Performance Guarantee. Concurrently with the application for approval, the owner must execute and file with the Municipality a performance bond, secured as hereinafter required.
(a) Form of Bond. The performance bond shall be conditioned upon proper installation of all improvements required by the Rules, according to the approved plans and specifications, within six months of the final approval. The Municipality shall have the right, in the event of default, to install the required improvements after first giving ten days written notice to the owner, to proceed against the owner and against any surety on the bond for the cost thereof and to apply to the cost of such improvements any funds deposited with the Municipality or in escrow as security for performance of the conditions of the bond. The bond shall further provide that the owner shall hold harmless the City of Seven Hills, its officers and employees, from all claims, demands and causes of action of every nature and description arising out of the installation of such improvements within the owner's property, conditions existing during the construction or installation of such improvements, and all damages to neighboring property, including, without limitation, damages resulting from increase in surface water flowing from the property and all claims arising out of changes to natural ditches or drainage courses. The terms "claims, demands and causes of action" shall include all expenses of defending against such claims, demands and causes of action, including fees payable to attorneys and expert witnesses, wages paid to Municipal employees while occupied in defense of such claims, demands and causes of actions, and wages or salaries reimbursed by the City to City officers to compensate them for wages and salaries lost while engaged in such defense. The form of each performance bond shall be approved in writing by the Director of Law.
(b) Security for Bond. Performance bonds shall be secured as follows:
(1) By the written guarantee of one or more surety companies authorized to conduct business within the State of Ohio. the form of guarantee shall be approved in writing by the Director of Law. The Director of Law may reject a performance bond in the event that he reasonably determines that the assets of the surety company or companies, subject to attachment within the State of Ohio, are sufficient to secure performance of the owner's obligations, taking into account other outstanding liabilities and contingent liabilities of the surety company or companies; or
(2) By deposit of cash in the full face amount of the bond, with the City of Seven Hills or with an escrow agent or trustee. In the event funds are deposited with an escrow agent or trustee, all documents or instruments governing the terms of such deposit shall be approved in writing by the Director of Law.
(c) Amount of Bond. The amount of performance bonds shall be determined by the City Engineer and shall be in an amount equal to the estimated total cost of materials and shall be required to install or construct all improvements required by the Rules. The amount of performance bond shall include estimated damages, if any, to neighboring properties which are the subject of the hold harmless provision contained in subsection (a) hereof, and the estimated costs of defending against claims for any such damages.
(d) Reduction of Bond and Return of Security. When the City Engineer shall have certified in writing that all improvements have been satisfactorily completed in accordance with approved plans and specifications, the performance bond submitted by the developer shall be cancelled and all funds deposited as security therefor shall be returned. Upon written certification by the City Engineer that any portion of the improvements has, upon inspection, been found satisfactorily completed, a reduction in the amount of the bond or partial withdrawal of funds deposited as security therefor, equal to the cost of such completed improvements, as estimated by the City Engineer, may be authorized by the City Engineer, if, in the opinion of the City Engineer, the remaining bond or security shall be fully sufficient, under all the circumstances, to guarantee performance of the conditions of the bond.
(Ord. 21-1991. Passed 4-22-91.)