5.15.1 IMPROVEMENT GUARANTEES
A. Applicability: In lieu of construction of the permanent improvements required by this ordinance, the developer shall guarantee that such improvements will be carried out according to the Town of Lillington specifications at his/her expense. At minimum, improvements such as public utilities and initial surface of street right-of-way shall be installed and inspected by the Administrator for compliance. The remaining improvements shall be built or bonded prior to the recording of the final plat.
B. Amount of Improvement Guarantees: Such guarantees shall be in an amount of not less than 125% of the estimated cost of the construction of the required improvements. The amount of guarantee shall be approved by the Administrator based on a professional engineers certified cost estimate and shall be provided in the manner outlined in Section 5.15.2.
C. Release of Improvement Guarantees: The Administrator shall authorize the release of all or a portion of any guarantee posted as the improvements are completed. Such funds shall be released within 30 days after submittal of an improvements completion certification from a professional engineer and approval of applicable improvements by the Administrator.
D. Warranty Against Defects
1. Upon completion of construction of new streets, stormwater controls or other required utilities, the developer shall request a warranty inspection. Once all the improvements are deemed acceptable by the Administrator and pass the warranty inspection, the developer shall submit the following to the Administrator:
a. A set of acceptable as-built drawings;
b. A written warranty against defects which shall guarantee the material and workmanship of required improvements for a period of not less than one year from the date of such acceptance;
c. A financial guarantee payable to the town equal to at least 25% of the cost of the installation of such improvements as determined by the Administrator. Such financial guarantee shall be in a form as provided for in Section 5.15.2.
2. Upon approval of these materials and acceptance of the improvements by the town, a one-year warranty period shall commence. During the one-year warranty period, the developer shall repair any latent defects that occur. For the purposes of this section, the term "defects" refers to any condition in publicly dedicated facilities, utilities or streets that requires the town to make repairs to such improvements over and above the normal amount of maintenance that they would require. If such defects appear, the warranty may be enforced regardless of whether the facilities, utilities or streets were constructed in accordance with the requirements of this ordinance. At the end of the one-year warranty period, the developer shall request a final inspection. Upon successful completion of all warranty items, the developer shall be released from maintenance responsibilities for the warranted construction.
3. Warranty repairs shall be corrected in accordance with the recommendations of the Administrator.
4. If a developer fails to complete warranty items, future projects of the developer may not be reviewed by the town. In addition, the town shall take appropriate legal action against the developer.
5.15.2 TYPES OF GUARANTEES/SECURITIES
Improvements guarantees and performance securities shall be made in one or more of the following forms:
A. The deposit of a certified check;
B. A letter of credit duly executed by a local bank and payable to the town; or
C. A surety bond made by a surety company licensed to do business in North Carolina.
5.15.3 FORFEITURE AND DEFAULT
A. Forfeiture Provisions: All improvement guarantees and performance securities 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 ordinance, approvals issued pursuant to this ordinance, or an operation and maintenance agreement established pursuant to this ordinance.
B. Default by Developer:
1. Upon default, meaning failure on the part of the developer or surety to make timely completion of the required improvements, or to maintain privately owned improvements in accordance with an approved operations and maintenance agreement, the town may require the developer, the surety, or the financial institution holding the escrow account to pay all or any portion of the bond or escrow account fund to the town.
2. Upon payment, the town, at its discretion, may expend such portion of the funds as it deems necessary to complete all or any portion of the required improvements.
3. Such expenditure of funds shall only be made after requesting the owner to comply with the permit or maintenance agreement.
5.15.4 ALL IMPROVEMENTS TO BE COMPLETED
Upon recordation of 75% of the total lots approved within a subdivision, the developer shall be required to complete all remaining public improvements. Exceptions may be provided on a case-by-case basis as approved by the Administrator.
5.15.5 PROVISION OF SERVICES AND ACCEPTANCE BY TOWN
The following shall not occur upon any land for which a final plat is required to be approved, unless and until the requirements set forth in this ordinance have been complied with and the final plat has been approved and recorded with the Harnett County Register of Deeds:
A. No street shall be maintained or accepted by the town, and
B. No water or sewer shall be extended to or connected with any subdivision of land, and
C. No permit shall be issued by the Town of Lillington for the construction of any building or other improvement requiring a permit.
(Ord. passed 2-14-2017; Ord. passed 2-15-2022)