7-13-516. PERFORMANCE BOND – SUBDIVIDER.
(1) Prior to recordation of a Final Plat, after it has received final approval, the Subdivider shall either complete all of the public improvements required in the Subdivision, or enter into a performance bond agreement with the City to ensure completion of all public improvements required to be installed in the Subdivision. Improvements installed prior to plat recording shall be bonded at a rate of 10 percent for the duration of the warranty period. The bond shall be prepared and administered by the City Public Works Department. 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. Incorporation by reference of the Final Plat and all data required by this Chapter which is used to compute the cost of the improvements by the Public Works Department.
b. Completion of the improvements within a period of time not to exceed two years from the date the agreement is executed.
c. The improvements shall be completed to the satisfaction of the Public Works Department and according to the City’s adopted Engineering Standards.
d. The bond amount shall be equal to the Public Works Department’s 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 60 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.
h. If upon written demand of the City after expiration of the time period bond proceeds are not transferred to the City within 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 this Chapter.
(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. Cash or a cashier’s check made payable only to the City.
(3) The time period for the completion of the required public improvements may be extended in the following manner:
a. Upon approval of the City Manager, the time period may be extended an additional two years 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.
(4) All public improvements required under this Title shall be installed by a contractor or subcontractors licensed by the State of Utah.