(A) Guarantees of installation. The developer may execute and file with the city or county financial guarantees in lieu of actual installation or completion of the required improvements concurrently with the application for approval of the final plat. Such guarantees may be in the form of a performance surety bond, a certified check or an escrow check or escrow account shall be approved by the Director of Public Service and form of the surety bond or escrow agreement shall be approved by the Director of Law.
(B) Terms. Guarantees of installation shall not be for a longer period than two years, unless Council or the County Commissioners, by ordinance or resolution, extend the time. Bonds shall be executed by the applicant as principal with a surety company authorized to do business in the State of Ohio. The performance surety bond certified check or escrow deposit shall be conditioned that the developer will faithfully discharge all requirements of this chapter and install all required improvements, and faithfully pay all laborers, materialmen and contractors or subcontractors that are directly involved in the subdivision improvements so that no mechanic's liens of any type or nature are filed or asserted against or for the improvements herein required, and that if the city or county performs work or service for the developer at his request, that the city or county will be faithfully paid for all work, services, materials and equipment furnished such developer. Such bond shall run for the benefit of the city and county, and in addition thereto, to all laborers, materialmen, subcontractors and contractor furnishing labor, equipment or materials or other services on such improvements, and to any owner of lots in the subdivision who may purchase such lots from the developer or his assigns, and any beneficiary of such bond shall have a legal right to press a claim or suit against such bond or deposit.
(C) Amount of guarantee. The financial guarantees for installation shall be in an amount equal to the estimated total cost of materials and labor required to install or construct the improvements, plus 10% contingencies. Such costs shall be determined by the City or County Engineer. When any portion of an improvement has, upon inspection, been found satisfactorily completed, a reduction in the bonds or partial withdrawal of funds may be authorized upon receipt of lien waivers or releases.
(D) Progressive installation. The developer may apply for final approval recording of only a portion of the entire subdivision. Under such a progressive unit development procedure, the installation of required improvements and sale or lease of lots may proceed only on that portion of the subdivision which has been approved and recorded.
(E) Failure to complete improvements. In the event the developer fails to complete or pay for the installation of all land improvements according to the terms and conditions of the agreement, the city or county may complete the same and appropriate such portion of the money or bonds posted for the faithful performance of such work, and the payment thereof.
(F) Assurance of performance. Any bond tendered to meet the requirements of this chapter shall affirmatively state that the surety will assure performance of division (B) above. Notwithstanding any omissions or conflicts in the written bonds tendered by developers to meet the requirements of the bonds, all bonds shall be construed to grant the protection stated in division (B), and all sureties written and tendering bonds to the city or county shall be bound by the provisions of this chapter and the duties required of developers.
(G) Guarantees of maintenance. The developer or the developer's general contractor shall guarantee the construction and materials of the improvements for a two-year period after acceptance by the city or county via a recorded plat. In order to secure the guarantee, the developer or the developer's general contractor shall deposit an amount equal to 5% of the total cost of the construction of the improvements in a maintenance fund, or post a maintenance surety bond for such amount, which shall be done concurrently with filing the performance and payment bond required herein. The two-year maintenance guarantee period shall commence upon the date of recordation of the final plat.
(H) Trench settlement guarantee. The developer or the developer's general contractor shall provide a surety bond or escrow account in the amount of 3% of the total cost of pavement in order to assure repair of any damage to the streets, which may occur within three years from the date of recordation of the final plat by reason of trench settlement.
(I) Termination of improvements before boundary. Streets and other public improvements may be terminated at a minimum distance of 10 feet from the boundary of the subdivision or at a greater distance as may be determined by the Director of Public Service based upon grading or other site conditions that would make installation of these improvements to the property boundary impractical. Financial guarantees for performance, maintenance and trench settlement shall not be required for those improvements that have not been constructed within the approved termination area as these improvements will be installed in the future by the developer of the adjacent property. The remaining streets and other public improvements outside of the termination area shall be constructed or financially guaranteed as described elsewhere in this section.
(‘65 Code, § 1383.07) (Ord. 88-79, passed 7-3-79; Am. Ord. 12-065, passed 10-16-12)