Fulton Performance guarantee ordinance (§ 102-85)

Final plats shall be neither approved by the city council nor recorded by the city clerk unless the applicable following conditions are met:

(1) Prior installation. The capital improvements or facilities intended to be dedicated to the city or other public body or acceptable private entity have been completed, inspected, and accepted prior to such approval; or

(2) Performance guarantee. All developers shall post with the city engineer a performance guarantee in the form of a good and sufficient cash bond, irrevocable letter of credit, surety bond, or letter of commitment issued by a bank, savings and loan association, surety, or insurance company. Such cash bond, surety bond, letter of credit or other guarantee shall be 100 percent the bid for infrastructure. In the absence of a bid, the city engineer may accept an infrastructure cost estimate from a licensed, professional engineer in the State of Missouri. Performance of work necessary to complete construction and installation of the required improvements to be dedicated to the city, other public body, or approved private legal entity shall be completed within two years of the date of approval of the final plat, unless such time is extended by written agreement between the applicant and the city council. If such improvements are not satisfactorily installed within the time period specified or required, then such surety bond or letter of credit or portion thereof shall be forfeited by the applicant, and the proceeds of such surety bond or letter of credit shall be used to pay for the completion of installing such improvements in accordance with the requirements specified herein.

(3) Surety release. Unless otherwise provided in the surety bond or letter of credit approved by the corporate authorities of the city, the surety bond or irrevocable letter of credit shall remain in full force and effect until such time as the city determines that the project has been completed. After the city has determined that the improvements are complete, the city shall refund a cash bond to a builder or developer or release the irrevocable letter of credit or surety bond, within 60 days. Said release may be partial and may occur from time to time, as improvements are completed and approved.

(4) Renewal dates. Surety bonds or letters of credit approved by the corporate authorities of the city shall be continuous until cancelled by the city engineer. They shall automatically renew upon its stated expiration date for one or more one year periods. The amount of the surety bond or letter of credit may be reduced as improvements are completed and approved upon approval of the city engineer.