§ 19.08.040. Security for completion of improvements.

A.

Security. Whenever the obligation to install public improvements to serve a subdivision or development is deferred until after recordation of the final plat and (1) certificates of occupancy are requested for any buildings within the subdivision; or (2) the release of condition pursuant to Title 18 for more than fifty percent of the building permits is requested; or (3) the three-year prescribed period for completion after final plat approval of public improvements has lapsed, the subdivider shall guarantee proper construction of any remaining public subdivision improvements, in accordance with standards contained or referred to herein this title, by one of the methods described below:

1.

Performance bond. A bond executed by a surety company holding a license to do business in the State of Texas, and acceptable to the City of El Paso, on the form provided by the City of El Paso in an amount equal to the cost of public improvements remaining to be installed as required by this title. The performance bond shall be approved as to form by the city attorney.

2.

Trust agreement. A trust deposit in a bank, or trust company, for the benefit of the City of El Paso, of a sum of money equal to the estimated cost of all public improvements remaining to be installed as required by this title. Selection of trustee shall be executed on the form provided by the city and approved as to form by the city attorney.

3.

Irrevocable letter of credit. A letter, on a form provided by the city, signed by the principal officer of a local bank, federally-insured savings and loan association, or other financial institution acceptable to the City of El Paso, agreeing to pay the City of El Paso on demand a stipulated sum of money to apply to the estimated cost of all public improvements remaining to be installed as required by this title. The guaranteed payment sum shall be the estimated costs approved by the city manager or designee.

B.

Amount and Acceptability. The security shall be issued in the amount of one hundred twenty-five percent of the cost estimate approved by the city manager, or designee for all remaining public improvements associated with the subdivision in accordance with this section. The consulting engineer shall determine the percentage of total work called for by the subdivision approval which has already been performed and develop a cost estimate of the remaining public improvements acceptable to the city manager or designee. The security shall be subject to the approval of the city attorney.

C.

Security for Construction in Extraterritorial Jurisdiction. Where the land to be platted lies within the extraterritorial jurisdiction of the city, any required security shall be in a form and contain such terms as are consistent with the city or the county, whichever is more stringent.

D.

Partial Release.

1.

Upon application of the subdivider, the city manager, or designee or his designee shall determine the percentage of total work called for by the subdivision approval which has already been performed. That portion of the total, less any prior amounts released and a retainage not to exceed ten percent of the total shall then be released.

2.

The city manager, or designee and other necessary city officials shall execute any documents necessary to cause release of any portion of the security required by this section in accordance with this provision, provided that all such documents shall be subject to approval by the city attorney.

3.

No partial release shall be granted where any substantial part of work performed prior to the date of application fails to meet city standards and specifications for any reason other than incompleteness.

E.

Remedies. In addition to all other remedies authorized in Chapter 19.42, where security required in this section has been posted, but required public improvements have not been installed in accordance with the terms of this title, the city may:

1.

Declare the subdivision project to be in default and require that all the public improvements be installed regardless of the extent of completion of the development at the time the subdivision project is declared to be in default;

2.

Obtain funds under the security and complete the improvements itself or through a third party;

3.

Assign its right to receive funds under the security to any third party, including a subsequent owner of the development in exchange for the subsequent owner's posting of security to complete the public improvements serving the tract; or

4.

If no lots have been sold, the city may initiate proceedings to have the plat vacated.

(Ord. 16882 § 2 (part), 2008)

(Ord. No. 17236, § 27, 11-10-2009; Ord. No. 18056, § 11, 8-6-2013)