(A) General. In order to record an approved final plat in which public infrastructure improvements are required, the developer shall construct the improvements to the approval of the city or file a guarantee of performance in lieu of completing the infrastructure prior to recordation of the plat. All such construction shall be inspected while in progress by the Public Works Department and must be approved upon completion by the Public Works Director or his or her designee.
(B) Filing a guarantee. If the developer elects to file a guarantee of performance in lieu of completing construction prior to recording the plat, one of the following methods of posting security shall be used, while the city does reserve the right to select which of the following guarantees of performance is utilized.
(1) Unconditional letter of credit from a local bank, local federally insured Savings and Loan Association or other financial institution in a form acceptable to the city and signed by a principal officer of the institution, agreeing to pay to the city, on demand, a stipulated sum of money to apply to the estimated costs of completion of all required improvements, cost of completion of the required improvements being verified by the City Engineer.
The letter of credit shall be dated to expire not less than one year from the recordation of the final plat. If the required infrastructure is not complete within six months of acceptance of the letter of credit, the city shall use the funds to construct the improvements.
(2) Performance bond submitted with the city by a surety company holding a license to do business in the State of Texas, in a form acceptable to the city, in an amount equal to the estimated costs of completion of required improvements verified by the City Engineer. It shall be dated to expire not less than one year from the recordation of the final plat. If the required infrastructure is not complete within six months of acceptance of the letter of credit, the city shall use the funds to construct the improvements.
(C) Guarantee of performance. For the guarantee of performance, as described in this section, the Engineer whose stamp and signature are found on the final plat and final engineering drawings shall prepare a detailed estimate of outstanding infrastructure items to include the cost of each item, the cost of installation of each item and the total cumulative cost of all outstanding infrastructure items. This detailed estimate should be stamped and signed by the Engineer. The city’s Engineer shall review this detailed estimate to ensure that all items are accounted for and are valued at costs that are reasonable given the market at the time of which the project occurs. The city may request that the developer make modifications to the detailed estimate to reflect comments from the city’s Engineer. Once approved by the city’s Engineer, the city will accept the guarantee of performance, as described in this section, for the total cumulative cost as shown on the detailed estimate, and the final plat shall be filed with the county.
(Ord. 2010-08, passed 3-9-10)