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HomeMy WebLinkAbout1989-01-23 89-66 ORDINANCEwunm:,smmnn u a Date /aa/np Item No. 89-66 Item/Subject Amending Chapter all, Article 8 of the Laws and Ordinances of the City of Bangor - Subdivision Improvements or Bonds Dispersible Department Engineering _ Commentary: " The revision of this Chapter Is to provide that subdivision Improvement guarantees be required; this revision outlines various guarantee options, and provides for a one-year guarantee against defects after construction is completed. _ prtnenr Hud Manager's Comments: - u yr CiH MVmBn Associated Information: Q Budget Approval:.Q, A _F111" Ccr ll ��//11''�`�1 Legal Approval: g�y�.yv,uy,yu. we°b 00 'y solkimr Introduced For DY aisage First Beading , �SeM1asi�e Page _of_ 89-66 Substitution Copy 4i GG Sw Aaeigud IO Cowcilor CITY OF BANGOR (gW 1V14Yutnatac3_. Mending _Chapter XII. Article 8 of the Lav d Ordinances of the. city..nf.Hangox._.. Sabdfvlslen. Improvements _. px..4and4_.._............._. Be Be ar"esdl bg W Cit Cwvatt of Cit efBonoor. sefoWwn' That Chapter RIi, Article 8 of the Laws and Ordinances of the City of Bangor - Improvements or Sands - be deleted, and the following substituted: CHAPTER XII ARTICLE 8 - SUBDIVISION IMPROVEMENT GUARANTEES Sec. 1 Improvement Guarantees Required. As a condition of the approval of the Elnel Plat Of a subdivision, the Planning Board moat be satisfied that all improvements required by Chapter VI. Article 14, Subsection 5.1.3 will be properly constructed: accordingly, the Subdivider shall be required to provide to the CIry an Improvement Guarantee. in the form of one or more of the guarantee options listed below. The Improvement guarantee will insure that the public improve- ments are completed in the event that the Subdivider fails -to complete them within aspecified period of time, or if he of she fails t0 complete the work inordance with the approved Plans and Specifications. The guarantees shall be in an amount that will cover at least SODS of the cost of completing the Improvements, including sanitary sesser, water, storm drainage, street construction, street lighting, final right-of-way survey, and any other improvements as any be required by Paragraph 5 of Chapter VT, Article 14, Subsection 5.1.3. In lieu of posting an Improvement Guarantee. the Subdivider may elect tocomplete the construction of the improvements as described above prior to the recording of the Subdivision Plan or the sale of lots. In that event, the Planning Board will hold the Subdivision Plan without signature until the construction of all improvements has been ompleted in accordance with the Approved Plans and Specificatimu and a 10% Guarantee against defects has been posted as hereinafter described in Sec. 5. At that point, the Subdivision Plan will be signed and recorded in the Penobscot Registry of Deeds. Sec. 2 Procedure. Me Subdivider shall submit a proposed improvement Guarantee to the City Solicitor, who shall determine whether the form, sooner, and duration of the Improvement Guarantee a sufficient. Upon acceptance of the proposed Improvement Guarantee, the City Solicitor shall notify -1- the Planning Officer of his or her acceptance, at which time the conditional approval shall have been fulfilled, and the signed Plan shall be released to the Subdivider for recording in the Penobscot Registry of Deeds. If the Subdivider is aggrieved by the decision of the City Solicitor pertaining to Improvement Guarantee approval as described in this section. and Section 3 helm, he orshe may appeal his or her decision to the City Manager. or may otherwise seek relief through the Courts. Sec. 3 improvement Guarantee Options, 3.1 Performance gond. The Subdivider my obtain a subdivision Performance gond frm a surety bonding company authorized to do business in the State of Maim. The bond shall be payable to the City of Bangor and shall be in an amount sufficient to cover the full coat of all required improvements, as estimated by the City Engineer. 3.2 Real Present Escrow. If real property is proposed for the imprmemnt guarantee. the Subdivider moat comply wish the following requirements: 1. The value of the real estate shall be the value a established by the City "sesame and, in making his or her valuation. the City Assessor shall take into account the passibility of a decline in value during the tare of the Improvement Guarantee. 2. The Subdivider shall, at his or her expense, provide the City with title insurance to establish that the Subdivider has goad and clear title to the premises. free of all liens and encumbrances. m M , if encumbrances umbra s do exist o said real estate. the City Solicitor may in his or her sole discretion rept the proposed real estate as security, provided that he or she determines that it is in the City's best Interest to do so. 3. The Subdivider shall enter into an agreement with the City and a mortgage, which mortgage shall be recorded in the Registry of Deeds:. said agreement and mortgageshall provide that the ownership of the property shall be transferred to the City. unless the Subdivider satisfactorily completes the required improve- ments Ina ordance with this ordinance and with the approved final Subdivision Plan Said agreent and mortgage shall be in such form and shall contain such additional provisions as may be required by the city Solicitor. 