The Board of Aldermen on Aug. 19 approved an ordinance accepting the dedication of streets in the Brush Creek Subdivision and authorizing release of escrow funds that had been held to secure subdivision improvements.

Amended bill number 5,288 passed by a recorded vote of 5–0 and will become ordinance 3459, the clerk reported. The item included an exhibit listing the component categories for which escrow funds had been held.

During discussion Alderman Lesh (and other board members) asked whether the escrow agreement restricted the city from dividing the letter-of-credit amounts. One board member read language from the escrow agreement stating the “letter of credit amounts hereunder are not divisible and that such amounts apply to the entire work,” and asked whether the city therefore had to release all funds at once rather than by category.

Attorney Carr responded that the city’s ordinance and state statute require the city to release escrowed funds category by category as improvements are completed, and that the exhibit listing component parts was prepared for that purpose. She said, “I would read that provision as saying that we've already divided it and that for each line item on that exhibit A, we can't divide that any further than we already have,” and noted the statute and ordinance provide the mechanism for releasing categories when completed.

After the legal clarification and brief discussion, the roll call vote was held and the motion carried 5–0.

The ordinance also authorized the mayor to accept the dedicated streets for city maintenance and to release escrow funds consistent with the exhibit and applicable statute. No dissenting votes were recorded.

Board members asked staff to ensure the release of escrow funds tracks the categories and statutory requirements set out in the ordinance and related documents.