(A) In lieu of completion of the improvements as approved in connection with a preliminary plat by the Planning Commission and City Council, a subdivider (developer) may elect to file an executed surety bond using a form as approved by City Council. These instruments shall be presented before the Planning Commission and City Council respectfully and shall be held by the City Clerk after acceptance of the City Council. The instruments shall remain on file with the City Clerk as the subdivider’s good and faithful assurance of the installation of the improvements. The amount of the bond shall be for the full amount sufficient to cover one and a quarter times the entire cost of the required improvements, as estimated by the subdivider’s engineer and approved by the city’s staff and engineer. The term (length) of the surety bond shall be until the required improvements are completed according to the plans and specifications approved by the Planning Commission and City Council, but the completion of the improvements and fulfillment of the surety bond shall not exceed two years.
(B) In lieu of filing the surety bond as outlined above, the subdivider may obtain and place on deposit (file) with the City Clerk an irrevocable letter of credit written by a bank certified to do business in the state. The letter of credit shall be drawn in favor of the city, shall be irrevocable for the surety term not to exceed two years or until the completion of the required improvements, and shall be for one and a quarter times the entire cost of the required improvements as determined in division (A) above.
(Prior Code, § 156.082) (Ord. 1041, passed 4-12-1983; Ord. 1346, passed 9-10-2001)