§ 21.08.02. Performance guarantee for installation and maintenance of improvements.

To guarantee the construction and/or maintenance of required improvements prior to the approval and recording of the final plat, the subdivider shall be required to provide a performance guarantee in one or a combination of the following arrangements:

(A)

Performance bond, certified check, or irrevocable letter of credit: The subdivider shall post a bond, executed by a surety company, or a certified check or irrevocable letter of credit equal to 100 percent of the estimated cost of required improvements calculated with labor rates at the current State of Ohio prevailing wage. The estimate shall be prepared and sealed by a professional engineer registered in the State of Ohio and the service-safety director, or his/her designee, shall validate the amount. The bond shall be in favor of the City of Athens, and shall guarantee the availability of funds to execute construction of the improvements according to the plans and specifications approved by the planning commission. The bond shall not be released until the improvements have been accepted by the city and a maintenance bond valued at ten percent of the cost of improvements is furnished to the city in accordance with the timeline and provisions set forth in [Section] 21.08.09 of this code. The developer may utilize one instrument for both the performance bond and maintenance bond that automatically reduces from 100 percent to ten percent of the value of the improvements upon the execution of [Section] 21.08.09(A). If the developer desires to transfer his interest in property that is subject to a performance bond pursuant to this section, the developer shall, prior to transfer of said interest, complete all work to release the bond, or require the new owner to post a replacement bond, or irrevocable letter of credit to the transfer. Under no circumstances shall the required performance bond, cash deposit or irrevocable letter of credit be tied to or be considered a portion of the subdivider's financing for the development.

(B)

Deposit: The subdivider may make a deposit with the city treasurer, with a responsible escrow agent, or with a trust company. The deposit shall be money or negotiable bonds in an amount equal to the estimated cost plus ten percent of the required improvements.

(Ord. No. 0-88-16, § I, 8-15-2016)