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A. Type Of Bond Or Guarantee: The bond or guarantee shall be in the form of cash deposited with the city and held in an interest bearing account, or a letter of irrevocable credit from an approved institution or such other cash security bond as the subdivider may obtain that is approved by the city.
B. Amount Of Bond: The bond shall be equal to twenty five percent (25%) of the total cost of all subdivision improvements. The subdivider shall furnish an estimate of the cost of constructing the required improvements. Said estimate shall be prepared by an engineer registered to practice in the state. However, no estimate may be used as the basis for the amount of the bond until it has been approved by the city engineer.
C. Duration: The duration of the bond shall be for one year from the date of approval of the final plat of the subdivision by the city council.
D. Final Inspection And Partial Release Of Bond Or Default: The subdivider shall be responsible for the quality of all materials and workmanship of all improvements. No later than one year from the date of approval of the final plat by the city council, the city engineer and public works director shall make a preliminary inspection of the improvements and shall submit a report to the city manager, setting forth the conditions of such facilities. If the improvements are completed, all liens are paid, and conditions thereof are found to be satisfactory, the city manager shall release the bond. If conditions or materials or workmanship show unusual depreciation or do not comply with the standards of the city in effect at the time of final plat approval, or if any outstanding liens are not paid, the procedures in subsection F of this section shall be followed.
E. Final City Acceptance: The subdivider shall be responsible for the subdivision improvements for a period of one year after said improvements are completed. In accordance therewith, the twenty five percent (25%) cash bond, or equivalent as approved, which is retained after completion of the improvements, shall be preserved in escrow by the city for a period of one year to assure that if latent defects or other problems with the improvements are found, whereby the improvements fail to meet city standards, such defects and/or problems are repaired and made to comply with city standards. Ninety (90) days prior to the one year anniversary of the date the twenty five percent (25%) deposit or bond or security is created, the city engineer and public works director shall again inspect the improvements and shall make a checklist of any needed repairs and a report of the condition of the facilities, which shall then be submitted to the city manager. If the improvements are satisfactory at the time of this inspection, the city manager shall direct that the twenty five percent (25%) deposit, bond, or security retained in escrow shall be released to the subdivider. If defects or problems are found at this inspection, the procedures in subsection F of this section shall be followed. Once the needed repairs and improvements have been made and are acceptable to the city, and after the city has received all required drawings of record showing any changes to the improvements, the city shall release any remaining deposit or bond or security amount and shall make final acceptance of and assume responsibility for the public streets, public property and the city infrastructure within the subdivision.
F. Default: If an inspection reveals that the improvements are deficient, the city shall notify the subdivider that he is in default, and set a reasonable time period, not to exceed ninety (90) days, to correct the problem. At the end of the specified time, the property shall be reinspected, and if the improvements still fail to meet the required standards and the subdivider has not submitted to the city and obtained approval of a plan with a deadline to correct the problem, the city council shall notify the subdivider of the date a public hearing shall be held on the issue, at which the subdivider shall be entitled to demonstrate why all or part of his bond should not be forfeited to be used to remedy the problem. The city council shall decide the matter and issue written findings on the same no later than thirty (30) days after the public hearing. If the city council's decision after the hearing is that the subdivider is still in default and no agreement with a deadline between the city and the subdivider has been made to fix the problem, the city council may declare his cash deposit or bond or equivalent forfeited, and the city may use the same to repair or install the required improvements. In such case, if the bond is found to be insufficient to cover the reasonable cost of completing or repairing the improvements, the city may enforce the terms of the subdivision improvement cost overrun agreement described in subsection H of this section. Once the needed repairs and improvements have been made and are acceptable to the city, and after the city has received all required drawings of record, the city shall release any remaining bond or equivalent, less twenty five percent (25%) in the case of a bond for original improvements, which twenty five percent (25%) bond shall be held pursuant to subsection E of this section.
G. Bond Forfeiture: In the event a subdivider and the city enter into an agreement with a deadline for the subdivider to remedy a problem with the subdivision improvements, if upon inspection by the city it is found that the subdivider has substantially failed to live up to the terms of said agreement and/or failed to meet the agreed deadline, the city council may declare his bond to be forfeited and use the proceeds thereof to correct any problem that may exist with said improvements, and may also pursue enforcement of his subdivision improvement cost overrun agreement if required. No extension of the agreed deadline beyond thirty (30) days shall be allowed.
H. Subdivision Improvement Cost Overrun Agreement: Prior to or at the time of the obtaining of any bond under this section, the subdivider shall also sign a subdivision improvement cost overrun agreement, on a form approved by the city. This agreement shall provide that if the city council declares a bond forfeited under this section, and the bond is found to be insufficient to cover the cost of installing or repairing the improvements, the city may file a lien upon any of the subdivision property owned by the subdivider, or may otherwise bring legal action pursuant to said agreement against the subdivider or his properly acknowledged successor, for the difference between the amount of the bond and the cost of installing or repairing the improvements. Said agreement shall provide that the subdivider shall be responsible for all legal fees and costs of such an action.
I. Absence Of Bond: In the absence of a bond or equivalent, the subdivision plat will not be approved by the city for recordation. (Ord. 2006-34, 10-4-2006)