(A) 
Subdivision Improvement Agreement or Security for Completion.
Whenever public improvements to serve the development are deferred until after Final Plat recordation for Final Plats with a prior approved Preliminary Plat, the Final Plat shall not be filed for recording at the applicable county unless and until the applicant enters into a Subdivision Improvement Agreement in accordance with this Division 3 of Article 6 of this Chapter 3. The application for a Subdivision Improvement Agreement shall be made in conjunction with an application for approval of the Site Engineering Drawings.
(B) 
Whenever public improvements to serve the development are deferred until after Certificate of Occupancy for Final Plats with no prior approved Preliminary Plat, the Certificate of Occupancy shall not be issued unless and until the applicant enters into a Subdivision Improvement Agreement in accordance with this Division 3 of Article 6 of this Chapter 3. The application for a Subdivision Improvement Agreement shall be made in conjunction with an application for approval of the Site Engineering Drawings.
(Ordinance 6773 adopted 5/19/15)
(A) 
Obligations Under Agreement.
Whenever public improvements to serve the development are deferred as described in Section 3.103 above, the property owner shall enter into a Subdivision Improvement Agreement by which the applicant:
(1) 
Covenants to complete the improvements;
(2) 
Covenants to warranty the improvements for two years (that is, 730 calendar days) following acceptance by the City;
(3) 
Covenants to provide a maintenance bond for such period in the amount set forth in Section 3.111;
(4) 
Provides provisions for participation in the costs of the improvements by the City, if authorization has been obtained from the City Council, and a performance bond for such improvements from the contractor, with the City as a co-obligee;
(5) 
Provides provisions for securing the obligations of the Agreement consistent with Section 3.106 of this Division 3; and
(6) 
Outlines other terms and conditions as are agreed to by the applicant and the City, or as may be required by this GDC.
(B) 
Agreement to Run with the Land.
The Subdivision Improvement Agreement shall provide that the covenants and other items of agreement contained therein shall run with the land and bind all successors, heirs and assignees of the applicant. All existing owners shall be required to execute the Agreement or provide written consent to the covenants and other items contained in the Agreement. The City shall deliver a release to bona-fide, third-party purchasers of individual lots when all required public improvements have been accepted by the City.
(Ordinance 6773 adopted 5/19/15; Ordinance 7055, sec. 33, adopted 5/7/19)
(A) 
General Subdivision Improvement Agreement Review & Approval Process.
The Engineering Department maintains all procedures and instructions for execution of a Subdivision Improvement Agreement.
(B) 
Recommendation by the Director of Engineering.
The Director of Engineering shall provide a recommendation to the City Council as to whether the Subdivision Improvement Agreement should be approved, approved with conditions, or denied by the City Council. The agreement shall also be subject to review by the City Attorney. The Director of Engineering shall not make such recommendation to the City Council until all provisions are agreed upon by the City Attorney.
(Ordinance 6773 adopted 5/19/15)
(A) 
Whenever the obligation to install public improvements to serve a subdivision or development is deferred until after recordation of the Final Plat pursuant to a Subdivision Improvement Agreement, the Agreement shall guarantee proper construction and completion of subdivision improvements by one of the methods described below:
(1) 
Performance Bond.
A bond executed by a surety company holding a license to do business in the State of Texas, and acceptable to the City, on the form provided by the City in an amount equal to the cost of improvements required. The performance bond is subject to the review and approval by the City Attorney.
(2) 
Trust Agreement.
A trust deposit in a bank or trust company for the benefit of the City of Garland, of a sum of money equal to the probable estimated construction cost. Selection of trustee shall be executed on the form provided by the City and approved as to form by the City Attorney.
(3) 
Irrevocable Letter of Credit.
A letter, on a form provided by the City, signed by the principal officer of a local bank, federally insured savings and loan association, or other financial institution acceptable to the City, agreeing to pay the City on demand a stipulated sum of money to apply to the probable estimated construction cost.
(B) 
Estimated Cost & Related Approval.
The security shall be issued in the amount of one hundred and ten percent of the probable estimated construction cost as determined by the applicant’s professional engineer and approved by the Director of Engineering. The security shall be subject to the review and approval of the City Attorney.
(C) 
Security for Construction in Extraterritorial Jurisdiction.
Where the proposed development is located in whole or in part in the extraterritorial jurisdiction of the City and in the applicable county, the security shall also meet any applicable county standards.
(Ordinance 6773 adopted 5/19/15)
(A) 
Upon final completion of all improvements covered by a Subdivision Improvement Agreement and its associated form of security, the applicant may make written request for release of such security by the City. Upon receipt of such written request, the Director of Engineering shall make a determination whether such release is warranted, and whether all required improvements are ready for acceptance by the City. Upon a finding that all responsibilities and obligations under the Subdivision Improvement Agreement have been fulfilled, the Director of Engineering shall authorize release of the security back to the applicant.
(B) 
Upon written request for partial release of surety from the applicant, the Director of Engineering shall determine the percentage of total work required which has already been performed. That portion of the total, less any prior amounts released and a retainage not to exceed ten percent of the total, shall then be released.
(C) 
The Director of Engineering and other necessary City officials shall execute any documents necessary to cause release of any portion of the security in accordance with this provision, provided that all such documents shall be subject to approval by the City Attorney.
(D) 
No partial release shall be granted where any substantial part of work performed prior to the date of application for release fails to meet City standards and specifications for any reason other than incompleteness.
(Ordinance 6773 adopted 5/19/15)
Where good cause exists, the Director of Engineering may extend the period of time designated for completion of necessary improvements specified within the Subdivision Improvement Agreement. Such extension of time shall be reported to the City Council. No such extension shall be granted unless additional security has been provided by the developer to cover the extended period of time.
(Ordinance 6773 adopted 5/19/15)
In addition to all other remedies authorized in Chapter 5 of this GDC, where a Subdivision Improvement Agreement has been executed, but required public improvements have not been installed in accordance with the terms of the Agreement, the City Council may:
(A) 
Declare the Subdivision Improvement Agreement to be in default and require that all the public improvements be installed regardless of the extent of completion of the development at the time the Subdivision Improvement Agreement is declared to be in default;
(B) 
Obtain funds under the security and authorize completion of the improvements by the City itself or through a third party; or
(C) 
Assign its right to receive funds under the security to any third party, including a subsequent owner of the development, in exchange for a Subdivision Improvement Agreement with the subsequent owner and the additional posting of security to complete the public improvements serving the tract.
(Ordinance 6773 adopted 5/19/15)