(A) Nature of the obligation.
(1) Any owner, developer, or subdivider shall submit a final plat public improvement payment, performance and workmanship bond obligating the signer(s) to do each of the following:
(a) Install all public improvements depicted on an approved preliminary plan, engineering plans and specifications or final plat;
(b) Pay all costs incurred by the city; and
(c) Prepare and submit to the city 1 complete set of plans showing the required land improvements as actually installed in the manner described in this chapter.
(2) All public improvement shall be completed within 1 year following the approval of the final plat by the Mayor and City Council of the city and prior to acceptance of the improvements for maintenance. In addition, the execution of the subdivider’s final plat public improvement payment, performance and workmanship bond shall obligate the signer(s) to guarantee the improvements against faulty materials and workmanship for a period of 1 year following acceptance of the improvements for maintenance.
(B) Penal amount of bond and security.
(1) Penal amount. The penal amount of the final plat public improvement payment and performance and workmanship bond shall be the higher of the following:
(a) If some or all of the improvements have been installed, inspected, and approved, then 100% of the Superintendent of City Services’ written estimate of the cost of installing all public improvements not then installed and inspected, plus 20% of the Superintendent of City Services’ estimate for all improvements installed as a 1-year guarantee for the materials and workmanship of all improvements. Also, the developer must pay all costs incurred by the City of Monticello, pursuant to this chapter and prepare all record drawings and specifications not then submitted; or
(b) If none of the improvements have been installed, then 120% of the Superintendent of City Services’ written estimate of the cost of installing all public improvements, guaranteeing the materials and workmanship of all the improvements. Also, the developer must pay all costs incurred by the City of Monticello, pursuant to this chapter and prepare record drawings and specifications not then submitted.
(2) Security. The final plat public improvement payment, performance and workmanship bond shall be secured in one of the following ways:
(a) By posting a cash escrow amount in an Illinois bank or savings and loan association in the amount specified in division (B)(1) of this section as adjusted by any released authorization by the Superintendent of City Services;
(b) By posting an irrevocable letter of credit in the amount specified in division (B)(1) above from a local bank or savings and loan association naming the city as a beneficiary thereof. The renewable irrevocable letter of credit shall be for a minimum length of time of 2 years with a 2-month notice to the city prior to expiration; or
(c) By posting a corporate surety bond payable to the city in the amount as specified in division (B)(1). The bond shall be in a form with surety and conditions approved by the city’s corporation counsel. The surety bond shall be from an insurance company authorized to conduct business in the State of Illinois. This bond shall be acknowledged before a notary public by the principal. The owner or developer shall keep the corporate surety bond in full force and effect until 1 year after official action of the city accepting the subdivision for maintenance, or until such later date as any written claim against the bond by the city is finally resolved.
(C) Form of bond and security documents.
(1) The form of the final plat public improvement payment, performance and workmanship bond secured by corporate surety is as provided in Exhibit F or F-1, attached to the ordinance establishing this chapter and hereby adopted by reference as if set out in full herein.
(2) The form of the final plat public improvement payment, performance and workmanship bond secured by cash escrow is provided in Exhibit G, attached to the ordinance establishing this chapter and hereby adopted by reference as if set out in full herein.
(3) The form of the final plat public improvement payment, performance and workmanship bond secured by an irrevocable letter of credit is as provided in Exhibit H, attached to the ordinance establishing this chapter and hereby adopted by reference as if set out in full herein.
(D) Releases from escrow accounts posted as security. As installation of public improvements progresses, and is inspected and approved by the Superintendent of City Services, releases from the escrow accounts may be authorized by the Superintendent of City Services in writing, based upon his or her estimate of the cost for work completed, inspected, and approved; provided, however, no release shall be made which would reduce the escrow account to an amount less than 20% of the Superintendent of City Services’ original estimate of the cost of installing all public improvements, plus all costs incurred by the City of Monticello and the cost of preparing record drawings until all public improvements in the subdivision have been accepted for maintenance, at which time the escrow account shall be released to an amount of not less than 20% of the Superintendent of City Services’ original estimate of cost. Funds then remaining in the escrow account may be released 1 year after acceptance of the subdivision for maintenance or on such later date as any written claim against the escrow account by the city is finally resolved.