16.04.150 – Release of guarantee for completion

The guarantee for completion of the Land Improvements shall be released only upon fulfillment of the following conditions:

  1. The completion of the Land Improvements;
  2. The submission of one (1) set of reproducible (mylar) as-built drawings of the Land Improvements;
  3. A Bill of Sale for all Land Improvements that has been accepted by the City Council;
  4. The acceptance of the Director of Community Development or Development Engineering Division Manager or designee of a guarantee for maintenance of Land Improvements (See Appendix C).  The guarantee shall be in one of the following formats:
    1. Cash in the amount of 15% of the estimated cost or actual construction costs of the Land Improvements to be accepted or acknowledged as complete by the City.
    2. A maintenance guarantee in the amount of 15% of the estimated cost or actual construction costs of the Land Improvements to be accepted or acknowledged as complete by the City, issued by a sound and reputable banking authorized to do business in the State of Illinois and meeting the criteria set forth below.
    3. A surety bond in the amount of 15% of the estimated cost or actual construction costs of the Land Improvements to be accepted or acknowledged as complete by the city, issued by a surety company authorized to do business in the State of Illinois and meeting the criteria set forth below.
  5. The form, amount and provider of the guarantee shall be subject to the approval of the Director of Community Development or Development Engineering Division Manager or designee and shall meet the following criteria:
    1. Banks (for letters of credit):  Each letter of credit shall be drawn on an institution a) acceptable to the Director of Finance; b) having assets of at least $10 million; c) having an office in the Chicago Metropolitan Area; and d) that is a member of the Federal Deposit Insurance Corporation; or
    2. Insurance Companies (for surety bonds):  Must have an A.M. Best Company rating of Superior (A++ and A+), Excellent (A and A-), or Very Good (B++ and B+) (or equivalent).
  6. Acceptance of the Land Improvements by the City Council, as set forth in Section 16.04.130.
(2012-M-45: § 2)