(A) Guarantee Of Completion Of Public Improvements:
1. Guarantee: To assure the installation of required public improvements which are not accepted at the time the final plat is filed, the development agreement shall require the developer to guarantee the completion of all such improvements by one or more of the methods specified below. The means of a guarantee may be changed during the guarantee period through a written modification of the agreement. The amount of the guarantee shall be determined on the basis of the developer's cost estimates supported by engineering estimates. The guarantee shall remain in effect until final acceptance of the public improvements and the posting of an acceptable security for the warranty period. The guarantee shall run as their interests may appear to the benefit of the city, the county, the McCall rural fire district, including the emergency medical service, and the Payette Lakes recreation water and sewer district, and/or other governmental entity, as the same may be relevant at the time, according to the location of the property, the nature of the improvements, and the respective jurisdiction of each of those entities.
2. Cost Estimates: The city's cost estimate provided for in this chapter shall state the estimated cost of completion for each required public improvement. Cost estimates for each required public improvement must be approved by the administrator.
(B) Methods Of Public Improvement Guarantee: The development agreement shall include one or more of the following methods to guarantee the construction of required public improvements and substantial private amenities material to the approval of the development; the actual documents also must be acceptable to the city attorney and city treasurer:
1. Performance Bond: The developer may elect to provide a surety bond from a company authorized to do such business in the state of Idaho. The bond shall be in an amount equal to one hundred fifty percent (150%) of the estimated cost of all unaccepted public improvements. The bond shall be payable to the city in the event that any required public improvements are not finally accepted in accordance with the provisions of this title and shall be posted by no person other than the developer.
2. Deposit In Escrow: The developer may elect to deposit a cash sum equal to one hundred twenty five percent (125%) of the estimated cost of all unaccepted public improvements either with the city or in escrow with a responsible financial institution authorized to do such business in Idaho. In the case of an escrow account, the developer shall file with the city an escrow agreement which includes the following terms:
(a) Funds of the escrow account shall be held in trust until released by the city and may not be used or pledged by the subdivider as security in any manner during that period other than as provided in this subsection (B)2(a). The funds may be used for payment of improvements as made, except that the escrow holder shall withhold from disbursement so much of the funds as is estimated by the city to be necessary to complete the construction and installation of such improvements, plus an overrun allowance as provided above.
(b) In the case of the failure of the developer to complete any improvement within the required time period, the institution shall immediately make all funds in such account available to the city for use in the completion of those improvements.
3. Letter Of Credit: The developer may elect to provide from a bank or other responsible financial institution authorized to do such business in Idaho an irrevocable letter of credit. Such letter shall be filed with the city and shall certify the following:
(a) That the creditor irrevocably guarantees funds in an amount equal to one hundred twenty five percent (125%) of the estimated cost of all unaccepted public improvements; and
(b) That in the case of the failure of the developer to complete any improvement within the required time period, the creditor shall pay to the city immediately and without further action such funds as are estimated to be necessary to complete the construction and installation of such improvements up to the limit of credit stated in the letter. (Ord. 822, 2-23-2006, eff. 3-16-2006)