(a) All new stormwater control structures shall be conditioned on the posting of adequate financial assurance for maintenance, reconstruction, or repairs necessary for the adequate performance of the stormwater control structures.
(b) Financial assurance shall be in the form of the following:
(1) Security performance bond or other security. The permit applicant shall obtain either a performance bond from a surety bonding company authorized to do business in North Carolina, an irrevocable letter of credit, or another instrument readily convertible into cash at face value payable to the town or placed in escrow with a financial institution designated as an official depository of the town. The bond or other instrument shall be in an amount equal to one and one-quarter (1.25) times the total cost of the stormwater control structure, as estimated by the applicant and approved by the town. The total cost of the stormwater control structure shall include the value of all materials such as piping and other structures; seeding and soil stabilization; design and engineering; and grading, excavation, fill, etc. The costs shall not be prorated as part of a larger project but rather under the assumption of an independent mobilization.
(2) Cash or equivalent security deposited after the release of the performance bond. Consistent with Section 9-3167(C) (1), the permit applicant shall deposit with the town either cash or another instrument approved by the Town Attorney that is readily convertible into cash at face value. The cash or security shall be in an amount equal to fifteen percent (15%) of the total cost of the stormwater control structure or the estimated cost of maintaining the stormwater control structure over a ten (10) year period, whichever is greater. The estimated cost of maintaining the stormwater control structure shall be consistent with the approved operation and maintenance plan or manual provided by the developer under Section 9-3165(a).
(c) Consistent with Section 9-3162, the permit applicant shall enter into a binding operation and maintenance agreement between the town and all interests in the development. Said agreement shall require the owning entity to maintain, repair, and, if necessary, reconstruct the stormwater control structure following the operation and management plan or manual provided by the developer. The operation and maintenance agreement shall be filed with the County Register of Deeds by the Watershed Administrator.
(d) Default under the performance bond or other security.
(1) Upon default of the permit applicant to complete and/or maintain the stormwater control structure as specifically provided in the performance bond or other security, the town may obtain and use all or any portion of the funds necessary to complete the improvements based on an engineering estimate. The town shall return any funds not spent in completing the improvements to the owning entity.
(2) Default under the cash security. Upon default of the owning entity to maintain repair and, if necessary, reconstruct the stormwater control structure following the operation and maintenance agreement, the town shall obtain and use all or any portion of the cash security to make necessary improvements based on an engineering estimate. Such expenditure of funds shall only be made after exhausting all other reasonable remedies seeking the owning entity to comply with the terms and conditions of the operation and maintenance agreement. The town shall not return any of the deposited cash funds. (Ord. of 1/10/05; Ord. of 12/6/10; Ord. of 6/28/21)