(A) Approval of final plat; improvements. The City Council shall not approve any final plat of subdivision (and, hence, said final plat shall not be entitled to recording) until:
(1) All improvements required in the improvements plan have been completed by the subdivider/developer at his or her expense, inspected by the Building Commissioner and Engineer, and dedicated to this municipality or other appropriate entity; or
(2) In accordance with the divisions below, the subdivider/developer has provided this municipality with legal assurance to guarantee the satisfactory completion and dedication of all required improvements.
(1999 Code, § 34-3-13)
(B) Forms of assurance. At the option of the City Council, the required legal assurance may be either a performance bond or an escrow deposit. Every performance bond shall be reviewed by the City Attorney, and posted with the City Clerk. Any funds to be held in escrow shall be deposited with the City Clerk.
(1999 Code, § 34-3-14)
(C) Amount of bond or deposit.
(1) The amount of the performance bond or escrow deposit shall be equal to the City Engineer’s opinion of probable costs of constructing the uncompleted portion of the required improvements plus all required inspection fees.
(2) Any escrow deposit may be in the form of:
(a) Cash;
(b) An irrevocable letter of credit or commitment from a lending institution guaranteeing to this municipality the availability of the escrow funds from time to time upon demand; or
(c) Certificates of deposit, treasury bills or other readily negotiable instruments approved by the City Clerk, and made payable to this municipality.
(1999 Code, § 34-3-15)
(D) Eligible sureties. No person shall be eligible to act as surety unless he or she has been approved by the City Clerk. The Clerk shall conduct or cause to be conducted spot audits of all sureties. Any surety who fails to perform shall be ineligible for two years thereafter to act as surety for any subdivision improvement within this municipality’s jurisdiction.
(1999 Code, § 34-3-16)
(E) Term of assurance; extension. The initial term of any performance bond or escrow agreement shall not exceed two years. If all the required improvements have not been completed by the end of the two-year period, the Plan Commission, with the advice and consent of the City Council, may either extend said bond/escrow agreement for one year only, or may proceed as per division (G) below.
(1999 Code, § 34-3-17)
(F) Release of bond/escrow deposit.
(1) The City Clerk may release up to 90% of the amount of the performance bond/escrow deposit upon receipt of written authorization from the Building Commissioner. The amount which the Building Commissioner authorizes to be released shall be equal to the value of improvements actually completed in accordance with approved plans.
(2) The balance of the amount of the performance bond/escrow deposit shall not be released by the City Clerk until:
(a) The Building Commissioner has certified to the Administrator in writing that all required improvements have been satisfactorily completed; and
(b) Said improvements have been accepted by and dedicated to this city or other appropriate entity.
(1999 Code, § 34-3-18)
(G) Failure to complete improvements. If all the required improvements have not been completed by the end of the two-year period (or three-year period, in the case of an extension), the Administrator, with the assistance of the City Attorney, may:
(1) Require the surety to perform on the bond, and to pay to this municipality an equal amount to the cost of completing the required improvements or the amount of the bond not theretofore released, whichever is less;
(2) Order the City Clerk to retain all escrow funds needed to complete the required improvements, and to return the balance (if any) of such funds to the subdivider/developer; or
(3) Require the subdivider/developer to submit a new performance bond/escrow deposit in an amount sufficient to cover any increase in the cost of constructing the required improvements.
(1999 Code, § 34-3-19)