A. General: A performance guarantee shall be provided in the form of a cash bond, or irrevocable letter of credit. The village treasurer shall be and is authorized to act for the village in all matters relating to the performance guarantee unless otherwise provided for herein. The village may also require restricted covenants as an additional performance guarantee where a cash bond, or irrevocable letter of credit is posted, and is deemed inadequate to protect the public interest. All reductions, releases and extensions of the performance guarantee shall be recommended by the village engineer and shall be approved by the village board.
1. Cash Bond: A cash bond may be posted by the subdivider in lieu of a letter of credit provided for herein. The amount to be posted shall be equal to one hundred thirty percent (130%) of the estimated cost of construction of the improvements. This amount shall include the village costs of administering the completion of improvements in the event the subdivider or developer defaults. The cash bond shall be made payable to the village clerk prior to final action on the plat or building permit. The type of cash bond provided may be a cashiers check, bank draft, certified check or bank money order. A certificate of deposit shall not be accepted. With the approval of the village engineer the time of performance may be extended for not more than one year.
2. Irrevocable Letter Of Credit:
a. An irrevocable letter of credit will be acceptable; provided, that the subdivider or developer obtains an approval of such letter of credit from the village attorney; and provided, that the installation and construction of the improvement is in strict conformance with the provisions of this chapter within two (2) years from the date of final plat approval or issuance of the building permit. All letters of credit shall be equal to one hundred thirty percent (130%) of the estimated cost. This amount shall include the village cost of administering the completion of improvements in the event the subdivider defaults.
b. All letters of credit shall be posted for a period of two (2) years from the date of final plat or building permit approval. However, when a final plat is approved between and inclusive of December 1 and March 31, said letter of credit shall be posted due to expire on April 1 following the two (2) year period. The village engineer, for a good cause, with the approval of the surety may extend the time of performance for not more than one year. Such letters shall be submitted to the village clerk who shall provide a copy to the village engineer.
B. Default: If the subdivider or permittee fails to perform the work with sufficient workmen and equipment or with sufficient materials to ensure completion of said work within the specified time, or performs the work unsuitably, as determined by the village engineer, or neglects or refuses materials or performs anew such work as shall be rejected as defective and unsuitable or discontinues the execution of the work, or for any other cause whatsoever does not carry on the work in any approved manner, the village attorney shall give notice by registered mail to the subdivider or permittee and his surety, of such delinquency, said notice to specify the corrective measures required. After said notice, the village treasurer shall draft upon the performance guarantee to have the work completed in accordance with the terms of the performance guarantee. The village engineer may then take over the work including any or all materials or equipment on the ground as may be suitable and acceptable and may complete the work with his own forces or use any such other materials as, in his opinion, shall be required for the completion of the work in an acceptable manner. (Ord. 2000-O-22 § 1)