The subdivider, in lieu of prior construction of required improvements, shall furnish (prior to final approval of the final plat) a performance bond or other guaranty acceptable to the City Solicitor to guarantee completion of required improvements. The bond or guarantee shall be in one of the following forms:
(a) The subdivider may deposit a cash security or escrow with a bank acceptable to the Law Director in the amount of one hundred percent (100%) of the estimated cost of the improvements. The security shall be in favor of the City of Oberlin who shall have sole control of disbursement. The bank shall be directed to pay out portions of the cash security toward the completion of the improvements only with the approval of the City Manager who may require a balance to be maintained which he/she determines sufficient to complete the improvements in accord with the approved plans and specifications. The City Manager shall authorize the release of any balance to the subdivider only upon acceptance of the improvements by City Council.
In the event the improvements are not constructed within the time period designated in the construction agreement, the City Manager shall have the option, 30 days after issuing written notice to the subdivider, to complete and maintain the improvements and to collect and receive from the bank any remaining balance of the security to be applied toward payment of costs and expenses of completing the improvements.
(b) The subdivider may furnish a corporate surety bond in the principal amount of the estimated cost of the improvements with surety to the satisfaction of Law Director and in a form approved by the Law Director, guaranteeing completion and maintenance of the improvements in accord with the approved plans and specifications. The bond shall remain in effect until the improvements have been completed and maintained as provided in these regulations and until released by authority of City Council. The bond shall provide that, upon default of performance by the subdivider and 30 days after issuing written notice to the subdivider, the City Manager may complete the improvements.
(c) The subdivider may provide a set-aside agreement from a bank or other financial institution acceptable to the Law Director guaranteeing funds in the amount of the estimated cost of the improvements, in a form approved by the Law Director, guaranteeing completion and maintenance of the improvements to the same effect as (a) and (b) above.
(Ord. 96-82 AC. Passed 9-16-96.)