(a) PURPOSE. Performance guarantee and security requirements are established for the purpose of ensuring that developers properly install infrastructure and improvements required by this Code in a timely manner, in accordance with approved plans.
(b) TERM OF AGREEMENT. The term of a performance guarantee may not exceed 2 years. If the developer has not completed the required infrastructure and public improvements within the 2-year period, the City engineer is authorized to approve one extension of up to 6 months in duration. Any additional extensions or extensions of a longer duration require approval of the plan commission. Decision-making bodies are authorized to require updated improvement cost estimates and additional security as a condition of any extension granted.
(c) FORM AND AMOUNT OF SECURITY.
(1) Security must be in the form of an irrevocable letter of credit, cash or other instrument readily convertible to cash, which includes, but is not limited to, a performance bond, as approved by the City attorney. The performance guarantee and security must be conditioned upon the performance of all work necessary to complete the required infrastructure and improvements. Said Security must be posted with the City clerk. Suggested language for such security may be found in the written administrative policies and supplemental procedures pertaining to the processing of subdivision applications maintained by the zoning administrator.
(2) The estimated total cost of required infrastructure and improvements must be itemized by improvement type and certified by the developer’s Illinois licensed registered professional engineer. Cost estimates must be based on industry norms within Moline.
(3) The amount of the performance guarantee must equal at least 110% of the estimated total cost of the required infrastructure and improvements, plus all required inspection fees.
(4) No personal shall be eligible to act as surety unless such person has been approved by the State of Illinois to act as a surety on public works improvements.
(d) DEFAULT AND USE OF SECURITY. If the developer fails to properly install required infrastructure and improvements within the term of the guarantee and any approved extension, the guarantee will be deemed in default. In the case of default, the City is authorized to foreclose upon the security funds to fund completion of the required infrastructure and improvements or to contract for installation of the required infrastructure and improvements. If the cost of completing the required infrastructure and improvements exceeds the security amount, the developer is liable for payment of all excess costs. Any foreclosed security funds will be subject to an administrative fee that reflects the City’s actual costs associated with preparing bid documents and preparing and administering a contract for the work to be completed.
(e) RELEASE OF SECURITY. The security must be released once all of the following occur:
(1) The conditions of the performance guarantee have been completed to the satisfaction of all agencies with jurisdiction over the improvements.
(2) Any required maintenance guarantee has been provided in accordance with Sec. 35-4210;
(3) A final inspection has been conducted by the City engineer or other qualified professional selected by the City engineer and retained by the developer;
(4) Written evidence has been submitted that all owners of the infrastructure and improvements have accepted ownership of the improvements and have assumed responsibility for maintenance;
(5) The developer has provided as-built plans showing monuments, streets, curbs, sidewalks and all other infrastructure and public improvements as they were installed; and
(6) All required certifications of completion have been provided.