(A) Generally. Where the required improvements have not been completed prior to the submission of the plat for final approval, the Board of Commissioners may approve the plat subject to the subdivider guaranteeing the installation of the improvements. Upon approval of the Planning and Inspections Director, performance guarantees shall initially run for a period of one (1) year, unless the developer determines that the scope of work for the required improvements necessitates a longer duration. In the case of a bonded obligation, the completion date shall be set one (1) year from the date the bond is issued unless the developer determines that the scope of work for the required improvements necessitates a longer duration.
(1) The amount of the performance guarantee shall not exceed 125% of the reasonably estimated cost of completion at the time the performance guarantee is issued. The City Manager may determine the amount of the performance guarantee or use a cost estimate determined by the developer. The reasonably estimated cost of completion shall include 100% of the costs for labor and materials necessary for completion of the required improvements. Where applicable, the costs shall be based on unit pricing. The additional 25% includes inflation and all costs of administration regardless of how such fees or charges a denominated. The amount of any extension shall not exceed 125% of the reasonably estimated cost of completion of the remaining incomplete improvements still outstanding at the time the extension is obtained.
(2) A developer shall demonstrate reasonable, good-faith progress toward completion of the required improvements that are secured by the performance guarantee or any extension. If the improvements are not completed to the specifications of the City, and the current performance guarantee is likely to expire prior to completion of the required improvements, the performance guarantee shall be extended, or a new performance guarantee issued, for an additional period. The extension shall only be for a duration necessary to complete the required improvements. If a new performance guarantee is issued, the amount shall be determined by the procedure below and shall include the total cost of all incomplete improvements.
(3) The developer shall have the option to post one type of a performance guarantee in lieu of multiple one for all development matters related to the same project.
(4) The performance guarantee shall be posted no later than the time of recordation of the final plat.
(5) The performance guarantee shall only be used for completion of the required improvements and not for repairs or maintenance after completion.
(6) No person shall have or may claim any rights under or to any performance guarantee provided pursuant to this section or in the proceeds of any such performance guarantee other than the following:
(a) The City.
(b) The developer at whose request or for whose benefit the performance guarantee is given.
(c) The person or entity issuing or providing the performance guarantee at the request of or for the benefit of the developer.
(B) Performance guarantee. All improvements shall be guaranteed by one of the following methods or any other method at the election of the developer.
(1) A letter of credit or line of credit from a lending institution that specifies a limit of credit which may be extended to a developer upon request. This amount may not be used for purposes other than the improvements specified for the subdivision being approved. The lending institution shall agree to provide assurance to the City Planning and Inspections Director that a notice of advances on the specified line of credit will be forwarded by the lending institution to the City Manager.
(2) Performance or surety bond executed by a company duly licensed to do business in the state or certified check drawn in favor of the city, or cash deposited with the city.
(3) Other form of guarantee that provides equivalent security to a surety bond or letter of credit.
(C) Release. The performance guarantee shall be returned or released, as appropriate, upon acknowledgment by the city that the improvements are complete to its specifications or upon acceptance by the City.
(Ord. passed 7-25-2011; Ord. 21-O-04, passed 6-28-2021)