A. Amount Of Cash Or Surety Bond: At the time of application for a permit, the applicant, in addition to other fees, shall deposit with the Village Clerk a cash bond in such amount as set forth in subsection 11-1-1H6 of this Code, or post a cash bond concurrent with a surety bond as set forth in this section. (Ord. 1697-16, 10-24-2016)
B. Purpose Of Cash Or Surety Bond: Such cash or surety bond shall be for the purpose of indemnifying the Village against damage to, and/or securing the restoration and repair of, any and all public property and/or improvements, as hereinafter set forth. At the discretion of the Village, the cash bond may also be applied to any unpaid reinspection fees, additional inspection fees or the temporary certificate of occupancy fees associated with the permit to which it applies. (Ord. 1796-17, 12-13-2017)
C. Surety Bond: The Village may accept from an applicant, in lieu of a cash bond for each dwelling unit constructed, an initial cash bond in such amount as set forth in subsection 11-1-1H6 of this Code that the Village may draw down upon in accordance with this section, concurrent with acceptance of a surety bond in such amount as set forth in subsection 11-1-1H6 of this Code for no fewer than four (4) residential dwelling units within the same subdivision; for example, a surety bond for four (4) residential dwelling units would equal the amount set forth in subsection 11-1-1H6 of this Code for a new home multiplied by four (4). As a condition of providing a surety bond in accordance with this section, the applicant shall, at no time, permit the initial cash bond to be reduced to an amount below fifty percent (50%) of the initial deposit. Should the cash bond fall below fifty percent (50%) of the initial deposit, the Village shall have the right, but not the obligation, to issue stop work orders on the associated permits until such time as the cash bond amount is sufficiently replenished in accordance with this section.
1. A surety bond submitted in accordance with this section shall be provided as follows:
a. An expiration date not less than one year from the date of issuance and an express provision that such surety bond will not expire prior to the issuance by the Village of the requisite certificate of occupancy for each bonded residential dwelling unit;
b. That written notice shall be given by certified or registered mail to the Village Clerk of the expiration date, if any, of the surety bond not less than sixty (60) days before said expiration, and that the surety bond shall not expire absent such notice;
c. The surety bond shall be irrevocable and shall be clearly marked "irrevocable";
d. That the surety bond will not be discharged by the issuing institution except upon written certificate of the Village Clerk that said surety bond may be discharged in accordance with this section and the amount of such discharge;
e. That the issuing institution will pay all attorney fees and other costs reasonably incurred in enforcing collection of such financing surety in the event that the issuer wrongfully fails to honor the Village's demand for payment under the terms of such surety bond;
f. A surety bond submitted in accordance with this section to guarantee the completion of public improvements may not be reduced or partially discharged prior to completion and issuance of each certificate of occupancy for covered residential dwelling units; that is, all certificates of occupancy need to be issued prior to discharge of said surety bond;
g. Upon issuance of all certificates of occupancy for the residential dwelling units covered by a surety bond, the Village Clerk shall send a written certificate within five (5) days after the issuance of the final certificate of occupancy to the issuing institution and to the applicant that such financing surety may be discharged; and
h. This section shall be binding upon and applicable to all applicants, developers and successors in title of property which is bonded in accordance with this title.
D. Restoration And Repair Of Public Property And Improvements: At the completion of all construction and prior to final occupancy, the building inspector shall perform an inspection of the surrounding public property and improvements. All such property and improvements, including, but not limited to, the roadway, parkway and culverts, must be restored to a condition at least equal to the condition at the time of starting work, or in the case of new construction, the roadway, parkway and culverts are to be restored in workable condition satisfactory to the Village Engineer. All restoration work shall be performed in accordance with the ordinances of the Village.
Should such public property and improvements be in satisfactory condition, the cash or surety bond shall be returned to the applicant. The applicant shall not be entitled to interest on such cash deposit. Should such public property and improvements be damaged in any way, the building inspector shall notify the applicant and the applicant shall have fourteen (14) calendar days in which to repair the same. If the applicant fails to make such necessary repairs within said time, the building inspector is directed to have the necessary repairs made and the costs paid from the cash or surety bond. The balance of the cash or surety bond, if any, shall be returned to the applicant. Should the cash or surety bond be insufficient to pay the full amount of the costs, the applicant shall promptly reimburse the Village, upon demand, for such additional costs. (Ord. 1697-16, 10-24-2016)