If under Subsection 6.2.F. of this Ordinance the developer chooses to construct the required improvements prior to recordation of the final plat, all such construction shall be inspected while in progress by the appropriate City Staff, and must be approved upon completion by the Director of Public Services. Prior to recording the final plat, the developer shall file with the City a maintenance bond, executed by a surety company holding a license to do business in the State of Texas, in an amount equal to one hundred (100) percent of the cost of the improvements required, as estimated by the City Engineer, conditioned that the developer will maintain such improvements in good condition for a period of two (2) years after approval of the final plat.
Such bond shall be approved as to form and legality by the City Attorney.
(Ordinance 2013-23 adopted 11/19/13)
A. 
If under Subsection 6.2.F. of this Ordinance the developer chooses to file security or bonds in lieu of completing construction prior to final plat approval, he may utilize either of the following methods of posting security:
1. 
The developer shall file with the City a performance bond executed by a surety company holding a license to do business in the State of Texas, and acceptable to the City Attorney, in an amount equal to the cost of the improvements required by this Ordinance as estimated by the City Engineer, conditioned that the developer will complete such improvements within one year after approval of the plat, or
2. 
Alternatively the developer shall place on deposit in a trust account in a bank or trust company selected by the developer and approved by the City, a sum of money equal to the estimated cost of all improvements required by this Ordinance as estimated by the City Engineer.
B. 
If either type of security is filed by the developer under subsection A above the filing of such security shall be accompanied by a maintenance bond executed by a surety company holding a license to do business in the State of Texas, and acceptable to the City Attorney, in an amount equal to one hundred (100) percent of the cost of the improvements required as estimated by the City Engineer, conditioned that the developer will maintain such improvements in good condition for a period of two (2) years after final acceptance of the completed construction by the City, as provided in subsection C. below.
C. 
If either type of security is filed by the developer under subsection A above the City shall inspect the construction of the improvements while in progress, and upon completion of construction. After final inspection, the Director of Public Services shall notify the developer in writing as to his acceptance or rejection of the construction. Upon satisfactory completion of construction, the Director of Public Services shall issue a statement of acceptance of the ownership and maintenance of the facilities by the City. He shall reject such construction only if it fails to comply with the standards and specifications contained or referred to in this Ordinance. If he rejects such construction, the City Attorney shall, on direction of the City Council, proceed to enforce the guarantees provided in this Section.
D. 
Where good cause exists, the Director of Public Services may extend the period of time for completion under subsection A above for an additional period of time not to exceed six (6) months if the developer has not completed the required improvements in compliance with this Ordinance. No such extension shall be granted unless security as provided in subsection A above has been provided by the developer covering the extended period of time.
(Ordinance 2013-23 adopted 11/19/13)
A. 
Payments in lieu of construction.
Payment in lieu of constructing improvements or providing the required security as outlined in Subsection 6.2.F for required perimeter streets, sidewalks, or stormwater systems, is permitted only under the following circumstances:
1. 
Due to safety, connectivity, size of the project, the improvements being a part of an upcoming public improvement project, the improvements being a part of a multi-phased project, or other reasonable factors, the city determines it would be more feasible to defer the actual construction of the required public improvements to a later date; or
2. 
The planning and zoning commission finds that the existing conditions are such that it will not be hazardous to defer the construction of such public improvements to a later date.
B. 
Deposit and determination of payment amount.
When payments in lieu of construction are permitted by these regulations, payments shall be deposited by the owner with the city at the time of final plat approval. Such amount shall be roughly proportional to the impact of the development and shall equal to the cost of the design and construction of the required improvements. The city engineer shall determine the amount of the payment by using the average of comparable bids awarded by the city in the preceding six (6) months, or if none exists, then in the preceding year, or if none exists, the current market value of construction as determined by an estimate of the city engineer. The design fee estimate shall be calculated at a minimum of six (6) percent of the construction costs.
C. 
Disbursement of deposited funds.
The deposited funds, together with accrued interest, may be disbursed by the City for the payment of the design and construction of any public improvements for which the funds were deposited.
D. 
Refunds.
In the event the city has not authorized the preparation of plans and specifications for the construction of public improvements for which funds have been deposited within (10) years after such funds have been deposited with the city, upon written request from the owner, or its successors or assigns, the city shall refund the funds, with accrued interest. If public improvements for which funds are deposited are constructed by another governmental entity at no cost to the city, the funds and accrued interest shall be refunded to the owner after completion and acceptance of the public improvements. In the event a portion of the cost is borne by the city and the other portion is borne by another governmental entity, the city will refund any unused portion after completion and acceptance of the public improvements.
E. 
Interest limitation.
If deposit funds are refunded within six (6) months of deposit, only the principal will be refunded. Funds returned after that date will be refunded with accrued interest, calculated at one (1) percent less than the rate of actual earnings. Actual earnings is the rate of return on the actual investment of the deposited funds by the city.
F. 
Owner’s option.
Payments in lieu of construction are not impact fees. The owner shall have the option to construct the required street, sidewalks or stormwater systems improvements.
(Ordinance 2019-01, sec. 2, adopted 2/5/19)