A. Financial Guarantees.
1. The developer shall submit separate financial guarantees for each public or private improvement and may not include any land that is not under development at the time the financial guarantees is required, such as sections of adjacent or contiguous land that remained undeveloped, except to the extent that the land not then under development is used to access the site or provide utilities or other necessary services to the land that is under development.
2. Financial guarantees shall be in the amount of an engineer’s estimate or an actual contract amount, if available, to complete the portion of the area or improvement of the project, or the designated section in the project being bonded; provided, the amount may be in excess of the full value of the engineer’s estimate or actual contract amount, as appropriate, and such an excess amount shall be based upon a reasonable adjustment for the estimated cost of inflation of materials and labor encompassed within the subject matter of the financial guarantees.
3. Once the form and amounts of a financial guarantee have been officially approved by the Board of Public Works and Safety, the developer may enter into a performance agreement with the Board of Public Works and Safety to provide for partial release(s) of the performance guarantee as the developer’s project improvements are completed. The authority for administration and enforcement of said financial guarantee and performance agreement shall then lie with the Board of Public Works and Safety.
4. The following types of performance guarantees may be approved by and filed with the Board of Public Works and Safety:
a. An insurance bond securable to the City in the amount equivalent to one hundred ten percent (110%) of the estimated cost of completion of the required public or private improvements.
b. An irrevocable letter of credit on behalf of the applicant and securable to the City in an amount equivalent to one hundred ten percent (110%) of the estimated cost of completion of the required public or private improvements, written for a maximum length of one (1) year but automatically renewed for additional one (1)-year periods not to exceed four (4) years.
5. The Board of Public Works and Safety shall, after a period of ten (10) months, determine if the public improvements have been accepted for maintenance by the governmental unit having jurisdiction over the public improvements. If they have not been accepted, the Board of Public Works and Safety shall so notify the developer of its intent to secure the funds and then commence procedures to secure the funds pledged by letter of credit. At its discretion the Board of Public Works and Safety may grant an extension for such period fixed by the BPWS, not to exceed one (1) year. In which case the developer shall file with the BPWS a new letter of credit for the period so fixed in accordance with the requirements for letters of credit herein. The Board of Public Works and Safety may require the filing of a financial statement in determining whether or not to accept a letter of credit.
6. A performance guarantee by insurance bond shall be deemed by the City to be in full force and effect until such time said guarantee is released by official action and written notice by the Board of Public Works and Safety. Any public improvements must be completed and accepted within two (2) years of secondary approval (the date the Notice of Determination of Secondary Approval is issued), unless an extension of time is granted by official action of the Board of Public Works and Safety. Failure to complete improvements within said time limits may result in forfeiture of financial guarantee without additional notice to financially responsible party to secure completion of said improvements.
7. Performance Guarantee Released/Maintenance Guarantee Received.
a. Upon completion of the public improvements within a subdivision or development (or sections thereof) and submittal of as-built drawings (in CAD) and video of any storm sewer, the developer shall request inspection of construction improvements and release of performance guarantee by the Board of Public Works and Safety. Upon receipt of such request the Board of Public Works and Safety shall instruct the City Engineer and other appropriate City representatives to inspect said improvements and submit recommendations to the Board of Public Works and Safety. Any deficiencies found in the design and workmanship of public improvements shall be corrected by the developer prior to release of the performance guarantee. At such time as the public improvements are acceptable to the Board of Public Works and Safety, it shall release the performance guarantee in lieu of the three (3)-year maintenance guarantee. The amount of the maintenance guarantee shall be equal to or greater than twenty percent (20%) of the corresponding performance guarantee.
b. Performance guarantee for erosion control shall remain in full force and effect until such time that eighty-five percent (85% of the lots to which that performance guarantee pertains have been built upon.
c. The performance bond or other surety may be partially released on an annual or on a more frequent basis before or during development in accordance with a partial release schedule agreed to in a written performance agreement by:
i. The Board of Public Works and Safety; and
ii. The developer or his/her/its designated agent.
8. As a condition for release of a performance guarantee, the developer shall submit to the City Engineer two complete sets of record drawings of all public improvements covered by said guarantee along with a video of any storm sewers. Final record drawings shall not be accepted until the Board of Public Works and Safety accepts the improvements. Record drawings shall be initially submitted as paper copies, while the final record drawings shall be submitted as original mylar copies, and in an electronic format compatible with the City’s database.
