(A) A construction bond is required guaranteeing construction of required improvements as approved in writing by the City Engineer in accordance with § 154.18.
(B) The condition of the construction bond shall be that the principal shall within two years complete or cause to be completed in accordance with the approved plans and specifications and in accordance with applicable ordinances, resolutions, and codes of the city, the improvements required in the subdivision.
(C) The construction bond shall be for the sum of 125% of the estimated cost of construction as determined by the subdivider's engineer and approved by the City Engineer.
(D) Construction bonds for required improvements which are a part of the subdivision shall be secured to the city by one of the following methods or a combination of the following methods:
(1) Cash.
(2) Corporate surety licensed and authorized to do business in the state as a surety.
(3) Certificates of deposit payable to the city.
(4) United States government savings bonds payable to the city.
(5) Deed in trust or escrow conveying real estate to the city. Such real estate shall be appraised at the owner's or subdivider's expense by an independent appraiser selected by the city. The City Attorney shall approve the form of any surety involving a deed in trust or escrow.
(6) Irrevocable letter of credit in a form approved by the City Attorney.
(E) The City Council shall release construction bonds and the surety thereon with interest, if any, on satisfaction of the conditions of the bond and on receipt of a maintenance bond in accordance with § 154.23.
(Ord. 81-0-19, passed 5-11-81; Am. Ord. 2011-O-4, passed 3-14-11)