1.01 
General Policy.
The City hereby defines its policy to be that the City will withhold all City services and improvements of any type until all required improvements are properly constructed according to the approved engineering plans and to City Standards, and until such Public Improvements are dedicated to and accepted by the City. This policy of withholding includes Subdivision improvements as well as Lot improvements.
(1) 
Subdivision Improvements.
Subdivision improvements include Street maintenance, extension of City services from any Subdivision or property, and all Street, utility, storm drainage and other Public Improvements.
(2) 
Lot Improvements.
Lot improvements include retaining walls, grading, and improvements required for proper Lot drainage and prevention of soil erosion.
(Ordinance 585-16, sec. 2, adopted 12/15/15)
2.01 
Developer’s Guarantee.
Before final acceptance of a Subdivision located all or partially within the City or its extraterritorial jurisdiction, the City must be satisfied that all required Public Improvements have been constructed in accordance with the approved engineering plans and with the requirements of these Subdivision Regulations.
2.02 
Subdivision Improvement Agreement and Guarantee.
The City Manager may waive the requirement that the Applicant complete and dedicate all Public Improvements prior to final acceptance of the Subdivision, and may permit the developer to enter into a Subdivision Improvement Agreement by which the developer covenants to complete all required Public Improvements no later than two years following the date upon which the remainder of the Subdivision is accepted. The City Manager may also require the developer to complete or dedicate some of the required Public Improvements prior to final acceptance of the Subdivision, and to enter into a Subdivision Improvement Agreement for completion of the remainder of the required improvements during such two-year period. The Subdivision Improvement Agreement shall contain such other terms and conditions as are agreed to by the developer and the City.
2.03 
Subdivision Improvement Agreement Required for Oversize Reimbursement.
The City may participate in the oversizing of water and sewer facilities required to serve the land areas and improvements beyond the Subdivision. The City shall require a Subdivision Improvement Agreement pertaining to any Public Improvement for which the developer shall request reimbursement from the City for oversize costs. The City Manager, subject to available funds in the budget approved by the City Council, has the authority to approve such an agreement. The City Manager is authorized to sign a Subdivision Improvement Agreement on behalf of the City under this section 2.03.
2.04 
Security.
Whenever the City permits an Applicant to enter into a Subdivision Improvement Agreement, it shall require the Applicant to provide sufficient Security, covering the completion of the Public Improvements. The Security shall be in the form of cash Escrow or, where authorized by the City, a Performance Bond or letter of credit or other Security acceptable to the City Manager and the City Attorney, as Security for the promises contained in the Subdivision Improvement Agreement. Security shall be in an amount equal to 110% of the estimated cost of completion of the required Public Improvements and Lot improvements. The City Engineer shall review and approve the cost estimates provided by the developer. Any Security instrument, including a Bond, letter of credit, or escrow agreement shall be subject to the review and approval of the City Engineer and the City Attorney.
2.05 
Performance Bond.
(a) 
Requirements.
If the City Council authorizes the Applicant to post a Performance Bond as Security for its promises contained in the Subdivision Improvement Agreement, the Performance Bond shall comply with the following requirements:
(1) 
All Performance Bonds must be in the forms acceptable to the City Engineer and the City Attorney;
(2) 
All Performance Bonds must be executed by such sureties as are named in the current list of “Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies”, as published in Circular 570, as may be amended, by the Financial Management Service, Surety Bond Branch, U.S. Department of the Treasury;
(3) 
All Performance Bonds must be signed by an agent, and must be accompanied by a certified copy of the authority for him or her to act;
(4) 
All Performance Bonds shall be obtained from Surety or insurance companies that are duly licensed or authorized in the State of Texas to issue Performance Bonds for the limits and coverage required.
(b) 
Additional Surety.
If the Surety on any Performance Bond furnished by the Applicant is declared bankrupt, or becomes insolvent, or its right to do business is terminated in the State of Texas, or the Surety ceases to meet the requirements listed in Circular 570, the developer shall, within 20 calendar days thereafter, substitute another Performance Bond and Surety, both of which must be acceptable to the City.
(c) 
Withholding Until Improvements or Other Surety.
The City may withhold building permits, certificate of occupancy permits or utility connections until such improvements are completed or other Surety is provided to the City.
2.06 
Letter of Credit.
