A. The city shall retain a durability bond in the amount of not less than ten percent (10%) of the initial amount of the performance bond in the form of cash or letter of credit. The durability bond shall be for the purpose of warrantying the improvements and shall be for a period of:
1. One year after final acceptance of the improvement or warranty work; or
2. Two (2) years after final acceptance of the improvement or warranty work, if the city:
a. Determines for good cause that a lesser period would be inadequate to protect the public health, safety, and welfare; and
b. Has substantial evidence of:
(1) Prior poor performance of the applicant;
(2) Unstable soil conditions within the subdivision or development area; or
(3) Extreme fluctuations in climatic conditions that would render impracticable the discovery of substandard or defective performance within a one year period.
B. A determination under subsection A2 of this section shall be made by the city engineer in consultation with the city administrator.
C. If, after the warranty period, the durability of said improvements are found to be satisfactory, the retainage may be released following the procedure outlined under section 17.20.030 of this chapter.
D. The city engineer may authorize a release of fifty percent (50%) of the improvement durability bond prior to the warranty period, if determined appropriate based on a finding of:
1. The project has been completed and found acceptable and all monies have been released except for the durability bond;
2. An error in the initial amount of the performance bond or the original calculation of the durability bond; or
3. Fact that was previously unknown to the city that is material in a determination that the city's public health, safety, and welfare would still be adequately protected.
E. The person giving the durability bond shall correct the improvements if at any time during the warranty period:
1. Any required improvement fails or shows unusual depreciation;
2. Certain work has not been completed or it becomes evident that certain work was not completed; or
3. The materials or workmanship used in constructing the improvements do not otherwise comply with accepted standards of durability.
If the corrections are not made within a reasonable time, the community development director, with review from the city administrator, in accordance with section 17.20.040 of this chapter, may declare the person in default and use the retainage to defray the cost of any required work. (Ord. 2014-04, 3-19-2014, eff. 4-13-2014)