3.3 Personal Property Escrow. if personal property is proposed for the Improvement Guarantee, the Subdivider must comply with the following requirements: -2- 1. The Subdivider shall provide the City with evidence of the value of the personal property satisfactory to the City Solicitor. 2. The Subdivider shall, at his or her expense, provide the City with title insurance that no outstanding zeorded security interest exists in said property: the Subdivider shall provide the City with evidence of ownership of the proposed property satisfactory to the City Solicitor. 3. The Subdivider shall enter into an Agreement with the City and execute a security interest in favor of the City, which shall be filed as requited by law; said Agreement shall provide that the ownership of the property shall be transferred to the City,unless the Subdivider satisfactorily completes the required improvements In accordance with this ordinance and with the approved final Subdivision Plan Said Agreement andsecurity interest shall be in such form and shall contain such additional provisions as may be required by the City Solicitor. 4. In the caof stocks, bonds, other securities, the Subdivider shall deliver to the City or Its designated Trustee the original certificate for said security. together with a stock r bond paver endorsed in blank by the Subdivider authorizing the transfer of ownership on the books of the corporation. In the case of other personal property, the Subdivider shall deliver to the City r its designated Trustee the personal property together with a satisfactory security interest in such property. 5. In the case of stocks, bonds. or other securities, the City Solicitor may requirethat the value of said securities exceed the estimated coat of the required improvements in order to protect the City from market fluctuations, or may, at his or her option, reject stocks, bonds or other securities that in his of her opinion do not provide the City with satisfactory security. 3.4 Letter of Credit. The Subdivider may provide a a guarantee an irrevocable letter of credit from a bank or other reputable institution satisfactory to the City Solicitor. such letter of credit to be In form satisfactory to the City Solicitor. The Dunt of such letter of credit shall be in an amount sufficient to cover I the full cost of all required improvements as estimated by the City Engineer and as approved by the City Solicitor. The letter of credit shall be deposited with the finance Director and shall certify the follwing: 1. That the Creditor does guarantee inch In a amount equal to the costs a estimated by theCity Eiginear and approved by the City Solicitor, of completing all required improvements. 2. Mat, in case of failure on the part of the Subdivider to complete. the specified improvements satisfactorily within the required time period, the creditor shall pay to the City of Bangor Immediately, and without further action, such funds as are necessary to finance the proper completion of these Improvements, up to the limit credit stated in the letter. -3- 3. Met the letter of credit is valid for the period of time required by the City Solicitor. The period of tied shall be stated in the letter. During that ties, the letter my set be withdraw or reduced in devout except with the approval of the City Solicitor. 3.5 Cash escrow. The Subdivider may elect to place a sum of money Iu escrow En a local bank innamount sufficient to c all of the Improvements, with the City authorized to draw dead any amounts necessary to complete the improvements which have not been satis- factorily completed by the specified completion date. Me escrow account shall remain in effect until the City Engineer has certified that the Improvements are satisfactorily completed. Sec. 4 Improvement Guarantee Stoneham. The. Subdivider will be allowed treduce can a of the Improvement Guarantee as the completion of construction progresses if he rshe has parted a Performance Mud as described in Subsection 3.1, filed aLetter of Credit as described in Subsection 3.4, or established a Cash Escrow Account as described in Subsection 3.5. subject to periodic certi- fication by the City Engineer as to the extent of completion of the project. based upon a detailed cost estimate breakdown of the improvemmunts submitted by the Subdivider prior to the start of construction, and approved by the City Engineer. The amount of drawdown shall be the value of the actual amount of work satisfactorily completed. lees 10%, mutually agreed to by the Subdivider and the City Engineer not lees frequent than monthly during the period of construction. See. 5 Time of Completion. As part of the final Subdivision Plan revise and approval, the Subdivide[ shall submit a schedule of completion, showing the intended starting date and completion date. The Planning Board may require that the work be completed in a shorter period if it