HomeMy WebLinkAbout1989-01-23 89-66 ORDINANCEwunm:,smmnn
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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.
_
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Manager's Comments: -
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Associated Information: Q
Budget Approval:.Q, A
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Introduced For
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89-66 Substitution Copy 4i GG
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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
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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:
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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.
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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.
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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.
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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.
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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.
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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