City of Tahlequah, OK Security Devices and Fees

[Ord. 1020-2003, 10-10-2003]

Security Device Requirement: The City of Tahlequah reserves the right to require surety bond, escrow arrangement, letter of responsibility, letter of credit or other equivalent security device, as may be required, and acceptable to the assistant City Administrator. Such security device, if required, shall be made, at the option of the City of Tahlequah, on a case by case basis, as the City of Tahlequah may deem necessary. The assistant City Administrator shall notify developer no later than 10 days following approval of preliminary plat if a security device is required for the proposed subdivision, and in the absence of such notice, then it shall be deemed that the City of Tahlequah has waived requirement for any such security device.

Construction Security Devices: Prior to start of streets and utilities, the owner may be required to provide a corporate surety bond, escrow arrangement, letter of responsibility, letter of credit or other equivalent security device acceptable to the assistant City Administrator in an amount, or upon terms, equal to the costs of the construction of all improvements, or such other amount as may be determined by the City of Tahlequah.

If required, such security arrangement shall be subject to the condition that the improvements must be completed within the term as may be determined, with an option granted to the City to extend the time of performance. In the event all or any portion of the improvements are not completed, the City may proceed with the work and hold the owner and the company issuing security devices jointly and separately liable for the costs thereof, or pursue such other remedies as may be available.

Performance Securities: If required, a performance bond executed by a surety company based upon an estimate by the City Administrator, or other City official of the costs of construction of the improvements shall be furnished by the subdivider to the City in an amount equal to the costs of construction of such improvements, and providing that the improvements will be completed within time established, with an option granted to the City to extend the time of performance as may be determined after approval of the final plat; provided further that as an alternative, the subdivider may provide letter of guarantee performance, escrow the costs of the improvement with the City, or provide other approved equivalent irrevocable security assurances to guarantee performance, whichever acceptable, if required by and to the City of Tahlequah.

Maintenance Securities: The owner shall be responsible for the maintenance of all streets, and storm sewers for a period of five years from the date of the acceptance of these facilities, and may be required to provide a maintenance bond for a period of three years from the date of acceptance for all other public facilities installed. Such bonds, if required, shall be absolute on their face, and not limited as to the cause of the damage or deterioration which must be repaired. The amount of the maintenance bonds, if required, on streets and storm sewers shall be equal to 100% to the total costs of construction; the value of the other maintenance bonds shall be equal to 50% to the total costs of construction; bonds shall be issued by surety companies properly licensed to do business in Oklahoma, and are subject to the approval of the City Attorney.

Delayed Maintenance Security: In the event an owner completes a public improvement, but the subdivision does not develop sufficiently so the improvement is not being substantially utilized within three years of the completion of the improvement, the owner shall be responsible for any reworking of the public improvements made necessary by the delay in the utilization of these improvements. The failure to perform such reworking operations shall be grounds for the immediate suspension of all construction in progress in the subdivision, and shall further be grounds for a moratorium on any future building permits issued in the subdivision until such time as reworking has taken place. For the purpose of this section, "substantial utilization" shall mean that either: 1) the improvement routinely and regularly receives use at the level of 40% of its designed capacity; or 2) that construction has been completed upon 40% of the lots within the plat of the subdivision, which structures are actually being utilized for their intended purpose by the owners thereof.

Maintenance Securities Exemption: No maintenance bond, letter or responsibility, or other security device shall be required for sidewalks if the subdivision contains a sidewalk provision as contained in this chapter.