A. Approval: The following procedures for approval of construction bonds shall apply:
1. The development shall have all improvements completed and accepted or construction bond approved prior to the approval of the final plat.
2. The developer shall submit a request for approval of a construction bond simultaneously with the submission of the final plat.
3. If the City Council finds the bond to be in conformance with this Section they shall approve that bond simultaneously with the final plat.
B. Construction Deadline: The condition of the construction bond shall be that the developer shall, within two (2) years from the date of the City's acceptance of the bond or within any City Council approved extension, complete or cause to be completed all bonded improvements in accordance with the approved plans and specifications, and in accordance with applicable ordinances, resolutions, and codes of the City. The form of the bond shall be in accordance with subsection E of this Section.
C. Failure To Meet Deadline: Failure of the subdivider to complete improvements within two (2) years after the City acceptance of the construction bond will cause the City to complete all necessary work. All costs of such improvements shall be paid for by the proceeds of the bond. The balance of the proceeds of the bond, if any, shall be returned to the subdivider.
D. Construction Bond Amount: The construction bond shall be in the amount of one hundred five percent (105%) of an estimated cost of construction which the subdivider's engineer prepares and the Department of Public Works approves. (Ord. 6104, 12-18-1996)
E. Construction Security: The subdivider shall provide a bond valid for a period of three (3) years from final approval of the subdivision by the City to ensure the construction of improvements which are a part of the subdivision. The bond shall be in a form satisfactory to the City's Corporation Counselor and shall be secured by one of the following methods or a combination of the following methods:
1. Cash.
2. Corporate surety bond by a company licensed and authorized to do business in the State as a surety.
3. Certificates of deposit payable to the City.
4. United States Government savings bond payable to the City.
5. Irrevocable letters of credit in a form approved by the Law Department.
6. Alternative form of security otherwise satisfactory to the Corporation Counselor and the City Council. (Ord. 6389, 5-26-1999)
F. Security Release: The City Council shall release construction bonds and any accrued interest and the surety therein upon satisfaction of all of the following:
1. The subdivider's engineer shall furnish to the Department of Public Works two (2) complete sets of prints of the "as-built" plans with each set of prints clearly marked "As Built" showing all changes which were necessitated due to field conditions and were approved by the Department of Public Works.
2. The Department of Public Works, or its duly authorized representative, shall certify that the improvements have been constructed in substantial compliance with the plans and specifications.
3. Satisfaction of the conditions of the bond itself.
4. Receipt of a maintenance bond in accordance with Section 12-3- 6 of this Chapter.
G. Partial Security Release: In the event that the said improvements are constructed in part, upon the recommendation of the Department of Public Works, the City Council may release a bond posted under this Section upon the filing of an identical bond in a lesser amount, but not less than ten thousand dollars ($10,000.00) or ten percent (10%) of the original bond amount, whichever is greater. However, a substitute bond may be for a shorter or longer period of time if the City Council so determines. (Ord. 6104, 12-18-1996)