If the City Manager authorizes the Applicant to post a letter of credit as Security for its promises contained in the Improvement Agreement, the letter of credit shall:
(1) 
Be irrevocable;
(2) 
Be for a term sufficient to cover the completion, maintenance and warranty periods, but in no event less than two years; and
(3) 
Require only that the City present the issuer with a signed draft and a certificate signed by an authorized representative of the City certifying to the City’s right to draw funds under the letter of credit.
2.07 
Reducing Amount of Surety.
As portions of the Public Improvements are completed in accordance with the Design Standards and the approved engineering plans, the Applicant may make written Application to the City to reduce the amount of the original Security. If the City is satisfied that such portion of the improvements has been completed in accordance with City Standards, the City Manager (or designee) may cause the amount of the Security to be reduced by such amount that he or she deems appropriate, so that the remaining amount of the Security adequately insures the completion of the remaining Public Improvements.
2.08 
Escrow Policies and Procedures for Streets.
(a) 
Request for Escrow.
Whenever these Subdivision Regulations requires a Property Owner to construct a Street or Thoroughfare, the Property Owner may petition the City to construct the Street or Thoroughfare, usually at a later date, in exchange for deposit of Escrow as established in this section.
(1) 
The basis of such petition shall be the existence of unusual circumstance(s), such as a timing issue due to pending Street Improvements by another agency such as TxDOT or Denton County that would present undue hardships or that would impede public infrastructure coordination or timing.
(2) 
If more than one Street or Thoroughfare must be constructed in order to meet adequacy requirements for Streets, the City Manager (or designee) may prioritize Streets for which Escrow is to be accepted and require the deposit of all funds attributable to the development in Escrow accounts for one or more of such affected Streets.
(3) 
The City Council shall review the particular circumstances involved, and shall determine, at its sole discretion, whether or not provision of Escrow deposits will be acceptable in lieu of the Property Owner’s obligation to construct the Street or Thoroughfare with his or her development.
(b) 
Escrow Deposit with the City.
Whenever the City Council agrees, under these Subdivision Regulations, to accept Escrow deposits in lieu of construction by the Property Owner or developer of the Street or Thoroughfare, the Property Owner or developer shall deposit in Escrow with the City an amount equal to costs of the following:
(1) 
administration,
(2) 
advertisements,
(3) 
bidding,
(4) 
contingency,
(5) 
testing,
(6) 
design,
(7) 
construction,
(8) 
permits,
(9) 
reviews and approvals,
(10) 
inspections,
(11) 
any additional land acquisition, and
(12) 
an appropriate (and realistic) inflation factor to ensure that the actual “future dollar” costs will be covered when actual construction occurs in the future.
(c) 
Determination of Escrow Amount.
The amount of the Escrow shall be determined by using the maximum comparable “turn-key” bid price of construction of the Street or Thoroughfare improvements (including the items listed in subparagraph (b) above). Such determination of the Escrow amount shall be made as of the time the Escrow is due hereunder, and shall be subject to the Review and approval of the City Manager (or designee) and the City Engineer. The Escrow amount shall be paid prior to release (approval) of engineering plans by the City Engineer. The obligations, responsibilities, and related liability of the Property Owner shall become those of the Property Owner’s transferees, successors and assigns.
(d) 
Use of Escrow.
Escrowed amounts, along with any interest accrued on such amount, may be used for the purposes outlined in subparagraph (b) above in order to undertake construction of the facilities that are required as part of the development for which the Escrow was submitted.
(e) 
Termination of Escrow.
Escrows, or portions of Escrowed amounts, which have been placed with the City under this section and which have been held for a period of 10 years from the date of such payment or agreement, in the event that the City has not authorized the preparation of plans and specifications for construction of such Street facilities for which the Escrow was made, shall, upon written request, be returned to the Property Owner, along with its accrued interest. Such return does not remove any obligations of the Property Owner for construction of the required facilities if a building permit has not been issued on the subject Lot or if a new building permit is applied for.
(f) 
Refund.
If any Street or highway for which Escrow is deposited is constructed by a party other than the City, or is reconstructed by another governmental authority at no cost to the City, the Escrowed funds and accrued interest shall be refunded to the Property Owner or Applicant who originally paid the Escrow amount after completion and acceptance of the Public Improvements. In the event that a portion of the cost is borne by the City and the other portion of the cost by another party or governmental authority, the difference between the Property Owner’s actual proportionate cost and the Escrowed funds, including accrued interest, if any, shall be refunded after completion and acceptance of the improvements.
(g) 
Interest Limitation.
