Chapter 17.15


17.15.010    Completion of improvements.

17.15.020    Guarantee of financial security.

17.15.030    Cost of improvements.

17.15.040    Failure to complete improvements.

17.15.050    Acceptance of dedication offers.

17.15.060    Inspection of improvements.

17.15.070    Maintenance of improvements.

17.15.080    Deferral or waiver of required improvements.

17.15.010 Completion of improvements.

Before the final subdivision plat or major partition map is signed by the mayor, all applicants shall be required to complete, in accordance with the city council’s decision and to the satisfaction of the city engineer, all the street, sanitary and other improvements, as required in these regulations, specified in the final subdivision plat, and as approved by the city council and to dedicate same to the city, free and clear of all liens and encumbrances on the property and public improvements thus dedicated. [Ord. 515 § 3.1(1), 2005].

17.15.020 Guarantee of financial security.

The city council in its discretion may waive the requirement that the applicant complete and dedicate all public improvements prior to the signing of the subdivision plat, and that, as an alternative, the applicant shall provide assurance of financial security at the time of application for final subdivision approval in an amount estimated by the applicant and determined by the city engineer as sufficient to secure to the city the satisfactory construction, installation, and dedication of the incomplete portion of required improvements. The guarantee of financial security shall also secure all lot improvements on the individual lots of the subdivision as required in these regulations, and may take the form of any of the following:

(1) Escrow Account. The subdivider or land partitioner shall deposit cash, or collateral readily convertible to cash at face value, either with the governing body or in escrow with a bank. The use of collateral other than cash and the selection of the bank with which funds are to be deposited are subject to the approval of the city council. Where an escrow account is to be employed, the subdivider shall file with the city council his agreement with the bank guaranteeing the following:

(a) That the funds in the escrow account are to be held in trust until released by the governing body and may not be used or pledged by the subdivider as security for any obligation during that period;

(b) That in the event that the subdivider fails to complete the required improvements, the bank shall immediately make the funds in escrow available to the city for the completion of these improvements.

(2) Property Escrow. The subdivider may offer as a guarantee land or personal property, including corporate stocks or bonds. A qualified real estate appraiser shall establish the value of any real property so used and, in so doing, shall take into account the possibility of decline in the value of said property during the guarantee period. The city council reserves the right to reject the use as collateral of any property when the value of the property is unstable, when the property may be difficult to sell or when other factors exist which will inhibit the city council from exchanging the property for an amount of money sufficient to complete the required improvements. When property is offered as an improvement guarantee, the subdivider shall:

(a) Execute an agreement with the escrow agent when it is not the city, instructing the agent to release the property to the city in case of default. The agreement shall be placed on file with the city recorder.

(b) File with the city council an affidavit affirming that the property to be used as a guarantee is free and clear of any encumbrances or liens at the time it is to be put in escrow.

(c) Execute and file with the city council an agreement stating that the property to be placed in escrow as an improvement guarantee will not be used for any other purpose, or pledged as a security in any other matter, until it is released by the governing body.

(3) Special Improvement District. The city council may enter into an agreement with the subdivider, and the owners of the property proposed for subdivision or partition, if other than the person subdividing or partitioning the land, that the installation of required improvements will be financed through a special improvement district created pursuant to Oregon law. This agreement shall provide that no lots within the subdivision or major partition will be sold, rented, or leased, and no contract for the sale of lots executed, before the improvements district has been created. An agreement to finance improvements through creation of a special improvements district constitutes a waiver by the subdivider or partitioner, or the owners of the property, of the right to protest or petition against the creation of the district.

(4) Letter of Credit. Subject to the approval of the city council, the subdivider or land partitioner shall provide a letter of credit from a bank or other reputable institution or individual. This letter shall be deposited with the governing body and shall certify the following:

(a) That the creditor guarantees funds in amount equal to the cost, as estimated by the subdivider or land partitioner and approved by the city council, of completing all required improvements.

(b) That if the subdivider or land partitioner fails to complete the specified improvements within the required period, the creditor will pay to the city immediately, and without further action, such funds as are necessary to finance the completion of those improvements, up to the limit of credit stated in the letter.

