Resolution 2009-40 Resolution No. 2009- LAC)
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, security to ensure completion of land improvements must be provided either in the
form of a Performance Bond or Letter of Credit; and,
WHEREAS, from time to time, a land 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, in order to ensure completion of all improvements to be constructed by the land
developer in accordance with applicable code requirements, it is in the best interest of the City to adhere
to the security requirements as now in full force and effect and permit the reduction of such security under
certain circumstances, all as hereinafter set forth.
BE IT HEREBY RESOLVED by the Mayor and City Council of the United City of Yorkville,
Kendall County, Illinois:
Section L The approval process for reduction of the amount of a Letter of Credit and/or
Performance Bond 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 based upon the Engineer's
estimate of probable cost as adjusted by an inflation factor from the initial date of
issuance of the Letter of Credit or Performance Bond to the date of reduction. In
order to calculate the inflation factor, the Engineering News Record Construction
Cost Index shall be used. The City Engineer shall also report the remaining amount
of the Letter of Credit and/or Performance Bond after reduction.
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.
Section IT 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.
Section III. The retainage used in calculations for Letters of Credit and/or Performance Bond
reductions is twenty percent (20 %).
Section IV. Resolution 2009 -15 adopted February 24, 2009, is hereby repealed.
Section V. This Resolution shall be in full force and effect from and after its passage and
approval as provided by law.
Passed by the City Council of the United City of Yorkville, Kendall County, Illinois, this
day o , A.D. 2009.
I
ROBYN SUTCLIFF GEORGE GILSON, JR.
ARDEN JOE PLOCHER � DIANE TEELING
GARY GOLINSKI MARTY MUNNS
ROSE SPEARS � WALLY WERDERICH
p APPROVED by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, this
o� 0 day of S E P 6f-le , A.D. 2009.
OL .c-& '�j
Mayor
Attest: