(A) In the event that the Council permits the applicant to proceed under this section, and based on a cost estimate submitted by the applicant’s engineer, the engineer approved by the town will prepare the estimate for the cash escrow revising the costs as required to match prevailing conditions for the construction and installation of all required public improvements, and including a 20% contingency fee. An escrow bond and public improvement agreements bond payment, and inspection fees shall be submitted to an the engineer approved by the town before the final subdivision plat is recorded by the Town Clerk.
(B) The amounts stated in the bond estimate shall be considered individual and separate with respect to releases by the Town Council, but each amount shall be applicable to every other part in the event of the applicant’s failure to perform one or more of the improvements to the satisfaction of by an engineer approved by the town and Town Council. Notwithstanding the itemization of type and cost of improvements, any sum available pursuant to the bond may be used by the town, and not released to the applicant, for any other improvement covered by the bond as well as the specified improvement.
(C) The Town Council shall have authority to release to the applicant any funds held by the town. The Town Council shall not release, prior to final acceptance, any amount(s) for each specified improvement in excess of 80% thereof. Before the Town Council shall release more than 59% of such amount related to any one or each separate improvement, the Town Council shall require that the applicant to certify in writing that no material-man’s or mechanic’s liens have been filed with respect to the required improvement(s).
(D) After final acceptance of any public improvements by the Town Council, 20% of the amount pertaining to the particular public improvement shall be held for a minimum period of two years. The said 20% shall be held to guarantee the materials and workmanship of the completed improvements.
(E) (1) The Town Council shall have the power to require payment of all amounts remaining in the bond, upon certification by an engineer approved by the town that the applicant has failed to comply with an obligation to install the required public improvements in a manner satisfactory to an engineer approved by the town, or that the applicant is in default, whether the two-year guarantee period has elapsed or not.
(2) Any such funds shall be segregated by the Town Clerk in a special account and expended for the purposes set forth in the public improvements contract entered into by the applicant.
(3) Should an emergency arise, the town may, after providing the applicant with a 14-day notice period, complete the required improvement(s) and be compensated from all bond amounts, plus 15%, to recover overhead and other costs incurred by the town to complete the required improvements.
(Ord. 49, passed 3-5-2003; Ord. 49A, passed 3-3-2004; Ord. 58, passed 5-8-2008, § 700-4; Ord. passed 7-11-2019)