(A) Upon approval of a final plat by Council, the subdivider shall furnish a performance bond or other acceptable security prior to endorsement of the plat by the Village Manager. The bond shall be in one of the following forms.
(1) (a) The subdivider shall deposit a cash security with a local bank in the amount of 100% of the estimated cost of the improvements (storm sewers, sanitary sewers, water lines, pavements, landscaping, and the like, excluding sidewalks). The security shall be in favor of the village 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 the improvements to the subdivider only with the approval of the Village Engineer, who may require a balance to be maintained, which in his or her opinion, is sufficient to complete said improvements in accordance with the plans and specifications of the village and shall authorize the release of any balance to the subdivider only upon acceptance of the improvements by Council.
(b) The Director, Village Manager, and the Village Engineer, in consultation with the subdivider, shall establish a time period for the completion of required improvements. In the event the improvements are not constructed within the designated time period and not maintained, the village shall have the option after 30 days written notice to the subdivider to complete and maintain the improvements and to collect and receive from the local bank any remaining balance of the deposit to be applied toward payment of costs and expenses of completing the improvements.
(2) The subdivider may furnish corporate surety bond in the principal amount of the estimated cost of the improvements with surety to the satisfaction of the Manager and Council, in such a form approved by the Law Director, guaranteeing completion and maintenance of the improvements according to plans, profiles, and specifications and to the satisfaction of the Village Engineer. The bond shall remain in effect until the improvements have been completed and maintained as provided in these regulations and until released by authority of Council. The bond shall provide that upon default of performance by the subdivider, the village may complete the same after 30 days written notice.
(3) The subdivider may petition the village, at the village discretion, to construct the improvements and assess the total against the benefitted lots. This procedure may be followed upon conditions that the subdivider furnishes the village with a bond, with surety to the satisfaction of the Manager and Council, guaranteeing the payment of the assessments as they fall due. The bond may provide that as structures are constructed and sold to the 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 on 75% of the lots, the bond shall be released.
(B) In addition to the required performance bond, a maintenance (restoration) bond shall be posted by the developer and shall be in effect for at least one year after the acceptance of the public improvements by the Village Council. The bond shall be to insure repair of any damage done to existing curb, gutter, sidewalk, driveways, street pavement, landscaping, or other items within the right-of-way adjacent to a subdivision, and damages as a result of construction traffic, uncontrolled erosion and sedimentation, and the like. The amount of the bond shall be a minimum of 10% of the estimated cost of the improvements as determined by the Village Engineer plus any additional amount the Village Engineer deems necessary to insure repair of any damaged facilities. Restoration bonds shall be released when all damaged facilities, if any, have been restored to the satisfaction of the Village Engineer. Where the subdivider is aggrieved by a decision of the Village Engineer, he or she may appeal the decision to the Planning Commission.
(Ord. 96-106, passed 3-20-1996)