HAR §19-170-195. Completion of improvements for final map approval

(a) After the subdivision has received tentative approval of the preliminary map and approval of the construction plans, the subdivider, as a condition to approval of the final map shall comply with either subsection (b) or (c). (b) The subdivider may proceed with construction of required improvements, utilities, and facilities, and after completion of the same in accordance with the approved construction plans and approval of improvements by the executive officer, the executive officer shall take action on the final map. (c) In lieu of completion of the required improvements, utilities, and facilities prior to final map approval, the subdivider may enter into an agreement with the development corporation, to assure the development corporation of the construction, installation, maintenance, and services of such improvements, utilities, and facilities as shown on the approved construction plans. The executive officer, after execution and acceptance of the agreement, shall take action on the final map. (1) The agreement shall be approved by the development corporation as to form and legality. The agreement shall specify that the subdivider agrees to make, install, complete, and provide services for all required improvements, utilities, and facilities within a specified time to the satisfaction of the executive officer and shall provide that if the subdivider fails 170-111 306 §19-170-195 to complete the work within the specified time or provide the necessary services, the development corporation may collect the full estimated cost from the subdivider, and complete the project. The development corporation shall be authorized in the event of any default in performance of work, services, or construction of improvements to use some or all of the bond or security to cause the required work or services, including engineering and administrative work to be done and for payment of all costs. Failure of the subdivider to complete the work shall be a violation of this subchapter. The subdivider shall be firmly bound by the specified time of completion of all improvements. The time limit may be extended for one six-month extension period which may be granted by the executive officer upon recommendation of the subdivision committee. The agreement may provide for partial withdrawal of the security, in money or bonds, as the work progresses, upon certification of the executive officer. When a substantial portion of required improvements has been completed to the satisfaction of the executive officer and completion of remaining improvements is delayed beyond control of the subdivider, the executive officer may consent to a reduction of the surety bond or security proportionate to an amount estimated to be adequate to assure completion of the remaining improvements. The agreement and bond to secure and guarantee construction of improvements shall be so conditioned that the surety executing the bond or making a deposit shall be firmly bound under continuing obligation for the payment of all necessary costs and expenses, including 170-112 3067 §19-170-195 engineering and administrative expenses, incurred or expended by the development corporation in causing any work to be done. (2) The surety bond or other security that must be filed with the agreement shall be in an amount not less than the cost of all work and services required to be completed by the subdivider including engineering and other administrative costs and approved by the executive officer, and shall remain in effect until subdivision improvements are approved by the executive officer. Cost estimates prepared by the subdivider shall be delivered in writing to the executive officer for approval. No personal surety bond shall be accepted by the executive officer. The security bond or security shall be conditioned to be payable to the development corporation. Should the subdivider fail to complete all work required within the specified time, the development corporation may collect the moneys of the bond or security and require all unfinished work to be completed, and the parties executing the security bond shall be firmly bound to pay for all necessary cost therefor. Securities shall be filed with the executive officer and deposited with the development corporation. A performance guarantee to be filed with the agreement shall be one of the following: (A) A surety bond executed by the subdivider as principal, and a corporate surety company authorized to do business in the State, as surety. (B) A deposit of money made with the executive officer or a responsible escrow agent designated by the executive officer as the development corporation's agent. (C) Where the subdivider has entered into a 170-113 3067 §19-170-195 contract with a responsible contractor for construction of improvements and utilities, the subdivider shall file the following with the executive officer: (1) a certified copy of the contract; (2) a certified copy of the contractor's performance bond; and (3) a surety bond, other than personal surety, of a sum equal to at least fifty per cent of the cost of all the work, including engineering and administrative work required to be completed by the subdivider as estimated upon consultations with the chief engineer, traffic engineer, director of the city's department of parks and recreation, wastewater management director and manager. The surety bond shall be payable to the development corporation, and shall be conditioned as described above. (D) Negotiable bonds or other securities approved by the development corporation and the state director of finance for securing deposits of public money. [Eff MAY 5 2013 ] (Auth: HRS §§206J-5(5), 206J-7)