CHAPTER 43.55: SUBDIVISION AGREEMENTS
Section
43.55.010 Subdivision agreement required
43.55.015 Assembly approval required
43.55.025 Cost of required public improvements
43.55.030 Guarantee of completion of public improvements
43.55.035 Release of guarantee
43.55.040 Warranty; correction of deficiencies
43.55.065 Other municipalities as beneficiary
43.55.010 SUBDIVISION AGREEMENT REQUIRED.
(A) Agreement. Where subdivision improvements are required under this title as a condition of plat approval the subdivider may enter into a subdivision agreement with the borough in accordance with this chapter. Road access must be at least 85 percent complete, all lots within the plat being recorded having access. All signage must be installed. All drainage improvements must be installed providing functioning drainage throughout the subdivision prior to entering into a subdivision agreement; minor improvements are allowed to the functioning drainage system under the subdivision agreement.
(B) Application. Application for a subdivision agreement shall be made to the platting division. The application shall include a tentative schedule of all proposed construction of public improvements and the subdivider’s estimate of the cost of each required public improvement, itemized materials list, plans, specifications, descriptions of work, the limits of the work area, the methods to be employed, storm water pollution prevention plans, and any other pertinent data and information necessary for the platting division to evaluate the proposed installation. The borough may require a showing of the subdivider’s financial responsibility.
(C) Contents of agreement. The subdivision agreement shall include, but need not be limited to, the following provision:
(1) a designation of the public improvements required to be constructed;
(2) the construction and inspection requirements of the borough for which the improvements are constructed;
(3) the time schedule for completing the improvements;
(4) the guarantee required by MSB 43.55.030;
(5) [Repealed by Ord. 17-033, § 56, 2017]
(6) the allocation of costs between the borough and the subdivider for required public improvements;
(7) the warranty required by MSB 43.55.037;
(8) the consent of the subdivider for the ownership of specified public improvements to vest with the municipality upon final acceptance by the borough;
(9) a warranty that the subdivider has title to the subdivision property and the authority to execute the subdivision agreement;
(10) [Repealed by Ord. 17-033, § 56, 2017]
(11) a provision that all work shall be performed pursuant to Matanuska-Susitna Borough specifications for subdivision improvements or, where city specifications are applicable, city specifications for such improvements;
(12) a provision that work shall not commence until plans have been approved by the platting division and notice to proceed is given.
(Ord. 17-033, § 56 (part), 2017: Ord. 11-072, § 3 (part), 2012)
43.55.015 ASSEMBLY APPROVAL REQUIRED.
(A) Approval by the assembly shall be required to enter into subdivision agreements where borough participation in the cost of the required public improvements is involved, and approval by the city within which the subdivision is located shall be required to enter into subdivision agreements where city participation in the cost of the required public improvements is involved.
(Ord. 17-033, § 56 (part), 2017: Ord. 11-072, § 3 (part), 2012)
43.55.020 COMPLETION DATE.
(A) The improvements required under the terms of the subdivision agreement shall be fully completed for final acceptance within two years of the date of execution of the agreement, unless upon a showing of good cause the subdivision agreement is extended by the platting division for an additional one-year period. The platting board may grant further extensions following the standards and procedures of MSB 43.10.060.
(Ord. 17-033, § 56 (part), 2017: Ord. 15-036, § 31, 2015: Ord. 11-072, § 3 (part), 2012)
43.55.025 COST OF REQUIRED PUBLIC IMPROVEMENTS.
(A) Elements of cost. The cost of any public improvements includes the cost of design, engineering, contract administration, inspection, testing, and surveillance as well as the work, labor, and materials furnished for the construction of the improvement. Little Davis Bacon wages shall be used to estimate costs.
(B) Apportionment. The subdivision agreement shall require the subdivider to pay all the costs as follows:
(1) all direct and indirect costs incurred by the borough in supplying and administering the method of public improvement guarantee provided for in MSB 43.55.030;
(2) all costs for inspection for final acceptance and warranty repairs of any required public improvements. Surveillance shall be performed by the borough during the course of construction and up to the point of final acceptance of the completed project. Inspection shall be performed by the borough during the warranty period;
(3) all direct and indirect costs of plan review, agreement review, and administration and attendant costs;
(4) all costs of all subdivision improvements required as a condition of plat approval, except those costs of an improvement the borough has agreed to pay that are attributable to oversizing;
(5) the manager may promulgate and amend a schedule of fees and charges to recover the costs set out in subsections (B)(1) through (4) of this section.
(Ord. 17-033, § 56 (part), 2017: Ord. 11-072, § 3 (part), 2012)
43.55.030 GUARANTEE OF COMPLETION OF PUBLIC IMPROVEMENTS.
(A) Guarantee. To assure the installation of required public improvements which are not accepted at the time the final plat is filed, the subdivision agreement shall require the subdivider to guarantee the completion of all the improvements by the method specified below. The amount of guarantee shall be determined on the basis of the borough’s cost estimate and shall be adequate for the borough to complete construction of the public improvements. The guarantee shall remain in effect until final acceptance of the public improvements and successful completion of the warranty period.
