(A) Staff approval. The developer shall submit separate performance bonds for each public improvement. The bonds shall be in the form prescribed by the city. The amount of any bond shall be approved by the city to ensure compliance with the provisions in division (B). Once the form and amounts of a bond have been administered, the bonds shall be filed with the Planning Director. The authority for administration and enforcement of the bonds shall then lie with the Planning Director.
(B) Types of performance bonds. The following types of performance bonds may be filed with the city:
(1) Insurance bond. The petitioner shall post an insurance bond securable to the city in the amount equivalent to 110% of the applicants estimated cost of completion of the required public improvements.
(2) Certified check. In lieu of a bond, the petitioner may submit a certified check made payable to the City in an amount equivalent to 110% of the applicants estimated cost of completion of the required public improvements.
(3) Certificate of deposit. In lieu of a bond, the petitioner may submit a certificate of deposit made out to the city and developer in an amount equivalent to 110% of the cost of completion of the required public improvements. All interest accrued on the certificate of deposit shall be payable to the developer.
(4) Other methods of assurance. Other methods of assurance of completion of improvements may be approved subject to the discretion of the City Attorney.
(C) Force and effect of bond. A performance bond shall be deemed by the Planning Director or his designee to be in full force and effect until the time the bond is released by official action and written notice by the Planning Director or his designee. If the developer has not satisfactorily completed the bonded improvements within 24 months of the date of acceptance of the original performance bond, the city reserves the right to require the developer to re-submit current bond estimates and, if deemed necessary by the city, re-submit updated performance bonds.
(D) Performance bond released/maintenance bond received.
(1) Upon completion of the public improvements within a subdivision or development (or sections thereof), the developer’s engineer shall request inspection, submit a certificate of completion and compliance, and submit as-built plans of the improvements. Upon receipt of this request, the Planning Director and/or other appropriate city representatives shall inspect the improvements and submit a recommendation to the Planning Director. Any deficiencies found in the design and workmanship of public improvements shall be corrected by the developer prior to release of the performance bond.
(2) At such time as the public improvements are acceptable to the Administrator or his designee, the Administrator shall release the performance bond in lieu of a three-year maintenance bond. The amount of the maintenance bond shall be equal to or greater than 20% of the corresponding performance bond. Maintenance bonds shall be in one of the forms as deemed acceptable for performance bonds. Maintenance bonds shall also be required after acceptance of completed improvements for which no performance bond was posted.
(E) As-built plans required. As a condition for release of a performance bond, the developer shall have met the requirement to record Construction Plans (as-built plans) as required by this chapter.
(F) Release of maintenance bond. At least 60 days prior to the expiration date of a maintenance bond, ft shall be the responsibility of the developer to make a written request to the Administrator for final inspection and full acceptance of responsibility of the public improvement. Upon receipt of the request, the Administrator shall instruct the Building Department and other appropriate representatives to inspect the improvements. Any deficiencies found in the workmanship or materials shall be corrected by the developer prior to release of the maintenance bond. At the time the improvements are acceptable to the Planning Director, the Planning Director shall release the maintenance bond and the city shall thereby assume full and permanent responsibility for maintenance of the public improvement.
(G) Acceptance by the city. Construction and maintenance of a public improvement shall be deemed as the full responsibility of the developer until the public improvement is accepted by official action and written notice by the Planning Director. Expiration of a maintenance bond does not relieve a developer from the responsibility of having the public improvements meet city standards and specifications prior to official acceptance by the city. Such improvements shall be completed to the satisfaction of the City Engineer, and the applicant shall dedicate such improvements to the city or county free and clear of all encumbrances.
(Ord. 5-2009, passed 3-9-09)