A.
Prior to the construction of any improvements within
the subdivision, the subdivider shall deposit with the Director of
Finance either cash, certified check, surety bond or equivalent approved
by the City Commission to insure the installation of such improvements
required by this chapter and conditioned that such deposit shall be
irrevocable and set aside for the improvements required under this
chapter in the subdivision for which the plat has been prepared. The
subdivider making such deposits as above provided shall enter into
an agreement with the City of Royal Oak covering such improvements,
and such agreement shall provide the time of installation, the method
of paying for the cost of said improvements and any other provision
necessary to the protection of the City of Royal Oak.
B.
The only claim the subdivider shall have to the deposit
under this agreement shall be after the installation of all required
improvements and on certification by the City Manager, and upon approval
of the City Commission, that all required improvements in said subdivision
have been completed, or when partial installation is complete in accordance
with the progressive installation clause of this chapter. In the event
the deposit is not sufficient to pay the total cost for said improvements,
the subdivider shall be liable for the difference between said deposit
and total improvements costs. The above agreement shall provide that
the deposit shall be the unconditional and irrevocable guarantee for
the installation of said improvements and on the condition that in
the event the subdivider fails to install said improvements in accordance
with said agreement, such deposit shall be forthwith surrendered,
delivered, transferred and assigned to the City of Royal Oak for the
express purpose of paying the cost of installation of such improvements
in said subdivision.
Upon the recommendation of the City Manager,
the City Commission may release a portion of such cash, certified
check, surety bond or equivalent deposit, equal to the estimated cost
of those completed portions of the required improvements.
In order to guarantee the required improvements
against defects or failure due to any causes for which the subdivider
is responsible, a one-year maintenance bond shall be furnished by
the subdivider to the Director of Finance being either cash, certified
check, surety bond or equivalent approved by the City Commission.
Said deposit shall be an amount equal to 50% of the estimated cost
of installation of said improvements as determined by the City Engineer.
Said deposit shall be refunded to the subdivider upon certification
by the City Engineer that the required improvements have performed
satisfactorily for a period of one year after the installation of
all improvements.
Until such time that any property is dedicated
to the public, the subdivider shall fully identify and save harmless
the City of Royal Oak and defend it in all suits, claims and legal
actions, for damages of every kind and description, brought or claimed
against it for or on account of any party or parties, by or from any
act or omissions or through the negligence of this person, his servants,
agents, employees or independent contractors in the prosecution of
the work required in this chapter.
All of the work required by this chapter shall
be done under the inspection of the City of Royal Oak. Such inspection
shall not relieve the subdivider of his responsibility to perform
or have performed the necessary work as specified. The cost of such
inspection and any engineering or legal work in connection with the
approval of the required improvements or of the final plat shall be
paid for or caused to be paid for by the subdivider. Payment of the
cost of said inspection or legal work shall be in the form of an agreement
stating that a cash deposit be held in escrow by the Director of Finance.
Said cash deposit shall be of an amount equal to 10% of the estimated
cost of installation of said required improvements as determined by
the City Engineer. Upon completion of all improvements, and upon the
approval of the City Commission, all remaining cash held in escrow
shall be refunded to the subdivider. However, in the event that the
cost of said inspection or legal work shall total to more than the
amount of cash held in escrow, the subdivider shall be required to
reimburse the City of Royal Oak for the amount in balance.
