(A) May be required. The town, at its discretion, may require the submittal of a performance security or bond with surety, cash escrow, letter of credit or other acceptable legal arrangement prior to issuance of a permit in order to ensure that the SCMs are:
(1) Installed by the permit holder as required by the approved storm water management plan; and/or
(2) Maintained by the owner as required by the operation and maintenance agreement.
(B) Amount.
(1) Installation. The amount of an installation performance security shall be the total estimated construction cost of the BMPs approved under the permit, plus 25%.
(2) Maintenance. The amount of a maintenance performance security shall be the present value of an annuity of perpetual duration based on a reasonable estimate of the annual cost of inspection, operation and maintenance of the BMPs approved under the permit, at a discount rate that reflects the jurisdiction’s cost of borrowing minus a reasonable estimate of long-term inflation.
(C) Uses of performance security.
(1) Forfeiture provisions. The performance security shall contain forfeiture provisions for failure, after proper notice, to complete work within the time specified, or to initiate or maintain any actions which may be required of the applicant or owner in accordance with this chapter, approvals issued pursuant to this chapter or an operation and maintenance agreement established pursuant to this chapter.
(2) Default. Upon default of the owner to construct, maintain, repair and, if necessary, reconstruct any SCMs in accordance with the applicable permit or operation and maintenance agreement, the Storm Water Administrator shall obtain and use all or any portion of the security to make necessary improvements based on an engineering estimate. Such expenditure of funds shall only be made after requesting the owner to comply with the permit or maintenance agreement. In the event of a default triggering the use of installation performance security, the town shall not return any of the unused deposited cash funds or other security, which shall be retained for maintenance.
(3) Costs in excess of performance security. If the town takes action upon such failure by the applicant or owner, the town may collect from the applicant or owner the difference between the amount of the reasonable cost of such action and the amount of the security held, in addition to any other penalties or damages due.
(4) Refund. Within 60 days of the final approval, the installation performance security shall be refunded to the applicant or terminated, except any amount attributable to the cost (plus 25%) of landscaping installation and ongoing maintenance associated with the BMPs covered by the security. Any such landscaping shall be inspected one year after installation with replacement for compliance with the approved plans and specifications and, if in compliance, the portion of the financial security attributable to landscaping shall be released.
(Ord., passed 5-11-09; Am. Ord., passed 1-13-20; Am. Ord., passed 9-13-21)