The contract provided for in § 153.082 shall require the subdivider to make an escrow deposit or, in lieu thereof, furnish a performance bond. The escrow deposit or performance bond shall conform to the requirements of this regulation.
(A) Escrow deposit. An escrow deposit shall be made with the City Clerk in a sum equal to one hundred twenty-five percent (125%) of the total cost as estimated by the engineer of all improvements to be furnished and installed by the subdivide pursuant to the contract, which have not been completed prior to approval of the plat. The total cost shall include costs of inspection by the city. The city shall be entitled to reimburse itself out of said deposit for any cost and expense incurred by the city for completion of the work in case of default of the subdivider under said contract, and for any damages sustained on account of any breach thereof. Upon completion of the work and termination of any liability, the balance remaining in said deposit shall be refunded to the subdivider.
(B) Performance bond. In lieu of making the escrow deposit, the subdivider may furnish a performance bond with corporate surety, in a penal sum equal to one hundred twenty-five percent (125%) of the total cost as estimated by the engineer of all the improvements to be furnished and installed by the subdivider pursuant to the contract, which have not been completed prior to the approval of the plat. The total costs shall include costs of inspection by the city. The bond shall be approved as to from by the attorney and filed with City Clerk.
(Ord. 274, passed 4-15-1997)