10-7-13 Security Of Performance

The security of performance required by this subsection is to assure the city that all improvements are constructed in conformance with all relevant city ordinances, regulations and standards, and to assure the city that all expenses incurred for labor and materials used in the construction of the same are paid for by the applicant. A. Amount: The amount of the security of performance shall be equal to at least one and one-half (1½) times the reasonable value of the improvements required herein, as determined by the applicant's engineer and approved by the city engineer. B. Methods: The security of performance required by this subsection may, at the city's sole discretion, be furnished by any of the following methods: 1. By providing a performance, surety or cash bond in the amount specified and conditioned upon payment by the applicant of all expenses incurred for labor and materials used in the construction of the required improvements. This method of security is preferred by the city. 2. By depositing the specified amount of cash in a bank account to which the city alone has access, but only under the following conditions: to repair, replace or complete the improvements as set forth below. 3. By providing the city with an irrevocable letter of credit issued by an acceptable financial institution naming the city as the sole beneficiary with a maturity date of at least two (2) years and three (3) months from the date of recording the final plat. C. Guarantee of Work: The city may hold five percent (5%) of the security of performance provided by the applicant until one year following the final inspection by the city engineer, or for such other period of time less than one year as the city deems necessary to ensure compliance as set forth herein. (See River Heights City Construction Specifications/Standards.) (1-2015, 6-23-15) D. Foreclosure on Security: In the event construction of the public improvements is not completed, or is not completed in a satisfactory manner, within the negotiated time period, but not to exceed one (1) year from the date the final drawings were approved, the city may proceed to install the improvements at the applicant's expense by foreclosing on the applicant's security of performance. If said security is insufficient to pay for said improvements which the city shall cause to be installed, then the applicant shall be liable for any deficiency and reasonable attorney fees realized by the city. E. Failure to Meet Standards: In the event the public improvements fail to meet the standards as set forth in the applicant's written guarantee, the city shall so notify the applicant, who shall be given a reasonable time to repair or otherwise correct as requested or the city may proceed to repair or replace the unsatisfactory improvements at the applicant's expense by foreclosing on any security of performance still held by the city; and, in addition, the city may avail itself of any other remedy provided to it under the laws of the state and of the city.