§ 12.02.13. Guarantees and sureties.

(a)

Applicability.

(1)

The provisions of this section apply to all proposed developments in the town, including private road subdivisions.

(2)

Nothing in this section shall be construed as relieving a developer of any requirement relating to concurrency in article IV of this Land Development Code.

(3)

This section does not modify existing agreements between a developer and the town for subdivisions platted and final development orders granted prior to the effective date of this Land Development Code, providing such agreements are current as to all conditions and terms thereof.

(b)

Improvements agreements required. The approval of any development plan shall be subject to the developer providing assurance that all required improvements, including, but not limited to, storm drainage facilities, streets and highways, water and sewer lines, shall be satisfactorily constructed according to the approved development plan. The following information shall be provided:

(1)

An agreement that all improvement, whether required by this Land Development Code or constructed at the developer's option, shall be constructed in accordance with the standards and provisions of this Land Development Code. (See subsection 1.04.02(1)j.)

(2)

The term of the agreement indicating that all required improvements shall be satisfactorily constructed within the period stipulated. The term shall not exceed five years from the recording of the plat or 30 percent occupancy of the development, whichever comes first.

(3)

The projected total cost for each improvement. Cost for construction shall be determined by either of the following:

a.

An estimate prepared and provided by the applicant's engineer.

b.

A copy of the executed construction contract provided.

(4)

Specification of the public improvement to be made and dedicated together with the timetable for making improvements.

(5)

An agreement that upon failure of the applicant to make required improvements (or to cause them to be made) according to the schedule for making those improvements, the town shall utilize the security provided in connection with the agreement.

(6)

Provision of the amount and type of security provided to ensure performance.

(7)

Provision that the amount of the security may be reduced periodically, but not more than two times during each year, subsequent to the completion, inspection and acceptance of improvements by the town.

(c)

Amount and type of security.

(1)

The amount of the security listed in the improvement agreement shall be approved as adequate by the town manager.

(2)

Security requirements may be met by, but are not limited to, the following:

a.

Cashiers check.

b.

Certified check.

c.

Developer/lender/town agreement.

d.

Interest bearing certificate of deposit.

e.

Irrevocable letters of credit.

f.

Surety bond.

(3)

The amount of security shall be 110 percent of the total construction costs for the required developer-installed improvements. The amount of security may be reduced commiserate with the completion and final acceptance of required improvements. In no case, however, shall the amount of the bond be less than 110 percent of the cost of completing the remaining required improvements.

(4)

Standard forms are available from the town attorney's office and approved by the town council.

(d)

Completion of improvements.

(1)

When improvements are completed, final inspection shall be conducted and corrections, if any, shall be completed before final acceptance is recommended by the town engineer. A recommendation for final acceptance shall be made upon receipt of a certification of project completion and one copy of all test results. Costs of inspections by the town engineer shall be paid by the developer to the town prior to release of any security requirement.

(2)

As required improvements are completed and accepted, the developer may apply for release of all or a portion of the bond consistent with the requirement in subsection (c)(3) of this section.

(e)

Maintenance of improvements.

(1)

A maintenance agreement and security shall be provided to ensure the town that all required improvements shall be maintained by the developer according to the following requirements:

a.

The period of maintenance shall be a minimum of three years.

b.

The maintenance period shall begin with the acceptance by the town of the construction of the improvements.

c.

The security shall be in the amount of 15 percent of the construction cost of the improvements.

d.

The original agreement shall be maintained by the town manager.

(2)

Whenever a proposed development provides for the creation of facilities or improvements which are not proposed for dedication to the town, a legal entity shall be created to be responsible for the ownership and maintenance of such facilities and/or improvements.

a.

When the proposed development is to be organized as a condominium under the provisions of F.S. ch. 718, common facilities and property shall be conveyed to the condominium's association pursuant to that law.

b.

When no condominium is to be organized, an owners' association shall be created, and all common facilities and property shall be conveyed to that association.

c.

No development order shall be issued for a development for which an owners' association is required until the documents establishing such association have been reviewed and approved by the town attorney.

(3)

An organization established for the purpose of owning and maintaining common facilities not proposed for dedication to the town shall be created by covenants running with the land. Such covenants shall be included with the final plat. Such organization shall not be dissolved nor shall it dispose of any common facilities or open space by sale or otherwise without first offering to dedicate the same to the town.

(Ord. No. 91-6, § 3(12.02.13), 2-11-1992)