Resolution 2009-15 i
RESOLUTION NO. 2009- �5
RESOLUTION MODIFYING A POLICY REGARDING
PROCEDURE AND AUTHORITY TO REDUCE LETTERS OF CREDIT AND
PERFORMANCE BONDS FOR CONSTRUCTION OF LAND IMPROVEMENTS
WHEREAS, the United City of Yorkville requires that land developers provide security
for the successful completion of the installation of public and quasi - public (together also
known as land improvements), including but not limited to streets, curbs, sidewalks,
watermains, storm and sanitary sewers, streetlights, detention basins, landscaping, etc.,
and
WHEREAS, said security is typically established either by means of a Letter of Credit or
a Performance Bond, and
WHEREAS, from time to time, a developer will seek reduction in the principal amount of
the Letter of Credit or the Performance Bond amount after substantial completion of a
portion of the land improvements which are the responsibility of the developer, and
WHEREAS, current practice established by Resolution 2005 -67 involves an approval of
the City Engineer's recommendation by the Mayor and City Council, which is
unnecessary as it is not a legislative act but an administrative calculation of sufficient
security to ensure completion of land improvements by the developer.
BE IT HEREBY RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE
UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS:
1. Resolution No. 2005 -67 is hereby repealed in its entirety.
2. The approval process for Letter of Credit and /or Performance Bond reductions
shall be as follows:
a. The City Engineer shall issue a written recommendation including the
basis for approving, denying, or modifying a request for reduction. Said
written recommendation shall include the amount of the reduction and the
remaining amount of the Letter of Credit and /or Performance Bond.
b. The City Engineer's written recommendation shall be forwarded to the
City Administrator for approval.
c. Upon the City Administrator's concurrence with the City Engineer's
recommendation, the reduction shall be deemed approved or denied and
the City Engineer is authorized to issue a letter to implement the decision.
d. In the event the City Administrator does not concur with the City
Engineer's recommendation, the Mayor shall have final authority to
approve or deny the City Engineer's recommendation.
e. A developer may appeal the decision of the City Administrator to the
Mayor, who shall review and make a final determination to affirm or
reverse the City Administrator's initial decision.
f. The City Administrator or designee shall issue reports, quarterly or more
frequently as deemed appropriate, to the Mayor and City Council that
summarize Letter of Credit and /or Performance Bond reduction requests
that have been received and actions taken pursuant to those requests.
3. Final acceptance /approval of land improvements and corresponding reduction/
release of Letters of Credit and /or Performance Bonds for developments whose
initial Letter of Credit or Performance Bond amounts is less than $1,000,000 shall
also be handled in accordance with the procedures established by this policy.
Final acceptance /approval of land improvements and corresponding
reduction/release of Letters of Credit and /or Performance Bonds for developments
whose initial Letter of Credit or Performance Bond amounts are $1,000,000 or
more shall be placed before the City Council for approval.
4. The retainage used in calculations for Letters of Credit and /or Performance Bond
reductions is hereby increased from 15% to 20 %.
Passed by the City Council of the United City of Yorkville, Kendall County, Illinois, this
a`{ day o 2009.
ROBYN SUTCLIFF JOSEPH BESCO u�
GARY GOLINSKI Uc+ ARDEN JOSEPH PLOCHER
v
WALTER WERDERICH MARTY MUNNS t
ROSE ANN SPEARS 1� BOB ALLEN
Approved by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, this
Qq day of FEZ R uAkV 2009.
MAYOR
ATTEST:
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