(A) Upon submittal of the preliminary plat, the subdivider shall state the type of assurance that will be made for the completion of improvements in a subdivision.
(B) The subdivider or his or her agent shall furnish with the final plat an estimate of the cost of installing and/or constructing the required improvements, prepared by a professional engineer who is registered to practice in the State of Arizona. The Public Works Director shall review and approve the cost estimate before the subdivider's engineer's cost estimate is accepted as the basis for the amount of the surety required for completion of the subdivision improvements. All construction shall be inspected while in progress by the Public Works Department and must be approved in writing upon completion by the Public Works Director.
(C) No final subdivision plat shall be recorded by the town unless one or more of the following methods of assurance are submitted with the final plat. Said assurance shall be entered into in the form of a written agreement between the subdivider, the town and the financial institution, title insurance escrow company, bonding agent or other third party. Said assurance shall cover water distribution system; sanitary sewer collection system; street grading, base course and asphaltic concrete paving; concrete curbs, gutters and sidewalks; drainage structures where required; street signs; survey monuments in streets including swing ties; lot corner monuments and other improvements required as a condition of approval.
(1) Construction of improvements prior to final plat recordation. If the subdivider chooses to construct the required improvements prior to recording of the final plat, he or she shall submit the construction plans to the Public Works Director for approval, and a copy of a title report to the Community Development Director. Upon satisfaction by the Public Works Director that the improvements have been completed in accordance with the approved plans he shall schedule the improvements for acceptance into the town maintenance system by the Council. This shall be scheduled in conjunction with the approval of the final plat, in the case where the final plat has not already been approved. A final plat approval shall specify the time in which the subdivision improvements are to be completed.
(2) Surety performance and payment bonds. The subdivider shall obtain an irrevocable security performance and payment bond from a surety bonding company authorized to do business in the State of Arizona. The bond shall be payable to the town, and shall be in an amount sufficient to cover the entire cost (100%), as estimated by the engineer of record, and approved by the Public Works Director, of installing and/or constructing all required improvements for property covered by the final plat. A final plat approval shall specify the time in which the subdivision improvements are to be completed and the surety performance bond shall specify that the bond funds shall be provided to the town if the improvements are not completed and accepted by the Town Council by the specified completion date. All bonds must be in compliance with A.R.S. §§ 34-222 et seq.
(3) Escrow account.
(a) The subdivider shall deposit cash, or other instrument readily convertible into cash at face value, either with the town or in escrow with a financial institution or title insurance escrow company. The use of any instrument other than cash, and the financial institution or title insurance escrow company with which the funds are to be deposited, shall both be subject to the approval of the Council.
(b) The amount of the deposit shall be at least equal to the entire cost (100%), as estimated by the engineer of record and approved by the Public Works Director, of installing and/or constructing all required improvements for the property covered by the final plat.
(c) In the case of an escrow account, the subdivider shall file with the Council an agreement between the financial institution or title insurance company and himself, guaranteeing that the funds of said escrow account shall be held in trust until released by the Town Council and may not be used or pledged by the subdivider as security in any other matter during that period. A final plat approval shall specify the time in which the subdivision improvements are to be completed and the escrow monies shall be provided to the town if the improvements are not completed and accepted by the Town Council by the specified completion date.
(4) Letter of credit. The subdivider shall provide, from a financial institution subject to the approval of the Town Council, an irrevocable letter of credit, in the amount at least equal to the entire cost (100%), as estimated by the engineer of record and approved by the Public Works Director, of installing and/or constructing all required improvements for the property covered by the final plat. A final plat approval shall specify the time in which the subdivision improvements are to be completed and the monies from the letter of credit shall be provided to the town if the improvements are not completed and accepted by the Town Council by the specified completion date.
(5) Property escrow. If the subdivider wishes to record a final plat prior to the completion of off-site improvements, he or she may set up a property escrow account with a title insurance company, whereby the town will be granted a lien on all lots and no lots may be offered for sale until the off-site improvements have been completed affecting said property and the Town Council has released said property for sale. The Public Works Director shall review the improvements and forward a report of the Council, recommending whether or not the lots should be released for sale. A final plat approved with a property escrow agreement shall specify a completion date. This subdivision is subject to the revocation provisions of § 154.021 of these regulations. The property escrow agreement shall state that if the improvements are not completed by the specified time and the Town Council and subdivider do not agree on an amended property escrow agreement that will extend the subdivision improvement construction period then the subdivider agrees to abandon the subdivision.
(Ord. 21-11, passed 10-26-2021)