(A) Requirements. Security to guarantee the satisfactory completion of subdivision improvements shall meet the following requirements.
(1) Form. Security may be in the form of a cash deposit, a performance bond, a letter of credit from a bank approved of and insured by the F.D.I.C., or an escrow or impound account in a bank approved of and insured by the F.D.I.C. All security shall be in a form satisfactory to the Administrator. The Administrator, the unit of local government or the Land Use Committee shall have the right to reject any form of security he, she or it believes would be inadequate, for any reason, to guarantee the completion of all uncompleted improvements.
(2) Amount. The aggregate amount of the security shall be equal to 125% of the total estimated cost of completing all of the uncompleted improvements. The amount of a particular “item of security” (for example, a particular cash deposit, bond, escrow account and the like) shall equal the estimated cost of completing the improvements covered by the security. The cost estimates shall be made by the subdivided professional engineer, but must be approved by the County Engineer.
(3) Posted with whom. Security for improvements which are to be dedicated to the county shall be posted with the County Clerk. Security for improvements to be dedicated to some other governmental entity shall be posted with the official designated by that other entity.
(4) Term. The initial term of security for any subdivision improvement within the county’s subdivision jurisdiction shall not exceed two years. If any improvement which is to be dedicated to the county has not been completed by the end of the two-year period, the Administrator, with the advice and consent of the Land Use Committee, may either extend the security for successive one-year periods, or may proceed as per division (D) below.
(B) Sureties. There shall be a surety for every performance bond posted as security. No person shall be eligible to act as a surety unless he or she has been approved by the Land Use Committee. Any surety who improperly fails to perform within 90 days after written notice from the appropriate official (for example, in the case of the county, the Administrator; in the case of the township, the Township Highway Commissioner; and the like) shall be ineligible for two years thereafter to act as surety for any subdivision improvement within the county’s jurisdiction.
(C) Release of security.
(1) The county may release up to 80% of the amount of security from time to time upon written authorization from the Planning and Development Committee. The amount which the Planning and Development Committee authorizes to be released shall be equal to the value (as determined by the subdivider’s professional engineer and approved by the County Engineer) of the completed, and accepted, improvements covered by the security.
(2) Twenty-five percent of the amount of every security posted with the county shall be retained until:
(a) The subdivider’s professional engineer has certified to the Administrator in writing that all public improvements plans have been satisfactorily completed;
(b) All public improvements have been dedicated to the county, township or other appropriate governmental entity; and
(c) The requirements of § 92.063 have been fulfilled (two-year maintenance security).
(D) Failure to complete improvements. If a secured improvement has not been completed at the expiration of the term of the security (two years, or longer if extension has been granted), the Administrator, with the consent of the Land Use Committee and the assistance of the State’s Attorney, may:
(1) Require the subdivider to submit new security in an amount sufficient to cover any increase in the cost of constructing the improvements in question; or
(2) Require the surety or financial institution to pay to the county an amount equal to the cost of completing the required improvements or the amount of the security not theretofore released, whichever is less.
(1993 Code, § 92.61) (Ord. passed 10-17-1956; Ord. passed 10-18-1978; Ord. 2002-14, passed - -2002; Ord. 2006-06, passed 6-21-2006) Penalty, see § 92.999