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HomeMy WebLinkAboutG28-94 (2) Ordinance No. G28-94 AN ORDINANCE AMENDING CHAPTER 18 .20 OF THE ELGIN MUNICIPAL CODE, 1976, AS AMENDED, ENTITLED "FINAL PLAT" BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1 . That Section 18 . 20 . 050 entitled "Qualifications of Approval" of Chapter 18 .20 of the Elgin Municipal Code, 1976 , as amended, be and is hereby further amended by amending Subsection C to read as follows : "C . Posting of a performance bond, cash or letter-of-credit in an amount equal to one hundred and ten percent ( 110%) of the approved Engineer' s Estimate of cost for all site improvements required by these regulations to be installed by the developer, as determined by the City Engineer. 1 . Submission of a performance bond, cash or letter-of-credit shall be subject to the following conditions : a. It shall be in favor of and retained by the City of Elgin. b. It shall guarantee, or in the case of cash be deemed to guarantee, the completion of all site improvements as outlined in the approved Engineer' s Estimate of cost; c . It shall continue in full force and effect until the completion of all site improvements as outlined in the approved Engineer' s Estimate. The expiration date of the performance bond or letter-of-credit shall be established from the developer's engineer' s Estimated Date of Completion of all site improvements as approved, in writing, by the City Engineer. The Estimated Date of Completion shall include six months for the inspection, repair and City Council acceptance of all site improvements and an additional year for the guarantee period defined in 18 . 20 . 050C(2) (a) ( iv) . Completion of all site improvements shall be defined as that time when all site improvements have been accepted by the City Council and the one year guarantee period as defined in 18 .20 . 050C(2 ) (a) ( iv) , has expired. d. It shall be in a form approved by the corporation counsel . e. It shall, with respect to letters of credit, be provided by a financial institution approved by the City Finance Director upon receipt of reasonable evidence that such institution has a shareholders ' equity to weighted risk assets ratio of 4% or greater as determined by the latest quarterly financial report submitted to the Federal Reserve District Bank or the Federal Deposit Insurance Corporation. f . It shall include or be accompanied by a reference to all of the site improvements for which it is posted. g. It shall be irrevocable. h. It shall, with respect to a performance bond, be guaranteed by a surety company approved by the City Finance Director upon receipt of reasonable evidence that such company is authorized to do business in the State of Illinois and is rated at the time of purchase by at least one standard rating service in the following two categories : i) Management rating within the four highest classifications then established; and ii ) Financial Size/Adjusted policyholders ' surplus rated Class V by A.M. Best or have a minumum $10 million in Adjusted Policyholders ' Surplus . 2 . Performance bond, cash or letter-of-credit reductions shall be subject to the following conditions : a. The following incremental reductions shall be permitted: i . After the completion of watermain, sanitary sewer and storm water control improvements . This reduction shall equal 90% of the estimated cost of all site improvements complete at this juncture. Plans which illustrate the as constructed elements of the approved watermain, sanitary sewer and storm water control design shall be required and must be approved, in writing, by the City Engineer prior to the reduction. ii . After the completion of the asphalt binder course. This reduction shall equal 90% of the estimated cost of all site improvement items complete at this point. iii . After all site improvements have been completed. This reduction shall equal 90% of the estimated cost of all site improvements as outlined in the approved Engineer' s Estimate of Cost. iv. After the City Council has accepted all public improvements . This reduction shall reduce the performance bond, cash deposit or letter-of-credit to 10% of the approved Engineer' s Estimate of cost for all site improvements . This 10% shall be held for a period of one year from the date of the City Council ' s acceptance as guarantee of the improvements against defects caused by faulty workmanship or inferior materials . This reduction shall again require the submission and written approval of plans which illustrate all of the as constructed elements of the approved design, inclusive of all site improvements . v. After the one year guarantee period has expired, the performance bond, cash or letter-of-credit shall be released by the City. b. All bond, cash or letter-of-credit reduction requests shall be accompanied by: i . A breakdown, by quantity and cost, of all completed items . (Quantities and cost should not exceed those found in the approved Engineer' s Estimate of Cost) . ii . Waivers