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10-A Amend Subdivision Regulations DRAFT ORDINANCE NO. f:attorneylresworklcurrentlAmend xm Sub Regs-Guarantee of Construction 12-10..07 November 27, 2007 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AMENDING SECTION XIII OF ORDINANCE NO. 1315, THE SUBDIVISION REGULATIONS OF THE CITY OF PARIS, TO ADD PROVISIONS PERMITTING OWNERS OR DEVELOPERS TO POST FINANCIAL SECURITY TO GUARANTEE CONSTRUCTION OF PUBLIC IMPROVEMENTS TO SUBDIVISIONS IN LIEU OF ACTUALL Y COMPLETING THE CONSTRUCTION OF THOSE IMPROVEMENTS AS A CONDITION TO APPROVAL OF THE FINAL MAP OR PLAT OF THE SUBDIVISION; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, Section XIII of the City's Subdivision Regulations requires developers to complete all public improvements (water, sewer, curb and gutter, streets, etc.) before they can obtain final plat approval and a building permit for their project; and, WHEREAS, this process is not conducive to private development as it delays commencement of construction and completion of the over-all project; and, WHEREAS, this process can also cause financing problems for developers as often they are unable to obtain their financing for their project prior to final plat approval and issuance of a building permit by the City; and, WHEREAS, many cities in Texas allow developers to put up financial security with the City to guarantee completion of the public improvements to obtain plat approval at an earlier stage of the development process; and, WHEREAS, City planning and development staff recommends that Section XIII of the City's Subdivision Regulations be amended to allow owners or developers to enter into a Subdivision Improvement Agreement with the City and to post financial security in the form of cash deposit, letter of credit or surety bond with the City to guarantee construction and completion of public improvements associated with their projects; WHEREAS, the City Council hereby finds and determines that it is in the best interest of the City and its citizens to amend Section XIII of the Subdivision Regulations to allow owners and developers to enter into a Subdivision Improvement Agreement with the City and to post financial security with the City to guarantee construction of public improvements associated with their private development projects. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. That the findings set out in the preamble to this ordinance are hereby in all things approved. Section 2. That Section XIII, entitled Guarantee of Construction, of Ordinance No. 1315, the Subdivision Regulations ofthe City of Paris, Paris, Texas, shall be and is hereby amended to read in its entirety as follows: "Section XIII. Guarantee of Construction. The owner or developer of any proposed subdivision or addition covered by this ordinance may, in lieu of actually completing the construction of the public improvements required by this ordinance prior to seeking final plat approval, may enter into a Subdivision Improvement Agreement with the City of Paris providing for the construction, completion and payment for the public improvements associated with the proposed subdivision or addition. Owner or Developer, in connection with the Subdivision Improvement Agreement, shall put up financial security with the City in an amount equal to the estimated cost of the public improvement. The financial security required may be in the form of cash deposit with the City, Letter of Credit from a Federally licensed and insured financial institution or surety bond issued by a surety company approved by the United States Treasury Department and licensed to do business in the State of Texas. The purpose of the Subdivision Improvement Agreement and financial security is to guarantee the construction and completion and payment for the public improvements within the time frame stated in the Subdivision Improvement Agreement. The developer and owner shall guarantee and warranty the workmanship and materials used in the construction and installation of the public improvements within the subdivision or addition for one (1) year from the date of written acceptance of all such public improvements by the city engineer of the City of Paris." Section 3. That this ordinance shall be effective on January 1, 2005, and shall thereafter apply to all subdivisions and subdivision construction for which final plats have not been approved, or for which surety bonds have not been posted with the City of Paris to guarantee construction improvements. PASSED AND ADOPTED this 10th day of December, 2007. Jesse James Freelen, Mayor