(B) Cost estimates. The borough’s estimate shall state the estimated cost of completion for each required public improvement, using Little Davis Bacon wages. Cost estimates for each required public improvement shall be approved by the borough engineer through the platting division. For purposes of establishing the amount necessary for the guarantee of completion of public improvements, a percentage of overrun allowance shall be added to the total estimated cost of public improvements as follows:
|
Total Estimated Cost of Improvement |
Percent for Overrun Allowance |
|---|---|
|
$0 to $500,000 |
25 percent |
|
Over $500,000 |
15 percent |
(C) Method of public improvement guarantee. The subdivision agreement shall include the following method to guarantee the construction of required public improvements:
(1) [Repealed by Ord. 17-033, § 56, 2017]
(2) Deposit in escrow. The subdivider shall deposit a cash sum equal to the estimated cost of the remaining required public improvements plus overrun allowances as provided above either with the borough or in escrow with the responsible financial institution authorized to do such business in the state of Alaska. In the case of an escrow account, the subdivider shall file with the borough an escrow agreement which includes the following terms:
(a) Funds of the escrow account shall be held in trust until released by the borough and may not be used or pledged by the subdivider as security in any matter during the period other than payment for the improvements.
(b) In the case of a failure on the part of the subdivider to complete any improvement within the required time period, the institution shall immediately make all funds in the account available to the borough for use in the completion of those improvements.
(3) [Repealed by Ord. 17-033, § 56, 2017]
(Ord. 17-033, § 56 (part), 2017: Ord. 11-072, § 3 (part), 2012)
43.55.035 RELEASE OF GUARANTEE.
(A) The borough shall release the obligation for performance guarantees upon the final acceptance of the improvement and the successful completion of the warranty period.
(Ord. 17-033, § 56 (part), 2017: Ord. 11-072, § 3 (part), 2012)
43.55.037 WARRANTY.
(A) Warranty of improvements. The subdivider shall warrant and guarantee that required public improvements constructed under the agreement have been constructed in accordance with the approved plans, shall remain in good condition and meet all applicable specification for one year after final acceptance of all improvements required to be constructed. The warranty includes defects in design, workmanship, materials, and any damage to improvements caused by the subdivider, its agents, or others engaged in work to be performed under the subdivision agreement.
(B) Security for warranty. To secure the warranty, the guarantee of performance provided in MSB 43.55.030 shall remain in effect until the end of the warranty period.
(Ord. 17-033, § 56 (part), 2017: Ord. 11-072, § 3 (part), 2012)
43.55.040 WARRANTY; CORRECTION OF DEFICIENCIES.
(A) Within a reasonable time as allowed by the borough, the subdivider shall correct, to the satisfaction of the borough, all deficiencies occurring in required improvements during the warranty period. Notification shall be made by any reasonable method. If the subdivider fails to repair or reconstruct the deficiency within the time specified above, the borough shall make the repair at the subdivider’s sole expense. The borough may then bill the subdivider for the cost of the repair or declare the guarantee amount forfeited or demand payment of the note.
(Ord. 17-033, § 56 (part), 2017: Ord. 11-072, § 3 (part), 2012)
43.55.050 RELEASE OF WARRANTY.
(A) Inspection shall be made by the borough at the end of the warranty period and prior to the release of the guarantee. All deficiencies shall be corrected prior to release of the guarantee. Upon satisfactory correction of all deficiencies, the borough shall release the guarantee.
(Ord. 17-033, § 56 (part), 2017: Ord. 11-072, § 3 (part), 2012)
43.55.055 DEFAULT.
(A) Default on agreement or warranty. In the event the subdivider defaults on any obligation to construct required public improvements, to repair the improvements under the warranty, or to pay the costs or fees to the borough as are due it, the borough may demand immediate payment of costs and fees or for the construction or warranty of any improvements. All funds received by the borough shall be used for any construction, repair, or reconstruction necessary to ensure:
(1) that all required public improvements are built to specifications necessary to receive final acceptance; and
(2) the improvements remain in good condition for the completion of the warranty period.
(B) Use of proceeds. The borough may use guarantee funds for the construction, repair, or maintenance of required public improvements from the date of initial default until three years after the funds have become available to the borough for the use, except that no use shall be made of the funds later than one year after satisfactory completion and final acceptance of the work. The borough shall pay the subdivider all guarantee funds which were not used or obligated for the completion of the improvements after either:
(1) the final acceptance of all public improvements and successful completion of the warranty period; or
(2) the three-year period provided for above.
(Ord. 17-033, § 56 (part), 2017: Ord. 11-072, § 3 (part), 2012)
43.55.060 ENFORCEMENT.
(A) All provisions of this chapter are mandatory and may not be altered by the subdivision agreement. The obligations contained in this chapter may be enforced through an action to enforce the ordinance codified in this chapter as well as an action in contract.
(Ord. 17-033, § 56 (part), 2017: Ord. 11-072, § 3 (part), 2012)
43.55.065 OTHER MUNICIPALITIES AS BENEFICIARY.
(A) Where the public improvements are to become the property of a municipality within the borough, the borough may require that the municipality be a beneficiary of any undertaking of the subdivider, and of any guarantees and warranties to secure the performance of the subdivision agreement with respect to the improvements. The term “municipality” includes the borough and cities with the Matanuska-Susitna Borough.
(B) Where, by borough ordinance, a municipality is given authority to determine, accept, release, or take similar actions relating to subdivision improvement guarantees or warranties, or the ordinance provides for procedures or standards that are different from the provisions of this chapter, the ordinance governs to the extent of its coverage of the actions.
(Ord. 17-033, § 56 (part), 2017: Ord. 11-072, § 3 (part), 2012)