A. Acceptable Forms of Security. Before a subdivision plat is presented to the Council for approval, the subdivider shall post assurances, in a form acceptable to the City, to assure the installation of required public improvements. All required improvements shall be designed and constructed in accordance with the latest revision of the Uniform Standard Specifications for Public Works Construction and the Uniform Standard Details for Public Works Construction as compiled by the Maricopa Association of Governments (MAG), and the City of Sierra Vista Public Works Engineering Design Standards and Drawings, as modified and adopted by the Council. Other standards pertaining to any required improvements shall be approved by the City. The purpose of the assurances shall be to guarantee that the improvements are installed in a timely manner and paid for without cost to the City. The City Council accepts the improvement security when the associated final plat is approved.
1. Financial forms of assurance, including cash, letter of credit, performance bond, certificate of deposit, or other similar instruments, shall be filed in the office of the City Clerk in an amount equal to the sum of the cost of construction for all required improvements, including surveying, construction management, testing, and inspections, as determined by the City Engineer. All financial form of assurances for the installation of required improvements on private property shall grant to the town adequate property rights as determined by the City Attorney to allow the City or the City's contractor to complete the installation. Where, in the opinion of the Council, the subdivider has failed or neglected to install the required improvements or make required corrections within a timely manner, or to pay all liens in connection with the required improvements, the Council may use the proceeds from the assurances to install or cause to be installed the required improvements.
2. Third party trust forms of assurance prohibiting the transfer of any individual subdivision lot or block for which required subdivision improvements have not yet been installed, are permitted in lieu of financial forms of assurance.
B. Completion of Public Improvements
1. The required public improvements shall be completed and accepted within two years of final plat approval. If the plat is phased, only the public improvements for each individual phase that was approved are required to be completed within two years.
Exceptions to the two year completion date are as follows:
a. The council grants an extension for good cause. The review of the extension request shall include an evaluation of any change in conditions within or adjoining the final plat and the effect of new or current regulations on the project. Requests for a time extension shall be submitted a minimum of thirty days prior to the expiration date in writing to the Director of Community Development; or
b. An injunction or a court order requiring that the subdivision plat process cease. The platting process can commence, once the court order has been lifted, at the point in the review process where the plat had originally ceased.
c. The developer may elect to construct the sidewalks in conjunction with each individual platted lot. In this instance the subdivider is required to complete the entire sidewalk either when all the homes in the subdivision or phase of the subdivision have been constructed or within 5 years from issuance of the first building permit of each subdivision phase, whichever is earlier. Except that, portions of sidewalk not providing vehicular access to the lot, required sidewalk ramps and required accessible routes shall be completed within the two year improvement period.
(1) In this instance, a separate financial security will be required. The financial form of assurance, shall be as stated in Section 151.19.005(A)(1) and be in an amount equal to the sum of the cost of construction. The security shall be filed in the office of the City Clerk.
2. The subdivider may submit a written request to extend the completion of the public improvements. The request shall include the reasons why the improvements cannot be completed within the stated completion period, and provide a revised deadline for completion.
a. The request for extension shall be considered by the council, whose decision shall be final.
3. A Subdivider's Agreement shall be submitted concurrently with the improvement security. The Agreement is a contract between the City and the subdivider which defines the obligations of the subdivider as they relate to the improvement security, the time frame for completing the public improvements, and the parameters for the City's acceptance of the improvements. The City Council accepts the Subdivider's Agreement when the associated final plat and improvement security are approved and accepted.
