(A) In lieu of completing the required subdivision improvements of this chapter, a financial guarantee in the form of a no-contest, irrevocable bank letter of credit, or performance and payment bond underwritten by an acceptable state licensed corporate surety, or a cashier’s check may be accepted by the decision-making body, subject to County Attorney approval of the guarantee to determine that the interests of town are fully protected. Where a cashier’s check is utilized, opinion of counsel may be waived.
(B) The amount of the financial guarantee shall be determined by the appropriate governmental body that exercises operational control. (Commissioners of public works for public water, commissioners of the appropriate public service districts for street name signs and public sewer, and the Public Works Director for all other improvements covered in this chapter.) The amount shall be sufficient to guarantee completion of the required improvement (125% of the actual cost of the improvement with a minimum of $2,000) within a time period specified by the government agency, not to exceed two years. The governmental agency determining the amount of financial guarantee shall provide a letter to the Planning Commission (copy to the subdivider) setting forth the amount of bond, conditions of acceptance and the period covered. The Planning Commission staff will inform all interested governmental agencies, particularly the town and/or County Building Inspection Department.
(C) Developers making use of performance guarantees shall be required to post required maintenance guarantees at the time that the performance guarantee is posted.
(D) Upon completion of the improvements as required by this section, written notice thereof shall be given by the subdivider to the bond holder, who shall cause an inspection of the improvements to be made. The bond holder will, within 30 days of the date of notice, authorize in writing the release of the security given; provided improvements have been completed in accordance with the required specifications. Should the improvements not be completed in accordance with the required specifications by the date originally stipulated in writing by the bond holder, the funds derived from said bond or cashier’s check will be used by the bond holder to complete the improvements according to required specifications, at the earliest reasonable time. Where it appears that the bond was insufficient to finance the required improvements after the subdivider has defaulted, the Town Council and\or County Council will assess the individual subdivider the cost of the improvements over and above the surety amount.
(E) In no instance will the bond holder be authorized to extend for the subdivider the completion date originally stipulated.
(F) Pro-rated refunds based on a percentage of overall completion shall not be authorized, with the exception of an irrevocable bank letter of credit.
(G) The decision-making body shall review and approve or reject each acceptance of surety in lieu of completion of improvements. In making its determination, the decision-making shall give due consideration to the commitments made by the subdivider to individual purchasers.
(H) In lieu of completed subdivision improvements, the decision-making body may accept the written guarantee of a governmental body to complete required improvements within 90 days of the date of such acceptance by Town Council and/or County Council.
(I) The acceptance of performance bonds or a cashier’s check in lieu of completed performance is made possible only by the introduction of effective occupancy control. This control will be coordinated with final approvals so as to ensure that all conditions covered by one or more bonds are completely fulfilled, except as specified in the town’s and/or county Building Code, before an occupancy permit can be issued by the town and/or county Building Inspection Department.
(Ord. 20-8, passed 12-7-2000)