The provisions of this chapter, as set forth in this section, are designed and intended to insure that, for all subdivisions of land within the jurisdiction of the city, all improvements as required herein are installed in a timely manner in order that:
(1) 
The city can provide for the orderly and economical extension of public facilities and services.
(2) 
All purchasers of property within the subdivision shall have a usable, buildable parcel of land.
(3) 
All required improvements are constructed in accordance with the city standard details and specifications.
(Ordinance CO42-07-07-12-3I adopted 7/12/07)
(a) 
Policy.
Upon approval of a final plat by the Planning and Zoning Commission, and prior to it being signed by the chairperson of the Planning and Zoning Commission and the planning director, and before said final plat shall be allowed to be recorded in the plat records of the county, the applicant requesting final plat approval shall, within the time period for which the final plat has been conditionally approved by the city:
(1) 
Construct all improvements as required by this chapter, and provide a surety instrument guaranteeing their maintenance as required herein; or
(2) 
Provide a surety instrument guaranteeing construction of all improvements required by this chapter, and as provided for herein.
(3) 
In all instances, the original copy of the final plat, without benefit of required signatures of city officials, shall be held in escrow by the city and shall not be released for any purpose until such time as the conditions of this section are complied with.
(4) 
Upon the requirements of this section being satisfied, the final plat shall be considered fully approved, except as otherwise provided for in this chapter, and the original copy of the final plat shall be signed by the appropriate city officials and city staff shall file said final plat in the plat records of the county.
(Ordinance CO42-07-07-12-3I adopted 7/12/07)
(a) 
Prior to the signing of the approved final plat by the chairman of the Planning and Zoning Commission and the planning director, the applicant shall:
(1) 
Complete all improvements required by this chapter in accordance with the approved construction plans and subject to the approval of the Engineering Department and acceptance by the City Council, except as otherwise provided for in this chapter.
(2) 
Construct all sidewalks as shown on the approved construction plans and according to the city standard details and specifications. Sidewalks must be constructed and approved for each lot prior to issuance of a certificate of occupancy.
(b) 
Alternative to completing improvements.
The city may waive the requirement that the applicant complete all improvements required by this chapter prior to the signing of the approved final plat, contingent upon securing from the applicant a guarantee, as provided for by this section, for completion of all required improvements, including the city’s cost for collecting the guaranteed funds and administering the completion of improvements, in the event the developer defaults. The Planning and Zoning Commission and council must be notified that this waiver was granted at the time of preliminary plan approval. Such guarantee shall take one (1) of the following forms:
(1) 
Performance bond.
The applicant shall post a performance bond with the city, as set forth herein, in an amount equal to one hundred ten percent (110%) of the estimated construction costs for all remaining required improvements, using the standard city form.
(2) 
Escrow account.
The applicant shall deposit cash, or other instrument readily convertible into cash at face value, either with the city, or in escrow with a bank or savings and loan institution. The use of any instrument other than cash shall be subject to the approval of the city. The amount of the deposit shall equal one hundred ten percent (110%) of the estimated construction costs for all remaining required improvements. In the case of any escrow account, the applicant shall file with the city an agreement between the financial institution and the applicant guaranteeing the following:
(A) 
That the funds of said escrow account shall be held in trust until released by the city and may not be used or pledged by the applicant as security in any other matter during that period.
(B) 
That in the case of a failure on the part of the applicant to complete said improvements, the financial institution shall immediately make the funds in said account available to the city for use in the completion of those improvements.
(3) 
Letter of credit.
The applicant shall provide a letter of credit from a bank or other reputable institution or individual. This letter shall be submitted to the city and shall certify the following:
(A) 
That the creditor does guarantee funds equal to one hundred ten percent (110%) of the estimated construction costs for all remaining required improvements.
(B) 
That, in the case of failure on the part of the applicant to complete the specified improvements within the required time period, the creditor shall pay to the city immediately, and without further action, such funds as are necessary to finance the completion of those improvements, up to the limit of credit stated in the letter.
(C) 
That this letter of credit may not be withdrawn, or reduced in amount, until approved by the city according to provisions of this chapter.
(4) 
Cost estimates.
A licensed professional engineer licensed to practice in the State of Texas shall furnish estimates of the costs of all required improvements to the city engineer who shall review the estimates in order to determine the adequacy of the guarantee instrument for insuring the construction of the required facilities.
(5) 
Surety acceptance.
The bank, financial institution, insurer, person or entity providing any letter of credit, bond or holding any escrow account, pursuant to this chapter, shall meet or exceed the minimum requirements established by city ordinance and shall be subject to approval by the city as provided in the ordinances of the city.
(6) 
Sufficiency.
Such surety shall comply with all statutory requirements and shall be satisfactory to the City Attorney as to form, sufficiency, and manner of execution as set forth in this chapter. All such surety instruments shall be both a payment and performance guarantee.
(7) 
If the project is located in the extraterritorial jurisdiction of the city, and is subject to the bonding requirements of the county for the construction of roadways, then that amount of money shall be reduced from the amount required to be posted with the city, provided that the instrument is transferable from the county to the city upon annexation.
(c) 
Time limit for completing improvements.
The period within which required improvements must be completed shall be incorporated in the surety instrument and shall not in any event, without prior approval of the city, exceed one (1) year from date of final plat approval.
