A. A Guarantee For Improvements Is Required Prior To Final Project Approval: Owners/developers/contractors who are proposing any new commercial or substantially modified existing commercial projects, or residential projects, other than individual home construction, with required on site or off site improvements in the city shall be required to post one or more guarantees for improvements prior to final approval by the city. "Approval" in this subsection shall mean recommendation from all appropriate city departments that the owner/developer/contractor be allowed to proceed with construction of the proposed project.
B. Developer Responsible For Performing Improvements: All improvements, required by the approved site plan or other drawings and documents, are the responsibility of the owner/developer/contractor, except as approved by the city engineer.
C. Purpose Of, Number Of, And Forms Used For Guarantees For Improvements: To guarantee to the city the construction, repair, and/or replacement of required improvements, the owner/developer/contractor shall post one or more guarantees for improvements in a form approved by the city attorney.
D. City Engineer's Estimate: The amount of each guarantee shall be based on the city engineer's estimate(s) of the reasonable construction cost of the required improvements ("estimate(s)"). The city engineer or his representative shall prepare one or more estimates, the maximum number of which shall be determined by the city engineer. Each separate guarantee amount shall be the total amount shown on the city engineer's separate estimate form(s).
E. Itemization Of Required Improvements On The Engineer's Estimate: The city engineer or his representative shall prepare one or more estimates that may include, but shall not be limited to:
1. Irrigation and flood control systems.
2. Any roadway improvements that are proposed to be maintained by the city, such as curb and gutter, drive approaches, waterways, sidewalks, trails, bike paths, raised medians, asphalt paving, road base, geotextile fabric, painting, and striping, etc.
3. Survey monuments.
4. Survey rivets.
5. Streetlights.
6. Landscaping and sprinkling systems.
7. Streetscape (trees, benches, etc.).
8. Any roadway or parking lot improvements that are proposed to be privately maintained, such as curb and gutter, drive approaches, waterways, sidewalks, trails, bike paths, raised medians, asphalt paving, road base, geotextile fabric, painting and striping, etc.
9. Fencing and walls.
10. Retaining walls.
11. Trash enclosures.
12. In PUDs, required landscaping and sprinkling system of designated yard or lot for individual home or pad.
13. Any other required improvements determined by the city engineer or the director.
F. Purpose Of Separate Estimates: The city engineer may provide separate estimate lists, itemizing certain groups of improvements, with the intent of providing the opportunity to the developer to perform each certain group of improvements completely and then apply for release of the guarantee associated with that certain group of improvements. Generally, there may be up to four (4) estimates as determined by the city engineer.
1. Estimate containing items in subsection E1 of this section and sometimes subsection E13 of this section.
2. Estimate containing items in subsections E2 through E4, E8 through E11 of this section, and sometimes subsection E13 of this section.
3. Estimate containing items in subsections E5 through E7 of this section and sometimes subsection E13 of this section.
4. Estimate containing the item in subsection E12 of this section.
All items listed on each separate estimate form, as well as all other items required by the city engineer and the director, shall be performed completely, to the satisfaction of city inspectors, before any portion of the guarantee associated with a specific estimate shall be released. Portions of the guarantee will not be released for individual items listed on an estimate, even though they have been completed.
G. All Required Improvements Are Part Of Estimate And Guarantee: All improvements by the approved site plan, standard specifications and details, the building or grading permit, city ordinance or other drawings and documents, shall be part of the estimate(s) and covered by the guarantee(s), whether or not they are specifically listed in the estimate(s).
H. Amount Of The Guarantee:
1. A guarantee in the amount of one hundred ten percent (110%) of the total reasonable construction costs of improvements, as determined by the city engineer, of the above referenced improvements (subsections E1 through E11 and E13 of this section) shall also be provided prior to final project approval.
2. A guarantee in the amount of one hundred ten percent (110%) of the total reasonable construction costs, as determined by the city engineer, of the above improvements (subsection E12 of this section) shall be provided at the time either power to panel (permanent power) or a certificate of occupancy is requested, whichever is requested first, if those improvements have not been installed, inspected, and approved at the time of the request.
I. Performance Of Required Improvements Prior To Occupancy Of The Site: Improvements listed in subsections E1 through E5 and E8 of this section, or as specified by the director and city engineer, shall be satisfactorily installed prior to the issuance of any occupancy permit for the development unless otherwise approved by the director and city engineer.
J. Time Period For Performance Of Required Improvements: All improvements listed in subsections E1 through E13 of this section shall be satisfactorily installed within a period of one year from the date the guarantee is posted with the city, unless otherwise approved by the director and city engineer.
K. Specified Sequence: In order to protect the health, safety, and welfare of the city or its residents from traffic, flood, drainage, or other hazards, the city engineer may require that the improvements, including improvements found damaged or defective prior to the final acceptance of the improvements and one hundred percent (100%) release of the guarantee, be installed or repaired in specified sequence and/or within a specified period of time, which may be less than one year. The city engineer will notify owner/developer/contractor in writing, at such time as he deems it is appropriate, of such requirement. Upon the failure of the owner/developer/contractor to perform the specified improvements or repairs as required by the city engineer, the city may take whatever action it deems appropriate, including foreclosure on the guarantee, to secure the improvements or repairs.
