A. The applicant shall submit a bond or other security in an amount satisfactory to the city engineer and in a form approved by the city attorney, in the sum of 100 percent of the estimated cost of the development governed by this ordinance, not including the cost of parking lot construction, to guarantee the faithful performance of the work specified in the permit within the time specified by the city engineer.

B. When the public improvements described in a site development permit are substantially complete and are acceptable to the city, the applicant shall submit a maintenance bond or other security in an amount satisfactory to the city engineer and in a form approved by the city attorney, in the sum of 25 percent of the cost of those improvements, as determined by the city engineer, to guarantee the quality of workmanship and materials used to complete the work, for at least one year following substantial completion and acceptance or for a longer period to be determined by the city engineer if necessary or desirable to guarantee the viability of one or more improvements. In the event it becomes necessary for one or more of those improvements to be repaired or replaced on account of deficient workmanship or materials, then the maintenance bond or other security shall be extended for one year following substantial completion and acceptance of corrected improvements.

C. The security instrument shall obligate the principal to faithfully perform the work specified in the permit within the time specified by the city engineer and shall further provide that it will not be canceled or terminated until the City has approved the work in writing.

D. Surety Bond – Notice of Default. When the city engineer finds that a default has occurred in the performance of any term or condition of a permit, written notice of the default shall be given to the principal and to the surety of the bond. The notice shall state the work to be done, the estimated cost, and the period of time considered by the city engineer to be reasonably necessary for the completion of the work.

E. Interference Prohibited. No person shall interfere with or obstruct ingress to or egress from the premises by an authorized representative or agent of a surety or of the City engaged in completing the work required to be performed under the permit or in complying with the permit terms or conditions.

F. Termination of Security. All security posted shall be effective from the date of the posting to the date of completion to the satisfaction of the city engineer of all the permit terms and conditions for the work. The completion shall be evidenced by a statement signed by the principal on request. When a cash bond has been posted, the cash shall be returned to the depositor or the depositor’s assigns on the termination of the bond, except any portion of it that may have been used. [BC 9.05.070, amended by Ordinance No. 3440, 4/2/85; amended by Ordinances No. 3487, 1/14/86, Ordinance No. 3798, 1/27/92, Ordinance No. 3993, 9/22/97, Ordinance No. 4249, 4/7/03]