A. Prior to recordation of a final plat, after it has received the mayor's approval, the subdivider shall complete all of the public improvements required in the subdivision. At the option of the city, prior to recordation, the subdivider may enter into a performance bond agreement with the city to ensure completion of all public improvements required to be installed in the subdivision. The bond agreement shall be in a form and contain such provisions as approved by the city attorney's office. The agreement shall include, but not be limited to:
1. Incorporation by reference of the final plat and all data which is used to compute the cost of the improvements by the public works department;
2. Completion of the improvements within one year after commencement of construction. The city engineer, for cause shown, may extend the completion date for one additional year;
3. The improvements shall be completed to the satisfaction of the public works department and according to city standards, as established by the public works department and accepted by the city;
4. The bond amount shall be equal to one hundred twenty five percent (125%) of the public works department's estimated cost of the public improvements to be installed;
5. The city shall have exclusive control over the bond proceeds and they may be released only upon written approval of the city engineer;
6. The bond proceeds may be reduced upon request of the subdivider as the improvements are installed. The amount of the reduction shall be determined by the public works department. Such request may be made only once every thirty (30) days and no reductions shall be authorized until such time as the public works department has inspected the improvements and found them to be in compliance with city standards;
7. If the bond proceeds are inadequate to pay the cost of the completion of the improvements according to city standards for whatever reason, including previous reductions, then the subdivider shall be responsible for the deficiency and no further building permits shall be issued in the subdivision until the improvements are completed or, with the mayor's approval, a new bond has been executed to ensure completion of the remaining improvements;
8. If, upon written demand by the city after expiration of the time period, bond proceeds are not transferred to the city within thirty (30) days of the demand, then the city's cost of obtaining the proceeds, including the city attorney's office cost or outside attorney fees and court costs, shall be deducted from the bond proceeds;
9. Upon receipt of the bond proceeds, after the expiration of the time period, the costs of completion shall include reimbursement to the public works department and all other city departments for the costs of administration of the completion of the improvements;
10. The subdivider agrees to hold the city harmless from any and all liability which may arise as a result of the improvements which are installed until such time as the city accepts the improvements.
B. Such bond agreement shall be one of the following types as dictated by the city:
1. With a surety company licensed to do business in the state of Utah;
2. An irrevocable letter of credit with a financial institution federally or state insured;
3. A cashier's check or a money market certificate made payable only to the city;
4. A trust or escrow account with a financial institution federally or state insured;
5. A property bond where the bond proceeds are property which is actually deeded over to the city to be sold by the city, if necessary, to complete the improvements. The property deeded to the city shall have a fair market value well in excess of the bond amount specified in this chapter to ensure that the city will be able to sell the property quickly and obtain the necessary amount to complete the improvements. The amount of the property deeded to it shall be determined by the city. The city shall not be in any way responsible for obtaining fair market value for the land. The city's only responsibility is to obtain, if possible, the amount necessary to cover the costs of the required improvements which the bond guarantees. (Ord. 94-40 § 1: prior code § 30-50)