HomeMy WebLinkAboutOrdinances - MC-98-708 - 04/29/1998 - Ch 17 17-2 SCO construction guaranteesORDINANCE NO. MC-98-708
An Ordinance Amending Chapter 17, Section17--2 of the Municipal
Code: Section V -Procedure
Of the Subdivision Control Ordinance
Of the City of McHenry Regarding
Construction Guarantees
WHEREAS, the Subdivision Control Ordinance of the City of McHenry, McHenry
County, Illinois, requires that installation and completion of subdivision improvements be
guaranteed by an irrevocable letter of credit or other forms of collateral allowed by 65
ILCS 5/11-39-3, as amended from time to time, but which are not subject to the Illinois
Commercial Code; and
WHEREAS, the City finds that each form of guarantee other than an irrevocable
letter of credit has greater levels of cost, risk, defenses and difficulty to the City
associated with recovery of the pledged funds; and
WHEREAS, because of these greater levels of cost, risk, defenses and difficulty to
the City, the City finds that it would be in its best interest to have more stringent
requirements when collateral other than irrevocable letters of credit are pledged.
NOW, THEREFORE, BE IT ORDAINED by the CITY COUNCIL of the CITY OF
MCHENRY, MCHENRY COUNTY, ILLINOIS, as follows:
SECTION 1: That paragraphs E-2, E-3, and E-4 of Section V - Procedure of the
Subdivision Control Ordinance of the City of McHenry shall be amended to read as
follows:
2. Installation of Subdivision Improvements after Final Plat Approval. A final
plat of subdivision may be approved by the Mayor and City Council prior to the
construction and installation of required subdivision improvements provided,
however, that said final plat shall not be recorded in the Office of the Recorder of
Deeds until the subdivider has filed with the City Clerk an irrevocable letter of
credit or other such guarantee as allowed by 65 ILCS 5/11-39-3, as amended from
time to time, in the amount of 125 percent of the cost of the required
improvements as itemized in writing by the subdivider's engineer and as approved
by the City Engineer. Said itemized cost for improvements shall be accompanied
by photocopies of all contracts relating to the required improvements that have
been entered into by the subdivider. However, where any such contracts are
No construction guarantee shall be reduced or released until the subdivider has
complied with each of the following requirements, except that "As -Built" plans
shall not be provided at the time of any reduction but, instead, will be provided
at the time application is made for release of the construction guarantee:
a. A written application for reduction in the amount for a construction
guarantee or for the release of the total amount thereof shall be made by the
subdivider to the Mayor and City Council. In the case of an application for
reduction, the amount of construction guarantee funds remaining after such
reduction shall in all cases equal 125 percent of the estimated cost to
construct the uncompleted work, as determined by the Mayor and City
Council after consultation with the City Engineer.
b. The aforesaid written application shall be supported by the project
engineer's certificate that he has regularly inspected the improvements made
during the progress of the construction and that the improvements have been
constructed and installed in conformance and in accordance with good
engineering and construction practices.
C. The subdivider shall provide the City with the "As -Built" plans described
in Section VIII-D of this Ordinance.
d. The subdivider shall provide the City with the "guarantee bond" described
in Section VIII-C of this Ordinance.
SECTION 2: If any section, paragraph, subdivision, clause, sentence or provision
of this Ordinance shall be adjudged by any court of competent jurisdiction to be invalid,
such judgment shall not affect, impair, invalidate or nullify the remainder thereof, which
remainder shall remain and continue in full force and effect.
SECTION 3: All ordinances or parts of ordinances in conflict herewith are
hereby repealed to the extent of such conflict.
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SECTION 4: This Ordinance shall be in full force and effect upon its passage,
approval, and publication in pamphlet form (which publication is hereby authorized) as
provided by law.
Voting Aye: Bolger, Glab, McClatchey, Murgatroyd, Baird.
Voting Nay: None.
Absent: None.
Abstain: None.
PASSED AND APPROVED this 29th day of April, 1998.
(SEAL)
ATTEST:
City Clerk Pame�IJ.Z off
a or Steven J. Cuda
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