(A) Subdivision improvement bonds required prior to recording a final plat. The owner shall execute a performance bond in favor of the village which guarantees that all subdivision improvements required by these regulations to be built by owner shall be constructed and maintained as required in these regulations. The owner shall use the performance bond form approved by the Village Attorney and contained in these regulations. SUBDIVISION IMPROVEMENT is any and all improvements required to be constructed by these regulations or other village ordinance or as a condition of final plat approval of the subdivision.
(B) The subdivider shall also provide the subdivision guarantee (surety) as specified herein. The form of the guarantee shall be as set forth in an administrative rule or as approved by the Village Attorney. Should the developer fail to perform the developer’s obligation to construct and maintain public improvements as required by this chapter, the village may liquidate any performance security in the village’s possession and use the proceeds to construct or maintain the improvements in whole or in part as the village in its sole discretion deems appropriate.
(C) Bond amounts.
(1) The amount of the subdivision improvement performance bond shall be 115% of the estimated cost of construction of all subdivision improvements. The cost estimate shall be prepared by the subdivider’s engineer and must be approved by the Village Engineer.
(2) The amount of the performance guarantee (surety) shall be based on the estimated value of the remaining improvements to be constructed at the time of recording of the subdivision final plat, assuring the village adequate coverage to secure the satisfactory construction, installation, payment of contractors, and dedication of the uncompleted portions of the required improvements. The Village Attorney shall approve the performance guarantee only after a recommendation of approval of the amount of the guarantee is received from the Village Engineer.
(D) Performance guarantee and surety. The performance guarantee (surety) shall be in a form as set forth via Administrative Rule and as approved by the Village Attorney. The surety shall be one of the following:
(1) Corporate surety bond as approved by Village Attorney.
(2) Certificate of deposit as approved by Village Attorney.
(3) Cash.
(4) Cashier’s check.
(5) Irrevocable letter of credit as approved by Village Attorney.
(E) Surety amounts. The amount of the performance guarantee shall be 115% of the estimated value of the cost of the proposed public and quasi-public improvements if construction work has not commenced. If construction of the improvements was commenced subsequent to approval of the subdivision, but prior to the recording of the subdivision documents, the amount of the surety shall be as follows:
(1) If the improvements are 1% to 75% completed, 150% of the estimated cost of completing the remaining improvements, but in no case shall the surety be less than 20% of the cost of all of the public and quasi-public improvements.
(2) If the improvements are more than 75% completed, 200% of the estimated cost of completing the remaining improvements, but in no case shall be surety be less than 20% of the cost of all of the public and quasi-public improvements.
(F) Surety reductions. The amount of the subdivision performance guarantee may be reduced once prior to conditional acceptance of all improvements. Upon substantial completion of major segments of public improvements with appropriate documentation submitted by the developer’s engineer, and after initial tentative acceptance of the completed improvements by the Village Engineer, the amount of the performance guarantee may be reduced to reflect the segments completed, but in no case shall the remaining surety be less than 20% of the cost of completing the entire improvements, all upon approval by the Village Attorney and the Village Engineer. Evidence of payment of contractors, subcontractors, and material suppliers shall be provided prior to any reduction in the amount of the surety.
(G) Surety amount upon conditional acceptance. Upon conditional acceptance of all improvements, the owner may request a reduction in the amount of the surety to 20% of the estimated cost of construction of all the subdivision improvements.
(H) Final release of subdivision improvement performance bond and security upon acceptance of improvements. Following the one year warranty period and upon satisfactory completion of all maintenance work to correct defects on subdivision improvements required by these regulations, upon request of the owner, the Village Attorney upon direction from the Village Administrator shall release the subdivision improvement performance bond and its security in its entirety. The release of any or all of the bond and its security shall be in writing on forms approved by the Village Attorney.
(I) Performance by the village of owner’s obligations. Should the owner fail to perform the owner’s obligation to construct and correct defects in public improvements as required by these regulations or fail to pay contractors, the village may liquidate any performance security in the village’s possession and use the proceeds to construct or correct the improvements in whole or in part as the village in its sole discretion deems appropriate.
(J) Owner to pay village’s actual costs of construction or remedying any defect.
(1) Owner to pay all costs if defective. Notwithstanding the amount of the subdivision improvement performance bond or surety, the owner of the subdivision shall pay all costs the village actually incurs in design and construction of improvements or correcting defects in any improvements the owner is required to install and maintain pursuant to this chapter but which the owner fails to design, construct or maintain free from defects in accordance with this chapter. If the amount of money received by the village from the subdivision improvements performance bond and its security is insufficient to pay all such costs, the owner shall reimburse the village for the remainder within 28 days of the village sending the owner a bill for the balance due.
(2) Attorney fees to be paid. Should the village be required to institute proceedings in court in order to collect any sum due under this section or to enforce the provisions of the owner’s subdivision improvement performance bond or to collect on the security pledged in support of said bond, the village shall be entitled to collect reasonable attorney’s fees that it incurs from the subdivider.
(Ord. 15-12-01, passed 12-15-2015)