(A) General. A performance warranty surety shall be sufficient to complete all construction items identified by the City Engineer, or his or her designee, on the punch list submitted with the certificate of substantial completion, and to repair infrastructure due to improper workmanship or defective materials during the warranty periods. The warranty period is the time period during which the developer guarantees the work to be free from defective materials or improper workmanship. The warranty periods for roads dedicated to the city shall be as follows.
(1) For the base courses, the warranty period shall begin at the time of the substantial completion of the work and shall extend until the application of the final asphalt course. In no case shall the warranty period be less than one year from completion of work.
(2) For the final course of asphalt, the warranty period shall be one year from the time of completion of the application of the final surface course.
(3) For development projects that involve recording of a plat, the warranty period for sanitary sewer facilities shall be not less than three years from the date of the plat recording. The warranty period for storm water facilities shall be one year from the date of plat recording.
(4) For development projects that do not involve recording of a plat, the warranty period for sanitary sewer facilities shall be no less than three years from the date of substantial completion. The warranty period for storm water facilities shall be one year from the date of substantial completion of work.
(B) Computation.
(1) The surety shall be computed as follows:
(a) One hundred percent of the punch list items; plus
(b) Ten percent of the cost estimate of the completed project infrastructure, including roads, sanitary sewer facilities and storm water facilities; plus
(c) Twenty percent of the sum of the above items to cover contingencies
(2) The City Engineer shall compute the surety based on the quantities of materials and the unit costs determined.
(C) Total project cost estimate.
(1) The cost estimate of the total project infrastructure shall show the unit cost items and the actual quantities of construction for roads, sanitary sewer facilities and storm water facilities.
(b) For the purpose of establishing the amount of the surety, the total project cost shall not include such items as site excavation, rock removal, trench rock for the sanitary sewer, testing of the sanitary sewers, turn lanes constructed on state right-of-way or other similar items.
(D) Reduction in surety for projects that require plat recording. The surety may be reduced in accordance with the following.
(1) First reduction. The city will conduct an inspection 30 days after the plat is recorded. At that time, the surety may be reduced by an amount equal to the punch list items that have been completed.
(2) Second reduction. One year after the plat is recorded, the surety may be reduced by an amount equal to the punch list items that have been completed and reduced by 10% of the total cost of the storm water facilities.
(3) Third reduction. Two years after the plat is recorded, the surety may be reduced by an amount equal to the punch list items that have been completed. If the final surface course has been applied for at least one year, then the surety may also be reduced by an amount equal to 10% of the total cost of the final course of asphalt.
(4) Fourth reduction.
(a) Three years after the plat is recorded, the surety may be reduced by an amount equal to the punch list items that have been completed and reduced by 10% of the total cost of the sanitary sewer facilities.
(b) If the final surface course has been applied for at least one year, then the surety may also be reduced by an amount equal to 10% of the total cost of the final course of asphalt (if it has not been previously reduced).
(E) Reduction in surety for projects that do not involve plat recording. The surety may be reduced in accordance with the following.
(1) First reduction. The city will conduct an inspection 30 days after the date of substantial completion. At that time, the surety may be reduced by an amount equal to the punch list items that have been completed.
(2) Second reduction. One year after the date of substantial completion, the surety may be reduced by an amount equal to the punch list items that have been completed and reduced by 10% of the total cost of the storm water facilities.
(3) Third reduction. Two years after the date of substantial completion, the surety may be reduced by an amount equal to the punch list items that have been completed. If the final surface course has been applied for at least one year, then the surety may also be reduced by an amount equal to 10% of the total cost of the final course of asphalt.
(4) Fourth reduction.
(a) Three years after the date of substantial completion, the surety may be reduced by an amount equal to the punch list items that have been completed and reduced by 10% of the total cost of the sanitary sewer facilities.
(b) If the final surface course has been applied for at least one year, then the surety may also be reduced by an amount equal to 10% of the total cost of the final course of asphalt (if it has not been previously reduced).
(Ord. 013-137, passed 6-24-2013)