1. The subdivider shall submit a construction cost estimate prepared by a registered engineer familiar with the land in the subdivision and any land outside the subdivision upon which public improvements are required to be made by the subdivider. The cost estimate shall describe the work to be done in sufficient detail to permit the platting officer and the planning commission to determine that the work that is the basis of the cost estimate covers all of the public improvements as required. The description of the work shall be in detail and shall contain a schedule of commencement and completion sufficient to permit the city engineer to make an estimate of cost and to evaluate the reasonableness of the schedule.

2. The platting officer shall determine whether the description of the work adequately covers the public improvements required by the planning commission and this title. The description, schedule and cost estimate shall be returned to the subdivider for the correction of deficiencies in the description.

3. Upon a determination of the platting officer that the description of work and schedule meet the requirements of the planning commission and this title, the description, cost estimate and schedule shall be provided to the city engineer who shall make such upward adjustments to the cost estimate and schedule as they believe more accurately reflect the costs of the work and the time for completion or shall accept the submitted estimates if they believe they do not underestimate the costs and time involved. The city engineer shall then increase the adjusted or accepted cost estimates by an additional amount as set out below based on the adjusted or accepted schedule:

4. The amount of the guarantee shall be the adjusted amount determined and increased under subsection (B)(3) of this section.

5. The public improvement guarantee shall be in the form of a cash bond, a performance bond issued by a surety authorized to do such business in Alaska, a deposit in an escrow or a joint account under the exclusive and total control of the city, a letter of credit that remains in effect until released by the city, or a demand note secured by a first (1st) deed of trust on real property with a value of one hundred fifty (150) percent or more of the amount of the note as determined by an independent fee appraiser chosen or approved by the city. The cost of the appraisal shall be a liability of the subdivider and shall be paid to the appraiser by the subdivider. The subdivider shall reimburse the city for all costs incurred by the city for review by the city attorney of instruments and other documents submitted in connection with the guarantee and for all costs incurred by the city for the engineering review of the cost estimate and schedule.

6. All required improvements shall be completed and in a condition to be accepted by the city within twenty-four (24) months of the date of final plat approval; provided, for a large subdivision or for other good reasons shown, the planning commission may permit completion within up to thirty-six (36) months of the date of approval of the final plat. For good cause shown, the planning commission may grant extensions; provided, the guarantee documents are amended to cover the additional period of the extension. In no event may the total time permitted by the planning commission for completion of improvements exceed a total of the greater of forty-eight (48) months or four (4) consecutive full construction seasons. An extension for a total completion time greater than forty-eight (48) months or four (4) full construction seasons, but not to exceed sixty (60) months, may be granted by the city council by a noncode ordinance.

7. If all required improvements have not been satisfactorily completed and accepted by the city and a warranty bond or guarantee in an amount equal to ten (10) percent of the improvements guarantee amount has been posted on the accepted improvements within the time required, the city shall proceed to realize on the public improvements guarantee. The city shall use the net proceeds of the guarantee to complete the required improvements to the extent it is able with the proceeds. The city is not obligated to expend any city funds nor to complete the improvements if there are insufficient net proceeds realized from the guarantee. The city may reimburse itself at a reasonable rate for overhead and other indirect costs allocable to the process of realizing on the guarantee and administration of the contracts and other city activities arising out of the city’s construction of required improvements. Funds remaining from the net proceeds after all costs of completing the required improvements have been met shall be returned to the subdivider, or the grantor if a deed of trust was given, after a deduction is made equal to ten (10) percent of the cost of improvements previously accepted by the city but for which the required ten (10) percent warranty guarantee has not been provided. This warranty amount shall be held in trust and returned to the subdivider or grantor, as appropriate, at the conclusion of the warranty period, less amounts used by the city to repair required improvements constructed by the subdivider.

8. Upon a determination of the city engineer or their designee that required improvements have been completed in accordance with city specifications, and upon the deposit with the city of a warranty guarantee equal to ten (10) percent of the public improvement guarantee amount, the city shall release an amount of the public improvement guarantee equal to the cost of the improvement if doing so does not reduce the remaining guarantee amount below the amount required to guarantee the construction of the remaining required improvements and provide the warranty amount on the remaining improvements. The warranty may be in any form authorized for the public improvements guarantee. The warranty shall guarantee the workmanship and materials of the improvement accepted for one (1) year from the date the improvement is accepted. The warranty shall be released upon the request of the subdivider after the expiration of one (1) year and a determination by the city engineer that the workmanship and materials in the improvement are satisfactory and the improvement is in good condition; provided, if weather or other conditions make an adequate inspection impractical, the inspection and release may be postponed until an adequate inspection can be made. [Ord. 01-05 § 7.]