City of Seward, NE Article 42 Improvement Financing and Guarantees

§ 410-42.1 Purpose.

The purpose of this article is to ensure the equitable financing and proper installation and maintenance of required streets, utilities, and other improvements. The guarantee shall be structured to provide adequate assurances to the City while not adding unnecessary costs to the developer.

§ 410-42.2 Applicability.

This article applies to subdivisions that require the installation of streets, utilities, or other public improvements by the City or developer.

§ 410-42.3 Responsibility of subdivider.

The subdivider shall be responsible for the installation and/or construction of all improvements required by this chapter and shall warrant the design, materials, workmanship, construction, and performance of such improvements for two years after the date of completion.

§ 410-42.4 Subdivision agreement.

A. Condition for approval of plat. As a condition for final approval, each subdivision plat must include a subdivision agreement entered into between the City of Seward and the subdivider. Additionally, no contract for the construction of public improvements involving a subdivision within the extraterritorial jurisdiction but outside the corporate limits of Seward shall be awarded without the approval of such an agreement.

B. Components of the agreement. The agreement shall include provisions for the financing and distribution of responsibilities among the City and the subdivider for land acquisition, design, and installation of public improvements. The agreement shall also state specifically how public services will be provided in the subdivision prior to annexation by the City.

C. Rules for distributing improvement costs. Generally, the following rules shall be followed in distributing costs for public improvements:

(1) Public costs. Allowable public costs will be those items that have demonstrable benefit to the general public. These items may include:

(a) Pavement width in excess of 28 feet for streets designated as collector or arterial streets in the Seward Comprehensive Development Plan or any subsequent amendment thereof. On collector and arterial streets requiring a higher standard of paving than normal, the additional cost shall be borne by the City or other public agency.

(b) The incremental cost of water mains over eight inches.

(c) Oversized storm sewers or drainage structures required to serve other areas in the watershed. Such expenses may also be assessed on an area basis to properties served by the improvement.

(d) Sanitary outfall sewers or water lines outside of the limits of a subdivision that serve areas larger than that of the subdivision, provided that such extension is consistent with the sequencing of development specified in the Comprehensive Development Plan.

(e) The additional costs of sanitary sewers over eight inches in diameter, when such sewers are required by the City.

(f) Park and recreation facilities consistent with the Comprehensive Development Plan.

(g) Those costs required to be paid by the City for extension of water and sewer lines, pursuant to the Seward Municipal Code.

(2) Private costs. Allowable special assessment costs will be those items that have direct benefit primarily to adjacent properties. These items may include:

(a) The entire cost of grading street rights-of-way, including intersections.

(b) All sanitary sewer lines serving the subdivision up to eight inches and water lines serving the subdivision up to eight inches.

(c) All paving and street construction, including curbs and gutters, up to a cartway width of 28 feet.

(d) A stormwater management system adequate to provide for the collection, retention, and removal of surface runoff, extending to the boundaries of the subdivision.

(e) Sidewalks as required by this chapter. Construction of sidewalks may be delayed until after completion of site grading and construction, but must be completed prior to occupancy of the structure.

(f) The private share of trails or bicycle paths included in the City's system, as identified by the Comprehensive Development Plan; or trails or bicycle paths whose primary benefit is to residents of the subdivision.

(g) The contract charge for underground electrical and gas service.

(h) An iron rod not less than 5/8 inch in diameter and 24 inches in length as follows:

[1] Set three feet deep at the intersection of all lines forming angles in the boundary of the subdivision and at all street intersections.

[2] At lot corners and changes in direction of block and lot boundaries.

(i) Those costs required to be paid by the developer for extension of water and sewer lines, pursuant to the Seward Municipal Code.

(3) The subdivider, in lieu of installing and constructing said improvements at his/her expense, may, along with all owners of property to be affected by such improvements and all perfected lien holders, petition the Council to cause the construction of such improvements. This petition shall waive any required resolution of necessity, any applicable limitations of the amount, which could be assessed against subdivision property owners, including intersection costs, and other costs normally paid by the City in special assessment projects.

§ 410-42.5 Subdivisions contiguous with City.

Unless otherwise provided as a specific part of the subdivision approval by the City, all subdivisions now or hereafter laid out adjoining or contiguous to the corporate limits of the City shall be included within such corporate limits and become a part of the City of Seward. The residents of the subdivision shall be entitled to all the rights and privileges and subject to all laws, ordinances, rules and regulations of the City of Seward.

§ 410-42.6 Performance guarantees.

A. As a condition of the final approval of the plat and prior to its recording with the Seward County Register of Deeds, the City Council shall require and accept the following:

(1) The furnishing of a performance bond, letter of credit, cash escrow, or other guarantee in a form acceptable to the City, in an amount not to exceed 100% of the estimated cost of the improvement installation.

(2) A specification of the time allowed for the installation of improvements. This period may be extended by the City Council.

B. The performance guarantee amount and requirement, along with the permitted time for installation, shall be included within the subdivision agreement negotiated between the City and the developer and approved with the final plat.

§ 410-42.7 Notification of completion and acceptance by City.

A. Notification. Upon substantial completion of all required improvements, the developer shall notify the Public Works Superintendent in writing, as well as submit a certification from a registered professional engineer, attesting to the adequacy of the installation.

B. Inspection and acceptance.

(1) The Public Works Superintendent shall inspect all installations, and shall approve, partially approve, or disapprove the installation. Upon completion of improvements, he/she shall file a statement with the City Council and Zoning Administrator certifying that the improvements have been completed satisfactorily or listing the defects in the improvements.

(2) If the installation is approved, the Public Works Superintendent shall notify the developer of acceptance in writing. Such acceptance shall release the developer from liability pursuant to the performance guarantee for the installation. The City has the right to retain up to 10% of the value of the performance guarantee for a period of up to one year from the date of acceptance to remedy any deficiencies which appear during that period.

(3) If improvements are not accepted or not completed within the specified time, the performance guarantee shall be forfeited and used by the City to complete satisfactory installation of improvements.

(4) No residential occupancy permits shall be issued for a subdivision unless the installation of improvements has been inspected and approved in full by the Public Works Superintendent.