(a) Financial Guarantee Arrangements, Exceptions. In lieu of the actual installation of the required public improvements, the Village Council, on recommendation of the Planning Commission, may permit the subdivider to provide a financial guarantee of performance for those requirements, which are not under the jurisdiction of the County Road Commission, County Water Resources Commissioner or any other agency responsible for the administration, operation and maintenance of the applicable public improvement. The Planning Commission may recommend, and the Village Council may waive, financial guarantees of performance under the ordinance from which this section was derived for sidewalks, streetlights, or street trees. The completion of public improvements shall be required prior to the issuance of occupancy permits.
(b) Performance Bond.
(1) Accrual. The bond shall accrue to the Village, covering construction, operation and maintenance of the specific public improvement.
(2) Amount. The bond shall be in an amount equal to the total estimated cost of completing construction of the specific public improvement, including contingencies, as estimated by the Village Council.
(3) Term length. The term length in which the bond is in force shall be for a minimum period necessary to construct the public improvement, as specified by the Village Council.
(4) Bonding or surety company. The bond shall be with a surety company authorized to do business in the State of Michigan, acceptable to the Village Council.
(5) The escrow agreement. Shall be drawn and furnished by the Village Council.
(c) Cash Deposit, Certified Check, Negotiable Bond, or Irrevocable Bank Letter of Credit.
(1) Treasurer, escrow agent or trust company. A cash deposit, certified check, negotiable bond, or an irrevocable bank letter of credit, such surety acceptable by the Village Council, shall accrue to the Village. These deposits shall be made with the Village Treasurer, or deposited with a responsible escrow agent or trust company, subject to the approval of the Village Council.
(2) Dollar value. The dollar value of the cash deposit, certified check, negotiable bond, or an irrevocable bank letter of credit, shall be equal to the total estimated cost of construction of the specific public improvement including contingencies, as estimated by the Village Council.
(3) Escrow time. The escrow time for the cash deposit, certified check, negotiable bond, or irrevocable bank letter of credit, shall be for a period to be specified by the Village Council.
(4) Progressive payment. In the case of cash deposits or certified checks, an agreement between the Village and the subdivider may provide for progressive payment out of the cash deposit or reduction of certified check, negotiable bond or irrevocable bank letter of credit, to the extent of the cost of the completed portion of the public improvement, in accordance with a previously entered into agreement.
(Ord. 106-A86. Passed 4-9-14.)