(A) Performance guarantee required. The city, at its discretion, may approve a final plat or building permit when it determines that at least 75% of the public improvements required for the land division or phase thereof are complete and the applicant has an acceptable assurance for the balance of said improvements. The applicant shall provide a bond issued by a surety authorized to do business in the state, irrevocable letter of credit from a surety or financial institution acceptable to the city, cash or other form of security acceptable to the city.
(B) Determination of sum. The assurance of performance shall be for a sum determined by the city as required to cover the cost of the improvements and repairs, including related engineering and incidental expenses, plus reasonable inflationary costs (not less than 110% of estimated improvement costs, as prepared by a qualified civil engineer).
(C) Itemized improvement estimate. The developer shall furnish to the city an itemized improvement estimate, certified by a registered civil engineer, to assist the city in calculating the amount of the performance assurance.
(D) Agreement. A written agreement between the city and developer shall be recorded with the final plat. The agreement shall not be valid until it is signed and dated by both the applicant and City Planning Official. The agreement shall contain, at a minimum, all of the following:
(1) The period within which all required improvements and repairs shall be completed;
(2) A provision that if work is not completed within the period specified, the city may complete the work and recover the full cost and expenses from the applicant;
(3) The improvement fees and deposits that are required; and
(4) Optionally, a provision for the construction of the improvements in stages and for the extension of time under specific conditions therein stated in the contract.
(E) When subdivider fails to perform. In the event the developer fails to carry out all provisions of the agreement and the city has un-reimbursed costs or expenses resulting from such failure, the city shall call on the bond, cash deposit or letter of credit for reimbursement.
(F) Termination of performance guarantee. The developer shall not cause termination of nor allow expiration of the guarantee without first securing written authorization from the city.
(G) Warranty bond. A warranty bond good for two years is required on all public improvements and landscaping when installed in the public right-of-way. The warranty bond shall equal 15% of the total cost of improvements and begin upon acceptance of said improvements by the city.
(Ord. 1267, passed 1-3-2012)