1. Methods: In lieu of actual installation of the improvements required by this section the subdivider shall guarantee the installation thereof by one of the methods specified as follows:
1. Bond Or Letter Of Credit: The subdivider may furnish and file with the city recorder a bond with corporate surety or an irrevocable letter of credit from a bank chartered under the laws of the state or the United States of America and having an office in the state, in an amount equal to one hundred fifty percent (150%) of the cost of improvements, as estimated by the city engineer, to assure the installation of such improvements within a period of two (2) years immediately following the approval of the subdivision plat by the city council and the city attorney; or
2. Escrow Or Trust Account: The subdivider may deposit in escrow or trust account with an escrow holder or trustee approved by the city council an amount equal to one hundred fifty percent (150%) of the improvement cost as estimated by the city engineer, under an escrow agreement to assure the installation of said improvements within two (2) years from the approval of the subdivision plat by the city council. The escrow agreement shall be approved by the city council.
2. Reduction For Improvement In Phases: Such bond or surety shall be reduced to ten percent (10%) of the original amount bonded for each improvement in phases according to improvements completed in the following order:
1. Phase I: Completion and acceptance of the sanitary sewer facilities.
2. Phase II: Completion and acceptance of the storm drainage facilities.
3. Phase III: Completion and acceptance of the curb, gutter and culinary water facilities.
4. Phase IV: Completion and acceptance of roadway and all other improvements.
3. Term; Inspection: Such bond or surety shall remain in force for a period of eighteen (18) months after the construction completion inspection for the purpose of guaranteeing all improvements, at which time such improvements shall again be inspected by the city engineer and, if found to be in satisfactory condition, the city engineer will certify the same to the city council, who will release the bond. If the improvements are not found to be in satisfactory condition, the city engineer shall so inform the city council, who shall order the subdivider to place the improvements in a satisfactory condition. In the event the subdivider refuses or neglects to make the necessary repairs, the city council may order the work done, using the proceeds from the bond, letter of credit or escrow to defray expenses. (Ord. 86-3, 3-11-1986)