A. With submittal of the application for final development approval, the applicant shall provide one (1) of the following performance guarantees for an amount adequate to cover the total construction costs of all required improvements, taking into account the time span of the construction schedule and the inflation rate for construction costs:

(1) Either a certified check payable to the City or a savings account or certificate of deposit for the establishment of an escrow account in such form as permitted by law and approved as to form by the City Manager;

(2) An irrevocable letter of credit from a financial institution establishing funding for the construction of the development, from which the City may draw if construction is inadequate, approved by the City Manager; or

(3) Any other performance guarantee approved by the City Manager, provided that, in his or her opinion, such performance guarantees provide substantially similar financial protection for the City as in Subsection A(1) or Subsection A(2), above.
 

B. The conditions and amount of the performance guarantee shall be determined by the Planning Board with the advice of the City Engineer or Public Works Director.

Contents of guarantee.
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.

Escrow account.
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.

Letter of credit.
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.

Duration of guarantee.
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 the subsection below. If the time frame for constructing the improvements covered by the guarantee is extended, the performance guarantee shall also be extended.

Release of guarantee.
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.

Default.
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.

Improvements guaranteed.
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.