§ 155.607 GUARANTEE OF IMPROVEMENTS.
   (A)   General.
      (1)   No final plat will be accepted for review by the Technical Review Committee unless accompanied by written notice by the Planning Director, acknowledging compliance with (B) and (C) of this section.
      (2)   If the subdivision is to be phased or developed in sections, the Planning Director shall withhold final plat approval for the most recent phase until improvements in prior stages have been completed or guaranteed.
   (B)   Performance guarantees. In lieu of prior construction of the improvements required by this subchapter, the town shall, for the purpose of approving a final plat, accept a guarantee from the applicant that such improvements will be carried out according to the town's specifications at the applicant’s expense. Such guarantee may be in the form of a surety bond, letter of credit, certified check drawn in favor of the town, cash deposited with the town, or other form of guarantee that provides equivalent security to a surety bond or letter of credit, at the election of the person required to give the performance guarantee. Such guarantee shall be 125% of the estimated cost of the construction of the required improvements. This amount shall be determined by the Town Engineer or designee. Performance guarantees shall run for a period of one year upon written approval of the Town Council. If the improvements are not complete and the current performance guarantee is expiring, the performance guarantee shall be extended, or a new performance guarantee issued, for an additional period until such required improvements are complete (see also G.S. § 160D-804(g)).
   (C)   Surety bond. The town shall require a bond guaranteeing: street improvements, curbs, gutters, drainage facilities, sidewalks, electrical facilities, water and sewer lines and taps and all other improvements against defects for one year from the date of final acceptance by the town. This bond shall be in the amount determined by the Town Engineer or designee, and shall be in such form as allowed by division (B) immediately above.
   (D)   Town's right of inspection and acceptance.
      (1)   Whether the required improvements are performed prior to or following approval of the final plat, the applicant shall grant to the town and its assignees authority to inspect all construction of the required improvements, and moreover, shall advise the town at least two days in advance of beginning work on any of the various improvements. However, such right of inspection shall not constitute duty to inspect, nor shall it guarantee final acceptance by the town of any required improvements.
      (2)   If improvements guaranteed as required by this articledo not meet the town's standards and the party responsible for constructing the improvements refuses to complete the improvements to the town's standards, the town, at its sole discretion, may call or execute on the performance guarantee in order to finance the necessary completion of the guaranteed improvements. The town will provide the applicant with a written notice of its intent to carry out this provision at least two weeks prior to such liquidations, and shall also provide the applicant during this period a hearing at a regularly scheduled meeting of the Town Council, provided that sufficient time of validity remains on the guarantee..
      (3)   The town's final acceptance of required improvements in the event of their construction following final plat approval shall be evidenced by a written letter from the Town Manager as specifically authorized by the Town Council.
(Ord. 2005-11-02, passed 11-21-05; Am. Ord. 2007-04-05, passed 4-2-07; Am. Ord. 2021-02-02, passed 2-15-21)