A performance bond is posted by the subdivider to guarantee to the Village that he will faithfully construct or cause to be constructed the required public improvements which were an integral part of his approved final plat and, further, that the construction shall be completed within a reasonable period of time.
The amount of the performance bond will be based on the Village Engineer's estimate of the total cost of the required capital improvements (§ 97-27A), plus a reasonable estimate of anticipated increased construction costs during the life period of the bond.
The Planning Board shall pass a resolution either approving or modifying the performance bond estimate as recommended by the Village Engineer.
The subdivider shall present his performance bond to the Village Attorney for review as to form and sufficiency.
The Village Attorney shall arrange to have the performance bond placed before a Village Board meeting.
The Village Board shall approve or disapprove the performance bond as presented by the Village Attorney. If the performance bond is approved, it shall be filed with the Village Clerk, and the Village Clerk shall notify the Planning Board of the Village Board's action.
The Chairman or Secretary of the Planning Board shall not sign a final plat until notification by the Village Clerk of the Village Board's approval of the performance bond.
After construction of the public improvements covered by the performance bond and prior to the release of the bond, the subdivider shall prepare a set of the approved drainage plans and street profiles amended to indicate as-constructed information. The subdivider then may apply to the Village Engineer for a final inspection of the work. When the work has been completed to the satisfaction of the Village Engineer, he shall recommend to the Village Board that the performance bond be released.
At the time of the release of the performance bond, a maintenance bond shall be furnished by the developer to guarantee the upkeep and the workmanship and materials of all required improvements for a period of one year from the date of the release of the performance bond by the Village. This bond shall be in an amount which is 1/3 of the performance bond estimate. If the improvements are not taken over by the Village, an annual maintenance bond shall be required, annually updated and running until the improvements are dedicated to the Village. The amount of this bond shall be determined by the Village Engineer.
Where dedication of required improvements has not been accepted by the Village Board, maintenance inspection shall be made annually by the Village Engineer. In the event that such required improvements are not maintained according to Highway Department specifications, the Village Engineer shall recommend to the Planning Board that such maintenance bond be declared in default and the offer of dedication be accepted by the Village Board.
If the term of the performance bond will expire prior to the completion of the public improvements, the Village Engineer shall recommend to the Planning Board either that the term of the bond be extended to permit completion of the work by the subdivider or that the bond be declared in default. The Planning Board shall advise the Village Board by resolution if its recommendation is for default of the bond. The Village Board shall act on the release of or declaration of default on the performance bond.
The performance bond shall have a term of not more than two years. The term of a performance bond may be extended by the Planning Board. When such an extension is granted, it may be required that the performance bond estimate be increased to take into consideration changes in construction costs in order to carry out the required capital improvements.