A. Ensure Completion Of Improvements:
1. In lieu of completion of improvements prior to issuance of any building permit, the board of commissioners shall require the subdivider to file an improvement guarantee with the board of commissioners, through the city clerk and approved as to form by the city attorney, to ensure the actual construction of improvements according to the plans and specifications approved by the city engineer. All improvements shall be completed within a period of time not to exceed two (2) years from the date of approval of the final plat by the board of commissioners.
2. The board of commissioners shall have the power to extend that deadline of one additional year where the subdivider can present valid reason for doing so. All improvement guarantees shall be one of the alternative forms listed below and shall be in the amount of one hundred twenty five percent (125%) of quantities necessary to construct the improvements as determined by the city engineer and with guarantee and conditions satisfactory to the board of commissioners. No building construction shall be permitted nor municipal utility service furnished on any lot which does not comply with the provisions of these regulations.
B. Alternative Forms Of Improvement Guarantees:
1. Surety Performance Bond: The subdivider shall obtain a security bond from a surety bonding company authorized to do business in the state. The bond shall be payable to the city and shall be in the amount of one hundred twenty five percent (125%), as estimated by a registered engineer and approved by the city engineer, of completing all required improvements.
2. Escrow Account:
a. The subdivider shall deposit cash, or other instrument readily convertible into cash at face value, either with the city, or in escrow with a bank. The use of any instrument other than cash, and, in the case of an escrow account, the bank with which the funds are to be deposited shall be subject to the approval of the board of commissioners. The amount of the deposit shall be one hundred twenty five percent (125%) of the cost, as estimated by a registered engineer and approved by the city engineer, of completing all required improvements.
b. In the case of an escrow account, the subdivider shall file with the board of commissioners, through the city clerk and approved as to form by the city attorney, an agreement between the financial bank and said subdivider guaranteeing the following:
(1) That the funds of said escrow account shall be held in trust until released by the board of commissioners and may not be used or pledged by the subdivider as security in any other matter during that period; and
(2) That in the case of a failure on the part of the subdivider to complete said improvements, then the bank shall immediately make the funds in said account available to the city for use in the completion of those improvements.
3. Letter Of Credit: The subdivider shall provide, from a bank or other reputable institution or individual, subject to the approval of the board of commissioners, a letter of credit. This letter of credit shall be deposited with the board of commissioners, through the city clerk, approved as to form by the city attorney, and shall certify the following:
a. That the creditor does guarantee funds in the amount of one hundred twenty five percent (125%) of the cost, as estimated by a registered engineer and approved by the city engineer, of completing all required improvements;
b. That, in the case of failure on the part of the subdivider 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 those improvements, up to the limit of credit stated in the letter; and
c. That this letter of credit may not be withdrawn, or reduced in amount, until released by the board of commissioners.
C. Delinquent Bond: In the event that the subdivider is the principal on any delinquent corporate surety bond, the obligations of which have not been fulfilled, said subdivider shall be required to provide as surety, cash or certificate of deposit for any improvement not installed and/or constructed by the subdivider prior to the filing of any other final plat.
D. Request Release From Guarantee: It shall be the responsibility of the subdivider posting any form of improvement guarantee to inform the city, through its engineering department, when his obligations under said guarantee have been fulfilled and to request release from the times and conditions of the posted improvement guarantee. The subdivider's obligation shall not be considered fulfilled until the board of commissioners have specifically released the subdivider from his obligation.
E. Certified Engineer's Estimate: Any construction surety, regardless of form, shall be accompanied by a certified engineer's estimate, prepared by a registered professional engineer licensed to practice in the state, certifying that the improvement guarantee amount is sufficient to cover one hundred twenty five percent (125%) of the current cost of constructing the guaranteed improvement.
F. Board Of Commissioner's Action: If any portion of the required improvements shall fail to be accepted for dedication within the allocated time period, either for reasons of incompletion or for reason of substandard construction, then the board of commissioners shall take the following action:
1. Where improvements have been guaranteed under the provisions of these regulations, the board of commissioners shall declare whatever security has been pledged as a guarantee to be forfeit.
2. Where the board of commissioners is not already in possession of said guarantee, it shall immediately take the actions necessary to obtain it. Upon receipt of these securities, the board of commissioners shall use them, or receipts from their sale if that be necessary, to finance the completion of required improvements or the rebuilding of such improvements to the proper specifications. Unused portions of these securities shall be returned to the subdivider, bonding company, or crediting institution, as is appropriate. (Ord. 5157, 8-10-1981)