16.40.020 RELEASE OF FUNDS

A. As improvements are completed, inspected and approved by the maintenance supervisor and the City engineer, funds which have been placed in a performance bond, an irrevocable letter of credit or funds in escrow for those improvements will be authorized to be released for payment of those improvements. The City shall not release nor reduce these funds on any required improvement until the developer provides a statement for monies requested, signed by the City engineer or maintenance supervisor noting the improvements have been satisfactorily completed. In no event shall these funds be reduced below ten percent (10%) of the principal amount. B. The City shall retain ten percent (10%) of the collateral for a period of one year. The purpose of retaining the ten percent (10%) warranty amount is to guarantee that the improvements have been installed correctly and that they function properly. If any improvements have not been installed correctly or fail to function properly, and the developer fails to correct the deficiencies within thirty (30) days of notification thereof, then, upon written notice by the City, escrow shall pay over to the City the amount necessary to complete, repair or replace said improvements. In the event the costs of completing, repairing or replacing the unsatisfactory improvements exceeds the amount remaining in the performance bond, an irrevocable letter of credit or funds in escrow, the developer shall, within ten (10) days of notice thereof, pay the excess amount to the City and shall also cause to restore the performance bond, an irrevocable letter of credit or funds in escrow to the prescribed ten percent (10%) warrantee amount. The City shall not issue any building permits for the subdivision until the above referenced excess costs have been paid to the City and the warranty amount (10 percent of the total cost of improvements) has been restored. (Ord. 2025-1, 2025: Ord. 2008-4, 2008: Ord. 2000-17 § 2: Ord. 94-3 § 1)