17.38.030 Improvement Completion Assurance for Private Improvements.
1. Any developer making private improvements to real property that are not completed at the time of application for an occupancy permit shall post an Improvement Completion Assurance for the proper and timely installation of all such Private Improvements. The Improvement Completion Assurance shall be executed by agreement between the City and the developer, with the City Administrator, or other designated City representative, having authority to enter into said agreement.
2. The Improvement Completion Assurance shall guarantee that all required improvements will:
a. Be constructed in accordance with the City's construction standards and specifications and the plans approved by the City Engineer and Building Official, as promised to the City, and as required by the DRC, City Engineer, Building Official and Legislative Authority.
b. Be completed and pass City inspection within one (1) year of the date that the occupancy permit is issued. Improvements required between November 1 and March 31 must be completed by the next October 1. For example, the required improvements for an occupancy permit issued on February 6, 2015 must be completed by October 1, 2015. The purpose of this requirement is to give the City an opportunity to collect on the bond and complete any required asphalt improvements before the asphalt batch plants close for the winter and before the weather prohibits the completion of the improvements. The City may retain and use the Improvement Completion Assurance for work not timely completed. The developer may request extensions from the DRC and such extensions shall be granted for good cause shown.
3. The Developer retains full responsibility for failure or defects of Private Improvements. Any failure in materials or workmanship of a Private Improvement after the item passes inspection is not the responsibility of the City. The City’s review and concern for Private Improvements is that they pass inspection if specific code requirements apply to the item, and/or the improvements meet substantial conformance with an approved plan at the time of inspection.
4. The Improvement Completion Assurance guaranteeing the timely and proper installation of required improvements shall be equal in value to at least one hundred percent (100%) of the cost of what it would cost the City to have the required improvements constructed, as estimated by the City Engineer. This estimated cost is intended to include all costs associated with the City having the required improvements constructed, including costs such as engineering costs, inspection costs, administrative costs, and collection costs, including court costs and attorney’s fees. The purpose of the bond is to enable the City to make or complete the required improvements in a timely manner in the event of the developer's inability or failure to do so. The City need not complete the required improvements before collecting from or foreclosing on the bond. The City may, in its sole discretion, delay taking action on the bond and allow the developer to complete the improvements if it received adequate assurances that the improvements will be completed in a timely and proper manner.
5. The bond shall be an irrevocable letter of credit, escrow bond, cash bond or combination bond in favor of the City. The requirements relating to each of these types of bonds are detailed in the approved bond form as maintained by the Development Review Committee. The City must approve any bond submitted pursuant to this section. The City reserves the right to reject any of the bond types if it has a rational basis for doing so. Letters of credit shall be from a federally insured bank or financial institution and shall be submitted on one (1) of the forms set forth in this section or as approved by the DRC. Escrow bonds shall be held by a federally insured bank, credit union, or similar financial institution or a title insurance underwriter authorized to do business in the State of Utah.
6. The City shall have the sole right to enforce the Improvement Completion Assurance. Private parties shall not be third-party beneficiaries of the Improvement Completion Assurance. (Ord. 2015-9, amended, 2015; Ord. 2000-2, adopted, 2000)