If required by the Planning Board, applicants for subdivision
plat approval shall provide the Village with acceptable financial
security in an amount sufficient to guarantee the installation of
basic public improvements. Such public improvements may include public
water supply, sewage disposal systems, storm drains and sewers, roads,
pavement markings and traffic signs and signals, sidewalks and other
public improvements.
The construction or installation of any improvements or facilities,
other than roads, for which a financial guaranty has been made pursuant
to this article shall be completed within one year from the date of
the approval of the subdivision plat or special use. Road improvements
shall be completed within two years from the date of approval of the
plat. At the end of such time, if the required public improvements
are not completed and accepted by the Village, the Village may use
as much of the financial security required by this article to construct
and install, maintain or perfect the improvements as necessary to
meet all applicable state and local laws, ordinances, rules and regulations.
The applicant or developer may request an extension of time
to perform required public improvements, provided that reasonable
cause can be shown for the inability to construct and install said
improvements within the required time. Such extension of time shall
not exceed six months.
At least five days prior to commencing construction of required
public improvements, the developer shall pay to the Village Clerk
the inspection fee required by the Village and shall notify the Planning
Board of the developer's intent to proceed, which shall cause
inspections to be made to assure that all applicable specifications
and requirements shall be met in the construction of such improvements
and to assure the satisfactory completion of public improvements required
by the Planning Board.
Acceptable financial security shall be provided to the Village
in one of the following ways:
A.
The applicant or developer shall furnish a bond executed by a surety
company in an amount equal to the cost of construction of the public
improvements as approved by the Village Engineer and required by the
Planning Board pursuant to this chapter.
B.
The applicant or developer shall present to the Village Clerk a certified
check in an amount equal to the cost of construction of the public
improvements required by the Planning Board pursuant to this chapter.
C.
The applicant or developer shall present to the Village Clerk an
irrevocable letter of credit drawn in favor of the Village in an amount
equal to the cost of construction of the public improvements required
by the Planning Board pursuant to this chapter.
All required public improvements shall be shown on the subdivision
plat, and the total amount of the required financial security shall
be based thereon. Such estimates shall be certified by a licensed
professional engineer and shall be reviewed by the Planning Board
for financial adequacy as a guaranty of construction and of reasonable
performance during a warranty period. The Planning Board and the Village
Attorney shall jointly review the guaranty agreement for sufficiency
of form and execution and for the soundness of the financial guaranty
offered by the applicant.
When a guaranty agreement has been approved by the Planning
Board and the required surety bond, certified check or letter of credit
has been received by the Village Clerk, the Village and the applicant
or developer shall enter into a written agreement itemizing the required
public improvements, establishing a schedule for the construction
and installation of such improvement. Whenever feasible, costs shall
be organized by logical phases of work completion in order to facilitate
the partial release of funds held as a financial guaranty by the Village
to the applicant as work is satisfactorily completed.
At such times as the applicant or developer wishes to have guaranty
funds released in consideration of work performed and accepted, the
applicant or developer shall cause to be prepared an accurate statement
of the work performed and accepted as of a date certain. This statement
shall use the same item structure as was employed in the written agreement
itemizing the required public improvements. The applicant or developer,
after preparing such statement, shall submit it for review, approval
and signature by an engineer acting on behalf of the Village, by the
appropriate municipal inspectors and by the Village Mayor. If the
statement is approved by the Village Mayor, the statement shall be
forwarded promptly to the Village Clerk, together with a recommendation
that the amount approved on said statement be released from the financial
guaranty provided by the applicant or developer. Where the financial
guaranty provided by the applicant or developer makes staged refunding
possible, the Village Clerk will then direct, in writing, to the surety
company of the financial institution having custody of the guaranty
funds to release the approved amount of those funds to the applicant
or developer.
When the project inspector, following final inspection of the
project, certifies to the Planning Board that all required public
improvements have been completed in accordance with all applicable
requirements, the Planning Board may act by resolution to accept the
public improvements.
Upon acceptance of the required public improvements, a maintenance guaranty shall be established. All such guaranties shall be for 5% of the financial guaranty originally required of the applicant or developer. The applicant or developer may provide a maintenance guaranty by one of the methods provided for in § 334-47 herein, but no maintenance bond shall be for less than established by resolution of the Village Board. All maintenance guaranties required by this section shall commence immediately upon acceptance of the required public improvements by the municipality and shall extend for two years therefrom.
