Section 16.58.450 Guarantee of performance.

1. In order to assure the completion of the required improvements, the subdivider shall establish with the City an escrow account, surety bond, or dedicated letter of credit. Such financial guarantee shall be in an amount equal to one hundred twenty (120%) percent of the cost estimated by the subdivider's engineer and as accepted by the City Engineer for the completion of improvements not then installed. All forms of guarantee must be approved and agreed to in writing by the City Attorney and City Manager. For a subdivision that is to be developed in phases, the cost may be calculated and the financial guarantee provided and administered by Vernal City staff for each phase individually, but no lot or portion of the subdivision may be recorded or sold without the required financial guarantee in place for that subdivision. Accounts will be released according to the provisions outlined in subsection C of this section, the conditions of which must be approved by the City Attorney to guarantee the improvements will be installed as shown on the final plat. The purpose of the account is to assure construction of required improvements within one (1) year from the date of final approval, without cost to the City, including any additional costs due to inflation. The financial guarantee shall be executed by a federally insured banking or trust company acceptable to the City and duly authorized to do business in the state; shall be payable to Vernal City Corporation; shall be filed in the office of the City Recorder; and shall be available for public inspection during regular business hours.

B. Default. In the event the subdivider is in default or fails or neglects to satisfactorily install the required improvements within one (1) year from the date of approval of the plat by the City Council, or to pay all liens in connection therewith, the City Council may declare the financial guarantee forfeited and the City may install or cause the required improvements to be installed, using the proceeds from the financial guarantee to defray the expense thereof. In no event shall the City be obligated to expend any funds beyond the financial guarantee proceeds recovered by the City. The developer / subdivider shall remain responsible to complete all the improvements.

1. The subdivider shall be responsible for the quality of all materials and workmanship. At the completion of the work or not less than ten (10) days prior to the release date of the financial guarantee, the City Engineer and/or Public Works Department shall make a preliminary inspection of the improvements and shall submit a report to the City Council, setting forth the conditions of such facilities. If all liens are paid and other conditions thereof are found to be satisfactory, the City Council shall release all but twenty (20%) percent of the total amount of the financial guarantee. If the conditions of material or workmanship show an unusual depreciation or does not comply with the acceptable standards of durability or if any outstanding liens are not paid, the City Council may declare the subdivider in default.

E. Recording notice and violation. The City may / shall record notice that until all required improvements for the subdivision or phase of said subdivision have been installed, approved and accepted by the City, no certificate of occupancy shall be issued and no person shall occupy any structure in the subdivision. This notice should be recorded within fifteen (15) days from the date that the associated final plat is recorded. (PZSC § 03-28-008)(Ord. No. 96-08, Amended, 03/20/96; Ord. No. 98-01, Amended, 01/28/98)

(Ord. 2008-07, Amended, 05/07/2008, Prior Text; Ord. 2008-05, Amended, 04/16/2008, Prior Text; Ord. 2007-05, Amended, 04/25/2007, Prior Text)