(a) Performance Bond. Prior to any approval by the Village Council, the developer shall furnish a performance bond to the Mayor in the amount equal to one hundred (100) percent of the approved total estimate of the cost of the to be completed subdivision improvements provided by the Developer's Engineer. Performance Bonds shall be provided in the form or surety bonds issued by surety companies authorized to transact business in the State of Ohio by the Ohio Department of Insurance. The Performance Bond shall be in effect until released by the Mayor. The bond amount may be reduced based upon completion of certain items, inspected by and verified by the Village's Engineer.
(b) Failure to Complete. If the Developer fails to commence active and continuous construction of the required and approved subdivision improvements within one (1) calendar year, of the date of enactment of legislation accepting the Final Plat, or fails to achieve substantial completion within two (2) calendar years of such date, such that the improvements are not then available for public use, the Village Engineer shall notify the Mayor that the Developer has failed in his duty to complete the project, the Mayor may notify the Developer and the Bond Surety in writing of such failure and of the Village of Cadiz's intent to vacate the subdivision or to complete the project via the Performance Bond.
(c) Maintenance Bond. Before the Village Engineer recommends the acceptance of the subdivision roads and/or infrastructure, or the authorization of the release of any Performance Bond, the Village Engineer will review the project recommendation with the Mayor. Only upon satisfactory completion shall the developer provide a Maintenance Bond (or Bonds) in the form of a Surety Bond, which shall be divided and administered as follows:
(1) A separate Bond in the amount three (3) percent of the certified construction costs of the water and sanitary sewer;
(2) A separate bond in the amount of ten (10) percent of the of the estimated costs of all other improvements;
(3) A separate bond in the amount of ten (10) percent of the estimated costs of all street trees.
(d) Assurances and Duration of Maintenance Bonds. The Maintenance Bonds shall assure that the Developer shall maintain and restore the roads and other improvements until such roads and improvements pass the final inspection of the Village Engineer within three (3) years of the release of the Performance Bond.
(e) Failure to Maintain Improvements. If the Developer fails to perform maintenance and restoration work, the Mayor may authorize the Village Engineer to self perform the work or authorize to have the work performed by others. The cost of work will be deducted or drawn from the Maintenance Bond. The Developer will remain liable for any expenditures over and above recovery derived from the Maintenance Bond.
(f) Release of the Maintenance Bond. It is the responsibility of the Developer to request final inspections for release of the Maintenance Bond. After all maintenance and restoration work has been completed to the satisfaction of the Village Engineer, the Mayor will release the Maintenance Bonds or those portions remaining to the developer. The bonds will remain in full force and effect until formally released by the Mayor.
(Ord. 2014-19. Passed 8-21-14.)
CODIFIED ORDINANCES OF CADIZ