Prior to final approval of the Village Council, the subdivider shall provide the following surety, bonds, and insurances.
(a) Construction Improvement Bond Requirement. The subdivider shall provide a performance bond secured by a Letter of Credit or a Pledge Account that in form and content is to the approval of the Village Solicitor: Said bond shall be in one of the following forms:
(1) The subdivider shall deposit a cash security with a local bank or a Letter of Credit in the amount of one hundred and ten percent (110%) of the approved estimated cost of the improvements including but not limited to common area improvements, erosion and sediment control, driveway aprons, landscape, and sidewalks as required by the Planning Commission. Said security shall be in favor of the Village of North Perry who shall have sole control of disbursement. The local bank shall be directed to pay out portions of the cash security towards the completion of said Subdivision Improvements only with the approval of the Village Engineer who shall require a balance to be maintained which, in his opinion, is sufficient to complete said improvements including administrative costs in accordance with the plans and specifications of the Village.
(2) A maximum time period of one (1) year is allowed for the completion of required Subdivision Improvements. In the event said Subdivision Improvements are not constructed within one (1) year time period or not maintained, the Village shall have the option after thirty (30) days written notice to the subdivider to complete and maintain said Subdivision Improvements and to collect and receive from the local bank any remaining balance of said deposit to be applied toward payment of all costs and expenses of administrating and completing said Subdivision Improvements; or: The subdivider may petition the Village Council to construct said
Subdivision Improvements and assess the total against the benefiting lots if approved by the Village Council, the subdivider shall furnish the Village with a bond, and with surety to the satisfaction of the Solicitor, guaranteeing the payment of the assessments as they fall due. Said bond may provide that as structures are constructed and sold to individual owners, the amount of the bond shall be reduced not more than once each year in proportion to the amount of the assessment against such lots. When structures have been completely constructed the bond shall be released.
(3) The subdivider may furnish a surety bond in the principal amount of the estimated cost of said Subdivision Improvements with surety to the satisfaction and in such form as is approved by the Solicitor, guaranteeing completion and maintenance of said Subdivision Improvements according to approved plans, profiles and specifications. Said bond shall remain in effect until said Subdivision Improvements have been completed and maintained as provided in these Subdivision Rules and until released by authority of Council. Said bond shall provide that upon default of performance by the subdivider, the Village may complete the same after thirty (30) days written notice and failure to cure within said 30 days by the subdivider.
(b) Restoration Bond. In addition to the required construction improvement performance bond, the Village Engineer shall require a restoration bond. Said bond shall be to insure restoration and repair of any damage done to street pavement, landscaping, natural area or other items within all rights-of-way and properties accessing the subdivision and required buffer areas. The amount of said bond shall be as determined by the Village Engineer based on his estimate of potential damage.
(c) Indemnity Insurance. A policy of indemnity insurance in the amount of at least one million dollars ($1,000,000) personal injury and bodily injury and five hundred thousand ($500.000) property damage and a contractual liability insurance policy protecting the Village against any claims for damage to person or property resulting from or by reason of the construction of the abovementioned improvements shall be furnished to the Village and maintained in force by the subdivider. The insurance shall name the Village as an additional insured in the policy. The insurance policy shall remain in full force and effect until all improvements are completed and maintained until dedication occurs to the satisfaction of the Village Council.
(Ord. 19-10. Passed 11-7-19.)