(A) Financial Guarantee Arrangements: In lieu of the actual installation of required public improvements before recording of the final plat, the council may permit the subdivider to execute a trust and escrow agreement and record a notice prohibiting the sale of an undeveloped lot without a recorded developer's agreement between the subdivider and the city relating to that lot, or to provide a financial guarantee of performance in one or a combination of the following arrangements for those requirements which are over and beyond the requirements of any other agency responsible for the administration, operation and maintenance of the applicable public improvement: (Ord. 2488, 6-5-1995)
1. Surety Bond:
a. Accrual: The bond shall accrue to the city covering construction, operation and maintenance of the specific public improvement.
b. Amount: The bond shall be in an amount equal to one hundred percent (100%) of the total estimated cost for completing construction of the specific public improvements, as estimated by the developer's consulting engineer and approved by the city engineer.
c. Term Length: The term length in which the bond is in force, for the duration of that phase of the project, shall be for a period to be specified by the council for the specific public improvement.
d. Bonding For Surety Company: The bond shall be with a surety company authorized to do business in the state of Idaho, acceptable to the council.
2. Cash Deposit, Certified Check, Negotiable Bond Or Irrevocable Bank Letter Of Credit:
a. Treasurer, Escrow Agent Or Trust Company: A cash deposit, certified check, negotiable bond or an irrevocable bank letter of credit, such surety acceptable by the council, shall be deposited with an escrow agent or trust company.
b. Dollar Value: The dollar value of the cash deposit, certified check, negotiable bond or irrevocable bank letter of credit shall be equal to one hundred percent (100%) of the estimated cost of construction for the specific public improvement, as estimated by the developer's consulting engineer approved by the city engineer.
c. Escrow Time: The escrow time for the cash deposit, certified check, negotiable bond or irrevocable bank letter of credit shall be until completed and accepted by the city engineer.
d. Progressive Payment: In the case of cash deposits or certified checks, an agreement between the council and the subdivider may provide for progressive payment out of the cash deposit or reduction of the certified check, negotiable bond or irrevocable bank letter of credit, to the extent of the cost of the completed portion of the public improvement, in accordance with a previously entered into agreement.
(B) Conditional Approval Of Final Plat: With respect to financial guarantees, the approval of all final subdivision plats shall be conditioned on the accomplishment of one of the following:
1. The construction of improvements required by this title shall have been completed by the subdivider and approved by the city engineer.
2. Surety acceptable to the council shall have been filed in the form of a cash deposit, certified check, negotiable bond, irrevocable bank letter of credit or surety bond.
(C) Inspection Of Public Improvements Under Construction: Before approving a final plat and construction plans and specifications for public improvements, an agreement between the subdivider and the council shall be made to provide for checking or inspecting the construction and its conformity to the submitted plans.
(D) Penalty In Case Of Failure To Complete The Construction Of A Public Improvement: In the event the subdivider shall, in any case, fail to complete such work within the period of time as required by the conditions of the guarantee for the completion of public improvements it shall be the responsibility of the council to proceed to have such work completed. In order to accomplish this, the council shall reimburse itself for the cost and expense thereof by appropriating the cash deposit, certified check, irrevocable bank letter of credit, or negotiable bond which the subdivider may have deposited in lieu of a surety bond, or may take such steps as may be necessary to require performance by the bonding or surety company, and as included in a written agreement between the council and the subdivider. (Ord. 2012, 7-6-1981)