If money is refunded within six months of deposit, only the principal shall be refunded. Monies returned after this date will be refunded with 1/2 of its accrued interest.
2.09 
Subdivision Improvement Agreements for Perimeter and Approach Streets.
(a) 
Perimeter and Approach Streets.
If a Perimeter or Approach Street is required to be constructed under Article 3, Section 2 of these Subdivision Regulations, the Developer and the City may enter into a Subdivision Improvement Agreement that provides for the future reimbursement to the Developer as new Development occurs along the section of the Perimeter or Approach Street constructed by the Developer. Such reimbursement shall not exceed one-half the cost per linear foot of constructing the Perimeter or Approach Street and related improvements multiplied by the number of linear feet of the Perimeter or Approach Street adjacent to the new Development. The Developer who constructed the Street shall submit copies of contracts to the City to establish the cost of the project that is subject to reimbursement.
(b) 
Time Period for Reimbursement.
If the City collects a Perimeter Street Fee as provided for in Article 3, Section 2 of these Subdivision Regulations, within 10 years of the acceptance of the Street by the City, it shall pay the collected amount to the Developer who originally constructed the Street as soon as practicable after receipt of the funds as required under the terms of a Subdivision Improvement Agreement authorized by this section 2.09. At the expiration of the 10th year, a Developer is no longer entitled to receive reimbursement.
(c) 
Impact Fee Credit.
Unless otherwise agreed to in a written agreement concerning impact fees or other development fees, a Developer who installs an Approach Street under the provisions of a Subdivision Improvement Agreement may pursuant to the provisions of the Agreement, receive credit for costs associated with the installation of the Approach Street against any Street impact fees that may be lawfully assessed against the Developer for that portion of the Approach Street constructed.
(d) 
Oversizing.
When required for the proper and orderly growth of the City, the City Council may require a Developer to install an Approach Street larger than necessary to support the specific Development subject to the terms of a Subdivision Improvement Agreement. If the Developer is required to install an Approach Street larger than necessary to serve the specific Development, the Developer may, subject to the provisions of a Subdivision Improvement Agreement, be reimbursed by the City for the difference in cost between the cost of installing the oversized Street and the cost of installing a Street meeting minimum City Standards required for the type of Street required to serve the Development.
(1) 
Credit for Development Fees.
The City may, pursuant to the terms of a Subdivision Improvement Agreement, compensate the Developer for the difference in cost mandated by oversizing by crediting up to 50% of Development fees charged against any portion or phase of the Development.
(i) 
Transfer of Credit.
Upon written request from the Developer, credit for Development fees may be transferred from the current Development project to subsequent Development projects, Subdivisions or phases undertaken by the Developer. Such transfers must be approved by the City Council.
(Ordinance 585-16, sec. 2, adopted 12/15/15)
3.01 
Responsibility.
The Applicant shall build and pay for all costs of Temporary Improvements required by the City, and shall maintain those Temporary Improvements for the period specified by the City. Prior to construction of any temporary facility or improvement, the Applicant shall file with the City a separate Improvement Agreement and Escrow or, where authorized, a letter of credit, in an appropriate amount for temporary facilities, which agreement and Escrow or letter of credit shall ensure that the temporary facilities will be properly constructed, maintained and removed.
3.02 
Temporary Easement.
Any temporary Public Improvement (e.g., a temporary Cul-De-Sac, Alley turnout, drainage swale, erosion control device, etc.) shall be placed within an Easement established specifically for that purpose. The recording information of the instrument establishing the temporary Easement shall not be shown on the Final Plat unless the Easement is a permanent Easement for the Subdivision prior to approval of the Final Plat. A temporary Easement for a required Public Improvement shall not be abandoned without the City Manager’s written consent.
(Ordinance 585-16, sec. 2, adopted 12/15/15)
4.01 
Improvement Agreement Executed and Security Posted.
In those cases where an Subdivision Improvement Agreement has been executed and Security has been posted, and the required Public Improvements have not been installed within the terms of the agreement, the City may:
(1) 
Declare the 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 agreement is declared to be in default;
(2) 
Suspend any previously authorized building construction activity within the Subdivision until the Public Improvements are completed, and record a document to that effect for the purpose of public notice;
(3) 
Obtain funds under the Security and complete the Public Improvements itself or through a third party;
(4) 
Assign its right to receive funds under the Security to any third party, including a subsequent owner of the Subdivision for which Public Improvements were not constructed, in whole or in part, in exchange for that subsequent owner’s promise to complete the Public Improvements on the property; or
(5) 
Exercise any other rights or remedies available under the law.
