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No building permit shall be issued for any development or building on any lot within a subdivision, unless and until the City Engineer inspects and determines that all of the subdivisions improvements have been satisfactorily completed, except for sidewalks along the street frontages of lots that will remain in private ownership and that are guaranteed to be installed at some future date by surety that conforms to the requirements of this Code.
(1) All subdivision improvements shall be completed to the full satisfaction of the City Engineer before a final plat may be released for recording, unless the developer posts surety with the city to guarantee that the uncompleted subdivision improvements will be satisfactorily completed within not more than one calendar year after the date of the City Council’s approval of the final plat. The posting of surety shall not be deemed to constitute or ensure the city’s acceptance of any improvements, either upon posting of the surety or at any future date; approve the issuance of building permits, or of certificates of zoning compliance or occupancy; or approve the expenditure of city funds within any part of the subdivision.
(2) Surety shall be provided in the form of a bond, letter of credit, cash escrow held in city trust account or other collateral that is acceptable to City Legal Counsel and approved by the City Council, and shall be of an amount that the City Engineer determines to be necessary and sufficient to cover all of the city’s costs for constructing the uncompleted subdivision improvements, including inspections and tests that customarily would be conducted by the city, at some future date.
(3) The surety shall remain in full force and effect until the subdivision improvements have been completed to the satisfaction of the City Engineer, and have been accepted by the City Council, provided that surety may be called by the city for any subdivision improvements that have not been completed within six years after the date of City Council approval of a final plat without any further finding beyond the factual passing of such date, and further provided that surety that is not called at such time shall not be deemed to have been released or voided. Maintenance bonds shall remain in force for not less than four years as provided by division (B) below, after the date of acceptance of the improvements by City Council.
(4) Surety for sidewalks along arterial streets shall be 100% of the total cost of installation, including inspection and testing. Surety for sidewalks along arterial streets shall be in the form of cash escrow only. Surety for sidewalks along collector and local street frontages of lots being platted shall be calculated at 15% of the total cost of installation, including inspection and testing. The 15% surety shall remain in place until the value of the uncompleted sidewalks is reduced to the value of the surety. At that point, the value of the surety can be reduced as sidewalks are completed. Sidewalk surety shall not be totally released until all sidewalks in the plat are completed.
(B) Maintenance bonds.
(1) The developer shall warrant the design, material, workmanship, installation and construction of all of the subdivision improvements for a minimum of four years from and after satisfactory completion and City Council acceptance of roadway payment, sanitary sewers, storm sewers and other improvements that are related to drainage, and park infrastructure, and shall cause the warranty to be ensured by independent bond or by other collateral that is found to be acceptable by City Legal Counsel (herein “bond”). The bond shall specifically ensure the expedient repair or replacement of any and all improvements that the City Engineer finds to be defective following completion and acceptance, and shall indemnify and hold the city harmless from any and all costs or losses resulting from, attributed to or otherwise arising from the defective improvements.
(2) The City Engineer may, at the Engineer’s discretion, require any bond to run for a duration of more than four years, and to be posted in a greater amount, in lieu of immediate replacement and reconstruction of any improvement that is not fully compliant.
(Title VII, Ch. 3, §§ 1.7.3 and 1.8.9)