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    Home » Sec. 24.1-25. Bond.

    Sec. 24.1-25. Bond.

     

    Sec. 24.1-25. Bond. 
     
    Every subdivider shall provide to the city a guarantee of performance prior to the acceptance of dedication for public use of any right-of-way located within any subdivision or section thereof in which any street, curb, gutter, sidewalk, bicycle trail, drainage or sewer system, water line site-related improvements required by local ordinances for vehicular ingress and egress, traffic signalization and control, structures necessary to ensure stability of critical slopes, stormwater management facilities, or other improvement dedicated for public use that is to be constructed in whole or in part by private funds and is to be maintained by the city. To guarantee such performance the subdivider shall: (i) certify to the city engineer that the construction costs have been paid to the person constructing such facilities; (ii) furnish to the city engineer a certified check, a financial institution’s letter of credit, a cash escrow account, or a personal, corporate or property bond, with surety satisfactory to the city, hereinafter referred to as the "performance guarantee," in an amount sufficient for and conditioned upon the construction of such facilities, or a contract for the construction of such facilities, and a contractor’s bond, with like surety, in like amount, and so conditioned, or (iii) furnish to the city engineer a financial institution’s letter of credit on certain designated funds satisfactory to the city engineer as to the financial institution, the amount and the form. The amount of such performance guarantee shall equal the total estimated cost of construction based on unit prices for new construction in the city plus a reasonable allowance for estimated administrative costs, inflation, and potential damage to existing roads or utilities, which shall not exceed twenty-five (25) percent of the estimated construction costs. "Such facilities," as used in this section, means those facilities specifically provided for in this section.
     
    If a subdivider records a final plat which may be a section of a subdivision as shown on an approved preliminary subdivision plat and furnishes to the city a performance guarantee as defined above for facilities to be dedicated for public use and to be maintained by the city within said section, the developer shall have the right to record the remaining sections shown on the preliminary subdivision plat for a period of five (5) years from the recordation date of the first section subject to engineering and construction standards and zoning requirements in effect at the time that each remaining section is recorded.
     
    Notwithstanding other provisions of this section, and provided the subdivider and the city have agreed on the delineation of sections within a proposed development, the subdivider shall not be required to furnish to the city a performance guarantee for the estimated cost of construction of facilities to be dedicated for public use within each section of the development until such time as construction plans are submitted for the section in which such facilities are to be located. (Ord. No. O-80-007, § 1, 1-8-80; Ord. No. O-10-034, 4-27-10, eff. 7-1-10)
     
    Last updated date: 6/28/2010 11:35:03 AM