(Ordinance 585-16, sec. 2, adopted 12/15/15)
5.01 
Acceptance.
Acceptance of formal offers for the dedication of Streets, public areas, Easements or parks shall be by written authorization of the City Manager. The approval by the Planning and Zoning Commission and City Council of a Preliminary or Final Plat shall not, in and of itself, be deemed to constitute or imply the acceptance by the City of any Public Improvements required by the Plat. The City may require the Plat to be endorsed with appropriate notes to this effect.
(Ordinance 585-16, sec. 2, adopted 12/15/15)
6.01 
Maintenance Bond.
(a) 
A Subdivider shall furnish a good and sufficient maintenance bond issued by a reputable and solvent corporate surety, in favor of the City, to indemnify the City against and guarantee the costs of any repairs which may become necessary to any part of the construction work performed in connection with the Subdivision, arising from defective workmanship or materials used therein, for a full period of two years from the date of final acceptance of the entire project or a phase of the project if the City elects to accept a particular phase before the entire project is completed. A separate maintenance bond must be furnished for work done under each contract for each part of such construction work unless otherwise authorized by the City. Final acceptance will be withheld until said maintenance bond is furnished to and approved by the City Attorney. The maintenance bond shall have attached thereto a copy of the construction contract for such improvements and such other information and data necessary to determine the validity and enforceability of such bond. When the bond has been examined and approved, the City Attorney shall so specify in writing to the City’s development department. No permits shall be issued by the Building Inspector of the City on any piece of property other than an original or a re-subdivided lot in a duly approved and recorded Subdivision or on a lot of separate ownership of record prior to the approval of any required maintenance bond.
(b) 
The City Manager may waive the requirement for a Maintenance Bond for projects with a construction cost of $5,000 or less.
(Ordinance 585-16, sec. 2, adopted 12/15/15)
7.01 
Site Development Permit.
A Site Development Permit is required from the City prior to beginning any site development-related work in the City or its extraterritorial jurisdiction which affects erosion control, storm drainage, vegetation or tree removal, or a flood plain.
7.02 
Pre-Construction Conference Prior to Affecting Grading, Vegetation and/or Trees.
The City shall require that all contractors participating in the construction meet for a pre-construction conference to discuss the project prior to release of a Site Development Permit and before any filling, excavation, clearing or removal of vegetation and any trees that are larger than six inch caliper. All contractors shall be familiar with, and shall conform with, applicable provisions of the City’s landscape and tree preservation regulations and any other applicable ordinances or regulations.
7.03 
Conditions Prior to Authorization.
Prior to issuing a Site Development Permit, the Planning Director shall be satisfied that the following conditions have been met:
(1) 
The Final Plat has been approved by the Planning and Zoning Commission (and any conditions of such approval have been satisfied);
(2) 
All required engineering plans and documents are completed and approved by the City’s Engineer;
(3) 
All necessary off-site Easements and dedications required for City-maintained facilities and not shown on the Plat have been conveyed to the City, such as by filing of a separate instrument, with the proper signatures affixed.
(4) 
All contractors participating in the construction shall be presented with a set of approved plans bearing the stamp of approval of the Director of Public Works, and at least one set of these plans shall remain on the job;
(5) 
A complete list of the contractors, their representatives on the site, and telephone numbers where a responsible party may be reached at all times must be submitted to the City; and
(6) 
All applicable fees must be paid to the City.
7.04 
Nonpoint Source Pollution Controls and Tree Protection.
All nonpoint source pollution controls, erosion controls, and tree protection measures and devices shall be in place, to the City Engineer’s satisfaction, prior to commencement of construction on any property.
(Ordinance 585-16, sec. 2, adopted 12/15/15)
8.01 
General Procedure.
(a) 
The Subdivider shall provide inspection service through his/her Engineer to ensure that construction is being accomplished in accordance with the plans and specifications approved by the City Engineer.
(1) 
The Subdivider shall notify the Public Works Director 48 hours prior to commencement of construction. This notice shall give the location and date of the start of construction.
(2) 
The City shall have the right to inspect any construction work being performed to ensure that it is proceeding in accordance with the intent of the provisions of these Subdivision Regulations.
