When required, the applicant shall file a performance guarantee to insure the full and faithful performance of all terms of an improvement agreement, if any, or to insure completion of all work for which permits are required, by one of the following:

A. A surety bond executed by a surety company authorized to transact business in the State of Oregon, in a form approved by the city attorney in an amount equal to one hundred twenty (120) percent of the construction cost of required improvements, as verified by the city.

B. A deposit with the city, or at the option of the city, a verified deposit with a responsible escrow agent or trust company, of cash or negotiable bonds in an amount equal to one hundred twenty (120) percent of the construction costs of the required improvements, together with an agreement that the deposit may be disbursed only upon city approval of disbursement. The agreement shall include a provision that the city shall allow release of the deposit in such amounts and at such times as a corresponding proportion of the required improvements are completed to the satisfaction of the city engineer following an inspection by the city engineer or the engineer’s authorized representative.

C. An agreement between the city, developer and one or more financial or lending institutions pledging that funds equal to one hundred twenty (120) percent of the construction cost of all required improvements are available to the applicant and are guaranteed for payment for the improvements. An irrevocable letter of credit is acceptable.

D. An agreement between developer and city that no building permits for any structures within the subdivision will be issued until the applicant has completed all improvements and accepted by the city. Such agreement shall be in a form approved by the city attorney and recorded in the deed records of Yamhill County. (Ord. 619, 2003)

If the applicant fails to complete all improvements required by the city, the city shall estimate the cost of completing any required improvement(s). The city shall than call on the bond or deposit for the funds necessary to complete the improvement. If the amount obtained from the bond or deposit is insufficient to complete the improvement, or no bond or deposit was obtained, the city may either hold the collected funds until additional funds are available from the applicant or, the city may perform improvement on a portion of the improvement as determined reasonable. Following final inspection of the improvement, and if the bond or deposit exceeds the actual cost to the city of completing the improvement, the remainder shall be released. If collected funds were inadequate to compensate the city for all reasonable costs, then the city may pursue all legal and appropriate remedies to collect any funds due to the city. These remedies shall include placing a lien on the real property where the city paid improvement was performed. Funds payable to the city shall also be a personal debt and obligation of the owner. (Ord. 619, 2003)

A. If public improvements are required as a condition of approval of an action under this title, such improvements shall be the obligation of the applicant but may, be deferred by the city.

B. The improvements may be deferred on all or a portion of the public improvements required as a part of the condition of approval under this title, until a stated time such as the owner applies for a building permit or certificate of occupancy, or until required by council, whichever is earlier. A property owner seeking deferral under this title shall sign an improvement deferral agreement that runs with the property, until owner installs improvements or until such improvements are required by city council. Said agreement shall be in a form approved by the city attorney, shall be recorded with Yamhill County, and shall be filed in the office of the city recorder.

C. In lieu of an improvement deferral agreement, the council may require a non-remonstrance agreement. Such an agreement shall be recorded with Yamhill County and would run with the property until the city installs the improvements and assesses the property owner the owner’s proportionate cost of the improvements. (Ord. 647 § 1 (Exh. A)(part), 2006: Ord. 619, 2003)