(1) 
The Planning and Zoning Commission may, upon application of the applicant and upon proof of hardship, recommend to the council extension of the completion date set forth in such bond or other instrument for a maximum period of one (1) additional year. Such hardship may include delays imposed due to city projects. An application for extension shall be accompanied by an updated estimate of construction costs prepared by a licensed professional engineer, licensed to practice in the State of Texas. A surety instrument for guaranteeing completion of remaining required improvements must be filed in an amount equal to one hundred ten percent (110%) of the updated estimate of construction costs as approved by the city engineer.
(2) 
The council may at any time during the period of such surety instrument accept a substitution of principal sureties upon recommendation of the Planning and Zoning Commission.
(d) 
Assurances for completion shall be posted or improvements shall be completed within two (2) years of final plat approval, unless otherwise approved by the city. In those cases where a surety instrument has been required and improvements have not been completed within the terms of said surety instrument, the city may declare the applicant and/or surety to be in default and require that all the improvements be installed.
(e) 
Inspection and acceptance of improvements.
The Engineering Department shall inspect all required improvements, to insure compliance with city requirements and the approved construction plans.
(1) 
When all required improvements have been satisfactorily completed, the Engineering Department shall either:
(A) 
Accept, in writing, the improvements as having been satisfactorily completed, or
(B) 
Issue a punch list to the applicant denoting items remaining to be completed.
(2) 
The Engineering Department shall have ten (10) working days to complete this inspection upon notification by the applicant.
(3) 
The Engineering Department shall issue the report within ten (10) working days of the date of inspection.
(4) 
The city shall not accept dedications of required improvements or release or reduce a performance bond or other assurance until such time it is determined that:
(A) 
All improvements have been satisfactorily completed.
(B) 
One (1) Mylar set of as-built plans measuring twenty-two by thirty-four (22 x 34) inches has been submitted to and approved by the Engineering Department, along with a statement prepared by a licensed professional engineer that all improvements have been installed and constructed in accordance with the submitted as-built plans.
(C) 
Copies of all inspection reports, shop drawings and certified test results of construction materials have been submitted to and approved by the Engineering Department.
(D) 
Two (2) copies of maintenance bonds meeting the requirements of this chapter have been provided.
(E) 
Electronic copy containing computed generated Auto CAD drawings of all public improvements shown on the construction plans, and all lot lines shown on the plat, have been submitted to the Engineering Department to update city maps.
(F) 
An affidavit of all bills paid and a release of liens have been provided.
(G) 
Documentation is provided from TDLR that the improvements are acceptable.
(H) 
Any and all other requirements identified in the final plat process have been satisfied.
(5) 
The applicant shall provide a certificate of compliance from the state department of licensing and regulation for all pedestrian improvements within the subdivision.
(f) 
Reduction or release of improvement surety instrument.
(1) 
A surety instrument may be reduced with the approval of the Engineering Department, and the director of finance, upon actual construction of required improvements by a ratio that the improvement bears to the total public improvements required for the subdivision, as determined by the Engineering Department.
(2) 
Before the city shall reduce said surety instrument, the applicant shall provide a new surety instrument in an amount equal to one hundred ten percent (110%) of the estimated cost of the remaining required improvements, and such new surety instrument shall comply with this engineering.
(3) 
The substitution of a new surety instrument shall in no way change or modify the terms and conditions of the performance surety instrument or the obligation of the applicant as specified in the performance surety instrument.
(4) 
In no event shall a surety instrument be reduced below ten percent (10%) of the principal amount of the original estimated total costs of improvements for which surety was given, prior to completion of all required improvements.
(5) 
The city shall not release a surety instrument unless and until all the conditions of this chapter have been met.
(g) 
Maintenance bond required.
(1) 
Before the release of any surety instrument guaranteeing the construction of required subdivision improvements, or the signing of the final plat where subdivision improvements were made prior to the filing of the final plat for recordation, the developer shall furnish the Engineering Department with a maintenance bond or other surety to assure the quality of materials, workmanship, and maintenance of all required improvements including the city’s costs for collecting the guaranteed funds and administering the correction and/or replacement of covered improvements.
(2) 
The maintenance bond or other surety instrument:
(A) 
Shall be satisfactory to the City Attorney as to form, sufficiency, and manner of execution.
(B) 
Shall clearly state both the applicant and the city as joint obligees.
(C) 
Shall cover all facilities requested for city acceptance, including water, wastewater, street and drainage improvements.
(D) 
Shall be in an amount equal to 10% of the cost of improvements for the two (2) calendar years from the date of City Council acceptance of operation and maintenance of the subdivision. A statement of construction value or final pay estimate shall be provided to the Engineering Department to support said warranty and maintenance bond amounts.
(E) 
Shall require the surety to notify the city at least fifteen (15) days prior to the end of the calendar year[.]
(3) 
In an instance where a maintenance bond or other surety instrument has been posted and a defect or failure of any required improvement occurs within the period of coverage, the city may declare said bond or surety instrument to be in default and require that the improvements be repaired or replaced.
(4) 
Whenever a defect or failure of any required improvement occurs within the period of coverage, the city shall require that a new maintenance bond or surety instrument be posted for a period of two (2) full calendar years sufficient to cover the corrected defect or failure.
(Ordinance CO11-20-01-09-H1 adopted 1/9/20)