( A) The City Council shall not approve an final plat (and, hence, said final plat shall not be entitled to recording) until:
(1) All improvements required in the approved improvements plan have been completed by the subdivider/developer at his expense, inspected and approved by the City Engineer and dedicated to the city or other appropriate entity; or
(2) In accordance with the subsections below, the subdivider/developer has provided the city with legal assurance to guarantee the satisfactory completion and dedication of all required improvements.
(B) Forms of assurance. The required legal assurance may be an escrow agreement or a letter of credit. Every such instrument shall be approved as to form by the City Manager, and posted with the City Clerk. Any funds held in escrow shall be deposited with an approved Escrow Agent.
(C) Amount of assurance. The amount of the legal assurance shall be equal to the City Engineer's estimate of the costs of constructing the uncompleted portion of the required improvements plus all required inspections fees. Any escrow deposit may be in the form of:
(1) An irrevocable letter of credit or commitment from a lending institution guaranteeing to the city the availability of the escrow funds from time to time upon demand; or
(2) Interest bearing accounts with a financial institution authorized to serve as an Escrow Agent.
(D) Eligible sureties. No person shall be eligible to act as surety unless he has been approved by the State of Illinois to act as a surety on public works improvements.
(E) Term of assurance, extension. The initial term of any letter of credit or escrow agreement shall not exceed two years. If all the required improvements have not been completed by the end of the two-year period, the City Manager, with the advice and consent of the City Council may extend said letter of credit or escrow agreement for one year only.
(F) Release of assurance.
(1) The City Manager may release up to 90% of the amount of the letter of credit or escrow deposit upon receipt of written authorization from the City Engineer. The amount which the City Engineer authorizes to be released shall be equal to the value of improvements actually completed in accordance with approved plans. The remaining 10% of amount of letter of credit or escrow deposit shall be retained until the one year warranty period on the improvements expires.
(2) The balance of the amount of the letter of credit or escrow deposit, excepting the warranty retainage, shall not be released until:
(a) The City Engineer has certified to the City Manager in writing that all required improvements have been satisfactorily completed; and
(b) Said improvements and corresponding right-of-way have been accepted by and dedicated to the city or other appropriate entity.
(c) The one year warranty period has expired and all expenses arising from any warranty work have been paid for by the Developer or deducted from the retainage.
(G) Failure to complete improvements. If all the required improvements have not been completed by the end of the two-year period (or three-year period, in the case of an extension), the City Manager with the assistance of the City Attorney, may:
(1) Make the necessary draws on the letter of credit to pay to the city an amount equal to the cost of completing the required improvements (as estimated by the City Engineer) or the amount of the letter of credit not theretofore released, whichever is less; or
(2) Order the Escrow Agent to retain all escrowed funds needed to complete the required improvements, and to return the balance (if any) of such funds to the subdivider/developer.
(Ord. 3265, passed 8-14-00)