Prior to the installation of or any work on any required public improvements, the subdivider shall enter into a security bond agreement acceptable to the city to insure completion of all public improvements required to be installed in the subdivision. The bond agreement shall be in a form and contain such provisions as approved by the city attorney. The bond agreement shall include, but not be limited to, the following:
A. Incorporation: Incorporation by reference of the final plat and all accompanying data required herein which is used to compute the cost of the improvements by the city engineer;
B. Completion Of Improvements: Completion of the improvements within a period of time not to exceed two (2) years from the date the bond agreement is executed;
C. Satisfactory Completion: The improvements shall be completed to the satisfaction of the city and according to city standards, as established by the city engineer and as specified in chapter 8 of this title;
D. Amount: The bond amount shall be equal to one hundred twenty percent (120%) of the city engineer's estimated cost of the public improvements to be installed;
E. Exclusive Control By City: The city shall have exclusive control over the bond proceeds and they may be released only upon written approval of the city manager;
F. Reduction: The bond proceeds may be reduced upon request of the subdivider as the improvements are installed. The amount of the reduction shall be determined by the city. Such requests may be made only once every thirty (30) days and no reductions shall be authorized until such time as the city has inspected the improvements and found them to be in compliance with city standards. All reductions shall be by the written authorization of the city manager;
G. Deficiency In Bond Proceeds: If the bond proceeds are inadequate to pay the cost of the completion of the improvements according to city standards for whatever reason, including previous reductions, the subdivider shall be responsible for the deficiency and no further building permits shall be issued in the subdivision or development until the improvements are completed or, with city council approval, a new bond, satisfactory to the city, has been executed and delivered to the city to ensure completion of the remaining improvements;
H. Deductions For Failure: If, upon written demand by the city after expiration of the time period, bond proceeds are not transferred to the city within thirty (30) days, the city's costs of obtaining the proceeds, including attorney fees and court costs, shall be deducted from the bond proceeds;
I. Reimbursement To City: Upon receipt of the bond proceeds, after the expiration of the time period, the costs of completion shall include reimbursement to the city for the costs of administration incurred by the city in obtaining the completion of the improvements;
J. Nonliability: The subdivider shall agree to hold the city harmless from any and all liability which may arise as a result of the improvements which are installed until such time as the city certifies the improvements as complete;
K. Type Of Bond Agreement: The bond agreement shall be one of the following types as dictated by the city:
1. A cash bond agreement accompanied by a cashier's check or a money market certificate made payable only to the city;
2. An escrow bond agreement and an escrow account with a financial institution federally insured; or
3. A letter of credit bond agreement accompanied by an irrevocable letter of credit with a financial institution federally insured;
L. Right Of Rejection: The city reserves the right to reject any bond. The bonds required by this section are for the sole benefit of the city. The bonds are not for the benefit of any individual citizen or identifiable class of citizens, including the owners or purchasers of lots within the subdivision or project;
M. Extension: The time period for the completion of the required public improvements may be extended in the following manner upon approval of the city council:
1. The subdivider may submit a new bond for approval;
2. The existing bond may be extended upon payment, by the subdivider, of the actual administrative costs incurred in reevaluating the sufficiency of the bond amount. (Ord. 2015-06, 2-17-2015)