In lieu of actual installation of required public improvements, the proprietor may elect to provide a financial guarantee of performance in one or a combination of the following arrangements; provided, that the total estimated cost of required public improvements is thereby covered.
(A) Performance or surety bond.
(1) Value of bond. An amount satisfactory to the governing body;
(2) Length of term. A period specified by the governing body; provided, that such a period shall not exceed 12 months; and further provided, that under extraordinary circumstances this period may be extended by governing body action for not more than 12 months; and
(3) Approval of bonding company. Surety company authorized to do business in the state and approved by the governing body.
(B) Cash deposit, certified check, or negotiable bonds. Deposit shall be made with the Clerk-Treasurer of a responsible escrow agent or trust company, subject to the approval of the governing body, of money or negotiable bonds in the same amount and kind approved by law for securing deposits of public money in banks.
(C) Special assessment. In cases where all properties abutting on a public right-of-way are not under the control of the proprietor, the proprietor, may petition the municipality through the governing body to provide the necessary improvements and to assess the cost thereof against the abutting property in accordance with the local requirements regarding special assessments; provided, however, that the proprietor shall be responsible for any differences between the cost of improvements and the amount that can be legally assessed by the municipality against the property to be subdivided and shall furnish the necessary waivers to permit the assessment of the entire cost of the improvements.
(D) Progressive installation. When any portion of an improvement has been fully completed to the satisfaction of the Municipal Engineer, he or she shall recommend, and the governing body shall authorize the reduction in bonds or a partial withdrawal of funds equal to the estimated cost of such completed portion.
(E) Penalty for failure to complete installation. In the event the proprietor does in any case fail to complete such work within such period as required by the conditions of the guarantee, the governing body shall have such work completed. The municipality, in order to reimburse itself for the cost and expense thereof, may appropriate the deposit of cash money or negotiable bonds which the proprietor may have deposited in lieu of a surety bond, or may take such steps as may be necessary to require performance by the bonding company.
(1984 Code, § 6-02-06-040) (Ord. 11, passed 8-26-1969)