(3) 
Any change in design that is required during construction should be made by the licensed professional Engineer whose seal and signature are shown on the plans. Another Engineer may make revisions to the original engineering plans if so authorized by the owner of the plans, and if those revisions are noted on the plans or documents. All revisions shall be approved by the City Engineer.
(4) 
If the City Engineer finds, upon inspection, that any of the required Public Improvements have not been constructed in accordance with the approved construction plans, the City’s standards and/or the Design Standards, then the developer shall be responsible for completing and correcting the deficiencies (at his/her expense) such that they are brought into conformance with the applicable standards.
(b) 
Testing laboratory services will be arranged by the City and paid for by the developer. It shall be the responsibility of Director of Public Works (or designee) to coordinate the scheduling of all required tests with the testing laboratory. Testing shall be conducted in accordance with the procedures set forth in Design Standards for like work at the frequency specified thereon as directed by the City Engineer.
8.02 
Letter of Satisfactory Completion.
(a) 
The City will only deem required Public Improvements satisfactorily completed when the Applicant’s Engineer or RPLS has certified to the City Engineer (through submission of detailed sealed “as-built”, or record, drawings of the property) drawings that indicate all Public Improvements and their locations, dimensions, materials and other information required by the City Engineer, and when all required Public Improvements have been completed.
(1) 
The mylar “as-builts” shall also include a complete set of sealed record drawings of the paving, drainage, water, sanitary sewer and other Public Improvements, showing that the layout of the lines and grades of all Public Improvements are in accordance with engineering plans for the Plat, and showing all changes made in the plans during construction, and containing on each sheet an “as-built” stamp bearing the signature and seal of the licensed professional Engineer and the date.
(2) 
One reproducible drawing of the utility plan sheets containing the as-built information shall also be submitted.
(3) 
The developer’s Engineer and/or RPLS shall also furnish the City with a copy of the approved Final Plat and “as-built” engineering plans, in such a digital format (on disk) that is compatible with the City CAD system.
(b) 
When the requirements of subsection (a) above have been met to the Planning Director’s and City Engineer’s satisfaction, and when a maintenance Bond has been received and approved as required in Article 6, Section 6 of these Subdivision Regulations, the City Manager shall issue a Letter of Satisfactory Completion.
8.03 
Effect of Acceptance.
Acceptance of the development shall mean that the developer has transferred all rights to all the Public Improvements to the City for use and maintenance, subject to the two year Maintenance Bond (see Article 6, Section 6 of these Subdivision Regulations).
(Ordinance 585-16, sec. 2, adopted 12/15/15)
9.01 
Building Permit.
A building permit shall only be issued for a Lot, building site, building or use after the Lot or building site has been officially recorded by a Final Plat approved by the Planning and Zoning Commission and City Council and filed for record at Denton County, and after all Public Improvements, as required by these Subdivision Regulations, have been completed: Notwithstanding the above, a permit may be issued as outlined below, provided that an agreement providing sufficient Security (see Article 6, Section 2 of these Subdivision Regulations) is approved by the City Manager for the completion of all remaining Public Improvements.
(1) 
Building “Foundation-Only” Permit.
A building “foundation only” permit may be issued for a nonresidential or multi-family development. However, the building permit shall not be issued and building construction shall not be allowed to surpass the construction of fire protection improvements. In other words, the building shall not proceed above the slab level until all required fire lanes have been completed, and until all water lines serving fire hydrants have been completed, inspected and tested.
(2) 
Possible Release of Lots.
The City Manager may release some residential building permits for not more than 10% of the Lots within a new residential Subdivision, provided that all Public Improvements have been completed for that portion of the development including those required for fire and emergency protection. No Lot may be sold nor title conveyed until the Final Plat has been recorded with the Denton County Clerk.
9.02 
Certificate of Occupancy.
A certificate of occupancy shall only be issued for a building or the use of property after a Final Plat has been approved by the Planning and Zoning Commission and City Council and recorded with the Denton County Clerk, and after all Subdivision improvements have been completed. Notwithstanding the above, a Certificate of Occupancy may be issued provided that an agreement providing sufficient Security (see Article 6, Section 2 of these Subdivision Regulations) is approved by the City Manager for the completion of all remaining Public Improvements, and provided that the structure is safely habitable in accordance with the City’s Building Codes. No Lot may be sold nor title conveyed until the Final Plat has been recorded with the Denton County Clerk.
(Ordinance 585-16, sec. 2, adopted 12/15/15)