Wherever a performance guarantee is required under the terms of this development code, said guarantee shall be submitted in conformance with this chapter. (Ord. 97-7-8-8, 7-8-1997)

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 percent (100%) 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. (Ord. 04-11, 11-23-2004, eff. 12-23-2004)

The duration of the performance guarantee shall be for the period of time specified for completion of required improvements (see section 10-15D-2 of this title) and any extensions to such period as may be approved by the city council. The date of beginning of the durability performance period (see section 10-16-7 of this chapter) shall be the date of acceptance of the improvement by the city council. (Ord. 97-7-8-8, 7-8-1997)

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%). (Ord. 97-7-8-8, 7-8-1997)

   A.   Request: At the completion of the work, the subdivider 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.

   B.   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, except any portion of said performance guarantee intended to be applied as part of the durability retainer required pursuant to the terms of section 10-16-7 of this chapter.

   C.   Unacceptable Condition: If the condition of material or workmanship shows 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 10-16-6 of this chapter, the city council may declare the developer in default and take such actions as are determined necessary to secure performance. (Ord. 97-7-8-8, 7-8-1997)

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. (Ord. 97-7-8-8, 7-8-1997)

   A.   At the time of posting the performance guarantee for a development project, the developer shall also post a durability retainer of not less than ten percent (10%) of the total amount of the performance guarantee, in the form of a cash escrow account, irrevocable letter of credit, or a bond letter, and an additional engineering inspection bond in cash, irrevocable letter of credit, or a bond letter, including a surety bond, to cover engineering services. Whichever form of bonding is utilized, the following wording must be included: "payable upon demand of the city" and "the bond will only be released with proper authorization from the city council". When there is not a performance guarantee, the durability retainer shall be calculated as ten percent (10%), or equaling the maximum percentage required by state code at the time the guarantee agreement is executed, of the engineer's original estimated cost of completion or applicant's reasonable proven cost of completion. (Ord. 14-2, 3-11-2014)

   B.   The durability retainer and engineering coverage are to be retained by the city for a period of not less than one year following the date of final acceptance of the improvements by the city. Such retainer shall be a guarantee of the durability of said improvements. If during the one year period, the durability of said improvements is found by the city to be satisfactory, said retainer may be released following the procedure outlined under section 10-16-5 of this chapter. If however, during said period, the condition, materials or workmanship of the improvements, whether in whole or in part, fails or shows unusual depreciation, or if it becomes evident that certain work was not completed, or that said improvements do not otherwise comply with accepted standards of durability, said condition shall be corrected by the person responsible for the performance guarantee. If the corrections are not made within a reasonable time, as outlined within section 10-15D-2 of this title, the city council, in accordance with section 10-16-6 of this chapter, may declare such person in default and hire a separate contractor to construct or correct the necessary improvements using the retainer to defray the cost of any required work, administration and inspection costs. At the conclusion of the durability guarantee period, the retainer may be released by the city in accordance with the release procedure outlined under section 10-16-5 of this chapter. (Ord. 09-1, 1-13-2009, eff. 2-3-2009)

   A.   The following tiered rate structure shall be used to determine the amount of the engineering inspection bond: Developer shall pay city all engineering and inspection fees required for each development project at the rate of six percent (6%) of the value of the bonded improvements up to one million dollars ($1,000,000.00) of the bonded improvements, but in no case shall the fee be less than one thousand dollars ($1,000.00). Also if the bonded improvements in a particular development project exceed one million dollars ($1,000,000.00), the engineering and inspection fees for that portion exceeding one million dollars ($1,000,000.00) shall be at the rate of three percent (3%). Developer shall also pay an administration fee of five percent (5%) of the engineering and inspection fee. Upon final inspection and acceptance of the development project by city, developer shall provide the city all engineering and inspection fees required for the one year durability period for each development project at the rate of five percent (5%) of the durability bond but in no case shall the fee be less than five hundred dollars ($500.00). (Ord. 14-2, 3-11-2014)