11.08.02 Improvements Completion Assurance and Guarantee of Performance

1. Purpose. To assure the completion of required improvements and infrastructure as required by the approved plans, Public Works Standards, and all applicable ordinances, the Subdivider shall establish a Cash Escrow account or Letter of Credit guarantee with a federally insured financial institution. This completion assurance shall be established prior to recording the Subdivision plat. If the Subdivider installs the infrastructure and improvements and such infrastructure and improvements are inspected and approved by the City prior to recording the plat, then only warranty portion of the completion assurance shall be required. The provisions of this section do not supersede the terms of a valid Development Agreement, an adopted phasing plan, or the State Construction Code. 2. Cost Estimate. The Subdivider shall submit an updated Engineer’s Cost Estimate for all improvements and infrastructure required within the Subdivision. The cost estimate shall include quantities, units, and costs for all improvements and infrastructure required, and shall indicate which items have already been installed. The City Engineer shall review and approve the cost estimate and may adjust the costs to meet current industry standards. Those items that are deemed “direct costs” shall be removed from the escrow and shall be accounted for separately. 3. Guarantee Amount. The guarantee shall be equal to one hundred ten percent (110%) of the cost estimated and approved by the City Engineer. a. One hundred percent (100%) shall be for the cost of those improvements and infrastructure not yet installed; and b. Ten percent (10%) shall be for a required one-year (1) warranty period (see Subsection 11.09-4). The warranty amount calculated shall be based upon the total cost of all required improvements and infrastructure. 4. Liability. The Subdivider and/or contractor shall indemnify and hold harmless the City and its officers, directors, members, partners, agents, employees, and consultants from all claims, damages, losses, and expenses, including attorney’s fees, arising out of, or resulting from the installation of the required improvements and infrastructure. The indemnity required hereby shall be included in the applicable Escrow Agreement. 5. Default. In the event the Subdivider is in default with any provision of this Section, or fails or neglects to satisfactorily install the required improvements and infrastructure within two (2) years from the date of approval of the final plat, or to pay all liens in connection therewith, or to correct deficiencies or damages to the improvements and infrastructure required for final acceptance (see Subsection 10 hereof), the City may declare the escrow forfeited and the City may install, repair, or cause the required improvements and infrastructure to be installed or repaired, using the proceeds from the collection of escrow to defray the expense thereof. The City may apply all sums deposited in escrow against the cost of completing all required improvements and infrastructure and to pay all expenses, including, but not limited to, all unreimbursed engineering expenses related to the development, a ten percent (10%) administration fee for the securing of contracts, and court costs and attorney fees. The default provisions required hereby shall be included in the applicable Escrow Agreement. 6. Release of Funds. The Subdivider shall be responsible for the quality of all materials and workmanship. If improvements and infrastructure are properly installed and verified via City inspections and testing, liens are paid, and other conditions are found to be satisfactory, then the City’s Escrow Agent shall authorize the money held in escrow for the specific improvement completed (except for the 10% held during the hereinafter described warranty period) to be released. If the conditions of material or workmanship show unusual depreciation, or do not comply with the acceptable standards of durability, or if required inspections or testing have not been done, or if any outstanding liens are not paid, then the City may withhold releasing the money and the City may declare the Subdivider in default. The City shall have exclusive control over the release of the escrow funds, and they may be released only upon written approval by the City. 7. Direct Costs. The Subdivider shall pay the following direct costs at the time they establish the required Improvements Completion Assurance. The funds collected for each item will be used for the construction and installation of said items by the city; thus, removing the Subdivider’s responsibility for the installation of these items as part their development: a. Half percent (0.5%) of the total construction cost shall be to cover administrative costs. b. Funds for the current Public Works Standard seal coat treatment. The amount shall be established by the City Engineer in accordance with recent bid prices received for similar treatment(s). c. Funds for current Public Works Standard Streetlights and all associated infrastructure costs. d. Funds for current Public Works Standard Street Signs. e. Funds for mailbox combination boxes, if Subdivider would like them to be installed by the city (optional). f. Funds associated with any cost agreement(s) with the city that was established as a condition of approval.