(A) Generally. To ensure the satisfactory condition of public improvements for the time period indicated in§ 156.67 (that is, two years after acceptance), the subdivider shall post adequate security with the city or other unit of government to which the improvements are to be dedicated.
(B) Form. Security may be in the form of a cash deposit, a performance bond, a letter of credit from a bank approved of and insured by the Federal Deposit Insurance Corporation (F.D.I.C.) (or any successor agency thereto), or an escrow or impound account in a bank approved of and insured by the F.D.I.C. All security shall be in a form satisfactory to the City Attorney. The City Attorney, Administrator, or City Council shall have the right to reject any form of security he or it believes would be inadequate (for any reason) to guarantee the satisfactory maintenance of all the improvements in question for the required time period (see § 156.67).
(C) Amount. All security shall be in the amount of not less than $10,000 or 25% of the estimated cost of constructing all public improvements, whichever is greater. The cost estimates shall be made by the subdivider’s professional engineer, but must be approved by the City Engineer.
(D) Defective improvements. If at any time during the required time period the improvements are found by inspection to be defective, they shall be repaired/replaced at the subdivider’s expense to the satisfaction of the City Engineer or other appropriate official. If the subdivider falls to pay such costs within 90 days after demand is made upon him by the city or other governmental entity, the security shall be used to make the required repairs/replacement. If the cost of the repairs/replacement exceeds the amount of security, the subdivider shall be liable for the excess cost.
(Ord. 1402, passed 2-24-1998)