§ 57-12. Performance and improvement guarantees.

(a)

Performance guarantee. The subdivider may furnish a performance guarantee to guarantee that actual construction and installation of all improvements shall be completed within two (2) years after the approval of the final plat for each phase of development. The performance guarantee shall not be less than the estimated cost of the improvements as estimated by the developer's engineer and approved by the director and/or city engineer.

(1)

The performance guarantee shall be made in one (1) of the following manners:

a.

A performance bond issued by a surety company, a title insurance company, or a financially reliable corporate security engaged in the business of signing bonds in the State of Missouri, approved by the city attorney and board of aldermen; or

b.

An escrow agreement, to be held in a special escrow account, subject to the audit of the city, approved by the city attorney and board of aldermen, in one (1) of the following forms: Cash, or an irrevocable letter of credit or commitment from a lending institution to the escrow agent guaranteeing to said escrow agent the availability of escrow funds, from time to time upon demand, or certificates of deposit, treasury bills, or other readily negotiable instruments endorsed by the escrow agent.

c.

In lieu of posting a performance bond or escrow agreement as specified in the above, the subdivider may elect to deposit, in an escrow account, the amount required. The escrow agreement shall provide that the escrowed funds are held by a qualified escrow depository, approved by the city attorney and board of aldermen, in a special account to be dispersed by the escrow holder solely for the payment of labor and materials used in the construction and installation of the improvements guaranteed as the work progresses and as approved by the board of aldermen. In no event shall an authorization be given for the release of, nor shall the escrow holder release, more than ninety (90) percent of the escrow fund until the improvements have been completed in a satisfactory manner in accordance with this ordinance and approved by the board of aldermen.

(2)

If the required improvements are not completed within the time allowed, the city shall enforce the performance guarantee by all appropriate legal and equitable remedies, collect said money, and complete the require improvements in behalf of the city. Renewal of the performance guarantee may be made upon the approval of the board of aldermen for an additional period of time specified by the board of aldermen, provided that the application for renewal is made at least thirty (30) days prior to the expiration of said bond.

(b)

Improvement guarantee. The subdivider shall submit as a part of the final plan, an improvement guarantee setting forth the person, corporation, trustees, or other agency responsible for guarantee of all improvements within the subdivision.

(1)

The subdivider shall keep in repair all subdivision improvements for a period of two (2) years from the date of completion of said improvements. To guarantee the improvements, a bond or other security as provided for herein shall be required by the board of aldermen in the amount of ten (10) percent of the total cost of improvements or at a higher amount as determined by the director. The bond shall be filed with the city clerk and be from a surety company or other lending institution licensed to do business in the State of Missouri and approved by the city attorney.

(2)

If in the opinion of the director, the materials and workmanship of the subdivision improvements are found within the two (2) year guarantee period to be of substandard quality or quantity, or if said improvements fail to comply with city specifications, the director shall have the right to give the subdivider thirty (30) days notice to repair said deficiencies. In the event said deficiencies are not repaired within the thirty (30) day period, the director shall have the right to access the improvement guarantee provided herein.

(3)

In the event sidewalks are required under section 57-10(e) and in the event that all sidewalks within the subdivision have not been constructed within the two (2) year period set forth in section 57-12(b)(1), then the subdivider shall be required to immediately construct all remaining sections of sidewalk set forth in the final subdivision plans. No performance guarantee required under this section shall be released until this provision has been satisfied.

(Ord. No. 02-45, § 1, 7-1-02; Ord. No. 03-98, § 6, 8-18-03)