feels that the proposed time for completion is excessive. In any event, all improvements shall be undertaken in a continuous answer, and shall be r completed within two yea s unless the construction of the project Is approved by the Planning Board to be constructed in separate phases. Extensions of time must be approved by the Planning Board. and only if the Subdivider can show reasons n beyond his or her control for any delays.In completion. and only if the Improvement Guarantee is extended by an equal period of time. If the improvements are incomplete or the mark Is uneatiefactory at the end of the approved period for conatructionp then the City may take the necessary action to have the remaining work completed, o any unsatisfactory work corrected, by others, utilising the guarantee assets as described in Section 3 above to cover the necessary coat of completion or correction. If the Subdivider has failed to post an acceptable Improvement Guarantee r to start the construction of improvements within 130 days after the scheduled starting date, then the project will be considered to be abandoned, and past be resubmitted to the Planning Board for reconsideration, with no guarantee that the plan will be approved, or that it won't require substantial modification before approval. -4- Sec. 6 Certification of Completion and Final Acceptance. The Improvement Guarantee reynirea under Section 3 above shall remain In effect until the City Engineer certifies In writing to the Subdivider that all improvements have been satisfactorily completed in accordance with the approved Plane and Specifications. at which time the Improvement Guarantee shall be reduced to 10% of the estimated Cost of the total improvements, with said reduced guarantee to remain in effect for a period of at least one year it= the date of final acceptance. Any defective work which requires correction during the one-year guarantee perid after completion of construction shall be repaired, by the Subdivider, and the 10% Veronica may be extended, at the discretion of the City engineer, for a additional one-year period from the date of correction of the defective work. If at any time during the one-year guarantee period after the completion of construction the Subdivider should fail to take action within 48 hours of notice on the correction of deficiencies which a considered by the City Engine to be arr hazard to the safety and healthofthe public or to otherwise take positive action to correct other defects within 30 days of notice by the City, then the City may causeto have the corrections completed by others, using any of the remaining guaantee assets. At the end of the one-year guarantee period. as may have been extended by the City Engineer, and upon certification by the City Engineer that all work is satisfactory. the City Solicitor shall release the Improvement Guarantee to the Subdivider. Any Subdivider aggrieved by the decision of the City Engineer pertaining to satisfactory completion may appeal his or her decision to the City Manager, or may otherwise seek relief through the Courts. Sec. ] Effective Date. The provisions of this Article shall apply to all subdivision for which final plan approval had not been granted by the City Council on or before February 13. 1989. -5- 89-66 Aeeipmdb Coundor Sosnaud, January 23, 1989 CITY OF BANGOR (TITLE) 0rbjn=tC4 Awarding, Chapter SIT, Article 8 of the Laws and Ordinances of the. City of ggrygpt-„5ubdivisianImprovements . or. Donde Be it ordained by the City ComneY of W C\py ollba+por, we ibyoinau That Chapter %II, Article 8 of the Laws and ordinances of the City of Magor - Improvements or Bonds - be deleted, and the following substituted: CHAPTER %II ARTICLE 8 - SUBDIVISION IMPROVEMENT GUARANTEES Sec. 1 Improvement Guarantees Required. Asa condition of the approval of the Final Plat of a subdivision, the Planning Board must be satisfied that all improvements required by Chapter VI, Article 14, Subsection 5.1.3 will be properly constructed; accordingly, the subdivision Developer shall be required to provide to the City an Improvement Guarantee, in the farm of one or more of the guarantee options listed below. The Improvement Guarantee will insure that the public improvementsacompleted in the event that the Developer fails to complete them within aespecified period of time, or if he fails t complete the work in acordance with the approved Plane and Specifications. The guarantees shall be in an Amount that will cover at least l00% of the cast of completing the improvements, including sanitary sewer, water, are= drainage, street construction, street lighting, final right-ofway survey, and any other improvements as may be required by Paragraph 5 of Chapter VI, Article 14, Subsection 5.1.3. Sec. 2 Procedure. The Developer shall submit a proposed Improvement Guarantee to the City Solicitor, who shall determine whether the form, amount, and duration of the Improvement Guarantee are sufficient. Upon acceptance of the proposed Improvement Guarantee, the City Solicitor shall notify the Planning officer of his acceptance, at which time the conditional approval shall have been fulfilled, and the signed Plan shall be released to the Developer for recording in the Penobscot Registry of Deeds. Sec. 3 Improvement Guarantee Options. 