17.20.060 Performance guarantee.
A. Performance Guarantee Required. When a performance guarantee is required by the city, the subdivider shall file an assurance of performance with the city supported by one of the following:
1. An irrevocable letter of credit executed by a financial institution authorized to transact business in the state of Oregon;
2. A surety bond executed by a surety company authorized to transact business in the state of Oregon which remains in force until the surety company is notified by the city in writing that it may be terminated; or
3. Cash.
B. Determination of Sum. The assurance of performance shall be for a sum determined by the city as required to cover the cost of the improvements and repairs, including related engineering and incidental expenses.
C. Itemized Improvement Estimate. The developer shall furnish to the city an itemized improvement estimate, certified by a registered civil engineer, to assist the city in calculating the amount of the performance assurance contingency.
D. Agreement. An agreement between the city and developer shall be recorded with the final plat that stipulates all of the following:
1. Specifies the period within which all required improvements and repairs shall be completed;
2. A provision that if work is not completed within the period specified, the city may complete the work and recover the full cost and expenses from the applicant;
3. Stipulates the improvement fees and deposits that are required; and
4. May provide for the construction of the improvements in stages and for an extension of time under specific conditions therein stated in the contract.
The agreement may be prepared by the city, or in a letter prepared by the applicant. It shall not be valid until it is signed and dated by both the applicant and city administrator.
E. When Developer Fails to Perform. In the event the developer fails to carry out all provisions of the agreement and the city has unreimbursed costs or expenses resulting from such failure, the city shall call on the bond, cash deposit or letter of credit for reimbursement.
F. Termination of Performance Guarantee. The developer shall not cause termination of nor allow expiration of the guarantee without having first secured written authorization from the city. [Ord. 818 § 2 (Exh. A (§ 8-2.460)); Ord. 692 § 20.]