A. Prior to the approval of the final plat of subdivision, the applicant shall guarantee the installation of any and all required public improvements at his own expense in accordance with the plans and specifications required under the terms of this chapter and within the time required as a condition for approval, which completion guarantee may take the form of any of the following, at the option of the applicant:
1. A subdivision bond, with sufficient corporate surety in the form approved by the village attorney and payable to the village; or
2. An irrevocable straight line commercial letter of credit with any recognized financial institution in the form acceptable to the village attorney; or
3. A noninterest bearing cash escrow consisting of a cash deposit or certified or cashier's check in the total amount required, which shall be placed with the village treasurer and administered in accordance with the provisions of the escrow agreement to be negotiated by and between the village president and the applicant, and approved by the village attorney. Such agreement shall contain provisions for specific application of such funds, partial contract payouts, pro rata reduction of deposit excess, final escrow settlement and other pertinent administrative matters as may be required.
B. The amount of the completion guarantee shall be based upon the following (whichever is higher):
1. Total cost for estimated construction, engineering, surveying and fees for all required public improvements, plus twenty five percent (25%) of such total for contingencies, as approved by the village engineer; or
2. Total contract cost for construction, engineering, surveying and fees for all required public improvements under contract, plus twenty five percent (25%) of such total contingencies, as approved by the village engineer.
C. The amount of the letter of credit, cash, or other securities may be reduced upon successful completion of the improvements. The village engineer must inspect the public improvements and recommend any reduction. A letter of credit may be reduced, and cash and other securities released in part upon completion of public improvements. At no time prior to final acceptance of the project shall the amount of the letter of credit, cash or other securities be reduced to an amount which is less than one hundred twenty five percent (125%) of the estimated cost to complete the remaining public improvements, plus twenty five percent (25%) of the actual cost of the completed public improvements, all as approved by the village engineer. In no event shall the amount of a letter of credit or cash and other securities be reduced to an amount below twenty five percent (25%) of the initial principal amount of the letter of credit, cash or other security, unless approved by the village board.
D. No developer shall fail to pay any contractor or subcontractor for work performed such that a lien arises upon the public funds of the village. If any such lien is perfected, the village in its discretion may draw upon the developer's letter of credit, cash or other security posted in accordance with this title to pay any such lien. (Ord. 2004-O-14 § 1)