3.1 Performance Bond. The Developer may obtain a subdivision Performance Bond from a surety bonding company authorized to do business in the State of Maine. The band shall be payable to the City of Bangor and shall be in an amount sufficient to cover the full coat of all required improvements, as see imared by the City Engineer. -1- 89-66 3.2 Real Property Persons. If real property is proposed for the improvement guarantee, the Developer moat comply with the following requirements: 1. The value of the real estate shall be the value a established by the City Assessor and, in making his valuation, the City Assessor shall take into account the possibility of -a decline In value during the term of the Improvement Guarantee. 2. The Developer shall, at his expense, provide the City with a title opinion from an attorney approved by the City; said title opinion shall establish that the Developer has good and clear title to the premises, free of all liens and encumbrances. However. if encumbrances do exist o said real a the City Solicitor way in his sole discretion accept the proposed real haters as security, provided that he determines that it is in the City's best interest to do so. 3. The Developer shall enter into an Agreement with the City and a mortgage, which mortgage shall be recorded in the Registry of Deeds; said agreement and mortgage shall provide that the ownership of the property shall be transferred to the City, unless the Developer satisfactorily completes the required improve- ments Ina ordance with this ordinance and with the approved final Subdivision Plan. Said agreement and mortgage shall be in such form and shall contain such additional provisions as may be required by the City Solicitor. 3.3 Personal Property Escrow. If personal property is proposed for theImprovement Guarantee, the Developer must comply with the following requirements: 1. The Developer shall provide the City with evidence of the value of the personal property satisfactory to the City Solicitor. 2. The Diveldpet shall, at his expense, provide the City with a title opinion from anattorney satisfactory c the City that there exists n outstanding recorded security interest In said property., the Developer shall provide the City with evidence of ownership of the proposed property satisfactory tarbhe City Solicitor. 3. The Developer shall enter into an Agreement with the City and execute a security Interest In favor of the City, which shall be filed as required by law, said Agreement shall provide that the ownership of the property shall be transferred to the City. unless the Developer satisfactorily completes the required improvements in accordance with this ordinance and with the approved final Subdivision Plan. Said Agreement and security interest shell be in such form and shall contain such additional provisions as may be required by the City Solicitor. -2- 4. In the c of stocks, bonds, o other securities, the Developer shall der liver to the City or its designated Trustee the original certificate for said security, together with a stock or bond power endorsed in blank by the Developer authorizing the transfer ofownership on the books of the corporation. In the case of other personal property, the Developer shall deliver is the City or its designated Trustee the personal property together with a satisfactory security interest in such property. S. In the case of stocks, bonds, or other securities, the City Solicitor may require that the value of said securities exceed the estimated coat of the required Improvements In order to protect the City from market fluctuations, or mry, at his option, reject stocks. bonds at other securities that in his opinion do not provide the City with satisfactory security. 3.4 Letter of Credit. The Developer may provide as a guarantee a irrevocable letter of credit from a bank or other reputable institution satisfactory to the City Solicitor. such letter of credit to be in form satisfactory to the City Solicitor. The amount of such letter of credit shall be in an amount sufficient to cover the full cost of all required improvements a estimated by the City Engineer and as approved by the City Solicitor. The latter of credit shall be deposited with the Finance Director and shall certify the fallowing: 1. Met the creditor does guarantee funds in an aunt equal to the casts a a estimated by the City Engin and approved by the City Solicitor, of completing all required Improvements. 2. That, in case of failure on the part of the Developer to complete the specified improvements satisfactorily within the required time period, the creditor shall pay to the City of Bangor immediately, and without further action, such funds a necessary to finance the proper completion of these improvements. are to the limit Credit stated in the letter. 3. That the letter of credit is valid for the period of time required by the City Solicitor. The period of time shall be stated in to letter. During that time, the letter may not be withdrawn or reduced in amount except with the approval of the City Solicitor. 