No work shall be started on any improvement until the applicant has posted a guarantee in the amount equal to one hundred twenty five percent (125%) of the estimated costs of the subdivision improvements as approved by the village, in order to ensure that the work is performed according to the plans and specifications and according to good engineering and installation practices. The guarantee shall also be sufficient to secure all lot improvements on the individual lots of the subdivision as required in these regulations, and shall be conditional upon the installation of the required improvements within two (2) years from the date that the final plat is approved by the board of trustees. The performance guarantee shall comply with all statutory requirements and shall be satisfactory to the village attorney as to form and manner of execution, and shall be approved by the village board as to amount and surety and conditions satisfactory to the village board. Such guarantee shall be secured by either:
A. A certificate of deposit with or an escrow account at a federally insured bank or savings and loan association with resources of at least ten million dollars ($10,000,000.00) under the provisions of an escrow agreement approved in form by the village attorney, in an amount equal to one hundred twenty five percent (125%) of the estimated construction cost as approved by the village and subject to draw by the village to install subdivision improvements if they are not installed by the subdivider in accordance to the plan and specifications and/or according to good engineering practices; or
B. A clean, nondeclining, irrevocable letter of credit in such form as approved by the village attorney, issued by a federally insured bank or savings and loan association with resources of at least ten million dollars ($10,000,000.00) in an amount equal to one hundred twenty five percent (125%) of the estimated construction cost as approved by the village. The letter shall provide that funds may be drawn only by the village.
C. A performance guarantee shall be reduced only upon recommendation of the director of public works and approval by the village board upon application for payout by the subdivider in amounts such that funds or credit remaining will always equal one hundred twenty five percent (125%) of the value of the uncompleted work, as determined by the village; and such that not more than ninety percent (90%) of the guarantee amount is released prior to the acceptance of the improvements by the village in accordance with section 11-6-6 of this chapter. (Ord. 89-04, 4-3-1989)