L. Release Of Guarantee: The estimate shall be the document that governs what amounts can be released at any given time upon approval of the city engineer.
M. No Release Of Guarantee For Private Improvements: No portion of the guarantee will be released prior to one hundred percent (100%) completion of all required private improvements.
N. Initiating Inspections For Release Of Guarantee: Upon written request for inspections by the owner/developer/contractor, inspections of the improvements by city inspectors will be scheduled, weather permitting.
O. Partial Release For Public Improvements: Upon one hundred percent (100%) completion of the items in each estimate and approval by the city engineer, the city may release seventy five percent (75%) of the original amount of the guarantee.
P. One Year Warranty Period: As a warranty period, the remaining balance of the guarantee amount for the public improvements shall be held and shall extend for a one year period beyond the date of the partial release.
Q. One Hundred Percent Release Of Guarantee: Upon completion of the one year warranty period and needed repair of any improvements, the owner/developer/contractor shall submit a written request for inspection to the city engineer. Inspections of the improvements by city inspectors will be scheduled, weather permitting. Subsequent to field observation by city inspectors and their submittal to the developer of a notice of any deficiencies, such deficiencies shall be corrected within thirty (30) days from time of notification. If not completed within thirty (30) days, the city has the right to effect the completion of the improvements and/or take other action it deems appropriate. Upon approval by the city engineer, the city may release all remaining portions of the guarantee. This constitutes a one hundred percent (100%) release of guarantee.
R. Type Of Guarantee: Every guarantee required by this development code shall be approved by the city attorney as to form and shall be in the form of:
1. An irrevocable letter of credit form, submitted on forms provided by the city, from a bank or credit union, chartered under the laws of the state of Utah or the United States Of America, licensed and regulated by the department of financial institutions of the state of Utah or its successor and having an office in the state of Utah, which is insured by the federal depository insurance corporation or national credit union share insurance fund, and which has an office in the state of Utah as its place of presentation signed by the owner/developer/contractor and bank or credit union; or
2. An escrow bond form, submitted on forms provided by the city, having as guarantor an organization licensed and regulated by the department of financial institutions of the state of Utah or its successor, having an office in the state of Utah, and which is insured by the federal depository insurance corporation or national credit union share insurance fund, and which has an office in the state of Utah as its place of presentation. Escrow bonds shall be submitted on forms provided by the city and approved by the city attorney and shall consist of a letter of commitment, signed by both the guarantor and owner/developer/contractor and guarantor; or
3. A cash bond form, submitted on forms provided by the city, and signed by the owner/developer/contractor.
S. Special Requirements Of The Guarantee Form: The following conditions apply to all types of guarantees and may be required as a statement or included on the form thereof:
1. The city engineer's estimate(s) of the reasonable construction cost of the required improvements ("estimate(s)") shall be considered a part of the guarantee.
2. Upon completion of all required public improvements, and following inspection and approval of the improvements by the city, a portion of the guarantee may be released and a portion of the original estimate amount will be held for one year after inspection, as set forth in the development code, which amounts will be available to the city in case of defective workmanship or materials not corrected by the owner/developer/contractor. After inspection and authorization from the city, and following the one year warranty period, this final amount may be released. This final portion is held to guarantee the improvements against faulty workmanship, deterioration, failure, faulty design, and all other situations that do not conform to the applicable city specifications and approved drawings for the period up to the date of the final one hundred percent (100%) guarantee release.
3. A statement shall be signed by the owner/developer/contractor and filed with the city engineer certifying that no material liens or mechanic (workmanship) liens exist with regard to the improvements related to any part of the guarantee.
4. Upon the request of the city engineer, the guarantor shall certify the amount existing in the escrow account pertaining to the guarantee, noting the amount of the current balance and amounts released and the date of such releases.
5. The guarantees shall be issued in the name of the party signing the guarantee for improvement.
6. The developer/owner/contractor may be required to sign a statement that certifies that he has or will notify all subcontractors working under him that the city will not release any portion of the guarantee until all required improvements are completed, and the work has been inspected and accepted by the city, at which time the city may release a portion of the guarantee.
T. Duration, Terms, Extensions: Every guarantee authorized by this development code shall run to the benefit of the city and have an express term of at least one year from the date the guarantee is posted for any development to which it applies. Further, such guarantee shall contain language ensuring the performance of the required improvements by the owner/developer/contractor and a provision for unconditional payment of the face amount of the guarantee within ten (10) days from any declaration of default or forfeiture. Guarantee extensions beyond one year may be allowed under special circumstances upon written request by the owner/developer/contractor and written approval of the city engineer. The guaranteeing institution shall provide a written extension of the guarantee if it is not already within the express term.
U. Default: In the event that the owner/developer/contractor is in default or fails or neglects to satisfactorily install the required improvements within one year from the date of posting of the guarantee, or other development approval by the city, or earlier time as established by this title, the city may declare the guarantee forfeited, and the city may, in its sole discretion, install or cause the required improvements to be installed, using the proceeds of the guarantee to defray the expense thereof, including administrative overhead and/or take any other action legally available. (Ord. 12-15, 7-11-2012)