(A) An escrow deposit shall be made with the Finance Director of 125% of the total cost of improvements as estimated by the Director of Engineering, pursuant to the development agreement. The total costs shall include costs of engineering and inspection by the city. The city shall be entitled to reimburse itself out of the deposit for any expense incurred by the city for completion of the work in case of subdivider default under the agreement, and for any damages sustained due to any breach thereof. Upon completion of the work and termination of any liability, the balance remaining in the deposit shall be refunded to the subdivider.
(B) In lieu of making the escrow deposit, the subdivider may furnish a bank letter of credit or performance bond with corporate surety in a penal sum equal to 125% of the total cost of improvements as estimated by the Director of Engineering pursuant to the agreement. The bond shall be approved as to form by the City Attorney and filed with the Finance Director.
(C) If the subdivider defaults in the terms or conditions of the contract with the city for the subdivision improvements, the city may complete the project referred to in the contract and assess all completion costs incurred by the city against the real property being subdivided as a special assessment and collect it the same as if it were any other special assessment levied by the city against real property.
(`86 Code, § 10.56) (Am. Ord. 706, passed 12-2-97)