(a) Guarantee Bond or Letter of Credit. As a condition of the acceptance by the Planning Commission of a subdivision and the streets and sidewalks constructed therein, the subdivider shall agree that he will guarantee all streets and sidewalks within his subdivision against any and all defects in workmanship and material for a period of two years from the date of such acceptance by the Planning Commission. The City Engineer, when in his opinion the same shall be necessary for the protection of the City, may require such subdivider to furnish and file with the City Clerk a cash bond or bond with proper surety or a letter of credit in the amount of ten percent (10%) of the cost of construction of such streets and sidewalks, conditioned upon the failure of such subdivider to construct such streets and sidewalks without defects in workmanship and material for such period of two years.
(b) Inspection of improvements. The applicant shall pay to the City an inspection fee based on the estimated cost of inspection, and where the improvements are completed prior to final plat approval, the subdivision plat shall not be signed by the Chairman of the Planning Commission unless the inspection fee has been paid at the time of application. These fees shall be due and payable upon demand of the City. No building permits or certificates of occupancy shall be issued until all fees are paid. If the City Engineer finds upon inspection that any one or more of the required improvements have not been constructed in accordance with the municipality’s construction standards and specifications, the applicant shall be responsible for properly completing the improvements. The City Engineer shall arrange for inspection of required improvements during construction and ensure their satisfactory completion.