Agenda - Council - 11/14/1995 - Laserfiche WebLink

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Subdivision - Design Standards {} 9.50.30 Minimum Escrow Requirements for Stage I Improvements. For City awarded improvements, the owneffsubdivider shall make a cash deposit with the City Finance Department in a minimum amount equal to 15% of the City Engineer's estimated cost of installing the Stage I Development improvements described in §9.50.50 Sub& 3b above. In lieu of this cash deposit, the owner/subdivider may file a financial guarantee approved by the City in a minimum amount equal to 20% of the City Engineer's estimated cost of the Stage I Development improvements. The decision on whether a cash escrow or financial guarantee will be used for this escrow requirement will be mast. e by the Council on a case by case basis. For non-City awarded improvements, the owner/subdivider shall deposit with the City Finance Department a financial guarantee approved by the City, equal to 125% of the total cost of such improvements as estimated by the City Engineer, including the billable estimated expense of the City for engineering, legal, fiscal, administrative and other expenses incurred by the City in connection with the making of such improvements. On a monthly basis as the project progresses, the City Engineer shall estimate the amount of work completed and recommend tO the Council the amount of funds to be released to the subdivider. There shall be an escrow agreement which shall provide that in the event the required improvements are not completed within one year, all amounts held under the escrow agreement shall be automatically turned over and delivered to the City and applied by the City to the cost of completing the required improvements. If the funds available within said escrow are not sufficient to complete the required improvements, the necessary additional cost to the Cityshall be assessed against the subdivision. Any balance remaining in the escrow fund after such improvements have been made and all expenses therefore have been paid shall be returned to the subdivider. In instances where a letter of credit is used in lieu of a cash escrow, said letter of credit shall be in a form satisfactory to the City and the terms thereof shall substantially comply with the procedure as set forth for a cash escrow fund. Final Escrow Requirements For Stage I Improvements. The minimum escrow requirements described above are subject to increase based on the developer's financial status in relation to the project size. That is, the escrow requirements may vary with each developer depending on credit worthiness. The final escrow amount, above the minimums described above, shall be determined by the Council Each developer shall be required to submit with the development application current audited financial statements. The City will then review and analyze the financial statements and then issue its opinion as to the financial strength of the developer in relation to the proposed project. The report will then be the basis for the City to determine what, if any, additional escrow over and above the minimum described above will'be necessary before the I I I, I I I I I I I I I I I I I I