(A) In lieu of the actual completion and acceptance by the Town Council of the improvements required by this chapter and before approval of the final plat by the Town Council, the subdivider may guarantee the installation and construction of the required improvements within two years from the date of approval of the final plat and shall also guarantee that the improvements shall be maintained in a state of good repair, free from defective material or workmanship, for a period of 12 months from the date of completion. Guarantee of the improvements shall be made by bond, escrow or letter of credit as set out in divisions (B)(1) through (B)(3) below. The Town Council may, upon application by a subdivider, and at its sole discretion, extend by 12 months the period of time within which improvements must be completed upon finding of good cause therefor and upon finding that the subdivider has made a diligent and good faith effort to complete the improvements within the time period permitted. Upon granting such a 12-month extension, the Town Council shall establish the reasons therefor, in writing, and include the same within the minutes of the Town Council meeting in which the extension is granted.
(B) The bond, escrow or irrevocable letter of credit by which guarantee is made shall be substantially in compliance with the following forms.
(1) Bond. The subdivider shall furnish and file with the Town Treasurer a bond, with corporate surety, in an amount equal to the cost, plus 10%, of the improvements not previously installed as estimated by the engineer of the subdivider and approved by the Town Engineer, to ensure the installation and construction of such improvements within 24 months following the approval of the subdivision plat by the Town Council, and which bond shall guarantee that the improvements shall be maintained in a state of good repair, free from material or workmanship defects for a period of 12 months following the completion of the improvements. After 12 months, the subdivider shall call for inspection by the Town Engineer, such inspection to be made within 20 days from the date of the request. If inspection shows that the standards and specifications have been met to completion of such improvements, the bond therefor shall be released within 14 days from the time of inspection.
(2) Escrow agreement. The subdivider shall deposit with any insurance company, bank or savings and loan institution in an escrow account, an amount of money equal to at least 125% of the costs of the improvements required by this chapter not previously accepted by the town. The costs of the improvements not accepted and not installed or constructed shall be estimated by the engineer of the subdivider and approved by the Town Engineer. The escrow agreement shall be subject to approval of the Town Attorney and shall be signed by the subdivider, the town and the escrow holder. Such agreement shall be on file in the office of the Town Clerk.
(3) Irrevocable letter of credit. The subdivider shall file with the town an irrevocable letter of credit from a duly chartered state or national bank or savings and loan institution, which letter shall contain provisions substantially similar to that required in the escrow agreement.
(Prior Code, § 11-5-4) (Ord. 2001-02, passed 10-3-2001)