(a) General requirement. The applicant shall submit to the village security for the public and other improvements required for the new subdivision in accordance with the requirements of this section.
(b) Amount of performance security.
(1) Prior to the issuance of any building permit or commencement of any construction on the subject property, the applicant shall deliver to the village performance security, in a form approved by the village attorney and issued by a financial institution acceptable to the village manager, in the amount of 110% of:
A. The village engineer's estimate of the costs for constructing and installing all of the public and other required improvements; or
B. The actual cost as shown by all contracts for construction and installation of all of the public and other required improvements, whichever is greater.
(2) The performance security shall be for the purpose of insuring the construction of all of the public and other required improvements in accordance with the final engineering plans and all applicable requirements of law.
(c) Terms of performance security. The performance security shall remain in effect at all times until all of the public and other required improvements have been approved by the village engineer and the public improvements have been accepted by the village pursuant to § 31-4.4. If the public and other required improvements have not been completed and accepted or approved by the village 30 days prior to the date on which the security by its terms is to expire, then the applicant shall deliver on or before such date replacement security which by its terms shall extend through the date the public and other required improvements are accepted or approved by the village. If the applicant fails to so deliver such security, then the village shall have the right at such time, without prior notice to applicant, to draw down the full amount of the existing security.
(d) Draw on performance security. If the applicant fails or refuses to complete the construction of any of the public or other required improvements covered by the performance security, or fails to correct any defect or deficiency in such improvements upon request by the village, or in any other manner fails or refuses to meet fully the obligations under the performance security, or the applicable development agreement, then the village may, in its sole and absolute discretion, draw on or retain all or any part of the performance security.
(e) Partial reduction of performance security.
(1) The applicant may make a written request to the village engineer to partially reduce the amount of the approved performance security. The village engineer shall be authorized, in his or her sole discretion, to approve a partial reduction in the amount of the performance security, provided that the public and other required improvements for which the reduction is sought have been completed, inspected and approved by the village engineer.
(2) In no event shall the amount of the performance security be reduced to a level that:
A. Would not allow the village to complete the installation of the public and other improvements required for the subdivision, in the sole and absolute opinion of the village engineer and village manager; or
B. Is less than the guaranty security required by § 31-4.5.
(f) Release of performance security. Following the village engineer's certification that all public and other required improvements included in the security have been completed to the satisfaction of the village engineer, and the village's acceptance of all public improvements in accordance with all requirements of § 31-4.4, including without limitation the delivery of satisfactory guaranty security or all public improvements, the village manager shall release the security.
(Ord. No. 06-09-3151)