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Regular City Council Meeting <br />March 4, 2004 <br />Page 9 <br />Schenk said that a few things are a departure from the specific language of the <br />ordinance; if you will recall, when Mr. Ross was here, the city accepted a bond <br />from his contractor in lieu of a bond posted by the developer. <br />This particular bond that is posted is a cash bond, not a surety bond. He said <br />they have interpreted this ordinance from the perspective of allowing both <br />instances to occur. In this instance they thought there was no risk to the city <br />in accepting the cash bond. It is not specifically consistent with the language <br />of the ordinance. He thought developers were having some difficulty in <br />obtaining this type of surety bond. If Council chooses they can look at <br />amending the ordinance to permit a cash bond in lieu of a surety bond. <br />Mayor Fendley said what they are guaranteeing is that the construction of the <br />line meets city approval. The developer is not able to get a surety bond. The <br />contractor can get the surety bond. So he thought the city could only get a cash <br />bond from the developer. <br />Councilman Bell said it is the only thing to insure that the developer or the <br />contractor builds the line. The city does not want to approve the plat allowing <br />permits for buildings and things of that nature and if they are not built the city <br />does not permit anything. <br />City Attorney Schenk said that is the technical interpretation of this ordinance. <br />From the perspective of city staff it is a departure from state law to allow <br />someone to have a final plat before all improvements are installed. The <br />purpose of this clause is to allow the developer who can post security the <br />flexibility to insure that some component of the utilities will be built by the <br />time they are needed. This allows the developer to sell lots off the final plat at <br />the same time. <br />City Manager Malone said another issue that ties in with that is if the developer <br />in the future has posted the money and he decides that he is not going to build <br />the utilities or he leaves and it is time for the utilities to be built. The city has <br />the money and has to build the project and the City Engineer is going to have <br /> <br />