(A) The duration of the performance guarantee covering the construction of the required improvements shall be for a period of two years, unless a different time period is prescribed by a particular section of this code which requires such guarantee to be posted. The time period shall begin on the date of final approval for the final plat by the Town Council. A provision shall be provided for unconditional payment of the face amount of the guarantee within 30 days from the town’s declaration of default by the developer.
(B) A retainage of not less than 20% of the total amount of the guarantee shall be retained by the town for a period of not less than two years following the date of final acceptance of the improvements by the town. Such retainage shall be a guarantee of the durability of all improvements. If, during the two-year period, the durability of said improvements are found to be satisfactory, the Town Council shall authorize release of said retainage. If, however, during said period the condition, or material or workmanship of the improvement or improvements fails or shows unusual depreciation, or if it becomes evident that certain work was not completed, or that said improvements do not otherwise comply with accepted standards of durability, as determined by the Town Engineer, said condition shall be corrected by the person giving the performance guarantee. If the corrections are not made within a reasonable time, the Town Council may, in accordance with § 151.205 of this chapter, declare such a person in default and use the retainage to defray the cost of any required work.
(Ord. 14-11-02, passed 11-14-2002)