(1) Prior to recordation of a final plat, after it has received City Council approval, the subdivider shall complete all of the public improvements required in the subdivision. At the option of the City, prior to recordation, the subdivider may enter into a performance bond agreement with the City to insure completion of all public improvements required to be installed in the subdivision. Also, prior to final plat approval, the City may require a subdivider to bond for the improvements where, in a prior application with the City, the subdivider has failed to comply with state law or the City's subdivision requirements. The bond agreement shall be in a form and contain such provisions as approved by the City Attorney's office. The agreement shall include but not be limited to:
(a) The final plat and all data required by Section 18.16.030 which is used by the Public Works Department to compute the cost of the improvements shall be incorporated by reference.
(b) The improvements shall be completed within a period of time not to exceed eighteen (18) months from the date the agreement is executed.
(c) The improvements shall be completed to the satisfaction of the Public Works Department and according to City standards, as established by the Public Works Department and accepted as specified in Section 18.36.132.
(d) The bond amount shall be equal to the Public Works Department's estimated cost of the public improvements to be installed plus the product of the current annual inflation rate times the number of years the bond will be in effect times the estimated cost of the public improvements to be installed.
(e) The City shall have exclusive control over the bond proceeds and they may be released only upon written approval of the City Manager.
(f) The bond proceeds may be reduced upon request of the subdivider as the improvements are installed. The amount of the reduction shall be determined by the Public Works Department. Such requests may be made only once every thirty (30) days and no reductions shall be authorized until such time as the Public Works Department has inspected the improvements and found them to be in compliance with City standards. All reductions shall be by the written authorization of the City Manager.
(g) If the bond proceeds are inadequate to pay the cost of the completion of the improvements according to City standards for whatever reason, including previous reductions, then the subdivider shall be responsible for the deficiency and no further building permits shall be issued in the subdivision until the improvements are completed or, with City Council approval, a new bond has been executed to insure completion of the remaining improvements.
(h) If upon written demand of the City, after expiration of the time period, bond proceeds are not transferred to the City within thirty (30) days of the demand, then the City's costs of obtaining the proceeds, including the City Attorney's office costs or outside attorney's fees and court costs, shall be deducted from the bond proceeds.
(i) Upon receipt of the bond proceeds, after the expiration of the time period, the costs of completion shall include reimbursement to the Public Works Department and all other City departments for the costs of administration of the completion of the improvements.
(j) The subdivider agrees to hold the City harmless from any and all liability which may arise as a result of the improvements which are installed until such time as the City accepts the improvements as provided in Section 18.36.132.
(2) Such bond agreement shall be one of the following types as dictated by the City:
(a) With a surety company licensed to do business in the State of Utah.
(b) An irrevocable letter of credit with a financial institution federally or state insured.
(c) A cashiers check or a money market certificate made payable only to the City.
(d) A trust or escrow account with a financial institution federally or state insured.
(3) The City Manager or his designee shall be authorized to execute the bond agreements.
(4) The time period for the completion of the required public improvements may be extended in the following manner:
(a) The City Council, upon recommendation of the Planning Commission, may grant one (1) extension to the original bond agreement. Said extension shall not be for more than one (1) year from the expiration date of the original bond agreement.
(b) Said approval shall be in a form approved by the City Attorney's office and in compliance with all provisions of this Chapter.
(c) If the development is not complete at the date set by the City Council for the extension, the City shall move forward to complete the improvements in the development and revoke the necessary bond amount to cover the costs thereof.
Ord. No.97-35, Recodified, 6/19/1997
Ord. No. 99-15, Amended, 3/18/1999