(A) Introduction.
(1) All references to "city" herein shall mean the City of Newcastle.
(2) All references to "Planning Commission" herein shall mean the Newcastle Planning Commission.
(3) All references to "City Council" herein shall mean the Newcastle City Council.
(4) All references to "City Engineer" herein shall mean the Newcastle City Engineer.
(5) All references to "City Clerk" herein shall mean the Newcastle City Clerk.
(B) Assurance for completion of improvements. Completion of improvements required by this chapter or the Newcastle City Council shall be assured by one of the following methods:
(1) Prior to the recording of a final plat in the office of the County Clerk the subdivider/applicant shall complete, in accordance with the approved construction plans, all improvements required in this chapter as specified in the final plat and/or planned unit development master plan and master development plan map, and, when required, shall dedicate the improvements to the city in accordance with this chapter. The final plat will not be released for recording with the County Clerk until after satisfactory completion and acceptance of the required improvements.
(2) In lieu of completion of all improvements prior to final plat approval and recording, the city may, at its discretion, enter into an agreement with the subdivider/applicant whereby the subdivider/applicant shall guarantee to complete all improvements as may be specified by the Planning Commission and approved by the City Council. To secure this agreement, the subdivider/applicant shall provide, subject to the approval of the City Council, one of the following guarantees:
(a) Subdivision bonds, performance bonds, or improvement bonds. The subdivider/applicant shall file with the City Clerk a subdivision bond, issued by an institution licensed to do business in the State of Oklahoma as a surety company, together with supporting detailed construction contracts in the amount of 110% of the estimated construction costs of the required improvements. In the alternative, the subdivider/applicant shall file with the City Clerk performance bonds, or improvement bonds, for each of the required improvements. A professional engineer shall furnish detailed estimates of the costs of all required improvements and utilities to the City Engineer, who shall review the estimates in order to determine the adequacy of the bond or bonds for ensuring the construction of the required improvements and facilities. Generally, performance bonds or improvement bonds will be required for paving, drainage, storm sewer, water and sewer improvements, boring, and construction of any required facilities including but not limited to lift stations, indicated by the improvement plans and final plat or to serve the final plat property. Release of subdivision bonds, performance bonds or improvement bonds may be made upon the following conditions:
1. All dedications, easements and improvements relative to the final plat and to the surety bond or bonds shall be brought before the City Council for acceptance. Upon such acceptance, the applicant shall file the final plat with the County Clerk. The bond or bonds may be released 90 days after acceptance of all improvements, certified as complete by the Planning Department Director and accepted by the City Council;
2. A copy of the as-built plans, prepared by a professional engineer showing the location of all improvements, shall be submitted to the Newcastle Planning Department prior to release of the bonds securing the same; and
3. Maintenance bonds as required in this section have been filed with the City Clerk and approved by the City Engineer.
(b) Escrow account. The subdivider/applicant shall deposit cash, or other instrument readily convertible into cash at face value, either with the city as approved by the Newcastle City Manager or in escrow with a bank or savings and loan institution. The use of any instrument other than cash shall be subject to approval by the City Council. The amount of the deposit shall be 110% of the full amount of the cost of the required improvements, as estimated by a professional engineer hired by the subdivider/applicant and approved by the City Engineer. In the case of an escrow account, the subdivider/applicant shall file with the City Clerk, for approval by the Newcastle City Attorney, an agreement between the financial institution and the subdivider/applicant guaranteeing the following:
1. That the funds of the escrow account shall be held in trust until released by the City Council and may not be used or pledged by the subdivider/applicant as security in any other matter during that period; and
2. That in the case of a failure on the part of the subdivider/applicant to complete the improvements, the financial institution shall immediately make the funds in the account available to the city for use in the completion of those improvements.
(c) Letter of credit. Subject to the approval of the City Council, the subdivider/applicant shall provide a letter of credit from a bank or other reputable institution or individual. This letter of credit shall be submitted to the City Clerk for approval by the City Attorney and recommendation for acceptance by the City Council. The letter of credit shall certify the following:
1. That the creditor does guarantee funds equivalent to 110% of the full amount as estimated with details by a professional engineer and approved by the City Engineer;
2. That, in the case of failure on the part of the subdivider/applicant to complete the specified improvements within the required time period, the creditor shall pay to the city immediately and without further action such funds as are necessary to finance the completion of the improvements, up to the limit of credit stated in the letter of credit; and
3. That the letter of credit may not be withdrawn, or reduced in amount, until approved by the City Council according to the provisions of this section.
(C) Time limit for completion of improvements.
(1) The period within which required improvements must be completed shall be specified by the City Council in approving the final plat and shall be incorporated in the bond or other instrument, and shall not in any event exceed two years from the date of final approval of the plat or acceptance of the surety bond or other method of assurance, whichever is later. In the event a surety bond or other method of assurance is submitted for acceptance more than one year from the date of final plat approval, a revised current engineer's detailed estimate of costs shall be required.
(2) The Planning Commission may, upon application of the subdivider/applicant and upon proof of hardship, recommend to the City Council extension of the completion date set forth in such bonds or other instrument for a maximum period of one additional year. Such extension shall be granted no more than two times. Each application for extension shall be accompanied by an updated detailed estimate of construction costs prepared by a professional engineer. Surety bonds or other assurances for completion must be filed in the amount of 110% of the updated estimate of construction costs as approved by the City Engineer.
(D) Maintenance bonds required.
(1) Responsibility for maintenance. The contractor shall be required to maintain all improvements on the individual subdivided lots, streets and common areas until acceptance of the improvements by the City Council, after which time claims for failure of improvements may be made on required maintenance bonds, unless otherwise agreed upon by the city and the subdivider/applicant and repairs are made.
(2) Maintenance bonds. Prior to dedication and acceptance by the City Council of all public improvements, maintenance bonds in favor of the City of Newcastle shall be posted and submitted to the City Clerk with supporting construction contracts and detailed cost estimates for review by the City Engineer. Maintenance bonds shall be filed in the following amounts and for the following terms:
(a) Paving improvements:
1. One hundred percent for one year from the date of acceptance of improvements;
2. Fifty percent for the second year;
3. Ten percent for the third year;
4. Ten percent for the fourth year; and
5. Ten percent for the fifth year.
(b) Water, sewer and drainage improvements (including lift stations and other facilities):
1. One hundred percent for the first year;
2. One hundred percent for the second year; and
3. Fifty percent for the third year.
(E) Combination bonds. Nothing herein shall prevent submittal of combination subdivision surety bonds containing provisions for maintenance from the subdivider/applicant or developer. Such bonds shall fully comply with the requirements of this chapter and shall be subject to approval as if submitted separately.
(Ord. 855, passed 4-13-2020)