Ord 3190 5/16/1977 ORDINANCE NO.
AMENDING SECTION 7, SUBSECTION (1) OF
ORDINANCE NO. 2118, TO PROVIDE FOR ADDITIONAL
GUARANTEES BY SUBDIVIDERS OF COMPLETION OF IMPROVE-
MENTS IN NEW SUBDIVISIONS.
BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY OF
WICHITA FALLS, TEXAS, THAT:
Section 7 , Subsection (1) is hereby amended to read
as follows:
" (1) The City Engineer and Director of Public Utilities
shall furnish the Director of Public Works with written
certifications that all improvements required under this
ordinance have been completed prior to submittal of the final
plat, or that one of the following types of guarantees has
been furnished. If such a guarantee is furnished, it shall
provide that all improvements shall be completed within twelve
months, unless an extension of time is granted in writing
by the Director of Public Works for good cause. Such guaran-
tees are as follows:
(1) The subdivider may furnish a surety bond, to be
approved by the City Attorney, payable to the City, in an
cost sufficient to cover the entire improve-
ments, t of such im p
ments, as estimated by the subdivider and approved by the
City Engineer and Director of Public Utilities.
(2) The subdivider may deposit cash, or other instrument
readily convertible into cash at face value, either with the
City, or in escrow with a bank. The use of any instrument
other than cash, and, in the case of an escrow account,
the bank with which the funds are to be deposited, shall be
subject to the approval of the Director of Public Works
and the Chief Accounting Officer. If an instrument readily
convertible into cash is deposited with the City, it may
be reduced to cash at the discretion of the Chief Accounting
Officer. The amount of the deposit shall be sufficient to
cover the entire cost of the required improvements, as esti-
mated by the subdivider and approved by the City Engineer
and Director of Public Utilities. In the case of an escrow
account, the subdivider shall file with the Director of Public
Works an agreement between himself and the bank guaranteeing
that such funds shall be held in trust until released by
the Director of Public Works, and may not be used nor pledged
by the subdivider as security in any other matter during that
period; that in case of failure of the subdivider to com-
plete said improvements within the time specified, then the
bank shall immediately make the funds in such account avail-
able to the City for use in the completion of such improvements.
Provided, however, periodic payments may be made from the
cash deposited with the City or from the escrow account for
progressive payments of construction costs of the required
improvements, which payments shall be based upon progress
work estimates prepared by the subdivider' s engineer and
approved by the City Engineer.
(3) The subdivider may provide, from a bank or other
reputable financial institution approved by the Director of
Public Works, a letter of credit, which is approved by the
City Attorney. Such letter of credit shall state that the
creditor guarantees funds in an amount equal to the cost of
constructing such improvements, as estimated by the subdivider
and approved by the City Engineer and Director of Public
Utilities; in case of failure on the part of the subdivider
to complete such improvements within the specified time, the
creditor shall pay to the City immediately, and without further
action, such funds as are necessary to complete such improve-
ments, up to the limit of credit stated in the letter; such
letter of credit may not be withdrawn, or reduced in amount,
until released by the Director of Public Works.
If one of such guarantees is furnished to the City by
the subdivider, it shall be filed in the office of the Chief
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Accounting Officer. No final plat shall be approved by the
Director of Public Works until he has been furnished by the
City Engineer and the Director of Public Utilities with such
written certifications. "
PASSED AND APPROVED this the 16th day of May, 1977.
A Y O '! "/:(21
ATTEST:
City Clerk
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