Resolution 2005-67 i
RESOLUTION
CREATING A POLICY
PROCEDURE AND AUTHORITY TO REDUCE LETTERS OF CREDIT AND
BONDS FOR CONSTRUCITON OF PUBLIC IMPROVEMENTS
WHEREAS, the United City of Yorkville requires that developers and/or contractors
provide security for the successful completion of the installation of certain public
improvements including but not limited to streets, curbs, sidewalks, water pipes, sewer
pipes (storm and sanitary), streetlights, etc., and
WHEREAS, said security is established either by means of a Letter of Credit, or a Bond,
and
WHEREAS, from time to time, the developer and /or contractor will seek reduction of the
Letter of Credit or Bond after the successful completion of a portion, but not all, of the
public improvements under heretofore established practices and/or contracts, and
WHEREAS, current practice involves an approval of the City Engineer's
recommendation by the City Council which while thorough, requires long time lines for
approvals that are in most instances a routine, and
WHEREAS, the Mayor and City Council wish to provide an expedited review and
approval process for certain smaller Letter of Credit and/or Bond reduction requests.
BE IT HEREBY RESOLVED BY THE MAYOR AND ALDERMAN OF THE
UNITED CITY OF YORKVILLE:
1. Letters of Credit and/or Bonds in an initial amount of $750,000 or less shall be
eligible for approval under this policy, however, if deemed appropriate the City Engineer,
or Mayor (or in the Mayor's absence, the Mayor Pro Tem) any request for reduction may
be sent to City Council for review and approval consistent with the procedures and/or
common practice used for Letter of Credit and/or Bond reduction requests for amounts in
excess of $750,000.
2. The approval process for eligible Letter of Credit and/or Bond reductions shall be as
follows:
a. The City Engineer shall issue a written recommendation including his basis
for approving or denying a request for reduction. Said written recommendation shall
include the amount of the requested reduction and the remaining amount of the Letter of
Credit and/or bond if the request is approved.
b. The City Engineer's written recommendation shall be delivered to the
Mayor for approval with a copy to the Public Works Committee (for notice, only).
c. Mayor may concur, and advise the Public Works Committee of said
concurrence, or direct that the request must go forward to the City Council.
d. Upon the Mayor's concurrence (or that of the Mayor Pro Tem in the Mayor's
absence) with the City Engineer's recommendation, then, the reduction shall be deemed
approved and the City Engineer shall be authorized to issue a letter to implement the
reduction
e. The Mayor and the City uncil her expressly delegate authority for
Y
h' Y p Y g tY
approval to the parties listed herein sufficient to implement the approvals authorized by
this Policy.
NOW THEREFORE, upon Motion duly made, seconded and approved by the
majority of those members of the City Council voting, BE IT RESOLVED that the Policy
set forth above is the Policy of the United City of Yorkville.
WANDA OHARE � JOSEPH BESCO
VALERIE BURD ti PAUL JAMES
DEAN WOLFER �_ O MARTY MUNNS ,
ROSE SPEARS �,g� JASON LESLIE
Approved by me, as Mayor of the United City of Yorkville, Kendall County,
Illinois, this Day of , A.D. 2005.
MAYOR
Passed by the City Council of the United City of Yorkville, Kendall County,
Illinois this day of , A.D. 2005.
ATTEST:
CITY CLERK
Prepared by:
John Justin Wyeth
City Attorney
United City of Yorkville
800 Game Farm Road
Yorkville, IL 60560