(A) Assurances and guarantees. No final plat will be recorded unless one or more of the following methods of assurance are submitted with the final plat, with a cost estimate for construction of the required on- and off-site improvements, signed and sealed by a Registered Professional Engineer. The amount of the assurance shall be based on the engineer's cost estimate for all required and remaining site improvements as approved by the Town Engineer. Utility service assurances may be provided by letter from water, sewer, electric and other appropriate utility companies to guarantee improvements.
(1) Performance bond. The subdivider shall file with the town a bond executed by a surety company holding a license to do business in the state, and acceptable to the town, in an amount equal to the cost of the improvements required by these Regulations and within the time for completion of improvements as estimated by the Engineer of Record and approved by the Town Engineer. The performance bond shall be approved as to form and legality by the Town Attorney.
(2) Trust agreement. The subdivider shall place on deposit in a bank or trust company in the name of the town, and approved by the Town Attorney, in a trust account a sum of money equal to the estimated cost of all site improvements required by these regulations. The cost and time of completion shall be approved by the Town Engineer. The trust shall be approved as to form and legality by the Town Attorney. Periodic withdrawals may be made from the trust account for a progressive payment of installation costs. The amounts of such withdrawals shall be based upon progress work estimates and approved by the Town Engineer. All such withdrawals shall be approved by the Trustee.
(3) Unconditional guarantee from a local bank or federally insured savings and loan association or from other financial institutions as approved by the town. The subdivider shall file with the town a letter, signed and notarized by the principal officer of a savings and loan association or other financial institution acceptable to the town, agreeing to pay the town on demand, a stipulated sum of money to apply to the estimated cost of installation of all improvements for which the subdivider or developer is responsible under these regulations. The guaranteed payment sum shall be determined from the estimated costs and scheduling as approved by the Town Engineer. The letter shall state the name of the subdivision and shall list the improvements for which the subdivider or developer is required to provide together with a schedule for completion.
(B) Improvements/construction of public or private improvements prior to final plat approval and/or recordation.
(1) No subdivision site work shall be initiated unless or until the preliminary plat has been approved by the Council and the site work authorized by the Town Engineer and there are approved construction plans.
(2) If the subdivider chooses to construct the required improvements prior to final plat approval or recordation, he shall submit the construction plans prepared by a Registered Professional Engineer, inspection reports, test reports and material certifications to the Town Engineer for approval. Once approvals are obtained and a development permit from the Flood Control District for drainage work has been issued, then site construction can be initiated.
(3) Such construction will be performed with the understanding that the developer is doing so at his own risk should something be changed on the plat design prior to approval/recordation that may warrant modifications to site improvements.
(C) Duration and releases.
(1) The duration of the performance bond or other assurance shall be for two years, from the date of recording. Extensions of time in one year increments may be granted by the department by showing just cause. The assurance (surety) shall remain in force and effect until it is released by the Council or has been authorized for partial release as provided for herein.
(2) The Town Engineer, upon receipt of a certification from the Engineer of Record, may authorize a reduction of the assurance for the work completed in accordance with the approved cost estimate and construction plans. A percentage (10%) of the estimated cost of completed improvements will be retained to insure sufficient funds remain to insure completion of the site improvements, final inspections and preparation of final “as-built” plans.
(3) In the event that the subdivider defaults or fails or neglects to satisfactorily install the required improvements within the time agreed upon for performance, the Council may declare the bond, or other assurance forfeited, and the Town may make or cause the required improvements to be made, using the trust funds or proceeds of the collection of the bond or other assurance to defray the expense thereof. In addition, the department shall notify ADRE of the default.
(D) Inspections and final release.
(1) The subdivider, using the services of a Registered Professional Engineer and plans as approved by the Town Engineer, shall be responsible for the quality of all materials and workmanship. At the completion of the work, or not less than 30 days prior to the release date of the bond or other assurance, the Engineer of Record shall make an inspection of the improvements and shall submit a set of “as-built” construction plans if complete or a report on the status of improvements if only partially complete to the Town Engineer. The Town Engineer will review the “as-built” plans and/or report and notify the developer of any noncompliance with the approved construction plans or with these regulations. If the Town Engineer determines that compliance has been made, he will then submit a report to the Council, setting forth the conditions of such facilities.
(2) A certificate sealed by the Engineer of Record on the “as-built” plans stating that the construction has been completed in substantial conformance to the specifications and standards contained in or referred to herein must by approved by the Town Engineer and presented to the Council prior to the surety release. If all conditions are found to be satisfactory and the improvements comply with Town Standards, the Council shall release the guarantee. If the condition of materials or workmanship shows unusual depreciation or does not comply with Town Standards, the Town Engineer may present this information to the Council who may declare the subdivider in default.
(3) Certification and acceptance.
(a) The Engineer of Record shall certify: “In my professional opinion, the construction of the specific site improvements required for approval has been completed in substantial conformance with the construction plans and specifications including changes and addendums. My professional opinion is based, in part, upon the completion of certain tests and measurements and/or the review of the results of such tests and measurements completed by others. The rendering of this opinion in no way relieves any other party from meeting requirements imposed by contract, plans, specifications or commonly accepted industry standards.”
(b) Once the improvements are approved and the surety released, the Council will review the public roadways for acceptance into the Town System for Maintenance.
(Ord. 09-51, passed 4-21-2009)