§ 16-242. Guarantee of completion of required improvements.

(a)

Financial guarantee arrangements. In lieu of the actual installation of required public improvements, the township board, on recommendation of the planning commission, may permit the subdivider to provide a financial guarantee of performance in one or a combination of the following arrangements for those requirements which are over and beyond the requirements of the county road commission, county drain commissioner's office, or any other agency responsible for the administration, operation, and maintenance of the applicable public improvement. The planning commission may recommend and the township board may waive financial guarantees of performance under this article for sidewalks, street lights, or street trees. In case these improvements are specified, completion shall be required prior to the issuance of occupancy permits.

(b)

Performance of surety bond.

(1)

Accrual. The bond shall accrue to the township governing construction, operation and maintenance of the specific public improvement.

(2)

Amount. The bond shall be in an amount equal to the total estimated cost for completing construction of the specific public improvement, including contingencies, as estimated by the township board.

(3)

Term length. The term length in which the bond is in force shall be for a period to be specified by the township board for the specific public improvement.

(4)

Bonding or surety company. The bond shall be with a surety company authorized to do business in the state acceptable to the township board.

(c)

Cash deposits, certified check, negotiable bond, or irrevocable bank letter of credit.

(1)

Treasurer, escrow agency, or trust company. A cash deposit, certified check, negotiable bond, or an irrevocable bank letter of credit, such surety acceptable by the township board, shall accrue to the township. These deposits shall be made with the township treasurer or deposited with a responsible escrow agent or trust company, subject to the approval of the township board.

(2)

Dollar value. The dollar value of the cash deposit, certified check, negotiable bond, or 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 township board.

(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 township board.

(4)

Progressive payment. In the case of cash deposits or certified checks, an agreement between the township and the proprietor may provide for progressive payments out of cash deposit or reduction of the 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.

(5)

Drawn to township satisfaction. The escrow agreement shall be drawn to the satisfaction of the township board.

(d)

Inspection of public improvements under construction. Before approving a final plat and construction plans and specifications for public improvements, an agreement between the subdivider and the township board shall be made to provide for checking or inspecting the construction and its conformity to the submitted plans by all agencies.

(e)

Penalty in case of failure to complete construction of a public improvement. In the event the subdivider shall, in any case, fail to complete such work within such period of time as required by the conditions of the guarantee for the completion of public improvements, it shall be the responsibility of the township board to proceed to have such work completed. In order to accomplish this, the township board shall reimburse itself for the cost and expense thereof by appropriating the cash deposit, certified check, irrevocable bank letter of credit, or negotiable bond which the subdivider may have deposited in lieu of a surety bond or may take such steps as may be necessary to require performance by the bonding or surety company, and as included in a written agreement between the township board and the subdivider.

(f)

Maintenance bond. Prior to acceptance by the township of improvements, a two-year maintenance bond in an amount equal to 100 percent of the total cost shall be deposited by the proprietor.

(Comp. Ords. 1985, § 17.286)