A. In lieu of actual installation of the improvements required by this chapter prior to the approval and recordation of the final plat, the mayor, or the mayor's designee, may permit the subdivider to enter into an agreement by which the subdivider agrees to complete all required improvements no later than two (2) years following the approval of the plat and subdivision. The subdivider shall covenant to maintain each required improvement until inspection and acceptance by the city engineer and also shall warrant that all required improvements will be free from defect for a period of twelve (12) months from the date of final inspection and acceptance. The agreement shall provide that the covenants contained in the agreement shall run with the land and bind all successors, heirs, and assignees of the subdivider. The subdivision improvement agreement shall contain such other terms and conditions required by the mayor, or the mayor's designee, and shall be approved as to form by the city attorney.
B. Whenever a subdivider is permitted under subsection A of this section to enter into a subdivision improvement agreement, the mayor, or the mayor's designee, shall require the subdivider to provide a financial guarantee for the completion and warranty of the required public improvements by one of the methods specified as follows:
1. The subdivider may furnish and file with the city recorder an irrevocable letter of credit agreement approved by the mayor, or the mayor's designee, together with an irrevocable letter of credit issued by a federally insured bank or savings institution, in an amount equal to one hundred percent (100%) of the cost of the improvements not previously installed as estimated by the city engineer, conditioned for the installation of such improvements within a period of two (2) years immediately following the approval of the plat and subdivision by the mayor, which agreement and letter of credit shall be approved by the city attorney as to form, and shall be filed with the city recorder.
2. The subdivider may deposit in escrow either with the city or with a federally insured bank or savings institution, approved by the mayor, or the mayor's designee, as a third party depository, an amount of money equal to one hundred percent (100%) of the cost of the improvements not previously installed as estimated by the city engineer, as stated in subsection A of this section, under an escrow agreement conditioned for the installation of said improvements within two (2) years from the approval of the plat and subdivision by the mayor. The escrow agreement shall be approved by the mayor, or the mayor's designee, and by the city attorney as to form and shall be filed with the city recorder.
C. The city shall release the financial guarantee, or portions thereof, upon request of the subdivider under the following conditions:
1. A request is not made more frequently than every thirty (30) days;
2. The request is for a completed system that has been inspected and accepted by the city; and
3. All required improvements are warranted by the subdivider for one full year after final inspection and acceptance. The city shall, as a warranty assurance, retain a portion of the financial guarantee, or receive from the subdivider a separate financial guarantee, equal to:
a. Ten percent (10%) of the required improvement costs under the financial guarantees until twelve (12) months from the date of final inspection and acceptance; or
b. Ten percent (10%) of the actual improvement costs if the developer provides the city with receipts or other evidence of actual cost deemed satisfactory by the city engineer until twelve (12) months from the date of final inspection and acceptance.
D. The mayor may waive the financial guarantee requirement for improvements required to be installed by the Ogden City redevelopment agency as the owner and subdivider of property; provided that the city and the agency have entered into a subdivision improvement agreement.
E. No subdivision improvement agreement or financial guarantee shall be required for property owned and subdivided by the city, except as may be necessary to provide for the obligations of parties other than the city.
(Ord. 2013-35, 6-25-2013)