A. Purpose. The purpose of this Article is to ensure the equitable financing and proper installation and maintenance of required streets, utilities, and other improvements. The guarantee shall be structured to provide adequate assurances to the City while avoiding unnecessary costs to the developer.
B. Application. This article applies to subdivisions requiring the installation of streets, utilities, or other public improvements by the City or developer.
C. Subdivision Agreement.
1. Condition for Approval of Plat. As a condition for final approval, each subdivision plat must include a subdivision agreement entered into between the City of Mount Vernon and the subdivider. Additionally, no contract for the construction of public improvements involving a subdivision within the extraterritorial jurisdiction but outside the corporate limits of Mount Vernon shall be awarded without the approval of such an agreement.
2. Rules for Distributing Improvement Costs. Generally, the following rules shall be applied in distributing costs for public improvements:
a. Public Costs. The City shall pay for those items that have demonstrable benefit to the general public. If applicable, these items may include:
(1) Pavement width in excess of 28 feet for streets designated as collector or arterial streets in the Comprehensive Plan or the street planning map. On collector and arterial streets requiring a higher standard of paving than normal, the additional cost shall be borne by the City or other public agency.
(2) The incremental cost of water mains over those required by the Public Improvement Design Standards.
(3) Storm sewers or drainage structures in excess of those required by the Public Improvement Design Standards and required to serve other areas in the watershed. Such expenses may also be assessed on an area basis to properties served by the improvement.
(4) The additional costs of sanitary sewers in excess of those required by the Public Improvement Design Standards, when such sewers are required by the City.
(5) Park and recreation facilities consistent with the Comprehensive Plan.
b. Private Costs. The developer shall pay for those items that have direct benefit primarily to the property being subdivided. If applicable, these items shall include:
(1) The entire cost of grading street rights-of-way, including intersections.
(2) All sanitary sewer lines within the subdivision and water lines within the subdivision.
(3) All paving and street construction, including curbs and gutters and street lighting, up to a pavement width of 28 feet.
(4) A stormwater management system adequate to provide for the collection, retention, and removal of surface runoff, extending to the boundaries of the subdivision.
(5) Sidewalks as required by this Ordinance.
(6) The contract charge for underground electrical and gas service.
(7) An iron rod not less than one-half inch in diameter and 24 inches in length as follows:
(aa) Set at the intersection of all lines forming angles in the boundary of the subdivision and at all street intersections.
(bb) At lot corners and changes in direction of block and lot boundaries.
c. Negotiated Costs. In the event that there are costs associated with a particular subdivision that are not public or private costs as set out in subparagraphs (a) and (b), the developer and the City will enter into an agreement, which shall be included as part of the subdivision agreement, as to the developer's and the City's respective responsibilities for these costs, based on the estimated private benefit to the developer and the estimated public benefit to the City. Further, in certain subdivisions, it may be in the public interest to pay for some or all of the private costs associated with the upgrade of water and sewer lines outside the subdivision. In the event the City determines to pay for such costs, the developer and the City will enter into an agreement, which shall be included as part of the subdivision agreement, as to the developer's, City's, and any third party's respective responsibilities for these costs, based on the estimated private benefit to the developer the estimated public benefit to the City, and the estimated private benefit to any third party. Negotiated costs are:
(1) Costs to the improvements outside the subdivision and necessitated by the subdivision.
(2) Other costs not included in subparagraphs A and B of this section.
D. Performance and Financial Guarantees.
1. As a condition of the final approval of the plat and prior to its recording with the Linn County Recorder, the City Council shall require and accept the following:
a. The furnishing of a performance bond, letter of credit, cash escrow, or other guarantee in a form acceptable to the City, in an amount not to exceed 110% of the estimated cost of the improvement installation.
b. A specification of the time allowed for the installation of improvements. This period may be extended by the City Council.
c. The performance guarantee amount and requirement, along with the permitted time for installation, shall be included within the Subdivision Agreement negotiated between the City and the Developer and approved with the Final Plat.
2. If private costs are incurred by the City due to the subdivision, the subdivider shall guarantee repayment of those costs, should increased tax revenues from the subdivision not cover those costs within seven (7) years of the date of the approval of the final plat. The terms and conditions of this agreement shall be spelled out in the Subdividers Ageement under the heading: "Written Assessment Agreement to Establish Minimum Taxable Value".
E. Notification of Completion and Acceptance by City.
1. Notification. Upon substantial completion of all required improvements, the developer shall notify the City in writing, as well as submitting a certification from a registered Professional Engineer, attesting to the adequacy of the installation. Such certifications shall include:
a. A Form of Resolution prepared by the Developer’s attorney for approval and adoption by the City Council accepting dedication of specified public improvements on behalf of the City.
b. A Letter of Certification from the Developer's Licensed Professional Engineer, who prepared the plans and specifications for the public improvements, stating the engineer observed the construction of the public improvements, has supervised and reviewed all test results, and believes that all public improvements have been constructed in substantial conformance with such plans and specifications.
c. A Letter of Acceptance from the City Engineer stating that the City Engineer has inspected all public improvements at the request of and in the presence of the Developer and Developer's Engineer and/or Contractor;. The Letter of Acceptance shall state: 1) all improvements have been visually inspected, 2) all improvements have been operated, 3) training from a factory representative and/or appropriate operating documentation has been received, and 4) all improvements are completed and finished to City standards. This Letter of Acceptance shall not in any way relieve the Developer of warranty requirements set forth in Section 166.15.
d. Sanitary Sewers Certification Submittals, including:
(1) Successful infiltration/exfiltration or air pressure test on gravity sewers noted in certification letter.
(2) Successful high-pressure test on force main noted in certification letter.
(3) Successful trench compaction results noted in certification letter.
(4) Mandrel testing of flexible sewer pipe materials noted in certification letter.
(5) As-built record drawings of sewer system.
(6) Three-year maintenance bond.
e. Water Main Certification Submittals:
(1) Successful high-pressure test on mains (AWWA C-600) noted in certification letter.
(2) Successful leakage test results noted in certification letter.
(3) Successful trench compaction results noted in certification letter.
(4) As-built record drawings of sewer system.
(5) Copy of safe water test result.
(6) Three-year maintenance bond.
f. Lift Station Equipment Certification Submittals:
(1) Report of operational training of City staff.
(2) Report of pump performance in field.
(3) Furnish operation and maintenance manuals for lift station equipment.
(4) As-built record drawings of lift station facility.
(5) Three-year maintenance bond.
g. Storm Sewer Certification Submittals, including:
(1) Report of visual checking/lamping.
(2) Successful trench compaction results noted in certification letter.
(3) As-built record drawings of sewer system.
(4) Three-year maintenance bond.
h. Paving Certification Submittals, including:
(1) Successful subgrade compaction results noted in certification letter.
(2) Successful concrete cylinder test results noted in certification letter.
(3) As-built record drawings of system.
(4) Three-year maintenance bond.
F. Approval and Acceptance.
1. Acceptance of public improvements by the City Council shall release the developer from liability pursuant to the performance guarantee for the installation. The City has the right to retain up to 10% of the value of the performance guarantee for a period of up to one year from the date of acceptance to remedy any deficiencies appearing during that period.
2. If improvements are not accepted or not completed within the specified time, the performance guarantee shall be forfeited and used by the City to complete satisfactory installation of improvements.
3. No residential occupancy permits shall be issued for a subdivision unless the installation of improvements has been inspected and approved by the City Engineer.