Assurance of construction shall be provided prior to the approval of the improvement plans.
(A) Assurance of construction options are as follows:
(1) Posting a 100% performance bond issued by an Arizona qualified surety (see Exhibit 10-7.1 following this article);
(2) Establishing a cash trust; said funds to be deposited in a financial institution to the credit of the city (see Exhibit 10-7.3 following this article);
(3) Posting with the city a certificate of deposit for 100% of the estimated cost issued by a banking institution authorized to issue same; or
(4) Filing with the city an executed letter of assurance or contract of guarantee between the city and a trust company, banking institution or other financial institution approved by the city and authorized to enter into such contracts (see Exhibit 10-7.2 following this Article).
(B) The amount of the security is to be based upon the cost estimate prepared by a registered professional civil engineer or licensed contractor in an amount to cover the complete installation of the off-site improvements and requires concurrence by the city engineer.
(C) The security shall provide for its forfeiture to the city in the event that the improvements were started but not completed or not accepted by the city.
(D) Posting a 100% warranty bond issued by an Arizona qualified surety (see Exhibit 10-7.1 following this article) if provisions for a warranty bond are not already included in a performance bond.
(Ord. passed - - )