11.230 Completion Assurance and Improvement Warranty

(Amended 02/13/01; 11/18/03; 11/15/05; 05/22/07; 01/08/08; 07/28/09; 04/26/11; 07/08/14; 02/28/17) A. A developer or owner must complete to the City’s satisfaction all required public and private improvements, as well as any required landscaping, known as the “Required Improvements,” associated with a particular subdivision before the corresponding subdivision plat can be recorded with the Utah County Recorder and before any development activity that requires a building permit takes place thereon. Prior to commencing work on the Required Improvements, the developer or owner must first demonstrate its practical and financial ability to complete all such Required Improvements to the City’s satisfaction. The developer or owner shall also pay all necessary inspection fees and any up-front supply costs required by the City for power supplies, water system supplies, public signs, and any other associated costs so the City can order all necessary supplies for the development. In the event the developer or owner begins the Required Improvements as contemplated by this Section 11.220(A), but is unable to complete the same, any approvals, permits, licenses, and the like which are applicable to the unfinished subdivision and which have been issued by the City, shall be void. B. In the event a developer or owner desires to record a subdivision plat with the Utah County Recorder before starting the Required Improvements, the developer or owner must first post an improvement completion Assurance consistent with applicable City codes, which Assurance shall guarantee the proper and timely completion of all such Required Improvements. The developer or owner shall also pay all necessary inspection fees and any up-front supply costs required by the City for power supplies, water system supplies, public signs, and any other associated costs so the City can order all necessary supplies for the development. The Assurance must be posted, and all inspection and supply fees must be paid, prior to the developer or owner beginning any work on the Required Improvements, and before the recordation of any corresponding subdivision plat. The Assurance shall be posted in the full amount of the City’s Estimate. The Assurance must also be in a form acceptable to the City, approved by the City Attorney, and must be issued by a financial institution insured by the Federal Deposit Insurance Corporation or National Credit Union Association. C. If a developer or owner decides to begin work as contemplated by Section 11.220(A), then subsequently desires to record a plat by posting the Assurance as contemplated by Section 11.220(B) for any remaining unfinished improvements, the developer or owner shall first: 1. submit new plans and drawings to the City from the developer or owner’s engineer and surveyor; 2. submit as-built plans for any improvements already begun; 3. submit a revised cost estimate from the developer or owner’s engineer for any remaining improvements to be completed; 4. submit a new development application to the City, along with any applicable fees; 5. be subject to a new review process by the Reviewing Departments; and 6. obtain any necessary approvals and permits from the City. D. Whether the developer or owner completes all of the Required Improvements prior to plat recordation as contemplated by Section 11.220(A) or posts an Assurance as contemplated by Section 11.220(B), the developer or owner shall post an improvement warranty security evidencing the developer’s or owner’s unconditional warranty that the corresponding Required Improvements comply with the City’s written standards for design, materials, and workmanship, and that said Required Improvements will not fail in any material respect within the improvement warranty period as a result of poor workmanship or materials. The improvement warranty security shall be in an amount equal to ten percent of the lesser of: (i) the City’s estimated cost of completion; or (ii) the developer’s or owner’s reasonable proven completion costs for all Required Improvements. The improvement warranty security shall be posted prior to recording the final plat or simultaneously with the developer’s or owner’s Assurance. All public improvement costs and inspection fees shall be paid prior to scheduling a preconstruction meeting. The form of the improvement warranty security shall be acceptable to the City, approved by the City Attorney, and shall be issued by a financial institution insured by the FDIC or NCUA. The improvement warranty period shall commence upon the City’s acceptance of all Required Improvements, and shall expire one year from the date of said acceptance, unless a longer improvement warranty period is allowed by Title 10 of the Utah State Code. For the purposes of this Section 11.220, the City’s written approval of all Required Improvements, in addition to the release of the entire Assurance, shall constitute acceptance of all Required Improvements. E. The City shall be entitled to payment of all amounts remaining in any Assurance posted by the developer or owner in the event the developer or owner is unable to complete the Required Improve- ments pursuant to a corresponding written agreement with the City. The individual line-item amounts set forth in the City’s Estimate, which shall serve as a ba- sis for and correspond with the developer’s or owner’s Assurance, shall be considered separate with respect to releases by the City, but each amount shall be applicable and available to every other line item in the event of the developer or owner’s failure to per- form one or more of the Required Improvements to the City’s satisfaction. Notwithstanding the itemiza- tion of type and cost of any improvement or landscap- ing, any sum available pursuant to the Assurance may be used by the City, and not released to the developer or owner, for any other improvement or landscaping covered by the Assurance, in addition to the specified improvement or landscaping. The defaults and corre- sponding remedies contemplated by this Section 11.220(E) shall be made by certification from the City Engineer evidencing any such default. Moreover, the remedies contemplated herein are not exhaustive, and the City may pursue any other remedies available in law or in equity. F. The City Engineer or designee shall have authority to release to the developer or owner from any portion of the Assurance. However, the City Engineer shall not release, prior to final acceptance, any amount of an Assurance for each specified improvement in excess of 90% thereof. Through the City’s established inspection process, the City Engineer may authorize two base releases per each line item in the Assurance. One final release shall be authorized when the corresponding improvement or landscaping is completed by the developer or owner, and subsequently approved by the City. For Assurances in excess of one million dollars, an additional release per line item may be authorized for each additional million dollars contemplated by the Assurance. G. In the event of an emergency requiring a more expeditious completion of the Required Improvements, the City may, after providing the developer or owner with a 30-day notice, complete the Required Improvements and compensate itself for its expenses from any remaining amount in the corresponding Assurance and improvement warranty security, plus 15% to recover overhead and other costs incurred by the City. H. Assurances and improvement warranty securities contemplated by this Section 11.220 are for the sole benefit of the City and are not for the individual benefit of any other entity, citizen, or identifiable class of citizens, including the owners or purchasers of lots or units within a subdivision. The Assurances and improvement warranty securities are not for the purpose of ensuring payment of contractors, subcontractors or suppliers of labor or materials, and no contractors, subcontractors or suppliers of labor or materials shall have a cause of action against the City or the Assurance or improvement warranty security.