(A) If the applicant chooses to utilize the opportunities provided under § 153.21(B)(1) or (2) above, the applicant shall provide a performance guarantee equal to 110% of the cost of the improvements to assure full and faithful performance thereof in one of the following forms:
(1) A surety bond executed by a surety company authorized to transact business in the State of Oregon in a form approved by the City Attorney.
(2) In lieu of the surety bond, the applicant may:
(a) Deposit with the city cash money to be released only upon authorization of the City Engineer;
(b) Supply certification by a bank or other reputable lending institution that money is being held to cover the cost of required improvements to be released only upon authorization of the City Engineer;
(c) Supply certification by a bank or other reputable tending institution that a line of credit has been established to cover the cost of required improvements, to be utilized only upon authorization of the City Engineer; or
(d) Provide bonds in a form approved by the City Attorney.
(B) Such assurance of full and faithful performance shall be for a sum determined by the City Engineer as sufficient to cover the cost of required improvements, including related engineering and incidental expenses.
(C) If the applicant fails to carry out provisions of the agreement and the city has expenses resulting from such failure, the city shall call on the performance guarantee for reimbursement. If the amount of the performance guarantee exceeds the expense incurred, the remainder shall be released. If the amount of the performance guarantee is less than the expense incurred, the applicant shall be liable to the city for the difference.
(Ord. 224, passed 12-2-2004)