The following rules and regulations shall apply to the construction of road and drainage improvements:
(a) Submission Fees. Before any construction is authorized, a complete set of construction drawings will be presented for review and approval. The review fee will be one cent ($0.01) per linear foot of roadway. A ten dollar ($10.00) fee will be the minimum amount for this service. No approval will be granted until all fees are paid.
(b) Construction Schedule. After approval of the construction drawings by the Street Commissioner, and before starting any construction work, the developer shall submit a construction schedule at a preconstruction meeting to the Street Commissioner for approval. The construction schedule shall show starting and completion dates for each phase of the construction work, including a date for the completion of the entire project.
During the progress of the work, upon recommendation of the Street Commissioner, Council may revise the project completion date given in the construction schedule, but is not obligated to do so. Changes in the construction schedule will be granted, in writing, on written request therefor.
(c) Inspections. Two days before the start of each phase of the construction, the developer shall notify the Street Commissioner's office of the starting date so that arrangements can be made for an inspection, if necessary.
Failure to notify the Street Commissioner's office may result in the Street Commissioner requiring the developer to remove the uninspected work and/or a penalty again the developer.
The Street Commissioner will determine the amount of the inspection, including laboratory and/or other tests required to ensure that the developer and his or her contractors will comply with the specifications and approved drawings. The tests shall be paid for by the developer.
(d) Inspection Fees. At the time of a preconstruction meeting, the Street Commissioner will determine an amount, based on the construction cost estimate, to be escrowed for the purpose of payment of inspection services throughout the project. This fund shall be deposited in a bank in the County and made payable to the Village. The agreement shall also commit the developer to make additional deposits to such fund, when requested by the Street Commissioner, for the cost of inspection services, in addition to that covered by previous deposits. The balance remaining in this fund will be returned to the developer, without interest, upon final acceptance of the work by the Village.
The developer shall pay the actual wage, salary or contract cost of the inspection service, plus an amount to cover such items as employee benefits, engineering service and transportation. All inspection fees shall be paid before final acceptance of the improvements by the Street Commissioner.
(e) Estimated Costs. Upon approval of the construction drawings by the Street Commissioner, and before starting any construction work, the developer shall submit to the Street Commissioner for approval and estimated cost, by item, for surveying and engineering, inspections and construction of roads, storm sewers, drainage structures, underground utilities and erosion control.
(f) Performance Bond. Before starting any construction work, the developer shall furnish a performance bond in an amount equal to 100 percent of the approved total estimated cost of the improvements. The performance bond will remain in effect until released by Council.
In lieu of a performance bond, the developer may present a statement from an accredited lending institution. This statement shall verify the fact that the developer has secured a loan and that money has been escrowed by the bank for the specific purpose of funding the stated improvements.
The developer and the lending bank shall sign an agreement to the following conditions:
(1) The developer or his or her engineer shall approve all invoices and statements of expenditures and submit them to the Street Commissioner. After review, the Street Commissioner will submit the invoices and statements of expenditures to Council for approval.
(2) Within ten days after approval by Council, the lending bank shall pay the approved invoices and statements.
(3) No payment shall be withheld beyond a ten-day period without consent of Council.
(4) If the developer fails to complete the project on or before the project completion date or revised completion date as set forth in the construction schedule required by subsection (b) hereof, Council may elect to manage the remaining funds to complete the project in accordance with approved drawings and specifications. When Council considers that the developer has failed in his or her duty to complete the project, it will notify the developer and lending bank, in writing, of such failure and of its intention to complete the project.
(g) Maintenance Bond. Upon completion of the improvements and conditional acceptance by Council, the developer shall furnish a maintenance bond in the amount determined by the Street Commissioner to ensure that the developer shall correct all construction defects or failures and shall make repairs as necessary to restore the completed improvements to a good condition for final acceptance by Council.
The improvements will be eligible for final acceptance one year after the conditional acceptance, but the maintenance bond shall remain in effect until final acceptance by Council.
In lieu of a maintenance bond, the developer may establish a fund in the amount designated for the maintenance bond. This fund shall be deposited in a bank in the County and made payable to the Village. No expenditure may be made from this fund without the approval of Council. Upon final acceptance of the improvements, the balance remaining in the fund will be returned to the developer without interest.
The developer shall furnish proof that after the improvement has received final approval, it will fall into a regular maintenance program. This can be by an agreement that an association or corporation will be formed for the purpose of regulating and maintaining improvements that would not ultimately be accepted for maintenance by any other governmental body.
(h) Insurance. The developer shall agree to indemnify and save harmless the Village against and from any and all loss, cost, damage, liability and expense on account of damage to property of, or injury to or death of, any of its employees, agents or representatives or any third person, caused by, growing out of or in any way attributable to the construction of such improvements and the use of the street delineated on the subdivision plat during construction. The developer shall further agree, but without limiting its liability to indemnify the Village, to carry liability insurance contracts with any insurance company acceptable to Council during the period of such construction in the sum of one hundred thousand dollars ($100,000) to three hundred thousand dollars ($300,000) for injury to or death of a person, and in the sum of one hundred thousand dollars ($100,000) for damage to or destruction of property, which insurance contracts shall include the Village as a named insured. The developer agrees to maintain on file with the Village, during the period of such construction, certificates or memoranda of insurance evidencing that such insurance contracts are in force.
(i) Inspection for Conditional and Final Acceptance.
(1) Upon completion of the improvements, the developer shall make a request to the Street Commissioner for an inspection for conditional acceptance. After the inspection the Street Commissioner will do one of the following:
A. Issue a letter to Council, with a copy to the developer, recommending conditional acceptance and the amount of a maintenance bond; or
B. Issue a letter to the developer, with a copy to Council, listing items of work necessary to accomplish satisfactory completion of the improvements.
After the listed work items have been completed, the developer shall again request an inspection.
(2) One year after conditional acceptance, the developer shall, after restoring the improvements to a good condition, make a request to the Street Commissioner for an inspection for final acceptance. After the inspection the Street Commissioner will do one of the following:
A. Issue a letter to Council, with a copy to the developer, recommending final acceptance of the improvements; or
B. Issue a letter to the developer, with a copy to Council, listing items of work necessary to accomplish before the recommendation for final acceptance can be made.
After the listed work items have been completed, the developer shall again request an inspection.
(Ord. 143.221. Passed 11-5-79.)