§ 4.12. Warranty.

(1)

All public improvements dedicated to and accepted by the city shall be warranted to be free from defects of any nature for a period of one year. The warranty period shall commence on the date the city council accepts the improvement. Any defect discovered during the warranty period shall be corrected by the developer at no cost to the city.

(2)

Maintenance obligations.

(a)

Maintenance obligations are established when the developer has received preliminary approval. Said obligation shall be used to ensure the repair of any damage to a City of Slidell road or drainage system resulting from construction activity in connection with the subdivision.

i.

The amount of the obligation will be based upon the existing condition of the affected City of Slidell road, its type of construction (e.g. gravel, concrete, asphalt), the length of the road exposed to construction traffic, and other such factors as may be deemed appropriate such as existing terrain, anticipated amounts of heavy traffic, etc.

ii.

The amount of a maintenance obligation is not expected to exceed:

$40.00/linear ft. for asphalt roads or streets

$50.00/linear ft. for concrete roads or streets

iii.

The amount of the obligation will be determined by the City of Slidell Engineering Department and prescribed within the development review letter. Maintenance obligations must be established for at least one (1) year or the duration of construction within the subdivision, whichever comes first.

iv.

After completion of the subdivision, and upon written request from the developer, the department of engineering may recommend releasing the maintenance obligation by written request to the department of finance.

(b)

All maintenance obligations established by the department of engineering must have acceptable securities submitted to and on file with the department of finance, and no work orders will be issued until such action has been completed.

(c)

Acceptable securities are required to be posted by a developer of a newly constructed subdivision development in order to ensure that monies are available, if needed, to make repairs to any existing city roads if the developer defaults on his obligations.

(d)

Acceptable security, as set forth by the department of finance, to ensure fulfillment of maintenance obligations shall be:

i.

Cash, to be held in escrow by the department of finance.

ii.

Letter of credit from a financial institution with a Scheshunoff Bank Quarterly rating of C+ or above. If the financial institution rating falls below a C+ rating during the term of the obligation the City of Slidell will allow one additional quarter for the rating to rise to an acceptable level. If the rating does not rise to an acceptable level, the developer will have fifteen (15) days to provide acceptable alternative security, or the developer will be considered in default of his obligation, and the letter of credit will be called. If the financial institution's rating falls to a NR (not rated) level, the developer will have fifteen (15) days to provide acceptable alternative security, or the developer will be considered in default on his obligation, and the letter of credit will be called.

iii.

Certificate of deposit from a financial institution with a Scheshunoff Bank Quarterly rating of C+ or above. The certificate of deposit must be pledged to the City of Slidell, and held with a safekeeping agreement in a safekeeping account. If the financial institution rating falls to a C during the term of the obligation, the City of Slidell will allow one additional quarter for the rating to rise to an acceptable level. If the rating does not rise to an acceptable level, the developer will have fifteen (15) days to provide acceptable alternative security, or the developer will be considered in default on his obligation, and the certificate of deposit will be called. If the financial institution's rating falls to a NR (not rated) level, the developer will have fifteen (15) days to provide acceptable alternative security, or the developer will be considered in default on his obligation, and the certificate of deposit will be called.

iv.

U.S. Treasury Bills or U.S. Treasury Notes, pledged to the City of Slidell to be held in a safekeeping account with a safekeeping agreement.

v.

Bond issued by a security company listed on the Federal Register, licensed in the State of Louisiana and acceptable to the City.

(e)

The city engineer is charged with the responsibility to ensure that securities do not lapse or expire. In addition, the city engineering shall be responsible for notifying the developer at least ninety (90) days prior to the expiration of the obligation and further informing said parties that a public hearing will be held regarding the disposition of said obligation.

(f)

The city engineer shall determine whether the developer has complied with all applicable requirements of development before any obligation can be released. In the event that developer requests or the staff recommends an extension, renewal or reduction of an obligation, the department of engineering shall have the sole authority to move on any said request.

(g)

If a developer defaults and cannot or will not meet his obligation at or on the prescribed date and time that said obligation is due to expire, the department of engineering shall have the authority to call any outstanding security on the property in question and instruct the department of finance to seize those securities necessary to complete any maintenance obligation related to the development.

(Ord. No. 3021, 8-28-2001)