9. Maintenance guarantees shall be of one of the forms as deemed acceptable for financial guarantees above.
10. At least sixty (60) days prior to the expiration date of a maintenance guarantee it shall be the responsibility of the developer to make a written request to the Board of Public Works and Safety for final inspection and full acceptance of responsibility of the public
11. Construction and maintenance of a public improvement shall be deemed as the full responsibility of the developer until said public improvement is accepted by official action and written notice by the Board of Public Works and Safety. Expiration of a maintenance guarantee does not relieve a developer from the responsibility of having the public improvements meet City standards and specifications prior to official acceptance by the City.
B. General Inspection Procedures.
1. Execution of Contractual Agreement. As a condition for secondary approval the developer shall enter into a contractual agreement with and as prescribed by the Board of Public Works and Safety to provide for the inspection and testing services in accordance with the standards and procedures of this Ordinance, and subject to terms, conditions, and amendments as may be imposed by the Board of Public Works and Safety.
2. Duties and Powers of Inspectors. The City Engineer or his/her designated representative shall be responsible for adequate inspection and review of all public improvements constructed within the jurisdiction of the City. Private improvements (including, but not limited to, drainage, streets, grading, erosion) are also subject to inspection when they have the potential to impact adjacent property. The inspector shall perform, but not necessarily be limited to, the following duties:
a. Monitor work being performed to insure that it complies with the standards and specifications of this Ordinance;
b. Maintain an accurate log of his inspections and findings;
c. Issue directives or stop-work orders when necessary to assure compliance with this Ordinance; and
d. Make reports to the Board of Public Works and Safety when necessary or when requested.
3. Installation and Inspection of Improvements. Improvements shall be installed per approved plans. The developer shall be responsible for notifying the City Engineer for inspection of all improvements at least two (2) working days in advance.
a. Street Sub-Grade: When the sub-grade has been graded to proper elevation and compacted in compliance with City specification, the developer shall request inspection by a City representative. The developer shall not proceed with any stoning or paving until having received approval to proceed from the inspector.
b. Street Sub-Base: When the stone sub-base has been graded and compacted in compliance with City specifications the developer shall request inspection by a City representative. The developer shall not proceed with any paving until having received approval to proceed from the inspector.
c. Street Paving: When ready to begin paving the developer shall give the City Engineer at least forty-eight (48) hours’ notice so that the inspector may be present during the time of paving.
d. Drainage Roughed-In: When the land has been cut to grade and properly sloped in compliance with the approved plans, then the developer shall request an inspection by a City representative.
e. Open Trench Storm Sewer Rough-In: When all conduits or storm sewer structures that are to be at or below grade level are in place in the open trench, the developer shall call for an inspection by a City representative.
f. Open Trench Sanitary Sewer Rough-In: When all conduits or sanitary sewer structures that are to be at or below grade level are in place in the open trench, the developer shall call for an inspection. In addition, the developer shall be responsible for providing the City Engineer with documentation for the appropriate tests and certification as required in this Ordinance for sanitary sewers.
g. Block or Street Sections of Sidewalks: If the developer installs sidewalks in relatively large sections such as sections of blocks or streets involving several lots, the developer shall notify the City Engineer for inspection at such time as a given section of sidewalk has been poured and all forms removed. The developer shall not proceed with backfilling or grading until having received approval to proceed from the inspector.
h. Sidewalks on a Lot-By-Lot Basis: If the developer installs sidewalks on a lot-by-lot basis he may perform all work necessary for complete installation of the sidewalk, including backfilling. The City Engineer may make periodic inspections of such sidewalks to assure compliance with standards and specifications. The developer may request a one-time reduction in the amount of the performance guarantee posted, in relation to the amount of sidewalk that has been completed, so long as at least fifty percent (50%) of the total sidewalks have been installed at the time of the request. The Board of Public Works and Safety shall rely on the recommendation of the City Engineer when considering this request.
i. Final: When all work for said improvement in a given subdivision or development (or section thereof) has been completed, and record drawings and video of any storm sewer(s) have been submitted, the developer shall then request a final inspection, before a reduction of the performance guarantee is requested improvement. Failure to comply will result in immediate forfeiture of guarantee. Upon receipt of such request the Board of Public Works and Safety shall instruct the City Engineer and other appropriate representatives to inspect said improvements and submit recommendations to the Board of Public Works and Safety. Any deficiencies found in the workmanship or materials shall be corrected by the developer prior to release of the maintenance guarantee. At such time as the improvements are acceptable to the Board of Public Works and Safety, the Board shall release the maintenance guarantee and the City thereby assumes full and permanent responsibility for maintenance of the public improvement.