(A) Guarantee arrangements, exceptions. The construction of all improvements required by this chapter shall be completed by the subdivider and approved by the Township Board prior to final plat approval. In lieu of the actual installation and approval of all public improvements required by this chapter prior to final plat approval, the Township Board may, in its discretion, for those requirements which are over and beyond the requirements of the County Road Commission, County Drain Commissioner or any other agency responsible for the operation and maintenance of the applicable public improvements, permit the subdivider to guarantee completion of such required improvements in one or a combination of the following arrangements. In each instance where the subdivider is to guarantee completion of required improvements, the township and the subdivider shall, based on approved final construction plans prepared and submitted by the subdivider, enter into a written agreement specifying in detail the nature of the required improvements, the time in which these improvements are to be completed, provisions for checking or inspecting the construction of each such improvement to determine its conformity to the submitted construction plans and specifications and the nature of the financial guarantee of performance which is to be provided by the subdivider for each such improvement. The Township Board may, on recommendation from the Planning Commission, waive financial guarantees of the completion of required improvements in the case of sidewalks, street lights or street trees.
(B) Types of guarantees. Financial guarantees shall be provided as follows.
(1) Performance or surety bond.
(a) Accrual. The bond will accrue to the township and must cover the full cost of constructing and installing the specific public improvement and, were applicable, placing the specific public improvements in operation.
(b) Amount. The bond must be in an amount equal to the total estimated cost for completing construction and installation of the specific public improvement, including contingencies as estimated by the Township Board, as well as, where applicable, the total estimate of the cost of placing the specific public improvement in operation, including contingencies, as estimated by the Township Board.
(c) Term. The term of the bond shall be for such period as shall be specified by the Township Board.
(d) Bonding or surety company. The bond must be written by a surety company authorized to do business in the state acceptable to the Township Board.
(2) Cash deposit, certified check, negotiable bond or irrevocable bank letter of credits.
(a) Treasurer, escrow agent or trust company. A cash deposit, certified check, negotiable bond or an irrevocable bank letter of credit, as approved by the Township Board, shall be deposited with the township. Such deposit must be made pursuant to a written escrow agreement between the subdivider and the township. The escrow agreement may provide that the deposit will be held by the Township Treasurer or, in the alternative, subject to approval by the Township Board, that the deposit be held by a state or national banking corporation.
(b) Dollar value. The cash deposit, certified check, negotiable bond or irrevocable bank letter of credit must be in an amount equal to the total estimated cost of construction and installation of the specified public improvement including contingencies, as estimated by the Township Board.
(c) Term. The deposit shall be retained by the Township Board for a period to be specified by the Township Board. The agreement between the township and the subdivider may provide that the amount of the bond provided pursuant to division (B)(1) above or the deposit provided pursuant to this division (B)(2) be progressively reduced as the specified public improvements are completed.
(3) Penalty in case of failure to complete the construction of public improvements. In the event the subdivider fails to complete a public improvement within the period of time specified in his or her agreement with the township for the completion of said public improvements, the Township Board may, at its option, proceed to have the public improvement completed. The agreement between the subdivider and the township must provide that all costs and expenses incurred by the township in completing the public improvement shall be reimbursed from the bond or deposit provided pursuant to divisions (B)(1) or (B)(2) above.
(Prior Code, Ch. XXXIII, § 5.4) (Ord. 2-2004, passed 8-9-2004)