§ 18.60.300. Improvements agreement.

A.

An agreement or contract setting forth the construction plan, method of construction, and parties responsible for the construction of any public improvements, together with adequate security or collateral acceptable to the city, will be required prior to the commencement of construction of any public improvements. In addition thereto, no final subdivision plat will be approved until the applicant has submitted and the city has approved a subdivision improvements agreement, as defined herein guaranteeing construction of the required public improvements shown on the final subdivision plat, together with collateral which is sufficient in the judgment of the city to make reasonable provisions for the completion of the improvements in accordance with the design and time specifications. The developer is prohibited from selling lots within a subdivision (see Section 3-20-14, NMSA 1978) prior to the installation of improvements. No building permit shall be issued within any subdivision until the improvements agreement has been accepted by the city and a form of financial guaranty has been accepted and received by the city. The installation of sidewalks prior to the issuance of a building permit will not be required until the end of the one year warranty period for the public improvements. Before the end of the one year warranty period, all sidewalks within the subdivision must be installed. The types of collateral which may be used as security under this section are as follows:

1.

Performance or property bond;

2.

Private or public escrow agreement;

3.

Letters of credit;

4.

Assignments of receivables;

5.

Deposits of certified funds or other similar surety agreements acceptable to the city, to be escrow at a local financial facility. All interest earned on the deposits shall accrue to the developer;

6.

Deposits of certified funds or other similar surety agreements acceptable to the city. A letter from a financial institution represented that specific unencumbered funds have been designated for the construction of public improvements and that the financial institution will allow the designated funds to be used for no other purpose. The form and content of the letter shall be approved by the city of Clovis;

7.

Liens on the subdivision property in favor of the city.

B.

The city will not require security agreements with collateral arrangements in excess of the city engineer's estimate of the cost of public improvements. Written bids executed by licensed New Mexico contractors will be accepted as evidence of cost when available.

C.

Release or Use of Collateral, Security. As public improvements are completed, the applicant may apply to the city for a release of part or all of the collateral or security deposited with the city. Upon final inspection, approval and acceptance of the public improvements by the city engineer, the city will release the collateral or security. If the city determines that any of the improvements are not constructed in substantial compliance with applicable city specifications, the city may, pursuant to the improvements agreement, withdraw and employ from the deposited collateral of security such funds as may be necessary to construct or repair the improvements in accordance with such specifications.

(Ord. 1819-2005 § 2, 2005: Ord. 1606-99 § 2(part), 1999).