Kanab, Utah Ordinance

In lieu of actual installation of the improvements required by this Ordinance, and before Final Plat approval by the Kanab City Council, the subdivider must guarantee the installation thereof by one or a combination of one or more of the methods specified in 10-2, 10-3, or 10-4, below in an amount equal to the cost of the improvements as estimated by the City Engineer plus require a percentage to cover unexpected costs and inflation. The guarantee employed shall be approved as to method and form by the Kanab City Council and the Kanab City Attorney. The Kanab City Council is authorized to prescribe by administrative rule, or regulation, forms and procedures to insure the orderly, regular and efficient processing of applications for the approval of a proposed subdivision and the strict compliance with the requirements for the Ordinance.

Section 10-2  Performance Bonds

The subdivider shall furnish and file with the Kanab City Clerk a corporate surety bond in an amount equal to the cost of the required improvements as estimated by the City Engineer plus require a percentage to cover costs of inflation, to assure the actual construction of such improvements within a period of two (2) years immediately following the approval of the Final Plat and subdivision by the Kanab City Council, which bond shall be approved by the Kanab City Council and the Kanab City Attorney.

Section 10-3  Escrow Deposit

The subdivider shall deposit in escrow with an escrow holder approved by the Kanab City Council an amount of money equal to at least one hundred twenty-five (125) percent of cost of improvements required as estimated by the Kanab City Engineer plus require a percentage to cover the cost of inflation , under an interest bearing escrow agreement conditioned for the installation of said improvements within two (2) years from the approval of the Final Plat and subdivision. The escrow agreement aforesaid shall be approved by the Kanab City Council and the Kanab City Attorney and shall be filed with the Kane County Recorder.

Section 10-4  Irrevocable Letter of Credit

The subdivider shall file with the Kanab City Council an irrevocable letter of credit from a duly chartered state or national bank or savings and loan institution which letter shall contain provisions substantially similar to that required in the escrow agreement.

Section 10-5  Default

In the event the subdivider defaults or fails or neglects to install satisfactorily the required improvements within two (2) years from the date of approval of the Final Plat, the Kanab City Council may declare the guarantee forfeited, and may install or cause the required improvements to be installed, using the proceeds from the collection of the bond to defray the expenses thereof.

Section 10-6  Phased Development

Whenever the subdivider shall develop a subdivision in phases, such development shall be in orderly manner and in such way that required improvements will be continuous and all said improvements will be made available for full, effective and practical use thereof by lessee or grantee of any of the subdivided lands within the time hereinbefore specified.

Section 10-7  Improvements Guarantee

(1) The subdivider or contractor, upon submission of his plans, shall deposit with the Kanab City Clerk a sum in the amount estimated by the Kanab City Engineer to cover engineering review and inspection of the above improvements.

(2) All such improvements shall have been installed within a period of two (2) years and shall be installed in a manner satisfactory to the Kanab City Council.

(3) The subdivider shall warrant and guarantee that the improvements provided for herein and every part thereof, will remain in good condition for a period of one (1) year after the date of conditional acceptance by the Kanab City Council and agree to make all repairs to and maintain the improvements and every part thereof in good condition during that one (1) year period at no cost to the Kanab City. It is further agreed and understood that identifying necessity for repairs and maintenance of the work rests with the Kanab City Engineer, whose decision upon the matter shall be final and binding upon the subdivider, and guarantee hereby stipulated shall extend to and include, but shall not be limited to the entire street, sub-grade, base, and surface and all pipes, joints, valves, backfill, and compacting as well as the working surface, curbs, gutters, sidewalks, and other accessories that are, or may be, affected by the construction operations. Whenever, in the judgement of the Kanab City Engineer, said work shall be in need of repairs, maintenance or rebuilding and upon the date of their service of such written notice, Kanab City shall have such repairs made, and the cost of such repairs shall be paid by the subdivider.

Section 10-8  Covenant

The subdivider shall execute and acknowledge in a form capable of recording in the office of the Kane County Recorder, a written agreement with the Kanab City Council by which the subdivider covenants that he will not sell, lease, or convey any of the subdivided property to anyone whomsoever unless he shall first, as a condition precedent thereto, satisfy at least one of the foregoing requirements of 10-2, 10-3, or 10-4. The agreement shall specifically provide that it shall be deemed to be a covenant running with the land to secure the installation of all the improvements required by this Ordinance together with a payment of all costs, including a reasonable attorney's fee which the Kanab City Council may incur in enforcing any of the terms and provisions of the agreement. The lien may be released by Kanab City when the subdivider complies with the requirements set forth in at least one of the foregoing requirements of 10-2, 10-3, or 10-4 of this Chapter.

Section 10-9  Acceptance and Release of Surety

(1) Conditional acceptance of all the improvements shall be in writing from the Kanab City Council after written approval has been received from the Kanab City Engineer.

(2) Final inspection by the Kanab City Engineer shall be made one (1) year after all work has been completed and before release of the improvement bond, escrow deposit, or irrevocable letter of credit. All defects shall be corrected before acceptance by the Kanab City Council.

(3) Final acceptance shall be in writing by the Kanab City Council after written approval is received from the Kanab City Engineer.

Section 10-10  Orderly Development Required

Whenever the subdivider shall develop a subdivision, such development shall be in an orderly manner and in such a way that the required improvements will be continuous and all of the improvements will be made available for the full, effective and practical use and enjoyment thereof by the purchaser, grantee, assignee, transferor or lessee of any of the lands subdivided within the time hereinbefore or in phases specified.