6-1-200 Security for Improvements

A. Prior to approval by the Development Review Committee and recordation of a final plat, the subdivider shall be required at the subdivider’s cost to provide a cost estimate prepared by a licensed engineer with the affixed engineer’s engineering stamp to the Community Development Department office to forward to the County Engineer/Surveyor for review and approval. B. The County Commission shall review and execute a subdivision improvement agreement and establish the kind and amount of financial security necessary to guarantee completion of the required improvements. C. The developer shall enter into an agreement with the County which establishes the kind and amount of financial security necessary to guarantee completion of the required improvements. A Financial Guarantee acceptable to the County as security to ensure completion of all improvements required to be installed in connection with the subdivision. The Financial Guarantee shall be in a form approved by the County Commission and may contain specific provisions approved by the County Attorney. The Financial Guarantee shall include but not be limited to the following provisions: 1. The improvements shall be completed within a period of time not to exceed eighteen (18) months from the date the Agreement is executed. 2. The improvements shall be completed to the satisfaction of the County and in accordance with the County's Subdivision Standards and Specifications as established by the County Engineer and adopted by the County Commission, and the approved plans and specifications for the project. 3. The Financial Guarantee shall be equal to 110% of the County Engineer's approved cost estimate of the improvements to be installed. 4. The County shall have immediate access to the Financial Guarantee proceeds in the event of default. 5. The Financial Guarantee proceeds may be reduced at intervals determined by the County Engineer upon the request of the developer as improvements are installed and completed. The amount of the reduction shall be determined from inspections by the County Engineer or Roads Department. Such requests may be made only once every thirty (30) days and no reduction shall be authorized until such time as the County Staff has inspected the improvements and found them to be in compliance with the County's Standards and Specifications and approved plans. All reductions 6-1- 24 shall be by written authorization of the County Engineer. No Financial Guarantee shall be reduced below ten percent (10%) of the estimated cost of the improvements plus the estimated cost of slurry seal until final acceptance of the improvements by the County Engineer or Roads Department following the warranty period. 6. If the Financial Guarantee proceeds are inadequate to pay the cost of the completion of the improvements according to the County's Standards and Specifications and approved plans, for whatever reason, including previous reductions, the developer shall be responsible for the deficiency and no further building permits shall be issued in the subdivision until the improvements are completed or, with County Commission approval, a new, satisfactory Financial Guarantee has been executed and delivered to the County or other satisfactory arrangements have been made to ensure completion of the remaining improvements. 7. In the event of default by the developer, the County's costs of administration, cost of obtaining the Financial Guarantee proceeds, and/or costs of completing the improvements, including, but not limited to administrative, engineering, legal, labor and materials costs, shall be deducted from any Financial Guarantee proceeds. The developer shall be required to reimburse the County any deficiencies in the Financial Guarantee funds to pay for such costs incurred by the County. 8. The developer shall hold the County harmless from any and all liability which may arise as a result of the improvements which are installed until such time as the County certifies the improvements are complete and accepts the improvements, subject to the developer’s warranty obligations. D. The Financial Guarantee Agreement shall be the following as prescribed by the County: A bond, letter of credit, or escrow with a Utah Lending Financial Institution or Title Company. 1. The Financial Guarantee requires: a. The establishment of a bond, letter of credit, or institution escrow for 110% of the County Engineer approved Cost Estimate of materials and labor for installing the required improvements. b. Upon completion and inspection of the required improvements, the County Engineer will release the approved amount. No Financial Guarantee shall be reduced below ten percent (10%) of the estimated cost of the improvements plus the estimated cost of slurry seal until final acceptance of the improvements by the County Engineer following the warranty period. 6-1- 25