(A) To ensure proper compliance with the provisions of this code, the following bonds and financial guarantees shall be required therefor:
(1) A construction agreement;
(2) A performance guarantee;
(3) A maintenance guarantee; and
(4) Proof of adequate liability and title insurance.
(B) All bonds and insurance required under this section shall be secured from companies authorized to do business in the state and shall be deposited and remain at all times with the Clerk of the village.
(1) Construction agreement.
(a) To assure construction and installation of improvements required by these regulations, the subdivider shall execute a construction agreement with the Village Board in form and substance approved by the legal counsel. This agreement shall provide that all the improvements shall be constructed and installed at the subdivider's expense in compliance with the standards and specifications for each of the various types of improvements; the improvements shall be available to and for the benefit of the lands within the subdivision; that the improvements will be completed and installed within 24 months of the date of approval of the preliminary plat.
(b) The construction agreement shall further provide that, in the case where approval of the final plat has been given before construction of improvements and a performance guarantee has been provided and if the improvements are not completed within the specified time, the village upon proper notice may complete the improvements and recover full costs and expenses thereof from the subdivider and may appropriate the portion of money or bonds posted for the faithful performance of the works.
(2) Commencement of improvements. No construction of any improvements or clearing, grubbing, and grading shall be commenced prior to the approval of the construction agreement by the Village Board.
(3) Performance guarantee.
(a) Type of guarantee. The subdivider may execute and file financial guarantees with the Village Board in lieu of actual installation or completion of the required improvements when requesting conditional approval of the final plat. The guarantees may be in the form of a performance of surety bond, a certified check or any other type of guarantee approved by the Village Board.
(b) Term of guarantee. Guarantees shall be for a period of not longer than two years unless the Village Board extends the time period by resolution.
(c) Amount of guarantee. The financial guarantee shall be in an amount equal to the Village Engineer's estimate of:
1. The cost of construction of all improvements; plus
2. The engineers' fees for office checking and field inspection.
(d) Completion; reduction. When any portion of an improvement has, upon inspection, been found satisfactorily completed, a reduction in the bonds or partial withdrawal of funds equal to the estimated costs of the completed improvements may be authorized by the Village Board.
(4) Maintenance guarantees.
(a) The maintenance bond shall be of an amount as determined by the Village Engineer and shall be arranged for a period of one year from date of acceptance of improvements by the Village Engineer.
(b) The maintenance bond shall be determined by taking into consideration topography, soil conditions and prevailing costs of labor and materials. No maintenance bond should be less than $1,000.
(c) The subdivider shall be responsible for routine maintenance of all improvements and shall repair all failures due to faulty construction as soon as they became apparent.
(d) He or she shall also make repairs due to erosion or abuse by utility companies installing utilities and shall repair all failures for all other reasons during the maintenance bond period. He or she shall also restore the roads and streets at the end of the maintenance period.
(5) Liability insurance. The subdivider shall furnish the insurance as is deemed necessary by the Village Board which shall indemnify and save harmless the village from any and all liability arising by reason of the conditions of the streets of the subdivision which may arise or grow out of the construction of installation of the facilities. The insurance shall be of the duration as determined by the Village Board, but shall in no case be allowed to expire earlier than the effective period of any maintenance bond. A copy of the insurance policy shall remain at all times with the Village Clerk.
(6) Title insurance. Evidence must be shown that title insurance in an amount of not less than $1,000 will be issued insuring the title of the lands to be dedicated, as shown on the final plat.
(2001 Code, § 34-8-5)