and/or affidavits from all contractors and/or subcontractors involved. iii . A signed statement from the developer's engineer that the completed items were constructed in accordance with the approved plans and specifications . c . If at any time during the course of development, a lien is filed against the development, the city shall reject any performance bond, cash or letter-of-credit reductions until such time as the lien is resolved. " Section 2 . That all ordinances or parts thereof in conflict with this ordinance are repealed. Section 3 . That this ordinance shall be in full force and effect ten days after its passage and publication in the manner provided by law. s/ George VanDeVoorde George VanDeVoorde, Mayor Presented: June 8, 1994 Passed: June 8, 1994 Omnibus Vote: Yeas 7 Nays 0 Recorded: June 9 , 1994 Published: June 10, 1994 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk • Agenda Item No. Spa 1! Q+neo ri March 17, 1994 TO: Mayor and Members of the City Council FROM: Robert 0. Malm, Interim City Manager SUBJECT: The proposed amendment to Section 18.20.050C of the Elgin Municipal Code (EMC) , titled "Final Plat, Qualifications of Approval" . PURPOSE This memorandum shall provide the Mayor and members of the City Council with information to consider an amendment to the subject ordinance. BACKGROUND Section 18.20.050C of the Elgin Municipal Code contains requirements regarding the submittal of performance bonds or letters of credits. The performance bonds or letters of credit are intended to guarantee the completion of all public improvements required by the Subdivision Ordinance (Chapter 18) . A copy of 18.20.050C is attached for your consideration. Currently, 18.20.050C outlines the performance bond or letter of credit submittal and subsequent reductions when required improvements are completed. The current language is not specific in setting bond expiration dates, or when staff can authorize reductions in the amounts of the performance bond or letter of credit. The Engineering Division and the Legal Department have drafted an amendment to the subject ordinance which we believe will be easier for both staff and developers to work with. The proposed 18.20.050C provides more detailed guidelines for performance bond or letter of credit submittals. It also provides a systematic approach for subsequent performance bond or letter of credit reductions. FINANCIAL IMPACT None at thin time. Elgin Municipal Code Amendment March 17, 1994 Page 2 er‘' LEGAL IMPACT None. RECOMMENDATION It is recommended that the City Council approve the amendment to 18.20.050C of the Elgin Municipal Code and direct staff to prepare the necessary ordinance. 141171441.6. Rob rt 0. Maim, Interim City Manager ROM/DL/do Attachment r r 18.20.050 Final Plat 18.20.050 Dated at ,Illinois,this...day of ,19..." H. "CITY COUNCIL CERTIFICATE STATE OF ILLINOIS ) COUNTY OF ) as CITY OF ELGIN ) "Approved and accepted this day of 19... CITY COUNCIL OF ELGIN,ILLINOIS BY __ Mayor Attest: ., by - Clerk Mayor." (Ord. G44.83 § 1, 1983; Ord. G19-76 § 2 (part), 1976: prior code § 22.6(D).) 18.20.050 Qualifications of approval. • The final plat to be placed on record shall be approved subject to the following conditions: A. Recorded as prescribed in this title; B. Submission of engineering plans and specifications when required;the estimate of cost for the required improvements; and the approval of said documenlsby the department of public works and engineering. Such plans and specifications shall be required with any plat which involves the construction of any water main,sanitary sewer, storm sewer,street improvements, and as otherwise may be directed by the city engineer, • C. Posting of a completion bond,an irrevocable letter of credit in favor of the city,or cash,in an amount equal to one hundred ten percent of the estimate of costs necessary to complete all public improvements required by these regulations to be installed by the developer, as determined by the city engineer. Any completion bond shall be guaranteed by a surety company authorized to do business in the state of Illinois. Any letter of credit posted pursuant to the provisions of this paragraph shall be irrevocable,issued in favor of the city,shall be issued by a bank or savings and loan association and shall continue in full force and effect until it is released by the city. Letters of credit shall be in such form as may be approved by the corporation counsel. 659 (mss$49) r 18.24.010 Subdivisions 18.24.010 • Upon completion of all required improvements and acceptance thereof by the city council, any bond or letter of credit shall be reduced to an amount equal to ten percent of the estimated construction costs which shall be retained for a period of one year following acceptance and may be used by the city to make any necessary repairs arising out of defects in work or materials. D. Compliance with all applicable ordinances and regulations of the city. (Ord. G48-79 § 1, 1979;Ord.G19-76§2(part), 1976:prior code §22.7.) Chapter 18.24 DESIGN STANDARDS Sections: 18.24.010 Street plan. 18.24.020 Street specifications. 