C. Release of Assurances
1. Inspections and Acceptance of Improvements. Once all items in this section are submitted and, the developer has completed all public improvements as called for on the approved plans and required under this Code and the Maricopa County Roadway Design Manual, as amended by the City of Sierra Vista, the City will make a final inspection. If all construction is completed to the City's satisfaction, the Director of Community Development will recommend to Council, by Resolution, the final acceptance of the public improvements for maintenance.
a. Final As-Built Plans. The developer shall provide the City with an electronic copy of as-built improvement plans for inclusion in the City Base Map. The file(s) shall be compatible with the release of AutoCAD currently being used by the City or any additional electronically approved format. The as-built plans shall show all streets, drainage, sewer, and water improvements constructed within public rights-of-way or public easements. Final as-built plans shall show the approved design conditions and reflect any field changes approved by the City Engineer and the developer's engineer. The developer's engineer shall certify that the final plans represent as nearly as possible the actual field conditions of all improvements as constructed.
b. Developer's Guarantee and Waiver of Liens. The developer shall certify on the Developer's Guarantee and Waiver of Liens form that is provided by the City that all bills for labor and materials used in the work have been paid and agree to indemnify and save harmless the City against any and all liens, claims of liens, suits, actions, damages, charges, and expenses whatsoever, which the City may suffer arising out of the failure of the developer to pay for all labor performed and materials furnished in the construction of the required improvements. Also, the developer shall guarantee all public improvements work against defective workmanship or materials for a period of two years from the date of its final acceptance by the Council.
c. Assurance Security. A security shall be provided to the City to substantiate the validity of the Developer's Guarantee. The amount of the security shall be $200 per lot. The security shall be retained until the two-year warranty period has elapsed. The security shall consist of cash, a performance bond, a certificate of deposit or other assurance as approved by the City, which meets the requirements in Section 151.19.005(A)(1), Acceptable Forms of Security.
2. Partial Release of Assurances
a. Partial Release of Residential Subdivision Assurances for Third Party Trusts.
(1) Where a third party trust is provided as assurance for completion of improvements, a partial release of a portion of the subdivision or approved phase of a subdivision may occur, prior to the completion of all improvements, provided the partial release is proportional to the level of completion of improvements.
(2) Up to 75 percent of the lots held in a third party trust in any particular phase may be released prior to completion and acceptance of the public improvements. Any lot(s) released shall be served by the completed and inspected public improvements. Partial releases greater than 75 percent or a final release may be granted only when all of the assurable subdivision improvements have been completed, inspected, and accepted by the City.
b. Commercial Subdivisions for Third Party Trust Release. Up to 60 percent of the lots in any particular phase may be released prior to the completion and acceptance of the public improvements. Any lot(s) released shall be served by the completed and inspected public improvements. Partial releases greater than 60 percent or a final release may be granted only when all of the assurable subdivision improvements have been completed, inspected, and accepted by the City.
c. Reduction or Partial Release of Monetary Assurances. Where a bond, letter of credit, certificate of deposit, or other monetary assurance is provided, the amount of the assurance may be reduced upon partial completion of construction, but, only in a ratio that the improvement(s) bears to the total improvements indicated on the plat. Where a subdivider completes the required improvements for a portion of the final plat, monetary assurances for such improvements may be reduced only where the improvements can be used and maintained independently of remaining improvements required for the entire plat. In no case, may more than 75 percent, or 65 percent for commercial projects, of the total monetary of assurances be released prior to completion and acceptance of all improvements.
3. Substitution of Assurances. Where a third party trust is provided as assurance for completion of improvements, a substitute assurance may be submitted for review. The substitute trust includes those portions of the subdivision to be covered. Additional substitute assurances may be needed to be in place so that all of the assurable infrastructure that needs completion is covered. The Third Party Trust or other type of assurances may be entirely substituted by another form of assurance using cost estimate procedures based on the remaining improvements.
4. Additional Assurances. Notwithstanding assurances provided, if the Community Development Director, determines that grounds exist that could result in commercial insecurity that the required improvements will be completed, additional assurances may be required of the subdivider. The neglect or refusal of the subdivider to provide such additional assurances within 30 days, shall result in the immediate suspension of the issuance of any further permits unless and until further assurance is provided.
('76 Code, Art. 12-1) (Ord. 743, passed 4-10-86; Am. Ord. 875, passed 1-10-91; Am. Ord. 1043, passed 9-11-97; Am. Ord. 2005-004, passed 1-24-05; Am. Res. 2020-010, passed 2-13-20; Am. Ord. 2020-003, passed 4-9-20; Am. Ord. 2024-002, passed 2-8-24)