§ 65.561. Required Performance Guarantee.

Except as otherwise provided in this Code, no Subdivision Plat shall be approved unless a performance guarantee for the installation of required improvements has been filed with the City in accordance with this Section. The developer shall be responsible for ensuring that the improvements have been guaranteed; however, either the developer or the contractor may post the performance guarantee. The performance guarantee shall comply with all statutory requirements and shall be approved by the City Attorney as to form and manner of execution. In lieu of such performance guarantee, the City Engineer may authorize the developer/builder to install, at his own expense, all required improvements in accordance with the following:

(A)

Acceptable Types of Guarantee. The performance guarantee shall consist of a performance bond, equivalent cash deposit with the City, construction loan agreement with a recognized lending institution, certificate of deposit or irrevocable letter of credit by a Florida bank, a cashier's check or a certified check upon a Florida bank.

(B)

Amount of Guarantee Required. The amount of the performance guarantee shall be equal to the maximum estimated cost for the installation of the uncompleted portion of the required improvements adjusted for inflation during the maximum effective period of the guarantee, based upon a bid or an estimate by the engineer of record, and subject to approval by the City Engineer; but in no case shall the amount be less than 110% of the current construction costs of such improvements.

(C)

Effective Period. The effective period of the performance guarantee shall not exceed one year from the date of approval of the Final Subdivision Plat or Permitting Site Plan.

(D)

Extensions and Substitution. The City Engineer may grant one or more extensions for an additional one year effective period of the performance guarantee for good cause shown. However, the City Engineer shall review the performance guarantee, and may require renegotiation of the amount of guarantee for the extension period. The City Engineer may at any time during the effective period accept a substitution of principal, sureties or other parties, upon recommendation by the City Attorney.

(E)

Default. Wherever the required improvements have not been installed according to the terms of the performance guarantee and no extension or substitution has been granted, the City Council may, upon thirty days written notice to the parties to the instrument, declare the performance guarantee to be in default and exercise the City's rights thereunder. Upon default, no development permits or other approvals shall be granted for the development until the City Council determines that adequate progress has been made toward completion of the remaining improvements.

(Ord. of 10-29-2001, § 4, Doc. #011029703)