Surety Bond Encyclopedia

Stormwater Improvement Bond - Village of Carol Stream, IL in Illinois

Brief Summary

Carol Stream stormwater security is sized at 110 percent of the estimated probable cost, not the cost itself, and 10 percent of it stays in place for at least a year after final inspection. Developers who plan for both points close out on time. A surety bond accepted by the Village keeps that money in the project instead of tied up in a letter of credit at the bank.

The Village of Carol Stream adopted the DuPage County Countywide Stormwater and Floodplain Ordinance by reference in Village Code 16-5-13. Section 15-54 of that ordinance requires a developer to post performance security of at least 110 percent of the estimated probable cost to complete the required stormwater facilities before a Stormwater Management Certification is issued. Public bodies doing publicly funded work are exempt. The Village of Carol Stream is the obligee.

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How to Apply for a Stormwater Improvement Bond:

Get the engineer's estimate of probable cost for the stormwater facilities, and separately for erosion and sediment control.
Confirm with Carol Stream Engineering Services that the Village will accept a surety bond and whether it has its own bond form.
Set the bond at 110 percent of the estimated probable cost of each item being secured.
Complete the bond application, pay the premium and receive the executed bond naming the Village of Carol Stream as obligee.
Post the security before the Stormwater Management Certification is issued.
Keep 10 percent of the development security in force for at least one year after final inspection.

Detailed Information About the Illinois Stormwater Improvement Bond:

Where the requirement comes from

Carol Stream Village Code 16-5-13(B), added by Ordinance 2021-05-15 on May 3, 2021, adopts by reference the DuPage County Countywide Stormwater and Floodplain Ordinance, Section 15-1-1 et seq. of the DuPage County Code, as amended and approved by the County Board effective May 14, 2019. The performance security rules are in Section 15-54 of that ordinance.

How much security

Section 15-54 requires the developer to post security before the Stormwater Management Certification is issued. It is security for completing the stormwater facilities the certification requires, making sure they work as designed after construction, paying all costs, fees and charges owed under the ordinance, and otherwise carrying out the developer's undertakings. There are three pieces, each sized at 110 percent of an estimate:

Development security: not less than 110 percent of the estimated probable cost to complete construction of the stormwater facilities.
Soil erosion and sediment control security: 110 percent of the estimated probable cost to install and maintain the erosion and sediment control measures.
Wetland and buffer mitigation security, where it applies: 110 percent of the estimated probable cost to plant, maintain and monitor the mitigation for the agreed maintenance and monitoring period.

When it comes back

Development security is released 90 percent after the record drawings are approved and the final inspection is done. The remaining 10 percent is held for at least one year and released after an inspection shows the facilities are working properly. Erosion and sediment control security is released in full once vegetation is established, sediment is removed and final approval is given.

Form of security and who is exempt

The ordinance names an irrevocable letter of credit, or other adequate security, and lets the Director or Administrator accept the surety instruments it deems appropriate. A letter of credit must come from a bank with at least $10,000,000 in capital and cannot be cancelled without the obligee's written consent. Public bodies are exempt from posting performance security for publicly funded work. The developer pays all costs of obtaining and maintaining the security and must grant temporary easements so the Village can finish the work if the developer does not.

Eligibility and Requirements for a Illinois Stormwater Improvement Bond:

Village of Carol Stream named as obligee.
Development security of not less than 110 percent of the estimated probable cost to complete the stormwater facilities.
Separate erosion and sediment control security of 110 percent of the estimated probable cost to install and maintain those measures.
Wetland and buffer mitigation security of 110 percent where mitigation is required.
Compliance with Carol Stream Code 16-5-13 and DuPage County Ordinance Section 15-54.

Illinois Stormwater Improvement Bond FAQs:

Is the bond 100 percent of the engineer's estimate?

No. Section 15-54 of the DuPage County ordinance, which Carol Stream adopted in Village Code 16-5-13, sets development security at not less than 110 percent of the estimated probable cost to complete the stormwater facilities.

Is erosion control covered by the same bond?

The ordinance treats it as a separate piece of security, sized at 110 percent of the estimated probable cost to install and maintain the soil erosion and sediment control measures. Ask the Village whether it wants one instrument or two.

When is the security released?

Ninety percent of the development security is released after record drawings are approved and the final inspection is done. The last 10 percent is held for at least one year and released after an inspection shows the facilities work properly.

Do public agencies have to post it?

No. Section 15-54 exempts public bodies from posting performance security for publicly funded work.

Will the Village take a surety bond instead of a letter of credit?

The ordinance names an irrevocable letter of credit or other adequate security, and lets the Director or Administrator accept surety instruments it deems appropriate. Confirm with Carol Stream Engineering Services before the bond is issued.