Resolution 2002-37 STATE OF ILLINOIS )
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COUNTY OF KENDALL )
RESOLUTION 02- 3-1
RESOLUTION APPROVING LETTER OF CREDIT AND
SUBDIVISION BOND REQUIREMENTS
WHEREAS, the Mayor, City Council and City Staff of the United City of Yorkville have
determined that the letter of credit and subdivision bond requirements need to be modified; and
WHEREAS, said modified requirements are listed in the attached Memorandum from City
Engineer, Joseph Wyrot, which is referenced herein as Exhibit"A"; and
WHEREAS, the Mayor and City Council deem it to be in the best interest of the City to
approve said modified requirements as recommended by the City Engineer:
NOW THEREFORE BE IT RESOLVED BY THE UNITED CITY OF YORKVILLE,upon
motion duly made, seconded, and approved by a majority of those Alderman voting,that the letter
of credit and subdivision bond requirements recommended by the City Engineer Joseph Wyrot, in
his Memorandum attached hereto as Exhibit"A", are approved.
PAUL JAMES MARTY MUNNS
RICHARD STICKA MIKE ANDERSON
VALERIE BURD ROSE SPEARS
LARRY KOT JOSEPH BESCO
APPROVED by me,as Mayor of the United City of Yorkville,Kendall County,Illinois,this
ay of , A.D. 2002.
MAYOR
PASSED by the City Council of the United City of Yorkville,Kendall County,Illinois this
Aay of , A.D. 2002.
Attest:
ITY C ERK
Prepared by:
Law Offices of Daniel J. Kramer
1107A S. Bridge Street
u Yorkville, Illinois 60560
630.553.9500
Il
-M-EMO
To: Tony Graff, City Administrator
From: Joe Wywrot, City Engineer .R
Subject: Proposed Revision Regarding Letters o redit
Date: June 12, 2002
Recently we were contacted by a developer requesting acceptance of public improvements in his
subdivision. The roads and utilities were just put in last fall, therefore not many homes have been
built yet. We have an unwritten policy of not considering acceptance until at least half of the lots
in a subdivision are built out. The reason for this is that the process of build-out normally results
in broken and/or buried B-Boxes, offset manhole frames, drainage problems, etc. that need to be
resolved. By waiting until 50% build-out, we reduce the chance of having to repair these
problems ourselves at a later date. The developer, however, has a problem because his bank may
not allow him to make final payments to contractors until the work is accepted by the city.
In order to meet the needs of the development community while at the same time protecting the
city's interests, I feel that we could lower the amount that we retain in the letter of credit prior to
acceptance. That amount is currently 25% of the approved engineer's estimate of cost. I
recommend that we consider lowering this amount to 10%-15%.
Please place this item on the June 24, 2002 Public Works Committee agenda for consideration.
I
Cc: Dan Kramer, City Attorney