10.667 Security for Public Improvements.
(1) Security: The developer shall file with the agreement in Section 10.666, to secure full and faithful performance thereof, one (1) or a combination of the following:
(a) A surety bond executed by a surety company authorized to transact business in the State of Oregon, or
(b) Cash, or
(c) An irrevocable letter of credit, or assignment of deposit or loan disbursement agreement from a bank or savings and loan association, redeemable at a location within the State of Oregon.
Any security that is not redeemable within Medford city limits shall include assurance that is redeemable by US Mail, delivery service, or electronic means, including but not limited to, fax or e-mail. The security shall be in an amount approved by the City Engineer as sufficient to cover the cost of the improvements, engineering, inspection and incidental expenses, and must be approved by the City Attorney as to form. Such security arrangements may provide for reduction of the amount in increments as improvements are completed and approved by the City Engineer. However, the number of reductions or disbursements and the amount of retainage required shall be at the discretion of the City Engineer.
Upon satisfactory completion of all improvements and acceptance thereof by the City, the amount of the security shall be reduced to twenty percent (20%) of the original sum and shall remain in effect until all deficiencies in construction and maintenance discovered and brought to the attention of the developer and surety during the one (1) year warranty period have been corrected to the satisfaction of the City Engineer.
Whenever a failure to perform under said agreement has not been corrected to the satisfaction of the City Engineer within thirty (30) days after notice by mail to the developer and surety at the addresses given in the security agreement, the City may thereafter, without further notice, declare the security forfeited and cause all required construction, maintenance or repair to be done.
(2) Security Alternative: In lieu of Section (1) above, to secure the installation of only sidewalks, street trees and/or landscaping in park strips on lower order streets in single-family residential development, the developer may enter into an agreement (provided by the City) which specifies that in lieu of financial security provided in Section (1) herein, the Certificate of Occupancy shall not be issued until the required sidewalks, street trees and/or landscaping in park strips are installed to the satisfaction of the City Engineer. The Building Official is authorized to withhold Certificate of Occupancy on such terms as contained in the agreement.