10-12-19 GUARANTEE OF PERFORMANCE BOND REQUIRED FOR SUBDIVISIONS

The Planning Commission shall not approve a final plat until the subdivider provides a guarantee assuring the completion of all required improvements as shown on the final plat. The purpose of the bond is to ensure construction of the required improvements within twelve (12) months from the date of the final approval without cost to the Town. The guarantee shall meet the following requirements: A. Type and Amount of Guarantee: The performance bond required shall be fifteen percent (15%) in excess of the estimated cost of the required improvements. The subdivider shall furnish an estimate of the cost of constructing the required improvements under the direction of a certified engineer. This estimate will be reviewed and checked by the Planning Commission. If the amount is acceptable, a performance bond for that amount will be obtained by the developer. The performance bond from a financial institution shall consist of a cash deposit or a written guarantee of sufficient funds to complete the improvements. B. Duration: The duration of the surety bond shall be for twelve (12) months from the date of approval of the final plat or such lesser time as is required to complete the improvements. C. Default: In the event the subdivider is in default or fails or neglects to satisfactorily install the required improvements within one year from the date of approval of the final plat, or to pay all liens in connection therewith, the Town Board may declare the bond forfeited and the Town may install or cause the required improvements to be installed, using the proceeds of the collection of the bond or other assurance to defray the expense thereof. D. Extension: A surety bond may be extended prior to its lapse for one additional period of six (6) months; provided, that at least sixty (60) days prior to the expiration date, an application for its renewal is filed with the Town. The applicant shall clearly demonstrate, to the satisfaction of the Planning Commission and Town Board that in spite of good faith efforts of the applicant, circumstances beyond his or her control have prevented the timely pursuit of the project and completion of the necessary requirements within the original time frame. The Planning Commission shall hear the request at their regularly scheduled meeting and recommend to the Town Board approval, approval with conditions, or denial of the extension. The Town Board, at their next regularly scheduled meeting, shall hear the request, and consider the recommendation of the Planning Commission. The Town Board shall approve, approve with conditions, or deny the request within fifteen (15) days of the Town Board first reviewing the request. E. Ongoing Inspections: A professional engineer currently licensed in the State of Utah, or a qualified designate shall perform ongoing inspections of the installation of underground utilities, trenching, base compaction for roads and sidewalks, and any other work which requires site inspection and review. F. Final Inspection and Release: the Subdivider shall be responsible for the quality of material, workmanship and condition of all improvements until final release is made by the Planning Commission. At the completion of the work, or not less than ten (10) days prior to the release date of the bond or other approved security, a professional engineer, currently licensed in the State of Utah, shall make a preliminary inspection of the improvements and shall submit a report to the Planning Commission setting forth the conditions of such facilities. If all liens are paid and conditions are found to be satisfactory, the Planning Commission may recommend the Town Board approve the release of the bond less fifteen percent (15%) as provided hereafter. Lien waivers from all contractors shall be required in order to determine if the liens are paid. If the condition of materials or workmanship shows unusual deprecation or does not comply with standards of the Town, or if any outstanding liens are not paid, the Town Board may declare the subdivider in default. G. Latent Defects: The Town shall retain in escrow, drawing interest for the benefit of the owner, fifteen percent (15%) of the value of the guarantee for a period of one year to assure that any latent defects that appear during that period are repaired and are in compliance with Town standards. If after one year all required improvements exhibit no signs of defect, the escrow account shall be relinquished to the owner. If defects appear during this period, the owner shall complete the necessary repairs to meet the standards required by a Town appointed professional engineer currently licensed in the State of Utah or other appropriate professional. At the completion of such repairs, the final inspection and release process above shall be required. H. Permit Issuance and Sales During Default Prohibited: In the event the subdivider is found to be in default or fails to or neglects to satisfactorily install the required improvements, it shall be unlawful for any person to receive any further building permits or occupancy permits or to sell or offer to sell any parcel within the subject subdivision until all improvements are installed and accepted by the Town, or a formal extension is granted by the Town Board and a new agreement is signed.