No subdivision shall be approved until one of the following three options has taken place:
(b) A bond, executed by a surety company, has been deposited with the Finance Director guaranteeing the faithful performance of the construction of such streets in any new subdivision; or
(c) An escrow account has been established at a local bank guaranteeing the faithful performance of the construction of such streets in any new subdivision.
Should either option (b) or option (c) be used, the bond or the escrow account will be in an amount equal to the cost of the construction of the improvements based on an estimate approved by the City Engineer, shall be for a period of not more than three years and shall guarantee the construction of the improvements within that period of time. The terms and conditions of the bond or escrow account shall be approved by the Law Director to insure that such document constitutes a binding guarantee of the construction of such improvements.
A fee equal to a minimum of two percent of the estimated cost of the improvements shall be paid to the City for the inspection of such construction. If, during the course of construction, it becomes necessary, in the opinion of the City Engineer, to require additional inspection fees, then such additional funds shall be deposited with the City to insure the completion of the construction inspection.
(Ord. 1982-120. Passed 12-6-82.)