(a) The Approving Authority for a subject project shall require that the developer post performance guarantees to guarantee the construction of required improvements under any of the following circumstances:
(1) When public funds of the Municipality are to be used in the construction of any improvements, or portions thereof.
(2) As a condition of approval for any variance or other modification which may be granted to any Municipal regulation.
(3) As a condition of approval for any major subdivision, planned unit development, or lands and improvements to be dedicated to public use to guarantee that all aspects of the project shall be constructed as shown and described in the approved Construction Documents submittal and in conformance with all applicable Municipal requirements.
(4) The Approving Authority may, at its sole discretion, require the developer to post such performance guarantees as the Authority deems appropriate in the public interest for any or all improvements due to the nature, circumstances, financing or classification of the proposed project; or for other just cause.
(5) Performance guarantees shall be required when such requirement is set forth in other Municipal regulations.
(b) The requirements for such guarantees shall be as follows, unless otherwise approved by Council:
(1) Type of Guarantees. The developer shall execute and file with the Municipality, a single financial guarantee to guarantee the installation and completion of the designated improvements. Such guarantee shall be in the form of cash in bank, a surety bond, a certified check or other type of surety acceptable to, and approved by, the Approving Authority. Sureties shall be executed by the applicant as principal with a surety company authorized to do business in the State of Ohio, and appearing in the current edition of the U.S. Treasury Department Circular No. 570. A surety bond shall be in such form as is shown in Appendix A of the Code.
(2) Term. The term of such guarantee shall be determined by the Approving Authority. However, they shall be for not less than one year; and shall not be for a longer period than three years unless Council, by resolution, extends the time.
(3) Amount of Guarantee. The developer shall prepare his actual cost estimates and forward same, with supporting documentation in adequate detail, to the Municipal Engineer for verification of the accuracy, adequacy and appropriateness of the estimated costs. The Municipal Engineer shall adjust the estimate to reflect the labor costs calculated on the then current "Prevailing Wage Determination" of the Ohio Dept. of Industrial Relations.
A. A one year financial guarantee shall be in an amount equal to one-hundred (100%) percent of the estimated total of all materials and labor costs to provide and install the required improvements at the then current "prevailing wage".
B. For terms greater than one year the guarantee shall be in an amount equal to the base one-hundred (100%) percent, as provided for herein, plus ten (10%) percent thereof for each additional six (6) months of term (i.e. a three year guarantee shall be for one- hundred-forty (140%) percent of the total estimated costs at "prevailing wages").
(c) Progressive Installation. When all, or any portion of the work on an improvement has, upon inspection, been found satisfactorily completed, a reduction in the surety, or partial withdrawal of funds equal to the estimated cost of said completed work, may be authorized by the Approving Authority.
(1) Prior to any subsequent partial reduction in the surety or partial withdrawal of funds, the developer shall submit a notarized lien release certifying that all monies due and payable to vendors, contractors and subcontractors who have provided materials and/or labor for work previously completed have been paid for all such material and labor provided. Until said notarized lien release has been received and approved by the Municipality, no additional withdrawal of funds or reduction in the surety shall be authorized.
(2) Prior to the final reduction in the surety or final release of funds, the developer shall submit a notarized lien release certifying that all monies due and payable to vendors, contractors and subcontractors who have provided materials and/or labor for any work have been paid in full for all such material and labor provided.
(Ord. 2635. Passed 1-13-11.)