A development improvement guarantee shall be provided to insure completion of required public improvements, to insure repair of defective improvements and to provide for abatement of nuisances occurring during construction.
(A) Development improvement guarantee.
(1) A statement shall be submitted to the Director of Public Works and Engineering, or authorized designee, by the project engineer, giving an estimate of the total cost of the construction and/or installation of all such improvements, both public and private, governed by this chapter. Said estimate shall be subject to review and approval of the Director of Public Works and Engineering or authorized designee. Requirement for a guarantee is applicable to all approved conventional site plan and final development plan developments and redevelopment projects. A guarantee is also required for site improvements required as a part of a special use permit approval.
(2) Posting of financial security in a sum sufficient to cover the approved engineer’s estimate of cost plus 10% shall be required. The financial security shall be in the form of:
(a) Cash;
(b) Sufficient surety bond issued by a corporate surety authorized to do business in the State of Illinois and subject to the approval of the corporate authorities;
(c) An irrevocable letter of credit issued by a financial institution authorized to do business in the State of Illinois and subject to the approval of the corporate authorities; or
(d) Direct financial obligations of the United States of America subject to the approval of the corporate authorities. The approval of any of the above mentioned securities is subject to a minimum of 1% of the amount of the security, but not less than $5,000 being deposited in cash with the city.
(3) Said security is to be issued to assure the city of the acceptable completion of the following improvements, both public and private, including but not limited to: earthwork, streets, driveways, parking lot pavements and curbs, sidewalks, bike paths, sanitary sewers, storm sewers, water mains, drainage and stormwater detention facilities, site grading, street lighting, parking lot lighting and landscaping; and less the private improvements of driveway aprons, parking lot pavements and curbs, sidewalks, bike paths, street lighting, parking lot lighting, and landscaping .
(4) Said security shall remain callable and usable by the city until release is authorized by the corporate authorities. Funds may be released for individual completed improvement elements prior to completion of the overall project, at the sole discretion of the Director of Public Works and Engineering.
(5) All release of funds will be approved by the Corporate Authorities, upon recommendation by the Director of Public Works and Engineering or authorized designee, subject to the following:
(a) A specific written request by the developer to the city noting completed improvement quantities and costs.
(b) Submittal to the City of contractor's affidavits and waivers of lien for labor and material for the completed work.
(c) Certification by the Director of Public Works and Engineering or authorized designee, that the improvements are satisfactorily completed. The release of funds for development improvements is subject to a minimum 10% retention which shall remain in the guarantee account until the corporate authorities approve and accept the improvements. The actual amount to be retained for a specific improvement shall be as determined by the Director of Public Works and Engineering, or authorized designee.
(d) Until the required tests have been submitted and approved by the Director of Public Works and Engineering or authorized designee, the following will be subject to full retention: earthwork (compaction and moisture content), streets (materials testing), curb and gutter (materials testing), sidewalk (materials testing), bike path/pedestrian path (materials testing), sanitary sewers (air, mandrel and televising) and water mains (pressure test, chlorination / bacteriological test, issuance of an IEPA operating permit).
(6) The aforementioned guarantee shall be kept in effect by the developer or the financial institution so long as project improvements are incomplete, as determined by the Director of Public Works and Engineering, and until the city authorizes the release of all remaining funds per the recommendation of the Director of Public Works and Engineering. Such authorization will occur upon the corporate authorities' approval and acceptance of the project improvements as recommended by the Director of Public Works and Engineering. The financial institution shall be required to notify the City Administrator by certified mail of the expiration and any necessary renewals of the guarantee account. The developer shall then submit evidence to the city that said guarantee account has been renewed in an amount acceptable to the city.
(7) In the event the developer does not complete or provide improvements in accordance with the approved final development plan, or other requirements of this chapter, the city, at any time, may elect to direct the financial institution to deliver the security funds to the city. The city shall then use these funds for payment of the cost for completing the improvements, and meeting the responsibilities of the developer established pursuant to this chapter. Also, the city, upon notification of the expiration date of the guarantee by the financial institution, shall have 30 days in which to decide whether or not to extend the guarantee account and/or complete the improvements.
(B) Maintenance guarantee. The developer shall repair or replace any defective work or material within 30 days of receipt of a written notice from the city that such defects exist. The developer shall provide a financial security in the amount of 10% of the original financial security for construction, to the credit of the city, in the form of cash or other type of security as required for construction in division (A)(2) above, but in all cases an amount of at least $2,000 of the maintenance guarantee security shall be deposited with the city in cash and shall be held after the final completion and acceptance of the improvements. Such security shall be held by the city for a period of one year after initial acceptance of the development by the corporate authorities. If the developer fails to properly repair defects within the required period, the security shall be callable and usable by the city for the purpose of:
(1) Securing the correction of any damage to such improvements by reason of settling of the ground, base or foundation thereof.
(2) Securing the correction of any defect in material or workmanship furnished for improvements constructed in conjunction with the development.
(Ord. 18-008, passed 2-7-18; Am. Ord. 21-021, passed 8-18-21; Am. Ord. 22-011, passed 6-1-22)