The subdivider shall execute a subdivider's agreement with the City which is a contractual agreement to carry out all required public improvements, as specified in the Subdivision Regulations. The method of guarantee for this contract shall be in the form of either a letter of credit or posting of a performance bond. The contract between the subdivider and the City shall be in a form approved by resolution of Council.
(a) Letter of Credit. The subdivider shall submit a letter of credit covering the cost of the required public improvements in accordance with the requirements specified by the City. A letter of credit shall be from a recognized bank or financial institution stating that a subdivider has cash assets in the amount of one hundred percent (100%) of the estimated cost of all required public improvements. Such letter of credit shall indicate that these cash assets have been set aside into an escrow account to pay the cost of the public improvements and will be payable upon demand to the City for those improvements the subdivider fails to complete.
(b) Performance Bond. The posting of a performance bond by the subdivider for one hundred percent (100%) of the estimated cost of all required public improvements as specified in these Regulations shall be required to guarantee their proper installation. The City Manager and the Service Director shall determine that the amount of the posted bond adequately reflects the probable costs of the improvements to be installed. The subdivider or developer may proceed to install the required public improvements in lieu of posting the required performance bond.
(Ord 1974-99. Passed 10-22-74.)
(Ord 1974-99. Passed 10-22-74.)