To insure the satisfactory condition of public improvements after dedication and acceptance, the subdividers shall post maintenance security with the village.
(A) Form. Security will be cash, certificates of deposit, treasury bills or an irrevocable letter of credit from a financial institution approved of and insured by the FDIC. All security shall be in a form satisfactory to the Village Attorney. The village shall have the right to reject any form of security it believes would be inadequate to guarantee the satisfactory maintenance of all improvements in question for the required time period.
(B) Amount/purpose of security. The maintenance security shall be 25% of the cost of all improvements dedicated to and accepted by the village to guarantee the satisfactory condition of all improvements after their acceptance by the village.
(C) Release of security. The maintenance security shall be retained by the village for a period not less than three years from the date of final acceptance of the public improvement. At any time subsequent to the period ending three years from the date of final acceptance of the public improvement, the subdivider may request in writing that the village release the maintenance security. Upon receipt of the subdivider’s written request to release maintenance security, the village shall cause a final inspection to be made of the improvements and an advisory report to be made to the village recommending release of all, part or none of the maintenance security and stating the reasons for the recommendation. The village shall then act on the advisory report in responding to the subdivider’s written request for release of the maintenance security.
(D) Defective improvements.
(1) If at any time prior to final inspection and release of the maintenance security, as provided in division (C) above, the improvements are found by inspection to be defective, they shall be repaired or replaced at the subdivider’s expense to the satisfaction of the village. The village shall have their option to either cause the improvements to be repaired or replaced and charge the costs thereof to the subdivider or to make demand upon the subdivider to cause the improvements to be repaired or replaced at the subdivider’s expense. If the subdivider fails to pay costs or make repairs or replacements within 60 days after demand is made upon the subdivider by the village or other governmental entity, the maintenance security shall be used to make the required repairs or replacements. If the costs of the repairs or replacements exceed the amount of security, the subdividers shall be personally liable for said excess costs.
(2) Further, the excess costs shall constitute a lien on all unsold lots in the subdivision and no building permits shall be issued until all defects are corrected to the satisfaction of the village.
(`92 Code, § 34-4-5) (Ord. 97-23, passed 9-17-97)