18.24.030 Pathways. 18.24.040 Easements. • 18.24.050 Block standards. 18.24.060 Lot standards. • 18.24.010 Street plan. The arrangement,character,extent,width,grade,and location of all streets shall conform to the official plan and shall be considered in their relation to existing and planned streets,to reasonable circulation of traffic within the subdivision and adjoining lands,to topographical conditions,to runoff of stormwater, to public convenience and safety, and in their appropriate relation to the proposed uses of the area to be served.(Ord. - G68-84 § 2 (put), 1984: Ord. G19-76 § 2 (part), 1976: prior code § 22.8(A).) (EJsin 8-89) 660 • r March 15, 1994 DRAFT ORDINANCE Page 1 18.20.050 Qualifications of Approval C. Posting of a performance bond, cash or letter-of-credit in an amount equal to one hundred and ten percent ( 110%) of the approved Engineer's Estimate of cost for all site improvements required by these regulations to be installed by the developer, as determined by the City Engineer. 1. Submission of a performance bond, cash or letter-of-credit shall be subject to the following conditions : a. it shall be in favor of and retained by the City of Elgin; b. it shall guarantee, or in the case of cash be deemed to guarantee, the completion of all site improvements as outlined in the approved Engineer's Estimate of cost; c. it shall continue in full force and effect until the completion of all site improvements as outlined in the approved Engineer's Estimate. The expiration date of the performance bond or letter-of-credit shall be established from the developer's engineer's Estimated Date of Completion of all site improvements as approved, in writing, by the City Engineer. The Estimated Date of Completion shall include six months for the inspection, repair and City Council acceptance of all site improvements and an additional year for the guarantee period defined in 18.20.050C(2) (a) (iv) . Completion of all site improvements shall be defined as that time when all site improvements have been accepted by the City Council and the one year guarantee period as defined in 18.20 . 050C(2) (a) (iv) , has expired; d. it shall be in a form approved by the Corporation Counsel; e. it shall include or be accompanied by a reference to all of the site improvements for which it is posted; f. it shall be irrevocable; and - g. it shall with respect to a performance bond, be guaranteed by a surety company authorized to do business in the State of Illinois. r March 15, 1994 DRAFT ORDINANCE Page 2 2 . Performance bond, cash or letter-of-credit reductions shall be subject to the following conditions: a. The following incremental reductions shall be permitted: i . After the completion of watermain, sanitary sewer and storm sewer improvements. This reduction shall equal 90% of the estimated cost of all site improvements complete at this juncture. Plans which illustrate the as constructed elements of the approved watermain, sanitary sewer and storm sewer design shall be required and must be approved, in writing,_ by the City Engineer prior to the reduction; ii. After the completion of the asphalt binder course. This reduction shall equal 90% of the estimated cost of all site improvement items complete at this point; iii. After all site improvements have been completed. This reduction shall equal 90% of the estimated cost of all site improvements as outlined in the approved Engineer's Estimate of Cost; iv. After the City Council has accepted all public improvements. This reduction shall reduce the performance bond,cash deposit or letter-of-credit to 10% of the approved Engineer's Estimate of Cost for all site improvements. This 10% shall be held for a period of one year from the date of the City Council's acceptance as a guarantee of the improvements against defects caused by faulty workmanship or inferior materials. This reduction shall again require the submission and written approval of plans which illustrate all of the as constructed elements of the approved design, inclusive of all site improvements; and v. After the one year guarantee period has expired, the performance bond, cash or letter-of-credit shall be released by the City; b. All bond, cash or letter-of-credit reduction requests shall be accompanied by: i. A breakdown, by quantity and cost, of all completed items. (Quantities and cost should not ( exceed those found in the approved Engineer's Estimate of Cost) ; March 15, 1994 DRAFT ORDINANCE Page 3 ii. Waivers and/or affidavits from all contractors and/or subcontractors involved; and iii. A signed statement from the developers engineer that the completed items were constructed in accordance with the approved plans and specifications; c. If at any time during the course of development, a lien is filed against the development, the City shall reject any performance bond, cash or letter-of-credit reductions until such time as the lien is resolved. r r