17.130.110 Guarantee of improvements.
A. In lieu of the actual completion by the subdivider and acceptance by the city council of the improvements required by this title, and before the final plat is recorded, the subdivider shall guarantee the installation and construction of the required improvements within two years from the date of recording the final plat and provide a warranty that the improvements shall be maintained in a state of good repair, free from defective material or workmanship, for a period of up to:
1. One year after final acceptance of the improvement or warranty work; or
2. Two years after final acceptance of the improvement or warranty work, if the municipality has substantial evidence of:
a. Unstable soil conditions within the subdivision or development area; or
b. Extreme fluctuations in climatic conditions that would render impracticable the discovery of substandard or defective performance within a one-year period.
The city engineer shall allow a partial release of the improvement assurance.
B. Methods of Guarantee. The subdivider shall guarantee the improvements by the following method at the direction of the city:
1. Escrow. The subdivider shall deposit with any insurance company, bank, the city, or savings and loan institution in an escrow account an amount of money equal to at least 110 percent of the estimated costs of the improvements not constructed or installed by the developer plus 10 percent of the cost of all the required improvements of the subdivision as a guarantee amount, as determined by the city engineer. The escrow agreement shall be subject to approval by the city attorney and shall be signed by the subdivider, the city, and the escrow holder, and shall be committed to on a form available online or at the city offices that has been approved by the city attorney.
2. Release of Funds. As the required improvements are satisfactorily installed and have been inspected by the city, funds which have been dedicated to guarantee installation of those improvements will be authorized to be released for payment of those improvements. The city shall notify the escrow agent or bank in writing as to the installation of the improvement(s) and the amount to be released. The escrow agent or bank is authorized to release funds only after receiving the written notification above. The city is not responsible to determine the party to be paid.
After all required improvements have been installed, the developer shall notify the city and request that the subdivision be placed into the warranty period. The subdivision will then be inspected by the city engineer, and if all improvements have been completed in accordance with city ordinances and specifications, the city engineer will recommend to the city council that the subdivision be placed in warranty. If the city council approves, the subdivision will then begin the warranty period. Ten percent of the total cost of all the required improvements, as specified above, shall be retained by the city during this warranty period.
Partial releases of guarantee funds may be processed by the city engineer once improvements have been installed within each phase of the subdivision.
If any improvements have not been installed correctly or fail to function properly, and the developer fails to correct the deficiencies within 30 days of notification thereof, then, upon written notice by the city, escrow shall pay over to the city the amount necessary to complete, repair, or replace said improvements.
In the event the costs of completing, repairing, or replacing the unsatisfactory improvements exceed the amount remaining in the escrow account or letter of credit, the developer shall, within 10 days of notice thereof, pay the excess amount to the city and shall also cause to restore the escrow account or to the prescribed 10 percent warranty amount. The city shall not issue any building permits for the subdivision until the above-referenced excess costs have been paid to the city and warranty amount (10 percent of the total cost of improvements) has been restored. [Ord. 12-19-2023C §§ 1, 2 (Exh. A)].