(A)   No building permits will be issued for the construction of any structures in a subdivision prior to completion and acceptance of subdivision improvements by the city, unless and until an approved subdivision improvement surety bond shall have been received by the City Clerk. In the alternative, and only upon the specific consent and approval of the city, a cash escrow agreement, cash deposit or irrevocable letter of credit may be submitted in lieu of an approved subdivision improvement surety bond.
   (B)   With regard to any irrevocable letter of credit, the city reserves the option to require that said letter of credit be either advised or advised and confirmed through such bank as the city may direct. All fees charged by the nominated bank for the service shall be paid in advance by the applicant for subdivision approval. Further, the city reserves the right to approve or disapprove the bank or other financial institution issuing the letter of credit for and on behalf of the applicant.
   (C)   The penal amount of the surety bond, cash escrow, cash deposit or irrevocable letter of credit shall be 110% of the cost of the subdivision improvements as estimated by the City Engineer or the actual contract price, increased by the amount of any change order.
   (D)   At such time as the subdivisions improvements have been completed in accordance with the approved plans and specifications, inspected by the city for compliance, all defects corrected and a certificate of completion of subdivision improvements issued by the city, the city shall accept the improvements for maintenance by the city upon compliance with the following requirements:
      (1)   An approved subdivision improvements maintenance surety bond has been received and validated by the City Clerk. Said surety bond shall be written by a surety company authorized to do business in the State of Florida. The bond shall be in the penal amount of 10% of the actual construction costs of the total subdivision improvements. The bond shall guarantee maintenance of all required improvements to be maintained by the city for a period of two years commencing with formal acceptance of the improvements and shall further be conditioned upon all improvements being replaced, repaired or reconstructed, to the satisfaction of the city, to the standard of original construction or installation prior to discharge of said bond. The term of the bond shall be extended by affirmative vote of the City Commission.
      (2)   That all subdivision improvements have been repaired, reconstructed or replaced to correct any defects, damage or deviation from the approved plans and specifications to the satisfaction of the city.
(Ord. 241, passed 11-27-85; Am. Ord. 547, passed 6-6-91; Am. Ord. 641, passed 5-20-93; Am. Ord. 1642, passed 6-17-21)