8.1.1
Construction Bond.
In order to assure that the streets and required drainage structures are constructed in a timely manner and in accordance with the preceding specifications, the owner of the subdivision shall file a Construction Bond or other approved alternative financial guarantee.
8.1.2
Maintenance Bond.
In order to guarantee that streets and other structures are maintained to the satisfaction of the City Engineer, in good condition for one (1) year following approval of construction, the owner shall file a Maintenance Bond executed by a Surety company authorized to do business in this State, and made payable to the Mayor, Town of Horizon City, Texas, or his successors in office, in the amount of 10% of the maximum amount specified in paragraph 8.1.1.
8.1.3
Combined Bond.
The owner of the subdivision may, at his option, file a single bond instrument or financial guarantee, in lieu of separate bond instruments, as indicated above. The amount, conditions, collection, enforceability, recovery, and release of a Combined Bond shall be the same as if separate instruments were provided.
8.1.4
Amount of Bond.
The amount of the bond or the bonds shall not exceed the estimated cost of construction of the road or street in the subdivision, or other maximum amount subsequently established by the Texas State Legislature.
8.1.5
Computing Bond Amount.
Unit costs for normal road and drainage construction will be based on current costs for such work developed by the City Engineer from City, County and State bid results and from information provided by local suppliers. Quantities will be as shown on the plans provided or developed from these plans required. Costs of large or unusual structures, such as bridges, will be based on current costs for similar structures in the area.
8.1.6
Form of Bonds and Securities.
The form of Bonds or financial guarantees to be filed shall be as shown in the attached Exhibits.
Editor’s note–The exhibits referred to in section 8.1.6 are not printed herein.
8.1.7
When Required.
Bonds and financial guarantees shall be filed with the City Council prior to the request of a subdivision recording plat for approval if subdivision improvements have not been completed and accepted by the City Engineer and the Director of Public Works.
8.1.8
Condition and Period of Construction Bond.
The condition of the Construction Bond shall be such that the subdivider of the subdivision shall begin construction of streets and other additions shown on the subdivision plat as soon as possible after date of recording of the plat in the City Clerk’s Office or as directed by the City Council and shall proceed and complete such construction in accordance with the foregoing specifications within a period agreed on between the owner and the City Engineer, not to exceed two (2) years with 1-year extensions by the City Council and bond size review. The Construction Bond shall remain in full force and in effect until all the streets in the subdivision have been completed to the satisfaction of the City Engineer or his agent and the obligation has been released by official action of the City Council.
8.1.9
Collection of Construction Bond.
In the event any or all of the streets as constructed by the subdivider fail to meet the requirements of the foregoing specifications and the said owner fails or refuses to correct the defects after written notice by the City Engineer, the unfinished improvements shall be completed at the cost and expense of the subdivider as provided.
8.1.10
Condition of Maintenance Bond.
The condition of the Maintenance Bond shall be such that the subdivider shall guarantee to maintain, to the satisfaction of the City Engineer, all of the streets and drainageways as shown on an approved subdivision plat which have been constructed to specification. Construction Security shall be released by official action of the City Council provided that the facilities are in a good state of repair and have met all City requirements. In lieu of a Maintenance Bond, the Subdivider may provide a written guarantee for maintenance for one (1) year from the date of Improvements acceptance and name the City as the primary (or secondary) benefactor of a guarantee provided by the construction contractor.
8.1.11
Period of Maintenance Bond.
The Maintenance Bond by its terms shall provide that liability thereunder begin on any or all of the streets in the subdivision and shall remain in full force and effect for the period of one (1) year after the date of the official release of the Construction Security on each street or portion thereof, by the City Council, or for a period of one (1) year from that time in which the Town of Horizon City has officially accepted the subdivision and the plat has been recorded.
8.1.12
Periodic Inspection.
Periodic inspection of all of the streets for which Maintenance Security is held will be made by the City Engineer during the period of liability covered by the Maintenance Bond.
8.1.13
Enforceability of Bonds.
Each of said bonds shall provide that should the same be unenforceable as a statutory bond, the subdivider shall be bound by their contract as a common law obligation.
8.1.14
Repeated Recovery.
Recovery on said Bonds shall not be limited or exhausted by one or more recoveries less than the total amount of such bonds.
(Ordinance 0035 adopted 1/11/94; Ordinance 0035-009 adopted 9/10/02)