The subdivider, in lieu of prior construction of required improvements, shall furnish a performance bond or other security to guarantee completion of required improvements prior to the final approval of the final plat. Said bond or guarantee shall be in one of the following forms:
(a) The subdivider may deposit a cash security or escrow with a local bank in the amount of 100 percent of the estimated cost of the improvements (storm sewers, sanitary sewers, water lines, pavements, etc.). Said security shall be in favor of the City of Geneva, which shall have sole control of disbursement. The local bank shall be directed to pay out portions of the cash security towards the completion of said improvements only with the approval of the City Manager, who may require a balance to be maintained which, in his or her opinion, is sufficient to complete said improvements in accordance with the plans and specifications of the City and shall authorize the release of any balance to the subdivider only upon acceptance of said improvements by Council.
In the event that said improvements are not constructed within the time period designated in the construction agreement, the City shall have the option, after thirty days written notice to the subdivider, to complete and maintain said improvements and to collect and receive from the local bank any remaining balance of said deposit to be applied toward the payment of the costs and expenses of completing said improvements.
(b) The subdivider may furnish a corporate surety bond in the principal amount of the estimated cost of said improvements, with a surety to the satisfaction of the Manager, in such form as is approved by the Law Director, guaranteeing the completion and maintenance of said improvements according to the plans, profiles and specifications. Said bond shall remain in effect until said improvements have been completed and maintained as provided in these Subdivision Regulations and until released by authority of Council. Said bond shall provide that, upon default of performance by the subdivider, the City may complete the same after thirty days written notice.
(Ord. 2381. Passed 11-22-93.)