(c) That this letter of credit may not be withdrawn, or reduced in amount, until released by the city council.

(5) Surety Performance Bond. The bond shall be executed by a surety company authorized to do business in the state of Oregon and acceptable as a surety to the city council and countersigned by an Oregon agent. The bond shall be payable to the city and shall be in effect until the completed improvements are accepted by the city council. [Ord. 515 § 3.1(2), 2005].

17.15.030 Cost of improvements.

All required improvements shall be made by the applicant, at his expense, without reimbursement by the city, except in the case of a creation of a local improvement district, as provided for in PRMC 17.15.020(3). [Ord. 515 § 3.1(3), 2005].

17.15.040 Failure to complete improvements.

For subdivisions or major partitions for which guarantees of performance have not been made, if the improvements are not completed within the period specified by the city council in the resolution approving the plat, the approval shall be deemed to have expired. In those cases where a guarantee of financial security has been made and required improvements have not been installed within the stated period of time, the city may declare the subdivider or major land partitioner to be in default and require that all the improvements be installed regardless of the extent of the building development at the time that default is declared. [Ord. 515 § 3.1(4), 2005].

17.15.050 Acceptance of dedication offers.

Acceptance of formal offers of dedication of streets, public areas, easements and parks shall be by ordinance of the city council. [Ord. 515 § 3.1(5), 2005].

17.15.060 Inspection of improvements.

(1) General Procedure and Fees. The city council shall provide for inspection of required improvements during construction and ensure their satisfactory completion. The applicant shall pay to the city an inspection fee of two percent of the amount of the estimated cost of required improvements, and the subdivision plat or major partition map shall not be signed by the mayor unless this fee has been paid at the time of the application. These fees shall be due and payable upon demand of the city, and the city will not give zoning approval on the developer’s application for a building permit issued by the state of Oregon until all fees are paid. If the city engineer finds upon inspection that any of the required improvements have not been constructed in accordance with the city’s construction standards and specifications, the applicant shall be responsible for completing the improvements.

(2) Certificate of Satisfactory Completion. The city council will not accept dedication of required improvements, not release or direct the release of property or money held in escrow, or the surety performance bond or letter of credit, until the city engineer has submitted a certificate stating that all required improvements have been satisfactorily completed and until the applicant’s engineer or surveyor has certified to the city engineer, through submission of a detailed as-built survey plat of the subdivision, indicating location, dimensions, materials, and other information required by the city, that the layout of the line and grade of all public improvements is in accordance with construction plans for the subdivision or major partition, and that title insurance policy has been furnished to and approved by the city attorney indicating that the improvements shall have been completed, are ready for dedication to the local government and are free and clear of any and all liens and encumbrances. Upon such approval and recommendation, the city council shall thereafter accept the improvements for dedication in accordance with the established procedure, and shall release all performance guarantees posted by the developer, as provided for in PRMC 17.15.020. [Ord. 515 § 3.2, 2005].

17.15.070 Maintenance of improvements.

(1) The applicant shall be required to maintain all improvements on the individual subdivided lots until acceptance of said improvements by the city council.

(2) The applicant shall be required to file a maintenance bond with the city council, prior to dedication, in an amount considered adequate by the city engineer and in a form satisfactory to the city attorney, in order to assure the satisfactory condition of the required improvements, including all lot improvements on the individual subdivided lots for a period of one year after the date of their acceptance by the city council and dedication of same to the city. [Ord. 515 § 3.3, 2005].

17.15.080 Deferral or waiver of required improvements.

(1) The city council, giving its reasons therefor, may defer or waive at the time of tentative plan approval the provision of one or more improvements as, in its judgment, are not requisite in the interests of the public health, safety, and general welfare, or which are inappropriate because of lack of connecting facilities.

(2) Whenever it is deemed necessary by the city council to defer the construction of any improvement required herein because of incompatible grades, future planning, inadequate or lack of connecting facilities, or for other reasons, the applicant shall pay his share of the costs of the future improvements to the city prior to signing of the final subdivision plat, or the applicant may post a bond insuring the completion of said improvements upon demand of the city. [Ord. 515 § 3.4, 2005].