§ 156.607  GUARANTEE OF IMPROVEMENTS.
   (A)   General.
      (1)   No final plat will be accepted for review by the Planning Board or Town Board of Commissioners unless accompanied by written notice by the Town Manager, acknowledging compliance with divisions (B) and (C) below.
      (2)   If the subdivision is to be phased or developed in sections, the Planning Board 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 chapter, 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 performance bond, letter of credit, or certified check drawn in favor of the town or cash deposited with the town. Such guarantee shall be in an amount of not less than 125% or more than 150% of the estimated cost of the construction of the required improvements.  This amount shall be determined by the Town Manager. Performance guarantees shall run for a period of 1 year upon written approval of the Town Board of Commissioners.
   (C)   Performance 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 1 year from the date of final acceptance by the town. This bond shall be in the amount determined by the Town Manager and shall be in cash, certified check, or be made by a bonding/insurance company authorized to do business in North Carolina.
   (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 2 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 are guaranteed by a bond or cash deposit, failure by the applicant to perform the work to the town's standards shall free the town, at the discretion of the Town Board of Commissioners, to liquidate the bond or cash deposit, in order to finance the necessary repairs. This provision shall extend through the 1-year warranty period. The town will provide the applicant with a written notice of its intent to carry out this provision at least 2 weeks prior to such liquidations, and shall also provide the applicant during this period a hearing at a regularly scheduled meeting of the Town Board of Commissioners.
      (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 Board of Commissioners.
(Ord. passed 6- -2019)