All bonds and insurance required under this section shall be secured from companies authorized to do business in the State. No subdivision shall be approved until the improvements required have been constructed or a bond, executed by a surety company, or developer's property bond on real estate, or securities, including but not limited to mortgages and deeds of trust, or other adequate collateral as determined by the Law Director, has been deposited with the Finance Director guaranteeing the faithful performance of the construction of such streets in any new subdivision.
(a) Construction Agreement. To assure construction and installation of improvements required by these Regulations, the subdivider shall execute a construction agreement with the Finance Director in form and substance as determined by the City Engineer and approved by the City's Law Director. This agreement shall provide that all such improvements shall be constructed and installed at the subdivider's expense in compliance with the standards and specifications for each of the various types of improvements; such improvements shall be available to and for the benefit of the lands within such subdivision; that such improvements shall be completed and installed within eighteen months of the date of conditional approval of the plat as permitted according to Section 1177.04(e)(3). Any further provisions that the City's Law Director may deem necessary in the public interest may be added.
The construction agreement shall further provide that, in the case where approval of the plat has been given before construction or improvements and a performance guarantee has been provided and if the improvements are not completed within the specified time, the City upon proper notice may complete the improvements and recover full costs and expenses thereof from the subdivider and may appropriate such portion of money or bonds posted for the faithful performance of the works.
(b) Commencement of Improvements. No construction of any improvements or clearing, grubbing and grading shall be commenced prior to the approval of the construction agreement by Council.
(c) Performance Guarantee.
(1) Type. The subdivider, in lieu of actual installation or completion of the required improvements when requesting conditional approval of a plat, shall execute and file a construction agreement and cash bond in accordance with Section 1177.04(a)(4) of these Regulations.
(2) Term. Guarantees shall be for a period of not longer than two years unless the Public Service Director shall extend the time period or should recommend acceptance after completion.
(3) Amount. The financial guarantee shall be in an amount equal to the subdivider's estimate approved by the City Engineer of the cost of construction of all improvements plus ten percent (10%).
(d) Maintenance Guarantees. A cash maintenance bond shall be posted with the Public Service Director in the amount of ten percent (10%) of the cost of the improvements and shall be arranged for a period of eighteen months from date of acceptance of improvements by the City Engineer. The subdivider shall be responsible for routine maintenance of all improvements and shall repair all failures due to faulty construction as soon as they become apparent. He shall also make repairs due to erosion or abuse by utility companies and shall repair all failures for all other reasons during the maintenance guarantee period. The streets, street trees, monuments and other improvements shall be in a condition acceptable to Council at the end of the maintenance period. If the subdivider fails to perform the maintenance to the complete satisfaction of Council, Council may use such cash maintenance guarantee for improvements of properties within the subdivision.
(e) Liability Insurance. The subdivider shall furnish such insurance as is deemed necessary by Council which shall indemnify and save harmless the City from any and all liability arising by reason of the conditions which may arise or grow out of the construction or installation of such facilities. The insurance shall be of such duration as determined by the Law Director, but shall in no case be allowed to expire earlier than the effective period of any maintenance bond. A copy of the insurance policy shall remain at all times with the Council Clerk and Law Director.
(f) Title Insurance. A title insurance policy in an amount to be determined by the Law Director shall be furnished by the subdivider insuring the title of the lands to be dedicated and that all taxes are paid on all land to be dedicated to public use. The title insurance policy shall show the release by the mortgage holder, if any, of all interest in all property dedicated to a public use.
(Ord. 1982-119. Passed 12-20-82.