(A) All developers shall post with the City Engineer a performance guarantee in the form of a good and sufficient cash bond or irrevocable letter of credit (or other guarantee acceptable to the city) and deposit agreement in a form prescribed by the city (“performance guarantee”) after final plat approval but before recording, within the time requirements set forth in § 154.022 of this chapter, and before construction of the improvements is started. Such performance guarantee shall be in an amount equal to 100% of the City Engineer’s approved estimate of cost of properly and fully completed construction and installation of all improvements (“estimated costs”) intended to be dedicated to the city, any public entity, or public or private utility for maintenance and operation and such other improvements required on the final improvements as designated by the City Engineer.
(B) The performance guarantee amount shall cover expenditures including, but not limited to, reasonable inspection fees and professional review fees of the city, installation and maintenance of improvements (including landscaping and street trees, where applicable), storm water detention/retention, survey monumentation and soil erosion and sediment control measures, and such other improvement obligations required herein, for a two-year period after inspection, approval and acceptance by the city, if applicable, as specified by the city, as well as engineering and inspection costs to cover the cost of failure or repair of improvements installed on the site, all to be borne by the applicant, and necessary to conform to the requirements established and conditioned upon completion of the requirements set forth in this chapter. As public improvements are completed, a pro rata amount of the performance guarantee may be reduced upon approval by the City Engineer. Performance guarantees for development performance and maintenance may be separate. Where permanent maintenance will be assumed by an agency or entity other than the developer, the time period of the maintenance performance guarantee should be limited accordingly. The City Engineer may draw funds from the guarantee to remedy any failure of the developer to meet the performance guarantee obligations; provided that, except in emergencies, prior written notice shall be provided to the developer to reasonably allow for the developer to remedy the deficiency.
(C) In accordance with the above, the developer shall submit a detailed engineer’s estimate to the City Engineer for review and approval. The estimate shall include quantities of each individual work items and an estimated unit price. Performance of work necessary to complete construction and installation of the required improvements to be dedicated to the city shall be within two years of the date of approval of the final plat, unless such time is extended by written mutual consent of the subdivider and the city. If such improvements are not satisfactorily installed within the time constraints imposed herein, then such guarantee or bond shall be forfeited by the subdivider, and the surety shall be used to complete and/or install such improvements in accordance with the requirements specified herein.
(D) In lieu of the performance guarantee required above, the city may at its discretion permit the developer to install certain improvements by posting a construction guarantee in an amount of 10% of the estimated costs (but such guarantee to be not less than $50,000) of these certain improvements to be completed and inspected to the satisfaction of the city prior to recording of the final plat; provided that, the developer also posts the full guarantee required for all improvements not being completed prior to recording and such guarantee includes an amount for all maintenance and warranty obligations for all improvements as required by this section. Such specific improvements proposed for immediate construction with a 10% construction guarantee shall be noted on the final plat and shall be completed for inspection not later than 12 months after Council approval of the final plat. Where the developer requests this alternative, the final plat shall not be signed by any city representative, nor may it be recorded until the City Engineer has inspected such completed improvements and approved such recording in writing to the Mayor. If such improvements are not completed within the 12-month period required herein, or unless such time is extended by the Council, the final plat approval shall be void and shall provide no authorization of any kind. After Council approval, but prior to recording of the final plat, the city shall have all rights of access, testing and inspection as it would after the final plat is recorded. Where the subdivision is completed in multiple plats, any improvements attributable to or for the benefits of all plats shall be completed or guaranteed as part of the first final plat.
(E) Where a performance guarantee otherwise fully satisfying the purpose of this section is posted by the developer with the county, the Council may waive in whole or in part the required placement of a performance guarantee with the city; provided that, prior to final plat approval the developer provides to the city a performance guarantee otherwise in compliance with this chapter in the amount of 10% of the estimated costs, to guarantee both completion of improvements and the warranty period. Upon annexation of any subdivision into the city prior to completion and release of all improvements, the developer shall transfer to the city or replace with the city the performance guarantee posted with the county, and the Council may require the developer to post a new performance guarantee to ensure that any improvements meet the requirements of this chapter.
(Ord. 3319, passed 2-22-2005)