9-17 Performance Guarantees A. Application

Wherever a performance guarantee is required under the terms of this development code, said guarantee shall be submitted in conformance with this chapter. B. Type and Amount of Guarantee. All performance guarantees shall be posted in the form of a performance bond, an escrow account or an irrevocable letter of credit. Whichever form of performance guarantee is employed for any development project, the performance guarantee shall be made through an adequate and appropriate agency acceptable to the City. The amount of the guarantee shall include at least one hundred and ten percent (110%) of the cost of all materials and labor for the work to be performed as established by the city engineer and the costs of administration by the City. C. Duration of Guarantee. The duration of the performance guarantee shall be for the period of time specified for completion of required improvements and any extensions to such period as may be approved by the City Council. The date of beginning of the durability performance period shall be the date of acceptance of the improvement by the City Council. D. Partial Releases Permitted. Where a guarantee is provided for the purpose of ensuring the timely installation of required improvements, the city may authorize a partial release of the guarantee. The amount of any partial release shall be in an amount commensurate with the estimated cost of the completed improvements, as determined by the City Engineer, less a holdback of ten percent (10%). E. Final Disposition and Release. 1. Request: At the completion of the work, the sub-divider shall submit to the city one copy of a written notice of completion, copies of lien releases from all suppliers of materials and subcontractors, and a request for release. Following receipt of the notice and request, the City Engineer shall make a preliminary inspection of the improvements and shall submit a report to the city council setting forth the condition of such facilities. 2. Acceptable Condition: If the condition of said improvements is found to be satisfactory and all liens are paid, the city council shall act to accept the improvements and authorize release of the remainder of the guarantee. 3. Unacceptable Condition: If the condition of material or workmanship shown unusual depreciation or does not comply with the acceptable standards of durability, or if there are any outstanding liens, or if any other terms of the guarantee have not been satisfied, the matter shall be referred to the City Council, and in accordance with the provisions of Section 9-14-6 of this chapter, the City Council may declare the developer in default and take such actions as are determined necessary to secure performance. F. Default. Where, in the opinion of the City Council, a developer fails or neglects to satisfactorily install the required improvements or make required corrections, or to pay all liens in connection with said improvements, make payment to the city for administration and inspections, or otherwise fails in carrying out the activity for which the performance guarantee was required, the city council may, after a public hearing with due notice on the matter, declare the performance guarantee forfeited and thereafter may install or cause the required improvement to be installed using the proceeds from the guarantee to defray the costs; provided, that the city shall not be responsible for work beyond the limits of the bond amount. Any funds remaining after completion of the required improvements will be returned to the developer. G. Time Limit for Installation; Performance Guarantee. 1. All required improvements not in place prior to the approval of the final plat by the city council shall be installed by the developer as required by City Ordinances following the date of final plat approval; provided, however, that upon a showing of good and sufficient cause (i.e., lateness of the final approval date, unexpected delays, etc.), the city council may extend the date of completion or authorize a longer period of time for completing construction of part or all of the uncompleted improvements. 2. A performance guarantee securing the installation of all required improvements which have not been completed and accepted by the city council prior to final plat approval shall be required as a condition of final plat approval. The performance guarantee shall be in accordance with City Ordinances.