(A) The Commission may not approve a plat for a subdivision without a bond to cover the proposed plat improvements and installation. The bond shall:
(1) Be in an amount determined by the Commission to be sufficient to complete the improvements and installations in compliance with the chapter;
(2) Provide surety satisfactory to the Commission;
(3) Run to and be in favor of the city;
(4) Specify the time for the completion of the improvements and installations (both on- and off-site);
(5) Be in effect and shall not terminate until 30 days after the final construction is approved by the Commission and the maintenance bonds have been accepted;
(6) Not be released until the City Engineer has certified that he or she has inspected the improvements during construction and after completion, and that they have been installed in accordance with the intent of the approved construction plans and specifications; and
(7) Be on a form approved by the Council.
(B) There is hereby created a dedicated account in a form acceptable to the state’s Board of Accounts which shall hold and accumulate all funds paid pursuant to the provisions of this section and which shall not thereafter be appropriated for any use unless it is associated with the completion of infrastructure improvements which had been approved by the staff of the city and which had not been completed after having been initiated for any reason whatsoever.
(1) In the absolute discretion of the Development Coordinator in consultation with the Clerk-Treasurer and the City Engineer for the city as needed, an entity or person obligated to provide a performance bond to the city may be allowed to pay a cash amount to the city in lieu thereof, equivalent to the amount of premium which would be paid by said entity or person if it were to obtain a performance bond. Conditions governing the exercise of discretion by the Development Coordinator shall include but not necessarily be limited to the following:
(a) The general credit worthiness of the entity or person seeking such alternative form of payment;
(b) The nature of the proposed improvement;
(c) The reputation and history involving the person or entity seeking such alternative form of payment; and
(d) Such other underwriting standards as may be appropriate under the circumstances.
(2) It shall be the policy of the city as incorporated into this section that the Development Coordinator shall document his or her reasons for denying a request in writing when such a denial occurs, and that said Development Coordinator need not be limited to the conditions set out herein.
(3) All other requirements pertaining to the time of posting and the calculation of the amount shall remain the same as currently exists within the ordinances of the city. Specifically, the cash amount in lieu of bond shall be exactly equal to the amount of premium for such a bond as evidenced by a certified quote for such premium from a recognized commercial bonding company. It shall be the duty of the person seeking the benefit of this section to provide the evidence of the premium to the Development Coordinator.
(4) Nothing in this section shall in any way limit the ability of the city to give consideration to other alternative forms of insuring the proper completion of public improvement projects involving infra-structure which is to be dedicated to the city or for the benefit of the public.
(Ord. 2003-OR-13, passed 5-8-2003; Ord. 2006-OR-8, passed 5-1-2006)