To guarantee the construction and/or maintenance of required improvements prior to the approval and recording of the final plat, the sub-divider shall be required to provide a performance guarantee in one or a combination of the following arrangements.
(A) Performance bond, certified check or irrevocable letter of credit.
(1) The sub-divider shall post a bond, executed by a surety company or a certified check or irrevocable letter of credit equal to the estimated cost plus 10% of the required improvements. The bond shall be in favor of the city and shall guarantee construction of the improvements according to the plans and specifications approved by the Planning Commission. The term of the bond shall not exceed one year plus a two-year maintenance period for a total of three years. The City Manager may grant an extension where due cause can be shown.
(2) Failure of the developer to maintain the bond until released shall not void the bonding requirement.
(3) Under no circumstances shall the required performance bond, cash deposit or irrevocable letter of credit be tied to or be considered a portion of the sub-divider’s financing for the development.
(B) Deposit. The sub-divider may make a deposit with the County Treasurer, with a responsible escrow agent or with a trust company. The deposit shall be money or negotiable bonds in an amount equal to the estimated cost plus 10% of the required improvements. If a cash deposit is made, an agreement may be executed to provide payments to the contractor or the sub-divider from the deposit as the work progresses and is approved by the responsible county official.
(Prior Code, § 23.08.02)