18.17.070 Construction prerequisites – Security – Instruments of credit.
In lieu of the faithful performance and labor and material bonds or cash deposits, the subdivider may submit instruments of credit under the conditions hereinafter described:
A. Such instruments of credit shall be issued by a financial institution subject to regulation by the state or federal government.
B. They shall be in a form and content approved by the City Attorney.
C. They shall pledge that the funds necessary to meet the performance are on deposit, that they are guaranteed for payment, that the City can draw on demand, and that they shall become trust funds for the purposes set forth in the instrument.
D. They shall be accompanied by the following:
1. A current statement of assets.
2. A resolution of the board of directors of the responsible organization authorizing the issuance and the amount of the letter.
3. A statement setting forth the date upon which the responsible organization was established.
E. The amounts and types of the instruments of credit shall be as follows:
1. Faithful performance instrument of credit in an amount deemed sufficient by the City Engineer to cover 50 percent of the total cost of all required on-site and adjacent off-site improvements including 25 percent of grading and slope planting expenses as applicable.
2. A labor and material instrument of credit in a like amount.
3. A monumentation instrument of credit in an amount stipulated by the subdivider’s engineer to cover the cost of placing lot corners and other related monuments. (Ord. 3153 § 2 (Exh. C), 2010).