Village of Bannockburn, IL Escrow for Construction and Excavation Work

It shall be unlawful for any person to commence any work in the Village unless the principal first shall have deposited in escrow with the Village escrow in the amount hereinafter specified.

[Amended 5-22-2017 by Ord. No. 2017-12]

The escrow shall be held by the Village for the purposes of:

(1)

Indemnifying the Village against any damage done by the principal, by any subcontractor of the principal, or by the work to any Village property, structure, equipment, or facility; and

(2)

When the work includes the making of any excavation, ensuring that the excavation portion of the work will be completed within the time specified in the permit or, if no such time is specified, within six months after the date of its commencement, and ensuring that all portions of the excavation not occupied by structures completed as of that date will be refilled, and ensuring that the surface will be restored to its original condition by that date.

§ 125-7 Amount of escrow.

The principal shall deposit with the Village, for the escrow, cash or a letter of credit in an amount as specified in the Bannockburn Fee Schedule for:

[Amended 5-22-2017 by Ord. No. 2017-12]

(1)

New structures other than garages.

(2)

Additions and remodeling.

Garages.

Driveways.

Street openings.

All other work.

All letters of credit shall be in a form satisfactory to the Village Attorney, and the right to draw on any such letter of credit shall be subject to no condition other than the Village's submission of its written statement stating that:

(1)

The Village has determined that a drawing is necessary to satisfy an indemnity obligation arising under this article; or

(2)

The letter of credit will expire in less than 30 days and has not been renewed.

§ 125-8 Duration of escrow.

The escrow shall be held by the Village for the purposes stated in § 125-6 above until the work is fully completed and a certificate of occupancy or other final approval for the work has been issued; provided, however, that the escrow may be held for up to 24 months after such date in any case where the Village Manager determines that damage caused or threatened by the work may not be fully manifested or known by such date.

§ 125-9 Village claims against escrow.

Village right to draw on escrow. On a determination by the Village Manager of damage to any Village property, structure, equipment, or facility as described in § 125-6B(1) above or of failure to complete the work or to make such restoration as described in § 125-6B(2) above, the Village may, subject to the provisions of Subsection B below, take all necessary actions to repair, or to cause the repair of, such damage, or to make, or to cause to be made, such restoration and may draw on any part of or all of any escrow for all costs and expenses incurred in connection therewith.

Notice; hearing; determination. Except in cases of imminent threat of injury to persons or damage to property, no action pursuant to Subsection A above shall be taken by the Village except after notice to the principal served personally or by certified mail, return receipt requested, five days in advance thereof. In case of such imminent threat, the Village may act immediately as necessary to eliminate such threat and shall give the notice herein required as soon thereafter as reasonably possible. Where more than one person constitutes the principal, notice to the person or persons that signed the building or other permit application shall be sufficient. Such notice shall describe generally the damage to be repaired or the restoration to be completed and shall advise the principal of the right to a hearing as provided in this Subsection B to contest the principal's responsibility for such damage or restoration. The principal shall have five days after receipt of such notice to request, in writing, a hearing before the Village Manager or his/her designee. On such request, the Village Manager or his/her designee shall conduct an informal hearing designed to obtain all relevant information and shall make a written determination thereon and provide a copy of such determination to the principal personally or by certified mail, return receipt requested. If no request by the principal for a hearing is received by the Village, or if the Village Manager or his/her designee determines after conducting a hearing that the Village has the right to take action pursuant to Subsection A above, and if the principal has not, either within the time provided for requesting such hearing or within five days after receiving the determination of such hearing, either taken the necessary action or entered into a binding agreement satisfactory to the Village Manager to take such action with all deliberate speed, then the Village may proceed to take action pursuant to Subsection A above.

§ 125-10 Other remedies.

Street openings. In the case of any damage to any Village property, structure, equipment, or facility as described in § 125-6B(1) above by any principal which has deposited a cash bond in accordance with the Bannockburn Fee Schedule, the principal:

[Amended 5-22-2017 by Ord. No. 2017-12]

(1)

Shall not be permitted to undertake any additional street openings in the Village, or to be issued a permit therefor, until all necessary repairs and restoration are completed and all costs and expenses in connection therewith are paid by that principal; and

(2)

Shall, for a period of three years after completion of such repairs or restoration, deposit with the Village, for the escrow, cash in an amount set forth in the Bannockburn Fee Schedule for each street opening.

General. The Village may, in addition to drawing on the escrow pursuant to § 125-9 above and in addition to the remedies in Subsection A above, take any and all additional actions that may be available to enforce all applicable codes, ordinances, and regulations of the Village and to recover any damages done by the principal or by any subcontractor of the principal or by the work. The escrow provided herein is in addition to any other such actions and shall not be construed as a limit on the amount of damages that may be recovered by the Village or any other person or as a limit on any other remedy or penalty provided by any code, ordinance, or regulation of the Village or otherwise by law.

§ 125-11 Replenishment of escrow.

Any amount withdrawn from the escrow pursuant to this article shall be replenished by the principal within 10 days after such withdrawal. The failure of the principal to so replenish the escrow shall be a violation of this article and grounds for revocation of any permit or approval authorizing the work and for issuance of an order stopping the work.

§ 125-12 Return of escrow; interest.

Provided that no notice given pursuant to § 125-9B above remains unresolved, any amount remaining in any escrow as of the date specified in § 125-8 above shall be returned to the principal from which it was received within 30 days after such date. No interest shall be paid on any escrow.

§ 125-13 Permit condition.

Every permit authorizing any work shall be deemed to be conditioned upon the principal's acceptance of, and agreement to abide by, the provisions of this article. Commencement of the work pursuant to any such permit shall be deemed to be the principal's acknowledgement and acceptance of such condition, whether or not such condition is expressly stated on such permit.

§ 125-14 Escrows under prior ordinances.

The amount of any escrow established pursuant to any other code, ordinance, or regulation of the Village prior to the effective date of this article shall be adjusted if necessary to be not less than the amount required by this article and, as adjusted, shall be held pursuant to the terms of this article.