Before any subdivision is finally approved the subdivider shall install required improvements and replace or repair any such improvements which are damaged in the development of the subdivision. In lieu of installation of all required improvements, the subdivider may execute and file with the city an agreement guaranteeing completion of such improvements together with any needed replacement or repair. The agreement shall:
A. 
Specify the period of time within which all work required shall be completed. Such schedule may provide for construction of improvements in units or phases. In no case shall the time for completion exceed one year from the date of final approval of the subdivision. The agreement may provide for reasonable extensions of time for completion of work. Extensions must be requested, approved by the city council and properly secured as provided herein in advance of the required initial completion date;
B. 
Require notice by the subdivider to the public works director promptly upon completion of all required improvements;
C. 
Provide for notice of approval or disapproval by the director of the improvement within a reasonable time after receiving notice of completion;
D. 
Designate the form and require financial security to be provided by the subdivider in a form permitted by this chapter;
E. 
Provide that if the subdivider fails to complete all required work within the period specified, including any approved extensions of time, the city may take steps to demand performance of the developer's obligation within a reasonable time not to exceed 90 days from the date of demand;
F. 
Provide that if the required improvements are not completed within that time, the city may take action to forfeit the financial security;
G. 
Provide that the city shall be entitled to recover all costs of such action including reasonable attorney's fees;
H. 
Provide that following recovery of the proceeds of the financial security, those proceeds shall be used to complete the required improvements and pay the costs incurred;
I. 
Provide that should the proceeds of the financial security be insufficient for completion of the work and payment of the costs, the city shall be entitled to recover the deficiency from the subdivider.
(Ord. 995 § 12 (Exh. A), 2015)
Regardless of whether all required improvements are completed prior to final approval of any subdivision of land, as a condition of such approval the subdivider shall execute an agreement to assure successful operation of said improvements. The agreement shall:
A. 
Require the subdivider to post a bond or other financial security permitted by this chapter to secure successful operation of all required improvements and full performance of the developer's maintenance obligation. Such financial security shall be effective for a two-year period following approval of installation of all required improvements;
B. 
Require the subdivider to perform maintenance functions on drainage improvements for a period of time not to exceed two years from approval of their completion or final subdivision approval, whichever is later. Such maintenance functions shall be specified by the public works director and shall be reasonably related to the burdens which the subdivision will impose on drainage facilities during the time maintenance is required. The city council may agree to accept and perform maintenance of the improvements, in which case the subdivider's obligation to perform maintenance functions shall terminate;
C. 
Not relieve the subdivider of liability for the defective condition of any required improvements discovered following the effective term of the security given;
D. 
A waiver by the subdivider of all claims for damages against any governmental authority which may occur to the adjacent land as a result of construction, drainage and maintenance of the streets and other improvements.
(Ord. 995 § 12 (Exh. A), 2015)
To assure full performance of the agreements required by this chapter, the subdivider shall provide one or more of the following:
A. 
A surety bond executed by a surety company authorized to transact business in the state of Washington in a form approved by the city attorney;
B. 
A letter of credit from a financial institution stating that the money is held for the purpose of development of the stated project in a form approved by the city attorney.
(Ord. 995 § 12 (Exh. A), 2015)
The financial security required by this chapter shall be for one and one-half percent of the sum estimated by the public works director to be the city's cost upon the developer's failure to comply with the above agreements and all related engineering and incidental expenses, final survey monumentation and preparation of reproducible city approved drawings of as-built improvements.
(Ord. 995 § 12 (Exh. A), 2015)
The acceptance of improvements by the city shall not prevent the city from making a claim against the developer for any defective work if such is discovered within two years (or less if provided by state law) after the date of completion of the work.
(Ord. 995 § 12 (Exh. A), 2015)