3.5 Cash Barren. The Developer may elect to place aavm of money in mayor in a local bank in an anor sufficient to cover all of the Improvements, with the City authorized to draw dawn any amounts necessary to complete the improvements which have not been satis- factorily atis- fact rily completed by the specified completion date. The settee account shall remain in effect until the City Engineer has certified that the improvements are satisfactorily completed. -3- 89-66 Sec. 4 Time of Completlon. As part of the final Subdivision Plan review and approval, the Developer shall submit a schedule of completion, shoving the intended starting date and completion date. The planning Board may require that the work be completed in a shorter period if it feels that the proposed time for completion is excessive. In any event. all Improvements shall beompleted within two years n unless the construction of the project is approved by the Planning Board to be constructed phases. Extensions of time most be approved by the Planning board, and only if the Developer can show reasons beyond his control for any delays in completion, and only if the Improvement Guarantee is extended by an equal period of time. If the improvements are incomplete or the work is unsatisfactory at the end of the approved period for construction, then the City may take the necessary action to have the remaining work completed, or any unsatisfactory work corrected, ted, by others, utilising the guarantee assets as described in Section 3 above to cover the necessary cost of completion or correction. Sec. 5 Certification of Completion and Final Acceptance. The Improvement Guarantee required under Section 3 above shall remain in affect until the City Engineer certifies in writing to the Developer that all Improvements have been satisfactorily completed, at which time the Improvement Guarantee shall be reduced to 10% of the estimated cost of the total improvements, with said reduced guarantee to main in effect for a period of at least one year from the date of final acceptance. Any defective work "which requires correction during the one-year guarantee period after completion of construction shall be repaired, by the Developer, and the 10% guarantee may be extended, at the discretion of the City Engineer, for an additional one-year period from the date of correction of the defective work. Should theDeveloper fail to take action within 48 hours r of notice by bhe City on the correction of deficiencies at any time during the one-year guarantee period after completion of construction. then the City may cause to have the corrections n ectiocompleted by others, using any of the remaining guarantee assets. Ax the end of the one-year guarantee period, asmay have been extended by the City Engineer, and upon certification by the City Engineer that all work is satisfactory. the City Solicitor shall release the Improvement Guarantee to the Developer. -4 In City_Council January 23,1989 Refered to community S F 'c Dev. committee City clerk In City Council-.Tehraary 13,11 Amended by substitution and substituted cq' y amended as fold s That the last sent sof Sec. by Meting tnelvt clava as Ili}j" oe-wep-etl+ernzee-exk-ze}yep 89-66 OFDINANCE ( TITU.) Amending Chapter XII article 8 of the Laws and ordinances of the city of Bangor subdivision i rova,ents or Bonds - U . ^ nnII Aewgued to \1,JJ1 �A.aiL/A Caorctim�n (3L,'Tt sec. 7 he deletedand replaced with the following Sec. 7 Effective Date wed The provisions of theis article shall apply to all subdivisions receiving final plan approval ars by the City council on or after February 13,198A. (2) That the last sentence of Sec. 6 be artmded by deleting the last clause as I,followa ( Subistiktuted copy (9) That a new section 8 be acl9ed as follows: Sac. 6 blsstner Appeals. Purthe Appeals my be taken from any action under this ordixonce within thirty (30) Bays thereafter to the superior court in - accordance with rule 80b, Maine Rules of Civil Procedure Peau Msamended by substition and amenAp t voting yes Blanchette,E gland,Sewyer,Sa ,Shubert,Sosnaud, Stone, oullnisn Tilley - Data February 13, 1989 TO: Bangor City Council FROR: Robert E. Miller, City Solicitor RE; Council Ordinance 889-66: Subdivision Improvements or Bonds - Proposed Amendments (1) THAT the last sentence of Sec. 2 be amended byldeleting the last clause as follows: z-maq-eehezxiae-seek-xe}ge€-pkxengh tke-2ewtte." (2) THAT the last sentence of Sec. 6 be amended by deleting the last clause as follows: . ez-may-atkexwsae-seek-se}}eg-tkzevgh: the-Banzta:" (3) THAT Sec. 7 be deleted and replaced with the following: Sec. 7 Effective Date.. The provisions of this Article shall-applyto all subdivisions receiving final plan approval by the City Council onOr after February 13, 1989. (4) THAT a new Sec. 8 be added as follows: SOC. 8 Further Appeals. Further a eals me be taken from any action under this ordinance within thirty (30) days thereafter to the 6uperiox Court i crdance with Rule 80B, Ma1¢e Rules o C1Vli Procedure. R.E.M. to cc: City Manager -. City Clerk