 7-11-1995; Ord. 816, passed 6-19-2007, § 645; Ord. 851, passed 8-4-2009, § 645)
   (F)   Time limits. Prior to the granting of final plat approval, the subdivider and the Planning Commission shall agree upon a deadline for the completion of all required improvements, the deadline not to exceed two years from the date of final plan approval. The Planning Commission shall have the power to extend that deadline for one additional year where the subdivider can present substantial reason for doing so.
(Ord. 628, passed 7-11-1995; Ord. 816, passed 6-19-2007, § 646; Ord. 851, passed 8-4-2009, § 646)
   (G)   Failure to complete improvements. If any portion of the required improvements shall fail to be accepted for dedication in compliance with this subchapter within the allocated time period, either for reason of incompletion or for reason of substandard construction, then the Planning Commission shall take one of the following actions:
      (1)   Where improvements have been guaranteed under division (B) of this section, preliminary plat approval shall be revoked; or
      (2)   Where improvements have been guaranteed under division (C) of this section, the Planning Commission shall declare whatever security has been pledged as a guarantee to be forfeit. Where the Planning Commission is not already in possession of the guarantee, it shall immediately take the actions necessary to obtain it. Upon receipt of these securities, the Planning Commission shall use them, or receipts from their sale if that be necessary, to finance the completion of contracted improvements or the rebuilding of the improvements to the proper specifications. Unused portions of these securities shall be returned to the subdivider, bonding company, or crediting institution, as is appropriate.
(Ord. 628, passed 7-11-1995; Ord. 816, passed 6-19-2007, § 647; Ord. 851, passed 8-4-2009, § 647)
   (H)   Inspection and certification.
      (1)   The Zoning Administrator, or other knowledgeable official as specified by the City Council, shall regularly inspect for defects in the construction of required improvements. Upon completion of these improvements, the Zoning Administrator shall file with the Planning Commission a statement either certifying that the improvements have been completed in the specific manner or listing the defects in those improvements. Upon completion of the improvements, the subdivider shall file with the Planning Commission a statement stipulating the following:
         (a)   All required improvements are complete;
         (b)   These improvements are in compliance with the minimum standards specified by the Planning Commission for their construction;
         (c)   The subdivider knows of no defects from any cause in those improvements; and
         (d)   These improvements are free and clear of any encumbrance or lien.
      (2)   If the Zoning Administrator has certified that the contracted improvements are complete and free from defect, then upon receipt of the other statements and agreements detailed above, the city shall accept the dedication of those improvements. The city may, at its discretion, accept the dedication of any portion of the required improvements, provided that all statements and agreements specified above have been received for that portion of the improvements.
(Ord. 628, passed 7-11-1995; Ord. 816, passed 6-19-2007, § 648; Ord. 851, passed 8-4-2009, § 648)
   (I)   Reduction of guarantee. In those cases where improvements guarantees have been made under division (C) of this section, the amount of the guarantee may be reduced upon acceptance, in compliance with division (D), of the dedication of portion of the required improvements.
(Ord. 628, passed 7-11-1995; Ord. 816, passed 6-19-2007, § 649; Ord. 851, passed 8-4-2009, § 649)
   (J)   Release of guarantee. Upon acceptance, in accordance with division (H), of the dedication of the final portion of improvements, the city shall authorize the release of the remaining portion of the improvement guarantee.
(Ord. 628, passed 7-11-1995; Ord. 816, passed 6-19-2007, § 650; Ord. 851, passed 8-4-2009, § 650)