(A) Completion of improvements: Prior to the approval of the final plat. In lieu of this, the Engineer for the subdivider, developer, builder, owner, will submit to the village an estimated cost of required improvements and the subdivider, builder, developer, owner, will post a performance guarantee in the form of a letter of credit or cash escrow to the Village Treasurer which assures the installation of these improvements in accordance with the provisions, requirements and within the time limits established by this chapter. The estimate of cost shall reflect the current unit prices.
(B) Costs of improvements. All required improvements shall be made by the subdivider, developer, builder at his expense without reimbursement by the village.
(C) Temporary improvements. The subdivider, developer, builder shall build and pay all costs of temporary improvements required by the village. Prior to construction of any temporary facility or improvement, the subdivider, developer, builder shall file with the village a separate suitable performance guarantee for temporary facilities. The performance guarantee shall insure that the temporary facilities shall be properly constructed, maintained and removed.
(D) Performance guarantee.
(1) General. A performance guarantee shall be provided in a form of a cash escrow, or irrevocable letter of credit. The village may also require restricted covenants as an additional performance guarantee where a cash escrow, or irrevocable letter of credit is posted, and is deemed inadequate to protect the public interest. All reductions, releases and extensions of the performance guarantee shall be recommended by the Village Engineer and Supt. of Public Works and must be approved by the Village Board.
(a) Cash escrow. A cash escrow may be posted by the subdivider, developer, builder. The amount to be posted shall be equal to 125% of the estimated cost of construction of the improvements. This amount shall include the village's costs of administering the completion of improvements in the event the subdivider, developer, builder defaults. The cash escrow shall be made payable to the village and shall be submitted to the Village Treasurer 30 days prior to construction. The type of cash escrow provided may be a cashier's check, bank draft, certified check or bank money order. A certificate of deposit shall not be accepted. With the approval of the Village Board, the time of performance may be extended for not more than one year.
(b) Irrevocable letter of credit.
1. An irrevocable letter of credit will be acceptable provided that the subdivider, developer, builder submit the letter of credit in the format which has been preapproved by the Village Attorney and is available from the Village Treasurer and provided that the installation and construction of the improvement is in strict conformance with the provisions of this chapter within one year from the date of the final plat approval. All letters of credit shall be equal to 125% of the estimated cost. This amount shall include the village's cost of administering the completion of improvements in the event the subdivider, developer, builder defaults.
2. All letters of credit shall be posted for a period of one year and submitted 30 days prior to construction. The Village Board for a good cause, with the approval of the surety may extend the time of performance for not more than one year. Said letters shall be submitted to the Village Treasurer.
(2) Default. If the subdivider, developer, builder, fails to perform the work with sufficient workmen and equipment or with sufficient materials to insure the completion of said work within the specified time, or performs the work unsuitable, as determined by the Village Engineer or other affected agency, or neglects or refuses materials or performs anew such work as shall be rejected as defective and unsuitable or discontinues the execution of the work, or for any other cause whatsoever does not carry on the work in an approved manner, the Village Board shall give notice by registered mail to subdivider, developer, builder, and his surety, of such delinquency, said notice to specify the corrective measures required. After said notice, the Village Board shall give notice by registered mail to the subdivider, developer, builder, and his surety, of such delinquency, said notice to specify the corrective measures required. After said notice, the Village Board shall call upon the performance guarantee to have the work completed in accordance with the terms of the performance guarantee. The Village Board may then take over the work including any or all materials or equipment on the ground as may be suitable and acceptable and may complete the work with its own forces or use any such other methods as, in its opinion, shall be required for the completion of the work in an acceptable manner.
(E) Reduction, release or extension of performance guarantee.
(1) No more than two reductions in the performance guarantee shall be permitted to any subdivider, developer, builder, before the final release of the performance guarantee. A fee shall be charged for a reduction in the amount of the performance guarantee according to the current fee schedule adopted by the Village Board. The first reduction in the performance guarantee shall not be permitted until such time as a minimum of 30% of the required improvements have been completed. The second reduction in the performance guarantee shall not be permitted until such time as a minimum of 70% of the required improvements have been completed. All requests for a reduction of the performance guarantee shall be in writing from the subdivider, developer, builder, and shall be accompanied by a letter from the subdivider's, developer's, builder's, engineer stating the revised estimate of cost for the remainder of all improvements. No performance guarantee shall be reduced below 25% of the principal amount. A request for renewal of a performance guarantee which is approaching expiration shall be in writing from the developer, subdivider, builder, and submitted to the Village Engineer.
(2) Release of the performance guarantee shall not be considered unless all required improvements have been completed and a maintenance guarantee is deposited with the village. The reduction, release or extension of all performance guarantee shall be approved by the Village Board.
(3) At the time of request for a release or reduction of a performance guarantee, an inspection of the improvements of the subdivision shall be made. The inspections shall be conducted by the Village Engineer.
(4) Following each such inspection, the Village Engineer shall forward a written report and recommendation to the Village Board. Each such report shall detail any deficiencies in improvements installed or not installed up to that point in time. If no deficiencies exist their report shall so state. Unless no deficiencies exist, the Village Engineer shall specifically note whether the developer's, builder's, subdivider's, estimate of the cost of remaining improvements is a reasonable estimate and the basis for this conclusion. Each report shall in addition state a recommendation. The recommendation shall be one of the following: approval; partial approval; or denial. The reasons for each recommendation shall be stated.
(5) When such report has been satisfactorily filed and the recommendation is to release the performance guarantee or reduce it to an agreed upon amount, a report to this effect shall be prepared for Village Board consideration.
(F) Maintenance guarantee.
(1) Improvements.
(a) A maintenance guarantee shall be submitted by the subdivider, developer, builder to the Village Treasurer upon satisfactory completion of all improvements and prior to the release of the original performance guarantee. The term of the maintenance guarantee shall be for one following completion of the improvements.
(b) All failures which occur within the one year period shall be corrected by the subdivider and restored to satisfactory working condition, subject to the approval of the Village Engineer. The maintenance guarantee shall be in the amount equal to ten percent of the original construction cost.
(2) Default. If the subdivider, developer, builder fails to restore to satisfactory condition the pavement or other improvements within the specified time, or shall perform the work unsuitable as determined by the Village Board, or for any other cause whatsoever, shall not carry on the restoration in a suitable manner, the Village Board shall give notice by registered mail to the subdivider, developer, builder and his surety. Said notice shall specify the corrective measures involved. If the subdivider, developer, builder within a period of ten days after said notice, does not proceed in accordance therewith, the Village Board shall call upon the surety to complete the restoration work in accordance with the terms of the maintenance guarantee.
(Ord. 1995-0-25, passed 12-26-95)