In lieu of the actual installation of required public improvements, the subdivider shall provide a financial guarantee of performance in one or a combination of the following ways:
(a) Performance Bond. A performance or surety bond to cover 100% of the cost of all required improvements, as approved by the City Engineer and Director of Public Works, shall be submitted to the Zoning Administrator before a final plat will be released for filing with Montgomery County. The bond shall specify the time period in which the required improvements are to be completed, and shall be furnished through an acceptable bonding company legally authorized to do business in the State.
(b) Escrow Fund.
(1) A cash deposit or certified check sufficient to cover the cost of all required improvements, as approved by the City Engineer and Director of Public Works, shall be deposited with the Finance Director before a final plat will be released for filing with Montgomery County. The escrow deposit shall specify the time period in which the required improvements are to be completed.
(2) In the case of either cash deposits or certified checks, an agreement between City Council and the subdivider may provide for progressive payments out of the cash deposit, or reduction of the certified check to the extent of the estimated cost of the completed portion of the public improvements.
(c) Contractual Arrangements. The subdivider may elect to enter into a contract with the City for the completion of the required improvements.
(d) Maintenance Bond. Once all required improvements have been made which includes all monuments in place and the as-built drawings received and checked by the City, the subdivider shall post a maintenance bond, in the amount of ten percent (10%) of the actual costs of those improvements, with the City. The dollar amount of the maintenance bond shall be subject to the approval of the City Engineer and Director of Public Works. with regard to being an accurate reflection of actual improvement costs. Until such a bond has been posted, City Council will not be authorized to accept any improvements. The required maintenance bond shall be in effect for one year from the actual date that City Council releases the required performance bond.
(Ord. 45-08. Passed 12-15-08.)