(A) Generally. The security shall be in the form of a performance bond, a trust agreement, a letter of credit, cash escrow or a surety bond. The guarantees shall conform to the standards described in subsections (B) through (F) below.
(B) Performance bond. A performance bond shall be executed by a surety company licensed to do business in the state in an amount equal to the cost estimate, as approved by the City Manager, of all uncompleted and unaccepted improvements required by these regulations (other than gas and electric lines), with the condition that the subdivider shall complete such improvements and have them accepted by the city within three years from the date of plat approval. The City Manager may sign the bond instrument on behalf of the city and the City Attorney shall approve same as to form.
(C) Trust agreement. The subdivider shall cause to be placed in a trust account on deposit in a bank or trust company or with a qualified escrow agent selected by the subdivider and approved by the City Manager a sum of money equal to the cost estimate, as approved by the City Manager, of all uncompleted and unaccepted site improvements (other than gas and electric lines) required by these regulations. The City Manager is authorized to sign the agreement on behalf of the city and the City Attorney shall approve same as to form.
(D) Letter of credit. The subdivider shall provide an irrevocable letter of credit in an amount equal to the cost estimate, as approved by the City Manager, of all uncompleted and unaccepted site improvements (other than gas and electric lines) required by these regulations. The City Manager is authorized to sign the agreement on behalf of the city and the City Attorney shall approve same as to form.
(E) Cash or cashier’s check. The subdivider shall provide to the city cash or a cashier’s check in an amount equal to the cost estimate as approved by the City Manager of all uncompleted and unacceptable site improvements (other than gas and electric lines) required by these regulations. Upon completion of the required site improvements and their acceptance by the City Manager, the amount will be refunded to the subdivider by the city.
(F) Cash escrow or surety bond. If security is provided in the form of a cash escrow, the applicant shall deposit with the Code Enforcement Officer a cash amount or certified check endorsed to the escrow agent for a face value in an amount of at least the amount specified by the City Manager. A surety bond or cash escrow account shall accrue to the city for administering the construction, operation and maintenance of the improvements.
(Ord. 3020, passed 9-10-2013, § 4.36.5)