Section 11, Subsection 12 Improvement guarantee and completion

A. COST OF IMPROVEMENTS. All required improvements shall be made by the applicant/developer, at their expense, without reimbursement by the Town or any improvement district therein, and in accordance with related codes, fee schedules, and ordinances. B. COMPLETION OF IMPROVEMENTS 1. Before a subdivision plat may be recorded, and before a building permit may be issued, all improvements required by this Section or other Town ordinances shall be either: a. Completed, inspected, and accepted by the Town, or b. Guaranteed according to Subsection 12(C). 2. All improvements are subject to Town inspection before such improvements may be accepted by the Town or considered complete. The Town Engineer shall be responsible for conducting such inspections. Improvements shall be accepted only if they conform to applicable Town ordinances and do not pose a risk to public health or safety. All public improvements are subject to the warranty described in Subsection 12(C)(8). a. The applicant/developer shall, in accordance with the Town’s Fee Schedule, pay to the Town an inspection fee before the Town shall accept any improvements. 3. The provisions of this Section do not supersede the terms of a valid development agreement, an adopted phasing plan, or the state construction code. 4. For subdivisions where no performance guarantee has been posted, if the improvements are not completed within the period specified in the approved subdivision improvement plan, the approval shall be deemed to have expired. In those cases where a performance guarantee has been posted and required improvements have not been installed within the terms of such performance guarantee, the Town may thereupon declare the guarantee to be in default and require that all the improvements be installed regardless of the extent of the building development at the time the guarantee is declared to be in default. In the event that the un-released portion of the guarantee is not sufficient to pay all the cost for installing the required improvements, the Town may maintain an action against the person giving the guarantee for the necessary amount to complete the improvements. C. IMPROVEMENT GUARANTEES, COMPLETION ASSURANCES, AND WARRANTIES 1. If an applicant elects to guarantee any required improvement, the applicant shall provide completion assurance for 110% of the cost of the improvement, guaranteeing that the improvements will be completed within two years after the date of the guarantee; The 29 sum of the completion assurance shall not exceed: a. 100% of the estimated cost of the public landscaping improvements or infrastructure improvements, as evidenced by an engineer’s estimate or licensed contractor’s bid; and b. 10% of the amount of the bond to cover administrative costs incurred by the municipality to complete the improvements, if necessary. 2. For the purpose of posting an improvement guarantee, the cost of the improvement shall be determined by an engineer's estimate or licensed contractor's bid. 3. The Town shall accept any of the following forms of guarantee for an improvement: a. BOND. The applicant may furnish a bond with corporate surety, which bond shall be approved by the Town Attorney and filed with the Town Clerk. (1) The bond shall have an express irrevocable term of two (2) years from the date of approval of the final plat of the subdivision. Further, such bond shall contain language unconditionally guaranteeing the performance of the developer, A provision shall be provided for unconditional payment of the face amount of the bond within thirty (30) days from the day the Town declares, for cause, that the developer is in default. b. ESCROW. The developer may deposit in escrow with an escrow holder approved by the Town Council, 10% of the total improvements under an escrow agreement to assure the installation of said improvements within two (2) years from date of final approval. An estimate of the total improvements will be provided and paid for by the developer. c. PLAT HOLD. The developer may allow Elsinore Town to hold the final plat map until all improvements that are required are completed. If total improvements are not completed within two (2) years from date filed with Elsinore Town Office, the final plat will be void. 4. As improvements are completed, inspected, and accepted by the Town, the Town Council shall, each quarter, at the option of the applicant, issue a partial release of bonded or escrow funds proportional to the improvements accepted during the prior quarter. a. Subject to maintenance provisions contained in this Code below, the Town will not accept dedication of required improvements, or release or reduce a performance guarantee, until the Town Engineer has submitted a certificate stating that all required improvements have been satisfactorily completed and until the applicant's engineer or surveyor has certified to the Town Engineer, through submission of detailed "as-built" survey plats of, the subdivision, indicating location, dimensions, materials, improvements and other information required by the Planning Commission and Town Engineer, that the layout of the line and grade of all public improvements is in accordance with the Town approved construction plans for the subdivision and that a title insurance policy has been furnished to the Town and Town Engineer indicating that the improvements have been completed, are ready for dedication to the local government and are free and clear of any and all liens and encumbrances. b. In no event shall a performance guarantee be reduced below 25% retainage of the principal amount until total completion and acceptance of the improvements by the Town. c. After acceptance by the Town of the improvements, the Town shall, to warrant that the improvements are free of defects, either: (1) Retain 10% of the principal amount of the guarantee for an additional 12 months; or (2) If the applicant supplies a separate guarantee equal to 10% of the principal amount of the initial improvement guarantee, accept the new warranty guarantee and release the prior guarantee. 5. If all required improvements are not completed within two years from the day of final application approval, the party who guaranteed the improvements shall be in default, and at the option of the Town Council, shall relinquish the remaining amount of the performance guarantee to the Town. 6. Even if the infrastructure improvement is not complete, the Town shall still issue a building permit as long as the improvement is essential for issuing a building improvement under the building and fire codes or for which the Town has accepted a completion assurance; but the Town may deny it if there is another valid reason besides the incomplete improvement. 7. The Town shall not require improvement guarantees for any of the prohibited uses listed in Utah Code §10-9a-604.5(3)(d), including improvements the Town has previously inspected and accepted, private improvements that are not essential to meet the building code, fire code, flood or storm water management provisions, street and access requirements, or other essential necessary public safety improvements adopted in a land use regulation. 8. Upon acceptance of all required improvements, the applicant shall warrant that said improvements shall remain free from defects in material and workmanship for a period of twelve (12) months after the date of acceptance by the Town. The subdivider shall be solely responsible for all repairs and maintenance required to keep the improvements in 31 good working condition for this twelve-month period. a. If the subdivider guarantees all required public improvements under this Section before recording a plat, 10% of the principal amount of the guarantee shall be retained during this 12-month warranty period as described in Paragraph (D) of this Section. b. If the subdivider completes any required public improvements before recording a plat, then the subdivider shall provide a 12-month, 10% warranty guarantee on those improvements, as described in Paragraph (D) of this Section, before the Town accepts the improvements and before the plat is recorded c. If, during the 12-month warranty period, any defects are discovered in the public improvements warrantied under this Section, the Town may use the funds from the guarantee to cover repairs to the improvements.