(a) Before the approval of the Final Plat the subdivider or developer shall agree in writing that prior to initiating the construction of any street or site improvements they shall provide a bond, certified check or irrevocable letter of credit acceptable to the Municipal Administrator and Solicitor, guaranteeing the completion of the improvements, or private roadway within one year from the date of the start of construction. The performance bond, certified check or irrevocable letter of credit shall be in an amount equal to the estimated cost of construction based on the prevailing public improvement construction rate and as approved by the Municipality Engineer. A certified irrevocable letter of credit by the institution, person, or corporation financing the construction of the public improvements shall stipulate that the funds in the amount of the estimated construction cost are available and set aside from all other funds in the name of the Municipality. The letter shall guarantee the completion of the street and site improvements within one year from the date of the agreement or such time as may be agreed to by Council. The letter shall certify that these funds will not be released to the subdivider, developer or their agent, unless a release is signed by the Municipal Administrator.
(b) Council may reduce the amount of the guarantee specified herein when any portion of the improvements, which was required by these Regulations, has been completed to the satisfaction of the Municipal Administrator. The Municipality Engineer shall state by a written report to Council that said portion of the improvements have been completed and in reasonable close conformity to the approved plans and specifications for the subdivision. The Municipality Engineer's report shall be accompanied by a reduced Financial Guarantee equal to the estimate provided by the subdivider and approved by the Municipal Administrator. The estimate is based on the cost of the remaining portion of work for the improvements at the prevailing public improvement construction rate.
(c) A maintenance bond in the amount of ten percent (10%) of the final construction cost shall be provided for a maintenance period of one-year beginning with the date of acceptance of the improvements by Council. The Municipality Engineer shall conduct a one-year maintenance inspection and prepare for the Administrator a written report documenting the conditions of the improvements on or about the one-year anniversary date of the acceptance of the improvements by Council. With this report, any deficiencies detected will be identified to the subdivider or developer for their attention and remedial action. The Municipality Finance Director will not release the maintenance bond until deficiencies are corrected to the satisfaction of the Municipal Administrator. (Ord. 19-011. Passed 4-22-19.)