The performance guarantee shall contain a construction schedule,
cost estimates for each major phase of construction, taking into account
inflation, provisions for inspections of each phase of construction,
provisions for the release of part or all of the performance guarantee
to the developer, and a date after which the applicant will be in
default and the City shall have access to the funds to finish construction.
A cash contribution for the establishment of an escrow account
shall be made by either a certified check made out to the City, the
direct deposit, or a functional equivalent, into a savings account,
or the purchase of a certificate of deposit in such form as permitted
by law and approved as to form by the City Manager. For any account
opened by the applicant, the consent of the City Manager shall be
required for a withdrawal.
An irrevocable letter of credit from a bank or other lending
institution shall indicate that funds have been set aside for the
construction of the development and may not be used for any other
project or loan and may be released only upon written authorization
of the City Manager.
The performance guarantee shall remain in force for the entire period during which development occurs or, in the case of default, while the City pursues its remedies for default, until the guarantee is released by the City in accordance with §
280-17-6. If the time frame for constructing the improvements covered by the guarantee is extended, the performance guarantee shall also be extended.
Prior to the release of any part of the performance guarantee,
the Planning Director and City Engineer shall determine to their satisfaction
that the proposed improvements meet or exceed the design and construction
requirements for that portion of the development for which the release
is requested.
If, upon inspection, the City Engineer, or other engineer retained
by the Director of Public Works, finds that any of the required improvements
have not been constructed in accordance with the plans and specifications
filed as part of the application, s/he shall so report in writing
to the Director of Public Works, Planning Director, City Manager,
and the applicant. The City Manager shall take any steps necessary
to preserve the City's rights.
Performance guarantees shall be tendered for all improvements
required to meet the standards of these regulations and for construction
including but not limited to streets, stormwater management facilities,
public sewage collection or disposal facilities, public water systems,
and erosion and sedimentation control measures.